Diwali doublers: InCred gunning for 3 stocks that can gain up to 311% in 3 years

A bottoms-up stock analysis of companies with strong business momentum, healthy ROE/ROCE profile, at least 15% EPS CAGR for FY24-26F, and a forward PE/PBV valuation near mean/ below mean of the last 5-10 years shows 10 stocks can rally within 46-311% in 3 years.

In the bull case scenario, Globus Spirits can zoom 311% to Rs 3,515 if there’s a faster decline in broken rice and domestic energy costs, InCred said.

Here are the other top Diwali stock ideas from InCred Equities:

Camlin Fine Sciences
A spike in vanillin sales and easing loss from catechol to drive gross profit and stock rerating can make the stock go up to Rs 300, translating into a rally of 129%.

Cyient DLM
Success in new areas like clean energy, and EV battery safety can drive higher sales momentum and valuation rerating. Target price: Rs 1,413 in the bull case. Return: 121%.

Ajanta Pharma
A higher proportion of branded generics to drive profitability and PE rerating to 30x. Target price: Rs 3,000

Bharat Forge
17% sales CAGR can extend EPS of Rs 42 by FY26 and at 45xFY26F (20% premium to mean PE). Target price: Rs 1,890

Container Corp of India
DFC benefits from container movement benefit and at 16x EV/EBITDA FY25F. Target price: Rs 1,075

Data Patterns
Scope for higher sales from production contracts in export can extend sales growth of 50+%. Target price: Rs 3,850.

Mahindra & Mahindra Finance
Assuming a 10% beat to our estimates and a higher multiple, the stock can rally up to Rs 430.

Spandana Sphoorty Financial
The worst is behind on the asset quality front, with the overall collection efficiency now strong. A geographically diversified loan book will protect the company during a downturn. Target price: Rs 1,350 in the bull case.

Tech Mahindra
Assuming a 10% beat to our EPS estimates and a higher multiple of ~22x, the stock can go up to Rs 1,874.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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