May Top Picks! Buy 6 Stocks Across Sectors For Potential Gains Up To 40%: KR Choksey

Leading brokerage firm KR Choksey has come up with its top pick for May 2023. The brokerage has picked Ashok Leyland, Bandhan Bank, SBI Life Insurance Company, Tech Mahindra, Minda Corporation, and Infibeam Avenues. It sees a robust gain of up to 40% with an attractive target price.

1. Ashok Leyland Ltd.

KR Choksey said, "We expect a Revenue/ EBITDA CAGR of 28.3%/ 66.7% respectively over FY22 to FY25E, on a covid impacted base of FY22. We have assigned a P/E multiple of 21.0x on FY25E EPS of INR 9.3 to arrive at a target price of INR 194/share (unchanged). The target price implies a potential upside of 33.3% from the CMP. Accordingly, we maintain our "BUY" rating on the shares of Ashok Leyland Ltd."

Given the target price of Rs 194/share, the stock is likely to give up to 35% gains if purchased at the current market price. The current share price of Ashok Leyland is Rs. 144.50/share. It gained 16.91% in 1 year, and 198.86% in 3 years, respectively. It declined 11.86% in 5 years.

2. Bandhan Bank Ltd.

The brokerage said, "We expect the clean up of balance sheet and aggressive focus on diversification should lead to re-rating of the stock from the current levels. We maintain our target price at INR 305 per share, implying a P/ABV multiple of 2.0x to the adjusted book value of INR 152.5 per share for FY25E, showing an upside of 30.9% over the CMP. Accordingly, we reiterate our BUY rating on the shares of Bandhan Bank Ltd."

Given the target price of Rs. 305/share, if purchased at the current market price, it can fetch up to 33% Gains. The stock is currently trading at Rs. 229.60/share. It has fallen 28.28% in 1 year, 2.81% in 3 years, and 54.5% in 5 years, respectively.

3. SBI Life Insurance Company Ltd. (SBILIFE)

The brokerage said, "We continue to apply a 2.5x P/EV on FY25E EVPS of INR 651.8 and a VNB multiple of 13.4x to arrive at a weighted average TP of INR 1,630 per share for SBI Life (50:50 weights on the P-EV and appraisal value methodology); implying a potential upside of 39.7% from the CMP. Accordingly, we maintain our rating as "BUY" on the shares of SBILIFE."

Given the target price of Rs. 1,630/share to SBILIFE, the stock is likely to give up to 40% return if purchased at the current market price. Its current market price is Rs. 1,173.70/share. The stock has given 8.31% positive return in 1 year, 64.49% in 3 years and 67.17% in 5 years, respectively.

4. Tech Mahindra Ltd.

According to the brokerage, Tech Mahindras business is supported by a strong pipeline, an enhanced services portfolio (design, engineering, and consulting), acquisition synergies, 5G-related spending, and a decrease in attrition rates. "We are assigning a P/E multiple of 14.0x to the FY25E estimated EPS of INR 86.2 to arrive at a target price of INR 1,207, with an upside of around 17.9%. Accordingly, we kept our rating to a "BUY" for the stock," the brokerage has said.

The stock is likely to give up to 15% gains considering the assigned target price of Rs. 1,207/share by the brokerage and the current market price. The stock is currently trading at Rs. 1,036.40/share. It declined 17.96% in 1 year. It jumped 107.3% in 3 years and 56.4% in 5 years, respectively.

5. Minda Corporation Ltd.

According to the brokerage, The value proposition would remain high with the inorganic growth which Minda is contemplating at this point in time. Minda Corp is focusing on enhancing its legacy product segments with premiumization and product innovation across all business segments to drive the content per vehicle. "We assign a PE multiple of 17.0x to FY25E EPS of INR 18, arriving at target price to INR 306/share and keeping our recommendation to 'Buy," the Brokerage has said.

Given the target price of Rs. 306/share, it can fetch up to 14% gains if purchased at the current market price. The stock's current market price on NSE is Rs. 269.65/share. The stock has given 11.4% positive return in 1 year, 340.6% in 3 years and 51.4% in 5 years, respectively.

6. Infibeam Avenues Ltd.

The brokerage said, "We assign "BUY" rating as all the above mentioned factors provides good growth opportunities and recommend a target price of INR 18/share, applying Price/Sales multiple of 2x on FY24E sales, indicating upside potential of 28.5% from CMP."

The stock is likely to give up to 30% returns, considering the given target price and the assigned target price of Rs. 18/share. The current market price of the stock is Rs. 13.95/share. It has fallen 16.22% in 1 year and 66.75% in the past 5 years, respectively. It has given a 31.76% positive return in 3 years.

Disclaimer - The stocks have been picked from the brokerage report of KR Choksey. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.