Buy These 4 Small-Cap Stocks To Get Up To 83 Percent Returns In The Face Of Rising Inflation, A Stoc
The Indian market is poised to resume its roller coaster journey this week after adopting a very pessimistic stance last week. The declining rupee, interest rate hikes, rising inflation, substantial FPI outflows, and weak cues have all contributed to significant losses for benchmark indices like the Sensex and Nifty 50. Last week, the Sensex and Nifty 50 both experienced an almost 4% decline (May 9 to May 13). The last two trading sessions, however, were somewhat in the red and were virtually leaning towards a flatter stick. Market analysts predict that market volatility will continue throughout the future week as well. Here are four stock recommendations that will help you earn two-digit profits in the midst of a volatile market.
These four long-term stocks are recommended by Yash Gupta, an equity research analyst at Angel One Ltd., as persisting worries about the sinking rupee, global interest rate hikes, rising inflation data, and lockdowns in China are anticipated to keep investors on edge in the next week.
Rating Buy |CMP Rs 308 |Target Price Rs 485 |Upside 57 per cent
With a presence in both 2Ws and PVs, Suprajit Engineering (SEL) is the biggest provider of automobile cables to domestic OEMS. In India, SEL has changed over time from being a company with a single product or client to one with a diversified exposure. This, together with its positioning as a low-cost player, has allowed it to expand its market share and attract new business from current clients. In recent years, SEL has outpaced the Indian auto sector (posting positive growth vs low double-digit declines for the domestic 2W and PV industry in FY21).The business thinks vendor consolidation and the addition of new clients will support the trend of increasing market and wallet share. SEL has amassed a solid balance sheet as a result of its years of profitable growth (net cash). We think that SEL will greatly benefit from an increase in production by OEMs around the world and is well protected from the danger of EVs (is developing new products). We believe that its robust prospects and exceptional earnings quality justify its premium pricing.
Rating Buy |CMP Rs 506|Target Price Rs 750 |Upside 48 per cent
The company engages in contracting work in addition to operating in residential and commercial real estate. Since Bangalore is one of India's IT centres and accounts for 70% of all residential pre-sales, we anticipate that additional hiring by the sector will boost demand for homes in South India. After the Demon, RERA, and IL&FS crises, listed players in India underwent a significant period of consolidation. In the past two to three years, listed businesses have increased their market share in new launches. We anticipate this trend to continue in the upcoming quarters.Inventory levels for items that are ready to transport and those that are still being built have dropped to their lowest points. Customers increasingly favour well-known companies like Sobha Developers Company, which plans to introduce 17 new projects/phases covering 12.56 million square feet across diverse regions. Existing land banks will be the source of the majority of launches. The corporation has a land bank with about 200 million square feet of saleable space.
Rating Buy |CMP Rs 158|Target Price Rs 256 |Upside 62 per cent
A prominent forging company in India with a heavy press, Ramkrishna Forgings (RKFL), expects to gain in the short term from a positive forecast for demand in the Medium & Heavy Commercial Vehicle (M&HCV) industry in both domestic and overseas markets. Over the previous few years, the company has gradually reduced its CAPEX, even though there were times when the industry experienced a slowdown. The CAPEX cycle is over, the medium-term outlook is promising, and there is enough capacity in place,We predict that RKFL volumes can achieve a volume CAGR of 29% over the period of FY21–23E. RKFL has been successful in introducing new goods with increased value addition. In FY22E, an increase in EBITDA margin of about 550 YoY bps is anticipated due to improved mix and operating leverage. We anticipate the RKFL's earnings to increase 10–12 times from FY21 levels in FY23E–24E thanks to robust volumes, profitability, and balance sheet deleveraging.
Rating Buy |CMP Rs 574 |Target Price Rs 1050 |Upside 83 per cent
Under the brand names "Pigeon" and "Gilma," Stove Kraft Ltd. (SKL) manufactures and sells kitchen and home appliances such as pressure cookers, LPG burners, nonstick cookware, etc. Over the past two years, the company has outpaced the industry and its competitors in the Pressure Cookers and Cookware area. Following Covid, organised players are displacing unorganised participants in the market, which is advantageous for players like SKL. In the future, we anticipate SKL to report healthy top-line and bottom-line growth as a result of the introduction of new products, a well-known brand name, and a substantial distribution network.