10 stocks that could double in 2 years
Picking the right stock to ensure maximum return at minimum risk is a challenge for every investor. Here we look at 10 stocks that could double in value in the next two years, as per a report by Sharekhan, a stock advisory website. These stocks stand to benefit from either a change in government policy or an upturn in the economy.
1. Network 18 India: The full-play media company with interests in television, internet, print and film content could give a potential return of 195% over the next two years. This is because it is expected to jump from its current price of Rs 59 (Rs 51 when the report was published in March 2015) to its target price of Rs 150 by December 2017. The stock already jumped 65% in the last one year.
2. IRB Infra: Sharekhan expects the stock to deliver a return of 173.4% over two years with a target price of Rs 680. The stock currently trades at Rs 240 levels. This rise in share price could be because the company stands to gain from the current attention being laid on the infrastructure development in India. IRB Infra has already seen an increase in the toll revenue in its Build, Operate and Transfer (BOT) projects, for the quarter ended December 2014. This accounts for one third of IRB Infra’s total profits. This is a big boost to the company’s profits. The National Highway Authority has also awarded more profits in fiscal to March 2015 that the year earlier. This pickup in activity is good for IRB Infra.
3. PTC India Financial: Stock of the financial services company, working in the solar and wind energy segments, could give investors a potential return of 151.7% over two-year period. Currently trading at Rs 56 levels, the stock could rise to the December 2017 target price of Rs 144. This is because the company stands to benefit from the government’s thrust on the solar and wind energy sectors. Favourable interest rates may also help reduce funding cost for the company, helping improve profitability.
4. Tata Motors DVR: The auto manufacturer is expected to deliver returns of 151.5% over the two years ending December 2017, with the stock touching a target price of Rs 850. It currently trades at Rs 340 levels. The stock moved in the range of Rs 221 to Rs 391 in the last year. The company could benefit from the expected launch of 100 new commercial vehicles over the next three years.
5. Finolex Cables: The cable manufacturer is expected to see a 25% growth in sales in the quarter to March 2015. It is also likely to post double digit growth rates in FY2016. This is likely to fuel the stock to give a potential return of 126% over the next two years. It currently trades at Rs 260 levels, and is expected to touch a target price of Rs 650 by December 2017. The introduction of the Goods and Services Tax (GST) in India could also help the company as well as the new manufacturing plant in Roorkee.
6. L&T: Stocks of the infrastructure giant could give a potential return of 119% over two years on this stock. Sharekhan expects the stock to touch a target price of Rs 3800 by December 2017. It currently trades at Rs 1700 levels. The price for the stock has moved in the range of Rs 1242 to Rs 1893 over the last one year. The government’s thrust on power, roads and defence segments may help the company post higher revenue growth over the next year.
7. Axis Bank: The private bank’s stock is expected to more-than-double to Rs 1210 by December 2017, giving a return of 112.3%. Since its stock split in July 2014, the stock has already jumped 32%. Axis Bank has a large exposure in the infrastructure segment, which is the focus for the government. It could thus benefit from the increase in infrastructure projects and developmental activity.
8. SBI: The largest public-sector bank in India has the potential to give returns of 111.8% over two years. From its current levels of Rs 290, the stock’s price could rise to Rs 580 by December 2017. SBI has been one of the first banks to lower loan rates in response to the fall in rates by RBI. This aggressive pricing can help capture more market share.
9. Maruti Suzuki: Share prices of the automobile major could jump nearly 105% over the next two years to Rs 7450, according to Sharekhan. Its stock currently trades at Rs 3,600 levels. The market leader in the domestic passenger vehicle industry posted a 13% growth in volume in December 2014 as against the industry average of 3.7%. Their new automatic cars and utility vehicles have been received well in the market. Recent depreciation in the Japanese Yen could help reduce costs as imports of parts will become cheaper. This is good news for Maruti’s profitability.
10. TCS: Stocks of the IT major could more than double to Rs 5,100 levels by December 2017. It currently trades at Rs 2,430 levels. This is because the company has consistently outperformed the industry’s average growth. It grew 15% in 2015, over the industry’s 12-14% expectation. This is despite the negative effects of exchange rate fluctuations, which affected its revenue by 4.8%. The company also plans to expand to newer markets and geographical locations. This could benefit the IT major in the coming two years.
Happy Investing
Picking the right stock to ensure maximum return at minimum risk is a challenge for every investor. Here we look at 10 stocks that could double in value in the next two years, as per a report by Sharekhan, a stock advisory website. These stocks stand to benefit from either a change in government policy or an upturn in the economy.
1. Network 18 India: The full-play media company with interests in television, internet, print and film content could give a potential return of 195% over the next two years. This is because it is expected to jump from its current price of Rs 59 (Rs 51 when the report was published in March 2015) to its target price of Rs 150 by December 2017. The stock already jumped 65% in the last one year.
2. IRB Infra: Sharekhan expects the stock to deliver a return of 173.4% over two years with a target price of Rs 680. The stock currently trades at Rs 240 levels. This rise in share price could be because the company stands to gain from the current attention being laid on the infrastructure development in India. IRB Infra has already seen an increase in the toll revenue in its Build, Operate and Transfer (BOT) projects, for the quarter ended December 2014. This accounts for one third of IRB Infra’s total profits. This is a big boost to the company’s profits. The National Highway Authority has also awarded more profits in fiscal to March 2015 that the year earlier. This pickup in activity is good for IRB Infra.
3. PTC India Financial: Stock of the financial services company, working in the solar and wind energy segments, could give investors a potential return of 151.7% over two-year period. Currently trading at Rs 56 levels, the stock could rise to the December 2017 target price of Rs 144. This is because the company stands to benefit from the government’s thrust on the solar and wind energy sectors. Favourable interest rates may also help reduce funding cost for the company, helping improve profitability.
4. Tata Motors DVR: The auto manufacturer is expected to deliver returns of 151.5% over the two years ending December 2017, with the stock touching a target price of Rs 850. It currently trades at Rs 340 levels. The stock moved in the range of Rs 221 to Rs 391 in the last year. The company could benefit from the expected launch of 100 new commercial vehicles over the next three years.
5. Finolex Cables: The cable manufacturer is expected to see a 25% growth in sales in the quarter to March 2015. It is also likely to post double digit growth rates in FY2016. This is likely to fuel the stock to give a potential return of 126% over the next two years. It currently trades at Rs 260 levels, and is expected to touch a target price of Rs 650 by December 2017. The introduction of the Goods and Services Tax (GST) in India could also help the company as well as the new manufacturing plant in Roorkee.
6. L&T: Stocks of the infrastructure giant could give a potential return of 119% over two years on this stock. Sharekhan expects the stock to touch a target price of Rs 3800 by December 2017. It currently trades at Rs 1700 levels. The price for the stock has moved in the range of Rs 1242 to Rs 1893 over the last one year. The government’s thrust on power, roads and defence segments may help the company post higher revenue growth over the next year.
7. Axis Bank: The private bank’s stock is expected to more-than-double to Rs 1210 by December 2017, giving a return of 112.3%. Since its stock split in July 2014, the stock has already jumped 32%. Axis Bank has a large exposure in the infrastructure segment, which is the focus for the government. It could thus benefit from the increase in infrastructure projects and developmental activity.
8. SBI: The largest public-sector bank in India has the potential to give returns of 111.8% over two years. From its current levels of Rs 290, the stock’s price could rise to Rs 580 by December 2017. SBI has been one of the first banks to lower loan rates in response to the fall in rates by RBI. This aggressive pricing can help capture more market share.
9. Maruti Suzuki: Share prices of the automobile major could jump nearly 105% over the next two years to Rs 7450, according to Sharekhan. Its stock currently trades at Rs 3,600 levels. The market leader in the domestic passenger vehicle industry posted a 13% growth in volume in December 2014 as against the industry average of 3.7%. Their new automatic cars and utility vehicles have been received well in the market. Recent depreciation in the Japanese Yen could help reduce costs as imports of parts will become cheaper. This is good news for Maruti’s profitability.
10. TCS: Stocks of the IT major could more than double to Rs 5,100 levels by December 2017. It currently trades at Rs 2,430 levels. This is because the company has consistently outperformed the industry’s average growth. It grew 15% in 2015, over the industry’s 12-14% expectation. This is despite the negative effects of exchange rate fluctuations, which affected its revenue by 4.8%. The company also plans to expand to newer markets and geographical locations. This could benefit the IT major in the coming two years.
Happy Investing
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