When trying to invest in a company with the aim of earning strong and consistent returns, investors must go through fundamental analysis, which covers factors such as net profit, revenue, sales, ratios and much more.
Here are three best-performing stocks that can be held to experience a good amount of returns over the next five years.
Macrotech Developers Limited
According to Jefferies, the company is likely to experience a strong housing cycle, with pre-sales growth possibly reaching 17.5% CAGR, and has given a 5-year target price of Rs. 3,000, representing about 156% upside and CAGR returns of 21% over FY24-29 from the closing price of Rs. 1,159.15.
The key valuation drivers include a reset in land values in its townships’ land and development into new areas, which will generate a 15-20% medium-term pre-sales CAGR.
With a market cap of Rs. 1.16lakh crores, On Friday,the company shares closed at Rs 1,173, down 0.72 percent from the previous close price.
The stock has delivered about 146 percent of multibagger returns in the last one year and nearly 41.9 percent of positive returns in the last six months. So far in 2024, it has given positive returns of around 10.3 percent.
In terms of financials, the company has a Piotroski score of 7 and witnessed an increase in the revenue from operations by 65.2 percent YoY from Rs. 1,774 crore in Q3 FY22-23 to Rs. 2,931 in Q3 FY23-24, accompanied by a growth in the net profit of 24.7 percent from Rs. 405 crore in Q3 FY22-23 to Rs. 505 crore in Q3 FY23-24
Lodha Group, also known as Macrotech Developers, is primarily engaged in the business of real estate development and is among the largest real estate developers in India with a presence in MMR (Mumbai Metropolitan Region) and Pune markets.
Kalyan Jewellers India Limited
With a market cap of Rs. 42,036, On Friday,the company shares closed at Rs 408, up 1.5 percent from the previous close price.
The stock has delivered about 299.4 percent of multibagger returns in the last one year and nearly 45.6 percent in the last six months. So far in 2024, it has given positive returns of around 14.04 percent.
The company has a Piotroski score of 9 and witnessed an increase in the net profit at a CAGR of nearly 45% over FY20-23, accompanied by a growth in revenue from operations at a CAGR of 12% during the same period.
Kalyan Jewellers reported a 34 percent year-on-year increase in consolidated revenue for Q4 FY23-24, led by robust footfalls ahead of the wedding season, as well as the consistent demand through Q4 FY24 despite fluctuating gold prices.
The brokerage firm, HSBC has maintained a ‘buy’ call on Kalyan Jewellers with a target price of Rs. 500 apiece, representing a potential upside of 23 percent from the closing price of Rs. 413.5 on BSE.
Kalyan Jewellers India Ltd. designs, manufactures, and sells gold, studded, and other jewellery goods at a variety of pricing points.
Zomato Limited
Launched in 2010, Zomato Limited is one of the leading online food service platforms in terms of the value of food sold and offers services including food delivery, dining-out services, and loyalty programs.
With a market cap of Rs. 1.66 lakh crores, On Friday,the company shares closed at Rs 189 ,up 2.16 percent from the previous close price.
It has delivered positive returns of nearly 63.1 percent returns in the last six months and about 244.1 percent of multibagger returns in the last one year. So far in 2024, the returns delivered positive returns of around 49.2 percent.
The company witnessed an increase in the revenue from operations by 68.8 percent YoY from Rs. 1,948 crore in Q3 FY22-23 to Rs. 3,288 in Q3 FY23-24, accompanied by a growth in the net profit of 155.9 percent from a loss of Rs. 347 crore in Q3 FY22-23 to Rs. 138 crore in Q3 FY23-24.
JM Financial has a ‘buy’ call on Zomato and raised the target price by an increase of 30% to Rs. 260 per share from Rs. 200 earlier, indicating a potential upside of 40% from the closing price of Rs. 186.75 on BSE, citing the rapid rise of Blinkit, Zomato’s quick commerce business which continues to grow exponentially.
The brokerage’s three-year target price for Zomato is Rs. 400 per share, representing a potential upside of 111% from its closing price of Friday.
Written by Shivani Singh
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