Stocks to Buy: 3 High-Earning Stocks With Potential for Up to 50% Return on Investment
Stocks to Buy
Stocks to Buy: 3 High-Earning Picks with Potential for up to 50% Returns
In the world of stock markets, identifying stocks with the potential for substantial returns is an endeavor that piques the interest of many investors. In this article, we unveil three such stocks that hold the promise of yielding up to 50% profits.
Two of these promising picks have received the stamp of approval from HDFC Securities, while the third has garnered endorsement from Geojit BNP Paribas.
Whether you’re a seasoned investor or someone considering taking the plunge into the stock market, this article is designed to provide valuable insights into these compelling investment opportunities.
1. Shobha Ltd.
First on our list is Shobha Ltd., a stock that HDFC Securities believes could potentially deliver a remarkable 50% return over the next year.
With a target price set at Rs 1024, this projection is particularly enticing considering the current stock price hovers around Rs 628.15.
It’s worth noting that Shobha Ltd. had experienced a challenging phase over the last year, delivering returns that lagged behind the Nifty Realty Index by approximately 38%.
The company also faced scrutiny from regulatory bodies, including actions by the Enforcement Directorate (ED) and Income Tax department, which had a dampening effect on its stock price.
However, HDFC Securities contends that Shobha Ltd. has undergone a reset, refocusing its efforts on its core business.
Furthermore, the company has taken strides to reduce its net debt by approximately Rs 15 billion, thus fortifying its balance sheet.
The burgeoning demand in the Bengaluru real estate market and the robust financial standing of its parent company are also expected to work in favor of Shobha Ltd.
In light of these positive developments, HDFC Securities has issued a buy recommendation for Shobha Limited.
2. Samvardhana Motherson International
Next up is Samvardhana Motherson International Limited, one of the world’s largest manufacturers of automotive parts.
Geojit BNP Paribas predicts that the stock has the potential to climb to Rs 134, presenting an opportunity for investors to reap returns on their investment.
At present, this stock is trading at approximately Rs 99.55, implying the possibility of a substantial return of approximately Rs 34.5.
Geojit’s assessment of Samvardhana Motherson is buoyed by the company’s outstanding performance across all business segments in the June quarter.
The company recorded a remarkable 27% increase in revenue on an annual basis, with its operating profit seeing a significant surge of 67% due to reduced input costs.
In addition, Geojit BNP Paribas holds a bullish outlook for Samvardhana Motherson as the company is in the process of acquiring three companies—Sirma, Yachio, and DR Schneider.
These strategic acquisitions are poised to augment the company’s revenue by a substantial $1.4 billion from the next financial year.
3. Nuvoco Vistas Corporation
Our third stock pick is Nuvoco Vistas Corporation, a recommendation that emanated from a recent meeting between HDFC Securities and the company’s management.
Following this meeting, HDFC Securities has suggested a buy rating for this stock, accompanied by a target price of Rs 475. This target implies the potential for a return of around 27% from the current stock price.
Nuvoco Vistas has embarked on a path of debt reduction and cost optimization, a strategic direction that has garnered favor from HDFC Securities.
The company’s goal is to reduce its debt to a level of 2 times EBITDA before embarking on further business expansion.
Additionally, HDFC Securities anticipates robust EBITDA growth for the company, projecting a rate of 28% during the period spanning FY 2022 to 2025.
Final Remarks:
Investing in stocks holds the potential for substantial returns, but it also carries inherent risks. These three stock picks, as recommended by HDFC Securities and Geojit BNP Paribas, offer compelling investment opportunities.
However, it’s essential for investors to conduct their due diligence, assess their risk tolerance, and consider their long-term investment goals before making investment decisions.
Market conditions can be unpredictable, and individual stock performances may vary. Staying informed about company developments, market trends, and economic indicators is critical for making well-informed investment choices.
By carefully considering these factors and evaluating investment opportunities in alignment with one’s financial objectives, investors can potentially capitalize on the prospects presented by these promising stocks.
Investment decisions should be based on thorough research and consideration of personal financial circumstances.
While the recommendations provided here serve as valuable insights, they should not be viewed as guarantees of future returns, and prudence should always guide investment choices.
