Choice Broking Recommends Buying These 7 High-Potential Stocks for Short-Term Gains: Expert Insights

<ul>
    <li>The Indian stock market has been fluctuating within a narrow range recently, reflecting investor anxiety ahead of the upcoming Lok Sabha election 2024 results on June 4.</li>
    <li>Market volatility has surged significantly in the last few weeks, evident from the India VIX, the country's fear gauge, which has spiked by over 80 per cent in May alone.</li>
    <li>Experts expect volatility to subside only after the election results are out. Until then, the market may continue struggling to make a decisive directional move.</li>
</ul>
<p><strong>Discover how the Lok Sabha elections 2024 are impacting the Indian stock market and what experts recommend for investors during this volatile period.</strong></p>
<h2><strong>Market Volatility Ahead of Lok Sabha Elections 2024</strong></h2>
<p>The Indian stock market has been experiencing heightened volatility as investors brace for the Lok Sabha election results scheduled for June 4, 2024. The India VIX, a key indicator of market volatility, has surged by over 80 per cent in May, reflecting the heightened uncertainty among market participants. This volatility is expected to persist until the election results are announced, making it challenging for the market to establish a clear direction.</p>
<h3><strong>Expert Recommendations Amid Market Uncertainty</strong></h3>
<p>Despite the current market turbulence, financial experts remain optimistic about the medium-to-long-term prospects of the Indian stock market. They advise investors to take advantage of market dips to buy and accumulate quality stocks with strong fundamentals. According to Kripashankar Maurya, AVP of research at Choice Broking, there are numerous opportunities across various sectors that investors can capitalize on during this period of uncertainty.</p>
<h2><strong>Top Stock Picks for Short-Term Gains</strong></h2>
<p>Kripashankar Maurya has identified seven stocks that he believes will deliver healthy double-digit gains over the next one to three months. These stocks are:</p>
<h3><strong>DCX Systems | LTP: ₹323.15 | Target price: ₹470 | Upside potential: 45%</strong></h3>
<p>DCX Systems has established a joint venture with ELTA to enhance its profitability. The JV focuses on railway products, with production slated to commence in FY25 under a product development category offering significantly higher margins than the build-to-print category. The backward integration with Raneal Advanced Systems for PCB assembly will boost margins by approximately 100-150 basis points. The company is also exploring opportunities for further expansion in the domestic defence sector.</p>
<p>"We anticipate that DCX's revenue, EBITDA, and PAT will grow at compound annual growth rates (CAGR) of 19 per cent, 31 per cent, and 32 per cent, respectively, over FY23-26, driven by the ELTA JV, backward integration, and new orders in both export and domestic defence markets. We arrive at a target price of ₹470, based on a 30 times PE ratio for FY26E EPS," said Maurya.</p>
<h3><strong>Fiem Industries | LTP: ₹1,230.30 | Target price: ₹1,569 | Upside potential: 28%</strong></h3>
<p>Fiem Industries is driven by its continued dominance in the E-2W lighting segment, healthy free cash flow generation, the addition of new clients, diversification into the PV segment, and a partnership with Gogoro. "We expect Fiem to see better than industry growth in the coming year backed by product diversification and capacity expansion. We roll forward the valuation to FY26 to arrive at a target price of ₹1,569 (18 times FY26E EPS)," said Maurya.</p>
<h3><strong>Coforge | LTP: ₹5,263.60 | Target price: ₹6,007 | Upside potential: 14%</strong></h3>
<p>Coforge invests strongly in its sales and marketing capabilities to ensure continued and robust growth in the years ahead. It expects SG&A expenses to be nearly 15 per cent. Management is confident of delivering robust organic growth in FY25E, led by a 17.3 per cent higher executable order book. It expects growth to be broad-based, led by a turnaround in the travel space. "We arrive at a revised target price of ₹6,007, implying a P/E ratio of 29 times on FY26E EPS of ₹207," said Maurya.</p>
<h3><strong>Conclusion</strong></h3>
<p>As the Lok Sabha elections 2024 approach, the Indian stock market is expected to remain volatile. However, experts suggest that this period of uncertainty presents a strategic opportunity for investors to buy quality stocks at attractive prices. By focusing on stocks with strong fundamentals and growth potential, investors can position themselves for significant gains once the market stabilizes post-election results.</p>