On Monday, the Indian stock market opened with a slight decline. On Monday, Nifty opened with a decline of 43 points at the level of 24634, while the Sensex index fell by 107 points to the level of 81602.
Meanwhile, a top brokerage firm in the market has started its coverage of the shares of some selected companies.
Under this coverage, the brokerage has given the latest rating and target price on 3 shares, highlighting the growth potential of these companies.
PG Electroplast Share
The first share in the list is PG Electroplast Ltd. A brokerage has given a long position rating on PG Electroplast shares.
The brokerage has announced the target price of 980 rupees on the stock. This shows the possibility of a 20 percent rise from the last trade price of Friday’s Rs 813.
PG Electroplast Ltd is a multibagger share. Which has given a return of 195.88% in the last 6 months and 274.46% in the last 1 year.
PG Electroplast Ltd appears to be well-positioned to take advantage of the favorable tailwinds building up in the electronic equipment sector.
The company has so far achieved good success with strategic product diversification. The brokerage is expecting that the company can maintain its premium valuation in the long term.
GHCL Share
An investment brokerage company has initiated its coverage of GHCL Ltd stock with a buy rating. The brokerage has given a target price of Rs 900 on the stock, which is expected to give a 35 percent upside to the stock from Friday’s closing price of Rs 666.
GHCL Ltd stock is well positioned as a cyclical bottom play. GHCL Ltd expects that the steps taken for backward integration will have an impact on the expansion of the company’s margins, which is expected to benefit the company.
The company’s entry into derivatives such as the element bromine is likely to increase the valuation further and will also create re-rating opportunities here.
Lloyds Metals & Energy Share
A SEBI-registered brokerage firm has given an Add rating on Lloyds Metals & Energy Ltd stock. The brokerage has announced a target of 1476 rupees on the share. The stock is anticipated to yield a profit of 40% over its last price, which was 1,050 rupees.
The company is in a strong position to directly benefit from the increase in iron ore prices. The company is experiencing difficulties due to the policy and unfair bidding practices for the iron ore industry. These issues also dominate the company’s expansion plans.
However, due to the favorable price environment at the broader level, the company seems to be well positioned to benefit, which is increasing the possibility of 76% growth in the company’s EPS in the coming time.
Quick Fact
Company name: PG Electroplast
| Company name | PG Electroplast |
|---|---|
| Rating | Long position |
| Possible target price | ₹980 |
| Expected rise | 20% |
| Last price | ₹813 |
| Stock price | ₹857.10 |
| Last 6-month return | 195.88% |
| Last 1-year return | 274.46% |
| Sector | Electronic equipment |
| Key strength | Strategic product diversification |
| Long-term view | Maintain premium valuation |
Company name: GHCL
| Company name | GHCL |
|---|---|
| Rating | Buy |
| Possible target price | ₹900 |
| Expected rise | 35% |
| Last price | ₹666 |
| Stock price | ₹674.45 |
| Position | Cyclical bottom play |
| Key development | Backward integration |
| Expected benefit | Margin expansion |
| New entry | Derivatives like bromine |
| Valuation potential | Re-rating opportunities |
Company name: Lloyds Metals & Energy
| Company name | Lloyds Metals & Energy |
|---|---|
| Rating | Add |
| Possible target price | ₹1,476 |
| Expected rise | 40% |
| Last price | ₹1,050 |
| Stock price | ₹1,094 |
| Key driver | Increase in iron ore prices |
| Challenges | Policy and bidding practices |
| EPS growth potential | 76% |
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