A price target is an analyst’s forecast for a stock’s future price, which the analyst believes stock at a reasonable price. Based on the company’s past success as well as future objectives and strategy. A lower price target, on the other hand, may signal that the analyst expects the stock price to fall.
The 3 mid-cap stocks with the lowest debt-to-equity ratio and above 30% upside target are listed below.
Crompton Greaves Consumer Electrical Ltd.:
Crompton Greaves Consumer Electricals Limited is a company that manufactures, sells, and distributes fans, lights, pumps, and appliances, with its registered office in Mumbai.
The company has a 0.35 debt-to-equity ratio as of FY23. and it is a mid-cap company with a market capitalization of Rs 18,129 crore. The company’s shares were trading at Rs 282.10 apiece on June 8th.
HDFC securities gave a ‘Buy’ tag to the company with a target price of Rs 400 indicating an upside of 42 percent as compared to the current price levels.
The rationale behind the recommendation is that the company’s Q4 performance was better than expected. The company’s fans market share has increased by 2.5x and it has gained market share among premium fans.
The company has taken corrective steps to increase its market share like
- Higher brand Investments
- Innovation and R&D
- Expanding GTM reach and
- Added new brand architecture in pumps and lighting equipment.
Trident Limited:
Trident Limited, the flagship company of the Trident Group, is a leading manufacturer of yarn, bath linen, bed linen, wheat straw-based paper, chemicals, and captive power and the world’s largest agro-based paper manufacturer.
The company has a 0.34 debt-to-equity ratio as of FY23. and it is a mid-cap company with a market capitalization of Rs17,122 crore. The company’s shares were trading at Rs 33.85 apiece on June 8th.
Motilal Oswal gave a ‘Buy’ tag to the company with a target price of Rs 58 indicating an upside of 75 percent as compared to the current price levels.
The rationale behind the recommendation is that
- The company reported strong revenue growth, led by the Home Textiles and Paper segment.
- EBITDA margin is increased to 30 bps, led by better operating performance in the Home Textiles segment.
- Net debt fell to Rs12.97b in FY22 from Rs 14.23 b in FY21. The reduction in net debt was on account of an increase in cash and cash equivalents.
Max Financial Services Ltd.:
Max Financial Services Limited was incorporated in 1988. The company is engaged in growing and nurturing business investments and providing management advisory services to Indian group companies.
As of FY23, the firm had a debt-to-equity ratio of zero and it is a mid-cap company with a market capitalization of Rs 24,154 crore. The company’s shares were trading at Rs 702.90 apiece on June 8th.
HDFC securities gave a ‘Buy’ tag to the company with a target price of Rs 910 indicating an upside of around 30 percent as compared to the current price levels.
The rationale behind giving the recommendation is that
- The company has maintained strong budget-induced sales of 38% YoY and VNB margins are healthy at 30.3%.
- NPAR of a company registered a growth at 1.5x YoY, whereas all other categories witnessed de-growth in the range of 6% YoY.
Written by Omkar C
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