Are you looking for solid stocks which may boost your equity portfolio? An analysis by Equirus Securities suggested that at least five stocks from midcap and smallcap space may double investors’ wealth by September 2025.
In the midcap space, the brokerage firm believes that Apollo Tyres may hit Rs 597 in the next three years. This indicates an upside of 107 per cent from the current market price of Rs 288.20.
What makes Apollo Tyres an interesting opportunity? Equirus Securities in a report on September 15 said, “Due to its industry-leading R&D spends over the last 10 years, Apollo Tyres has attained leadership in two fast-growing tyre segments-TBR (Truck, Bus and Radial) and PCR (Passenger Car Radial). Capex intensity was significantly higher over the last five years due to TBR capex and greenfield expansion. Free cash flows will improve significantly from FY23 with good visibility on the same till FY27,” the brokerage said.
With a rally of 64 per cent, shares of Apollo Tyres moved in tandem with the benchmark BSE Sensex during the past three years. On the other hand, peers JK Tyres and Balkrishna Industries rallied 172 per cent and 159 per cent, respectively, since September 19, 2019.
In the report, Equirus Securities further highlighted that players like Healthcare Global Enterprises may touch Rs 688 by September 2025. The figure shows an upside of over 160 per cent from the current market price of Rs 263.20. The brokerage also sees a 123 per cent upside in another tyre stock, Ceat with a target price of Rs 3,654.
Sharing its view on Ceat, Equities Securities said, “As the company is expected to grow ahead of the industry due to market share gains, operating leverage benefits should help narrow the margin gap with other large competitors over the next three years.”
It further added that players including Lumax Industries and Jubilant Ingrevia may also rally by over 100 per cent each to Rs 3,676 and Rs 1,380 by September 2025.
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