Buy 2 stocks for 38% and 33% profit from auto and energy space

Stocks

Author D33 B
Story published: August 28, Saturday, 2021, 16:03 P.M

 

Buy LG Balakrishnan stock, says CD Equisearch

The stock equivalent player of CD Equisearch has a “buy” call for a target price of Rs 565, which is Rs 409 against the current market price, thus increasing by about 38% from the current level. LG Balakrishnan manufactures roller chains and works in metal making with hot and cold forging, fine blanks and machined parts.

The stock is currently trading at 7.8 times FY22e EPS at Rs 52.51 and 6.5x FY23e EPS at Rs 62.83. After the increase in permanent sales, the post-tax revenue will increase by 27% CAGR in the next two years (sales are projected to increase by 11% in the current financial year and 23% in the financial year).

“LG Balakrishnan’s competitive advantage in terms of product quality and market reach will enable it to enter the replacement market better. In the case of Covid-1 cases, the risk cannot be ignored in terms of growth. Revised target of Rs. 555 (previous target: Rs. 26).

Anmol India

Khambata Securities Anmol India has set a price target of Rs 255 on the stock, against the current market price of Rs 191, which means a 33% gain.

The company provides imported coal bulk suppliers, end-to-end coal supply chain management solutions. The company specializes in supplying high GCV coal, USA coal, Indonesian coal, Saudi pet coke and USA pet coke, accounting for a large 16% share of the USA coal market in India.

“With the growth of a growing and industrialized economy, the use of urban energy is expected to increase as coal will be seen as the mainstay of India’s energy for the next 30 years. India does not produce enough coal to meet domestic demand As a result, coal imports are expected to be stronger, “Khambat Securities said in its report.

“We expect healthy growth in sales and profits driven by the high demand for Ampal imported coal as the company expands its product portfolio and geography of operations. At current levels, Anmol stock trades an attractive 8.8 times FY24E EPS. FY23E EPS’s By setting a 13-fold target P / E, we value Anmol at Rs 255, with an upward BUY rating of 48%, ”the brokerage added.

Disclaimer

The above stocks are based on the reports of the two brokers mentioned above. Investing in shares is dangerous and buyers ought to do their very own analysis. The author, brokerage firms, or Greenium Information Technologies are not responsible for any losses incurred due to decisions made based on the above article. Investors should therefore exercise due diligence as the record is at its peak. Please consult a professional advisor.

Story published: August 28, Saturday, 2021, 16:03 P.M

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