HDFC Bank Ltd
Holding period: 1 year
Last Traded Price: Rs 1,734.30
Per the firm, “The bank has maintained a robust 10-year profit CAGR of 21.74%, operating with a NIM (net interest margin) of 3.5% and a low net NPA (non-performing assets) of 0.3%. Advances and deposits have shown steady growth. Currently, the stock trades below its 10-year average price-to-book value. It is at a price-to-earnings ratio of 19. This offers a favorable risk-reward profile with a substantial downside buffer”.
Vindhya Telelinks Ltd
Holding Period: 1 year
Last Traded Price: Rs 1,992.55
This key cable manufacturing is a joint venture between Universal Cables Limited and Madhya Pradesh State Industrial Development Corporation. SAMCO notes that it has shown robust growth over the last 5 years. It has nearly doubled revenues with a 14.3% CAGR. The company holds significant investments in Birla Cable Ltd, Birla Corporation Ltd, and Universal Cable Ltd. These investments total Rs 3,618 crore. This amount surpasses its market capitalization of Rs 2,545 crore. This solid investment base underscores Vindhya Telelinks’ strong fundamentals and financial potential.
Ramco Industries Ltd
Holding Period: 1 year
Last Traded Price: Rs 244.89
Over the past decade, SAMCO observes that sales grew at a 7% CAGR. At the same time, the share price rose at a 14% CAGR. Known for its financial stability, Ramco Industries boasts a low debt-equity ratio of 0.07 and has consistently paid dividends since FY17, currently yielding 0.31%. The stock’s attractive price-to-book multiple of 0.5 offers a solid margin of safety, highlighting its investment appeal.
Gravita India
Holding Period: 12 months
Last Traded Price: Rs 2,119
Kotak explains that Gravita India is the market leader in India’s emerging recycling industry with a focus on lead recycling. Gravita India is increasing its recycling capacity by a massive 72% to 500 ktpa by FY27E. “We expect the company’s earnings per share to grow by 31.8% in FY25E & 31.6% in FY26E. We also expect an upside of 15% or more on this stock over the next 12 months”, adds Kotak’s note.
S H Kelkar and Company (SHKL)
Holding Period: 12 months
Last Traded Price: Rs 289.90
The company is a flavors & fragrances (F&F) supplier and has started to make inroads into the global market. SHK is well-placed to drive double-digit revenue growth. The company is small but emerging as a contender in the vast F&F market. It has potential for margin expansion, including higher-margin geographies and operating leverage. This allows for over 15% return upside in the next 12 months.