Here is the list of top 10 stocks that can potentially deliver multibagger returns over next 2-3 years.
Summary – These stocks are: Pidilite, UPL, BEL, KNR, Bharat Forge, NTPC, Reliance Industries, Power Grid, Gujarat Industries Power, PI Industries.
| CMP (24-Dec-2016) |
52 wk low | 52 wk high | Other Recommendations | |
| Pidilite Industries | 587 | 521 | 770 | ICICI Direct (Target 775) Prabhudas (Target 770) |
| UPL | 628 | 342 | 730 | KR Choksey (842) Yes Securities (800) |
| Bharat Electronic (BEL) | 1384 | 1009 | 1540 | Axis (1290) ICICI Sec (1560) Motilal (1450) |
| KNR | 155 | |||
| Bharat Forge | 912 | 686 | 1008 | Prabhudas 957 ICICIDIrect – 1000 |
| NTPC | 161 | 116 | 170 | Axis (171) Religare – 185 |
| Reliance Industries | 1058 | 888 | 1129 | Edelweiss – 1400 |
| Power Grid | 182 | 127 | 196 | Prabhudas – 196 |
| Gujarat Industries Power | 95 | 75 | 110 | |
| PI Industries | 832 | 495 | 921 |
See more details & rationale provided by the analysts.
Analysts: Vinod Nair, Head of Research, Geojit BNP Paribas
Pidilite Industries: Pidilite Industries, a pioneer in consumer and speciality chemicals in India, can turn out to be a multibagger given its strong brand recall, superior pricing power and distribution reach. Pidilite is a strong play on recovery in discretionary spending.
UPL: UPL, a leading global manufacturer of crop protection products, has presence across the agri-input value chain from seeds to post-harvest chemicals. If investors stay invested in the stock, it could well turn out to be a multibagger. UPL’s well-diversified presence across key markets, products and crops act as a key factor behind its ability to outpace industry growth. Further, the merger with AdvantaBSE 0.82 % will help UPL to expand its product portfolio.
Bharat Electronics (BEL) : BEL has a 37 per cent market share in Indian defence electronics. The current order book is robust at Rs 34,675 crore (over 60 per cent YoY in Q2 of FY17). With the government focus on domestic manufacturing through ‘Make In India’ and defence focus, PSUs that focus on R&D will benefit. BEL’s competitive advantage of working with DRDO (Defence Research and Development Organisation) on new technology for more than three decades will further ensure higher orders for next 3-5 years.
KNR Constructions (KNR) : KNR is a leading EPC player focusing largely on national and state highway projects. Healthy order book of four times trailing 12-month revenue insulated with 104 per cent YoY rise in order inflow in Q2 of FY17 is providing the essential glimpse of future performance for the next two to three years
Bharat Forge (BFL) : BFL is now exploring opportunities in Aerospace & Defence sector and the orders from Boeing and new defence JV with AM General will provide higher revenue visibility in non-auto sector during FY18. Export revenue will recover with the pick-up in US truck sales and rise in crude price (oil exploration business) will improve non-auto utilisation.
Analyst: D K Aggarwal, Chairman and MD, SMC Investments and Advisors
NTPC: The company is the most preferred power company and rationalization of movement of coal to reduce electricity costs, and rationalization of coal grades based on Gross Calorific Value for correct tariff fixation would give further lead to transformational changes in power sector.
Moreover, it had added 4028 MW of renewable capacity, which highlights the accelerating speed of solar and wind capacity addition along with conventional capacity.
Reliance Industries: The company has achieved outstanding performance during Q2FY17 with strong refining business performance and record petrochemicals segment earnings. The refining business sustained high profitability in a tough environment highlighting, dynamic response to market trends and robust operations. Petrochemicals segment gained significantly from higher volumes, integration and supportive product margins.
Its projects in the hydrocarbon chain are at advanced stages of mechanical completion and pre-commissioning activities. These projects would further strengthen its position as a leading operator in the energy and materials businesses.
Power Grid: Strong project execution capabilities, history of meeting targets and visibility on investment plans for next few years gives comfort on earning visibility. The company continues to take various initiatives for development of Smart Grid in India and is constantly enhancing its abilities through in-house research and demonstration projects in this direction.
Gujarat Industries Power Company: The company is well placed in terms of fuel security, with the entire fuel requirement met by captive lignite mines. Further, power generated by the company has assured off take through power purchase agreements (PPAs) signed under the cost-plus model, ensuring fixed RoE of PAF for lignite and gas-based plants. Moreover, expansions and development; favourable government policies would give favorable boost to the company.
PI Industries: The company has launched a rice herbicide ‘Legacee’ which is a co-marketed product from BayerBSE 0.02 % Crop Science. Moreover, it is planning to launch 1-2 new domestic agri-inputs products and 2-3 new molecules every year. Its Jambusar facility is operating at 75% utilization levels and contributed a major part of growth for the company.
Views and recommendations given in this section are the analysts’ own and do not represent those of this website. Please consult your financial adviser before taking any position in the stock/s mentioned .