Stocks to Buy: Suzlon and 7 Other Stocks That Can Deliver Returns of Up to 63%

Synopsis: Eight stocks, including NMDC, Suzlon and LIC Housing Finance, offer upside of up to 63%, based on broking targets from IDBI Capital, Motilal Oswal and ICICI Direct, indicating strong return potential.

Broking recommendations continue to highlight select stocks with strong upside potential across sectors such as metals, renewable energy, housing finance, hospitality, chemicals and real estate. Based on current market prices and target levels given by leading brokerages, these eight stocks are expected to deliver upside ranging from 25% to 63%, making them key stocks to watch in the near to medium term.

NMDC

NMDC is engaged in the exploration and production of iron ore along with diamonds, the production and sale of sponge iron, and the generation and sale of wind power. With the market cap of Rs 67,135  crore, the shares of NMDC Ltd closed at Rs 76.6 and are trading at a PE of 9.5, whereas its industry PE is at 20.5

IDBI Capital has given a buy rating on NMDC with a target price of Rs 125. The stock is currently trading around Rs 76.6, which implies an upside potential of nearly 63% from current levels, as the broking seems optimistic on iron ore demand and improved profitability.

Suzlon Energy

Suzlon is one of the leading global renewable energy solutions providers and is a vertically integrated WTG manufacturer which also undertakes installation and O&M of all WTG sales and more. With the market cap of Rs 62,098  crore, the shares of Suzlon Energy Ltd closed at Rs 45.9 and are trading at a PE of 19.6, whereas its industry PE is at 38.9.

Motilal Oswal has recommended Suzlon Energy with a target of Rs 74. The stock is trading near Rs 45.9 at present, which suggests a strong upside of about 61%. The call is driven by Suzlon’s turnaround and strong wind energy order book.

LIC Housing Finance 

LIC Housing Finance Limited is a housing finance company registered with the National Housing Bank (NHB) and is mainly engaged in financing the purchase/construction of residential flats/houses for individuals and more. With the market cap of Rs 27,891 crore, the shares of LIC Housing Finance Ltd closed at Rs 509 and are trading at a PE of 5, whereas its industry PE is at 15.8

IDBI Capital has issued a buy call with a target of Rs 688. LIC Housing Finance is currently trading around Rs 509, which reflects an upside potential of nearly 35%. The outlook seems to be based on improving asset quality and housing loan growth.

ITC Hotels 

ITC Hotels is an Indian hospitality company that operates and manages hotels. It has several hotels and is one of India’s largest hotel chains, which has a franchise agreement to operate most of its hotels as part of The Luxury Collection of Marriott International. With the market cap of Rs 37,929 crore, the shares of ITC Hotels Ltd closed at Rs 183 and are trading at a PE of 46.4, whereas its industry PE is at 32.9

ICICI Direct has a buy recommendation with a target of Rs 240. The stock is trading close to Rs 183 currently, which indicates an upside of about 31%. The broker expects strong growth in the hospitality and travel sector.

Orient Electric 

Orient Electric is one of the leading consumer electrical brands in India, with a diverse portfolio of fans, lighting, home appliances and switchgears. With the market cap of Rs 3,809 crore, the shares of Orient Electric Ltd closed at Rs 177 and are trading at a PE of 41.2, whereas its industry PE is at 46

Anand Rathi has given a buy rating with a target of Rs 230. Orient Electric is trading near Rs 177, which offers an upside of around 30%. The call is supported by demand recovery in consumer electricals.

SRF

SRF Ltd manufactures and sells technical textiles, chemicals, packaging films, aluminium foils, and other polymers. With the market cap of Rs 80,599 crore, the shares of SRF Ltd closed at Rs 2,710 and are trading at a PE of 43.6, whereas its industry PE is at 18 IDBI Capital has a buy call on SRF with a target of Rs 3,517. The stock is trading at around Rs 2,710; this translates into an upside of nearly 30% as growth is expected from chemical and packaging businesses.

Supreme Industries 

Supreme Industries Limited is India’s leading plastic product manufacturer, offering a wide and comprehensive range of plastic products in India. With the market cap of Rs 44,470 crore, the shares of Supreme Industries Ltd closed at Rs 3,492 and are trading at a PE of 54.6, whereas its industry PE is at 21.3

ICICI Direct has recommended Buy with a target of Rs 4,400. Supreme Industries is currently trading around Rs 3,492; this indicates an upside of about 26%. The optimism is driven by demand from housing and infrastructure sectors.

Oberoi Realty 

Oberoi Realty Ltd is a real estate development company headquartered in Mumbai and is part of the Oberoi Realty Group, focused on developments in the residential, office space, retail, hospitality, and social infrastructure verticals. With the market cap of Rs 52,397 crore, the shares of Oberoi Realty Ltd closed at Rs 1,462 and are trading at a PE of 23.2, whereas its industry PE is at 30.9

ICICI Direct has a buy rating with a target of Rs 1,830. The stock is trading close to Rs 1,462; this implies an upside of around 25%. The broker expects strong residential sales and project launches.

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