Hot Stock Picks | Experts’ Recommendations

Which are the latest Hot Stock Picks that are worthy of buying for multibagger gains?

All investors and traders are seeking hot stock picks to buy now.

Only those stocks qualify to be referred to as hot stock picks if they have the potential to shower hefty gains upon investors and traders within a short period of time.

Some hot stock picks even have the potential to give multibagger gains if they are held for the long-term.

Such stocks qualify as hot stock picks as well as multibaggers.

Without further ado, let us look at the latest installment of hot stock picks which have been recommended to us by leading experts.

Hot stock picks by Anand Rathi

Anand Rathi, a leading firm of stock brokers, has recommended three fundamentally strong stocks for the next week.

(1) Buy Kalpataru Power at CMP 470 for Target 670

– Transmission capex in state transmission entities and capex in the Railways and in oil & gas pipelines would lead to further orders, especially domestic, for Kalpataru.

– Greater sales assurance than the present 2x TTM sales, powered by the healthy order-book, strong execution and stable margins would lead to further upside.

– An increase in Railway electrification and oil & gas pipeline capex would ensure healthy inflows in FY18 and FY19. The company is aiming at orders of 75bn-80bn in FY18.

– Backed by its strong order book, management is guiding to 15-20 percent sales growth and a major share of the overseas business. Margins are expected to hold at present levels.

– Earnings are expected to clock a 25 percent CAGR over FY18-20. New orders in oil & gas will have a better receivables cycle and margins. Railway orders may face a slightly elongated working-capital cycle. Improved receivables would lead to lower interest cost and strong earnings growth.

– The stock is valued at 17x standalone earnings to factor in the strong growth in orders in the transmission and railway segments.

The stock is a Buy for the target price of Rs. 670.

Buy Bharat Forge at CMP Rs. 742 for Target price of Rs. 850

Bharat Forge reported strong performance in Q3 FY18 with all round growth seen across geographies and segments.

– EBITDA grew by 60 percent at Rs 4163 million with 360bps increase in margins at 29.9percent despite increase in commodity.

– Overall capacity utilization level stands at ~77 percent.

Management is confident that current capacity is enough to cater to the increase in demand in the near future.

– During the quarter, BFL opened its new R&D facility in UK at Mira Technology Park. The focus will be on electric two-wheelers

– Management is positive on energy sector business as well as ongoing strong traction from US HCV sales.

By FY19, domestic CV is also expected to turn positive, therefore company indicates healthy outlook for FY18 & FY19.

– We remain optimistic on BFL on back of company’s revival in demand from the US.

We continue to remain positive on the company over medium and long term and maintain our BUY rating on the stock and increase our target price to Rs 860 per share.

Buy Tata Elxsi at CMP Rs. 1002 for Target price of Rs. 1254

– Tata Elxsi overall witnessed a steady Q3 FY 2018 quarter.

Revenue for the quarter grew by 11 percent at Rs 3455mn on y-o-y basis. EBITDA for the quarter grew by 31 percent at Rs 935mn

– The company in has articulated its strategy to drive sustainable growth with a focus on Automotive, Broadcast & Communications and Healthcare verticals.

– Also, Tata Elxsi’s future growth will be driven by expanding its portfolio offerings and will concentrate on existing customers.

– Digital technologies remain a key area for Tata Elxsi with focus on IoT, AI, Mobility, augmented technologies, Robotic automation and Cloud.

– Given its niche capabilities and sticky franchise, we believe that TELX’s valuation premium over the IT sector will continue.

We continue to remain positive on the stock and maintain our BUY rating on the stock with the target price of Rs 1254.

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