IIFL Securities says these 9 mid-, small-cap stocks have up to 38% upside potential
The BSE SmallCap index has gained 30 per cent in the last year, while the BSE MidCap and BSE Sensex have advanced 25 per cent and 12 per cent, respectively
- Sep 8, 2023,
- Updated Sep 8, 2023 2:38 PM IST
Brokerage IIFL Securities is bullish on at least nine mid- and small-cap stocks that it says have an upside potential of 38 per cent despite the ongoing outperformance in the broader markets. The BSE SmallCap index has gained 30 per cent in the last one year, while the BSE MidCap and BSE Sensex have advanced 25 per cent and 12 per cent, respectively, since September 7, 2022.
The latest India-Strategy report by the brokerage shows that IIFL Securities is bullish on Balkrishna Industries (BIL) with a target price of Rs 2,600, indicating an upside of over 8 per cent per cent from the current market price. “BIL’s margins in recent quarters have been affected by lower volumes and adverse mix. As volumes and mix improve, we expect it to move to management guidance range of 26-28 per cent,” IIFL Securities said.
With an upside potential of more than 22 per cent, the brokerage is also positive on CMS Info Systems (Target price Rs 449) and Cummins (Target price: Rs 2,135).
IIFL Securities believes that CMS Info Systems, the leader in the cash logistics market, with a growing presence in the ATM managed services market, and now expanding into tech solutions, is well placed to benefit from healthy ATM rollouts, increased outsourcing activity of support functions by banks and tightening regulatory compliance.
“CMS’ scale, professional management (top management has been with CMS for more than 10 years), pan India coverage and a strong balance sheet (net cash company with healthy return ratios) are its competitive advantages,” IIFL Securities said.
Equitas Small Finance Bank (Target price: Rs 109; upside potential: 30 per cent), JB Pharma (Target price: Rs 3,150, upside potential: 13 per cent), Ashoka Buildcon (Target price: Rs 145; upside potential 25 per cent) are among the other picks of IIFL Securities from the broader market space.
“Equitas is one of the most diversified SFBs with a share of the non-MFI portfolio at 81 per cent (up from 47 per cent in FY15) and a pristine liability franchise. Bank is expected to clock a strong 23-25 per cent advances growth in FY24/25 which shall be broad-based across segments including MFI,” IIFL Securities said in a report.
The brokerage is also bullish on MCX with a target price of Rs 1850, showing an upside of 33 per cent from the current market price. It also prefers Zee Entertainment (Target price: Rs 390; upside potential: 38 per cent) and Kaynes (Target price: Rs 2,595; upside potential: 33 per cent).
Sharing its view on MCX, IIFL Securities said, “Largest commodity exchange in India enjoying near monopolistic market share in the energy, bullion and base metals segments. Given the strong correlation between exchange volumes and volatility in commodity prices, MCX is likely to be the key beneficiary of uncertainty around commodity prices.”
Commenting on Zee Entertainment, IIFL Securities added that the merger with Sony looks set for consummation, which should potentially lead to cost rationalisation, improved capital allocation and re-rating on majority ownership by an MNC.
(Disclaimer: Under no circumstances should any person at this platform make trading decisions based solely on the information discussed herein. You should consult a qualified broker or other financial advisor prior to making any actual investment or trading decisions. All information is for educational and informational use only. Business Today does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same.)
Also read: Mazagon Dock shares in news on signing MSRA with US government. Ke
Brokerage IIFL Securities is bullish on at least nine mid- and small-cap stocks that it says have an upside potential of 38 per cent despite the ongoing outperformance in the broader markets. The BSE SmallCap index has gained 30 per cent in the last one year, while the BSE MidCap and BSE Sensex have advanced 25 per cent and 12 per cent, respectively, since September 7, 2022.
The latest India-Strategy report by the brokerage shows that IIFL Securities is bullish on Balkrishna Industries (BIL) with a target price of Rs 2,600, indicating an upside of over 8 per cent per cent from the current market price. “BIL’s margins in recent quarters have been affected by lower volumes and adverse mix. As volumes and mix improve, we expect it to move to management guidance range of 26-28 per cent,” IIFL Securities said.
With an upside potential of more than 22 per cent, the brokerage is also positive on CMS Info Systems (Target price Rs 449) and Cummins (Target price: Rs 2,135).
IIFL Securities believes that CMS Info Systems, the leader in the cash logistics market, with a growing presence in the ATM managed services market, and now expanding into tech solutions, is well placed to benefit from healthy ATM rollouts, increased outsourcing activity of support functions by banks and tightening regulatory compliance.
“CMS’ scale, professional management (top management has been with CMS for more than 10 years), pan India coverage and a strong balance sheet (net cash company with healthy return ratios) are its competitive advantages,” IIFL Securities said.
Equitas Small Finance Bank (Target price: Rs 109; upside potential: 30 per cent), JB Pharma (Target price: Rs 3,150, upside potential: 13 per cent), Ashoka Buildcon (Target price: Rs 145; upside potential 25 per cent) are among the other picks of IIFL Securities from the broader market space.
“Equitas is one of the most diversified SFBs with a share of the non-MFI portfolio at 81 per cent (up from 47 per cent in FY15) and a pristine liability franchise. Bank is expected to clock a strong 23-25 per cent advances growth in FY24/25 which shall be broad-based across segments including MFI,” IIFL Securities said in a report.
The brokerage is also bullish on MCX with a target price of Rs 1850, showing an upside of 33 per cent from the current market price. It also prefers Zee Entertainment (Target price: Rs 390; upside potential: 38 per cent) and Kaynes (Target price: Rs 2,595; upside potential: 33 per cent).
Sharing its view on MCX, IIFL Securities said, “Largest commodity exchange in India enjoying near monopolistic market share in the energy, bullion and base metals segments. Given the strong correlation between exchange volumes and volatility in commodity prices, MCX is likely to be the key beneficiary of uncertainty around commodity prices.”
Commenting on Zee Entertainment, IIFL Securities added that the merger with Sony looks set for consummation, which should potentially lead to cost rationalisation, improved capital allocation and re-rating on majority ownership by an MNC.
(Disclaimer: Under no circumstances should any person at this platform make trading decisions based solely on the information discussed herein. You should consult a qualified broker or other financial advisor prior to making any actual investment or trading decisions. All information is for educational and informational use only. Business Today does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same.)
Also read: Mazagon Dock shares in news on signing MSRA with US government. Ke