Demat accounts grew to 175 million by September 2024. Since last Diwali, the Nifty has rallied 25%, while the midcap and smallcap indices surged 37% and 36%, respectively.
As we enter Samvat 2081 on November 1, market sentiment is challenged by global uncertainties, including the upcoming US elections, Middle Eastern tensions, and signifi cant foreign outfl ows from Indian equities due to a rebound in Chinese markets.
With high valuations, corporate earnings are set to be the main drivers of future returns, emphasising the importance of bottom-up stock selection. Here are top stocks recommended by brokers for potential returns over the next 12 months
Anand RathiInterGlobe Aviation
Target Price Rs 5,300
CMP Rs 4,374
Upside Potential 21.18%
Huge investments by the government in construction of airports, UDAN scheme and increase in number of passengers are some of the growth triggers for the aviation industry going forward.
Tejas Networks
Target Price Rs 1,650
CMP Rs 1,259
Upside Potential 31.08%
Indian railways-Kavach, Bharatnet for phase 3, expansion of BSNL’s 4G network and 5G upgrades are some of the opportunities which will help Tejas show strong revenue growth going forward.
KRN Heat Exchanger
Target Price Rs 550
CMP Rs 436
Upside Potential 26.15%
KRN a manufacturer of n and tube-type heat exchangers and the industry is expanding its capacity which would generate increased growth in revenues from existing as well as new products like bar and plate heat exchanger, with improved margins from the export markets
Angel One
Cummins India
Target Price Rs 4,840
CMP Rs 3,370
Upside Potential 43.62%
The rising importance of alternative fuels (natural gas) provides strong growth avenues. It is also likely to benefit from an increase in spending on infrastructure development.
Mahanagar Gas
Target Price Rs 2,310
CMP Rs 1,504
Upside Potential 53.6%
While rising input costs affected current performance, the company is wellpositioned to meet the growing CNG demand and boost revenue.
NCC
Target Price Rs 400
CMP Rs 278
Upside Potential 44.14%
Growth is supported by robust order book and superior execution of building division and electrical T&D business. Government focus on infrastructure development and transportation is likely to support revenue
Axis Securities
Lupin Pharma
Target Price Rs 2,600
CMP Rs 2,157
Upside Potential 20.55%
With a strong foothold in the stable US generics market and no expected competition for Spiriva until FY27, Lupin presents a compelling opportunity for investors looking to capitalise on the pharmaceutical sector’s growth.
Gravita India
Target Price Rs 3,000
CMP Rs 1,980
Upside Potential 51.52%
The company expects volume growth of approximately 25% during FY25, in line with its three-year target. With planned capacity expansions and diversification into newer verticals, the company is positioned to benefit from favourable industry dynamics and rising demand for sustainable solutions.
Arvind SmartSpaces
Target Price Rs 1,085
CMP Rs 784
Upside Potential 38.32%
The company adheres to a build-to-sell approach, aiming to sell 30% of a project in its first phase, which shortens the monetisation cycle and enhances cost efficiency during execution.
HDFC Securities
Reliance Industries
Target Price Rs 3,243
CMP Rs 2,656
Upside Potential 22.09%
Given the large technological advancements and ambitious growth targets, Reliance’s retail, telecom, and new energy segments are poised to become the upcoming growth drivers over the next two to three years.
L&T Finance
Target Price Rs 219
CMP Rs 141 Upside
Potential 55.65%
The stock is available at reasonable valuations for a reason of possible asset quality hiccups in wholesale lending though the focus on this business has been falling.
JK Lakshmi Cement
Target Price Rs 936
CMP Rs 776
Upside Potential 20.63%
We expect the cement demand to pick up pace by H2FY25. Taking into consideration the capacity expansion and strengthening operational performance, we expect the company to report a healthy performance in the coming years.
ICICI Securities
HDFC Asset Mgmt
Target Price Rs 5,500
CMP Rs 4,352
Upside Potential 26.38%
The stock remains a play on structural growth in Indian asset management domain with superior operational matrix. Considering relatively higher business growth without any b/s risk, we remain positive on the stock.
PCBL
Target Price Rs 600
CMP Rs 429
Upside Potential 40.02%
We have positive view on PCBL and assign BUY rating amid pro table organic growth at its base carbon black business, turnaround in sight at Aquapharm and big opportunity in sight in Nano Silica.
Sansera Engineering
Target Price Rs 2,000
CMP Rs 1,510
Upside Potential 32.44%
With fresh capital infused, new tie-ups in non-auto space including plans for new green field facility, we bake in 18.5% revenue CAGR over FY24-27E
JM FINANCIAL
Macrotech Developers
Target Price Rs 1,480
CMP Rs 1,071
Upside Potential 38.18%
Macrotech’s strong track record in developing residential townships and generating annuity-like cash ows and its focus on higher intensity of asset-light portfolio additions is likely to drive growth.
National Aluminium
Target Price Rs 264
CMP Rs 219
Upside Potential 20.55%
NALCO’s expansion of its alumina refinery, rising alumina prices, and costsaving through captive coal mining are expected to drive earnings growth.
Ashoka Buildcon
Target Price Rs 290
CMP Rs 216
Upside Potential 34.18%
The company also recently forayed into the CGD (City Gas Distribution) segment. Going forward, company’s performance is expected to improve given a diversi ed order book, respectable execution capabilities, an anticipated acceleration in execution, and a reduction in debt.
Kotak Insti. Equities
Axis Bank
Target Price Rs 1,500
CMP Rs 1,189
Upside Potential 26.16%
The asset quality ratio was stable, with slippages stable at ~2%. The bank is trading at valuations, which largely address most key concerns. Axis has one of the best upsides, among large private banks at these levels.
Aadhar Housing Fin
Target Price Rs 550
CMP Rs 418
Upside Potential 31.58%
Stable margins and improving leverage will accelerate RoEs back to highteens.Company stands out versus most peers due to a larger balance sheet, longer vintage and seasoning.
FIEM Industries
Target Price Rs 2,140
CMP Rs 1,510
Upside Potential 41.75%
Rising LED lighting adoption in the automotive segment to aid revenue growth for FIEM. The company is looking at leveraging its LED automotive lighting expertise and strong R&D in the four-wheeler segment
Motilal Oswal Financial Services
Zomato
Target Price Rs 330
CMP Rs 252
Upside Potential 30.98%
Zomato’s vision of creating strong brands across food delivery, grocery, and goingout could make it a formidable platform that could command a high wallet share from urban consumers. With Blinkit’s growth, Zomato is positioned for robust long-term growth.
IPCA Laboratories
Target Price Rs 1,950
CMP Rs 1,588
Upside Potential 22.83%
IPCA Laboratories, a leading Indian pharmaceutical company, focuses on APIs and formulations and expects strong earnings growth from FY24-27, supported by a 14% CAGR in the domestic formulation market and a revival of its US generics business.
Zen Technologies
Target Price Rs 1,900
CMP Rs 1,699
Upside Potential 11.83%
Zen Technologies stands out in the anti-drone market with over 40 indigenously developed products, including training systems & counter-drone solutions. The company bene ts from backward integration & offers comprehensive services such as after-sales support, warranty & AMC.
Prabhudas Lilladher Institutional Equities
Ambuja Cement
Target Price Rs 756
CMP Rs 552
Upside Potential 36.87%
ACEM is focused on led by 1) maximising throughput from existing facilities 2) 17.6mtpa addition via inorganic route in past 2 years and 3) organic capacity addition of 6mtpa by end FY25 and another 33mtpa by end FY27 to achieve targeted 140mtpa by FY28E.
Praj Industries
Target Price Rs 804
CMP Rs 713
Upside Potential 12.79%
Praj’s market leadership (50%+ share) in building ethanol plants in India positions it well to capture opportunities arising out of global mandates to blend ethanol in petrol & diesel, such as India’s ethanol blending target of 20% by FY26 (vs ~15% currently).
Safari Industries
Target Price Rs 3,005
CMP Rs 2,226
Upside Potential 34.99%
Safari is set to double its hard luggage capacity from ~650,000 to ~1,300,000 pieces a month with a green eld expansion in Jaipur, expected to start by 3QFY25E. We believe the new plant will enhance cost competitiveness and help Safari compete in the price-sensitive mass segment
SBI Securities
Coal India
Target Price Rs 593
CMP Rs 460
Upside Potential 28.93%
During FY24, CIL achieved highest ever production/ offtake of 773.6 mnt/753.5 mnt. The company expects favourable demand from key sectors such as power and steel. CIL’s dividend yield is 5.2%, which offers cushion during significant correction in the stock price.
Chalet Hotels
Target Price Rs 1,106
CMP Rs 843
Upside Potential 31.23%
Healthy cash ows from the commercial real estate space helps in sustaining overall cash position of the company. The company has strong tie-ups with renowned international hospitality brands such as Marriott International Inc. and Accor Hotels.
Kilburn Engineering
Target Price Rs 532
CMP Rs 405
Upside Potential 31.36%
The company has recently acquired ME Energy, a leading provider of custom-built Energy saving, heating, and cooling systems, specialising in thermal engineering. The acquisition will help to offer wider product suites to clients and further enhance the value chain,