The Indian stock market remained volatile on Wednesday ahead of the release of the Reserve Bank of India’s latest policy meeting minutes and key macroeconomic data from the U.S. Till the afternoon, the Nifty 50 was trading 210.90 points or 1.15% lower at 18,174 levels while the BSE Sensex had shed 680.66 points or 1.10% to be at 61,021 levels.
Amid the volatility here are 3 stocks recommended by JM Financial for 2023 that have an upside potential of up to 47 percent:
Gokaldas Exports Limited
The shares of Gokaldas Exports were trading marginally lower till Wednesday afternoon at Rs 368 levels. The stock has been volatile and on a yearly basis, it has gained approximately 32 percent.
Gokaldas Exports Limited is engaged in the business of design, manufacture, and sale of a wide range of garments for men, women, and children and caters to the needs of several leading international fashion brands and retailers.
JM Financial has a ‘Buy’ tag on the stock with a target of Rs 500 per share which represents an upside of 36 percent from the current levels.
“Strong customer engagement, operational excellence, and superior business infrastructure are likely to fare relatively better against the competition. The company’s growth CAPEX of Rs 370 crore over FY22-24 will ensure strong double-digit growth CAGR in revenues,” JM Financial said.
UPL Limited
The shares of UPL were trading marginally higher on Wednesday afternoon at Rs 757 levels. In the past six months, the stock has gained approximately 16 percent.
UPL Limited is engaged in the business of agrochemicals, industrial chemicals, chemical intermediates, specialty chemicals, and the production and sale of field crops and vegetable seeds. It is the 5th largest agrochemical company in the world.
The brokerage has a ‘Buy’ call on UPL Limited with a target price of Rs 1,060 per share which represents an upside of 40 percent from the current levels.
“The company has maintained its guidance of 12-15 percent revenue and 15-18 percent Ebitda growth in FY23E. Hence, with the reduction in working capital in H2FY23 and robust Ebitda growth, we believe UPL should be able to meet its $400-500 million net debt reduction guidance in FY23,” added the brokerage.
Patanjali Foods Limited
The shares of Patanjali Foods were trading marginally lower till Wednesday afternoon at Rs 1,223 levels. In the past five months, the stock has gained approximately 19 percent.
Patanjali Foods Limited ( formerly known as Ruchi Soya Industries Limited ) has evolved as an integrated player in the edible oil business with a presence across the entire value chain, from farm to fork with secured access to palm oil plantations in India.
The brokerage is bullish on the stock and has given a target of Rs 1,800 per share which represents an upside of 47 percent from the current levels.
“We expect Patanjali’s food & nutraceutical business to be a major growth driver for the next decade. The edible oil business is expected to grow in the single digits and the Palm oil business will start contributing from the 5th year onwards. Currently stock trades at 44 times FY23E & 27 times FY24E,” the brokerage said.
Written by Anoushka Roy
