ICICI Securities says you need to buy 3 stocks for potential profit
|Company||Recommendation||Target Price||Upside Potential|
|Time Technoplast||BUY||Rs 100||25%|
|Sagar Cements||BUY||Rs 390||26%|
|Triveni Engineering||BUY||Rs 270||52%|
Buy Time Technoplast with 25% potential gain
ICICI Securities shines in Time Technoplast for 25% feature as it has set a price target of Rs 100. With 34 manufacturing locations in 11 countries, Time Technoplast is a leading manufacturer of polymer-based packaging and composite products.
Revenue progress by relaxing lockdown restrictions
According to the brokerage, higher usage, growing demand for composite materials and higher EBITDA margins at current income and PAT CAGRs of 17% and 50% economic 21-23E, respectively. According to the corporate administration, the demand for sorted fourth composite cylinders has increased and the revenue potential of this category could be around Rs 2,200 crore per annum.
“Time Technoplast’s share price has risen ~ 2.3x in the last year. We maintain our BUY rating on the stock target price and valuation: We evaluate ourselves on FY23E and Time Technoplast on FY23E is priced at Rs 100 i.e. 5x EV / EBITDA EBITDA.
By FY25, the business wants to earn Rs 5,000 crore. Over the same period, value-added products (20 per cent of revenue) will witness a CAGR of 16 per cent, ”the brokerage said.
Buy 26% potential upward sea cement
The shares of Sagar Cement have been allotted on August 1, 2021 (former date) due to the approval of the Board and the shareholders issued on July 1, 2021 and July 28, 2021 for the share subdivision respectively.
“We expect revenue and EBITDA CAGR to be 30.8% and 27.3%, respectively, at FY21-23E. At current market price of 311 / share, the stock is still trading at an attractive valuation of 6.4x FY23E EV / EBITDA leaving a fair opportunity. Therefore, our target price should also rev 30 / share (i.e. a multiple increase of .0.0x FY23E EV / EBITDA) vs. the previous target price of Rs. 400 / share. Stock rating, “the brokerage said in its analysis report.
ICICI Securities recommends a ‘purchase’ with a target of Rs 10 crore. 390, above 26%.
Buy Tribeni Engineering with side upward probability of 52%
ICICI Securities recommends a ‘buy’ upward with 52% potential in the inventory of the Tribeni Engineering Firm.
The company has reported significant earnings progress. EBITDA was Rs. 149.6 crore, 3.9% in 12 months, with a margin of 13.5%. With the reduction in tax provisions, the PAT was Rs 92.3 crore, an increase of 10.2 per cent.
As the distillery grows, so does the cost of running the PAT
“TEL’s share price has risen 3.2x in the last five years. We expect distillery volume to increase 2.1x with CAGR 24.2% between FY21-24E.
With the help of distillery Capex, TEL will be able to increase its ethanol volume from 2.1x to FY24 at 22 million liters. The distillery’s sales could be 35% CAGR of Rs 1248.6 crore in FY 21-24, which would be 25% of total revenue, the brokerage said in its research report.
The shares listed in the article are taken from the brokerage report of ICICI Securities and should not be considered as a recommendation of the fund. … “data-gal-src =” www.goodreturns.in/img/600×100/2021/08/disclaimer2-1629261889.jpg “>
The shares listed in the article are taken from the brokerage report of ICICI Securities and need not be construed as a funding recommendation. The company and the manufacturer will not be held liable for any loss in the name of any fund based on this report.