Hot Stocks: 2 stocks that may give over 21% returns
Brokerages initiated coverage on Syrma SGS and Vedanta Aluminium with buy ratings. Their price targets imply returns of a little over 21% over Thursday’s closing price
SYRMA SGS
BROKERAGE: HSBC Price Target: Rs 1,750 CMP: Rs 1,441.70 | Upside:21.4%
High estimated Price to Earnings Ratio of 53 times justifi ed, given its high growth; Current PE is 44 times.
EMS companies command high double-digit P/E multiples due to growing TAM, government support, backward integration and strategic joint ventures. VEDANTA ALUMINIUM
BROKERAGE: MOTILAL OSWAL FINANCIAL Price Target: Rs 540 CMP: Rs 444.45 | Upside:21.6%
One of the most compelling structural stories in the global aluminium space.
Transition toward becoming more captive and backward integration will support structural re-rating of valuation multiples.
