- Yes Securities has selected four stocks to buy in May 2024: Indian Hotels Company, Central Depository Services (India) Ltd (CDSL), Welspun Enterprises, and Sterling and Wilson Renewable Energy (SWSOLAR).
- CDSL’s share price is expected to see a 21% upside, with a target price of RS 2554, driven by a resurgence in market-linked revenue and incremental revenue from mandatory Demat of new insurance policies and unlisted companies.
- Welspun Enterprises’ share price is projected to increase by 30%, with a target price of ₹480, due to the recent win of a BMC project worth Rs. 4120 Crore and a robust order book of EPC Projects.
Yes Securities recommends four stocks to buy in May 2024, expecting significant growth in share prices driven by various factors including market-linked revenue and robust order books.
Central Depository Services (India) Ltd (CDSL)
CDSL’s share price, currently trading at ₹2126, is expected to see a 21% upside with a target price of RS 2554. This growth is anticipated to be driven by a resurgence in market-linked revenue, including transactions, IPOs, and KYC, and a robust annuity stream from annual issuer charges and e-CAS. Additionally, incremental revenue from the mandatory Demat of new insurance policies and unlisted companies is expected to fuel growth in FY25.
Welspun Enterprises
Welspun Enterprises’ share price, currently trading at ₹369, is projected to increase by 30% with a target price of ₹480. This growth is attributed to the recent win of a BMC project worth Rs. 4120 Crore and a robust order book of EPC Projects standing at ₹12650 Crore as of 1st March 2024. The company’s net profit of ₹220 Crore for the 9 months FY24, a revenue CAR of 22% over 5 years, and a total portfolio of RS 25600 Crore provide a strong revenue growth visibility in the future.
Sterling and Wilson Renewable Energy (SWSOLAR)
For Sterling and Wilson Renewable Energy (SWSOLAR), the target price stands at ₹900, indicating a 27% upside for the share price currently trading at ₹706. The company’s turnaround, significant deleveraging of the balance sheet, a robust order pipeline, and anticipated strong orders in the upcoming year are factors contributing to this optimistic outlook.
Indian Hotels Company
For Indian Hotels Company, the target price stands at ₹680, indicating a 20% upside for the share price currently trading at ₹560. The growth in India’s hospitality industry, driven by increasing domestic and international tourism, rising disposable incomes, and expanding business travel, is expected to benefit the company’s share price.
Conclusion
Yes Securities’ stock picks for May 2024 present promising investment opportunities for investors. Each of these companies is poised for significant growth in their respective sectors, driven by various factors such as market-linked revenue, robust order books, and industry growth trends.
