The more comprehensive markets have outperformed the benchmark indices in Samvat 2072 with BSE mid-cap index skyrocketing 24 percent and the small-cap index rallying 20 percent. Here are some of the top midcap and smallcap stock suggestions from Nirmal Bang Securities for Samvat 2073.1) VST Tillers Tractors (Target Rs 2,415): The brokerage expects VSTs volumes to post 11 percent CAGR over FY17-19, backed by strong need recovery, brand-new launches in tiller space and higher HP (horse power) tractors.2) Power Mech Projects (Target Rs 790): Its strong order book of Rs 3,500 crore might result in 17 per cent and 24 per cent CAGR growth in revenue and net profit respectively over FY16-FY18, the brokerage states. The stock trades at an appealing appraisal of 6.5 times its FY18 approximated earnings per share.
3) JK Cement (Target Rs 1,205): Its white cement business is crucial value motorist for the company with 60 per cent of its operating earnings and 30 percent of its earnings originating from this section, the brokerage said. Per capita intake of white cement in India is very low and it might increase, resulting in brighter growth prospects for JK Cement, it added.4) KCP (Target Rs 122): The brokerage thinks cement rates in Andhra Pradesh will stay steady which will lead to substantially much better return ratios for the company and likewise help reducehelp in reducing leverage.5) Mangalam Cement (Target Rs 411): The business is focusing on cutting costs and enhancing its market share. Its widening footprint and innovation upgradation will result in much better performance parameters for the company, the brokerage said, including that Mangalam Cement shares are among the cheapest among small-cap stocks in cement sector.6) Inox Leisure (Target Rs 354): The brokerage believes that substantial appraisal space (30 per cent lower in PE terms and 21 percent lower in EV/EBITDA terms on FY18 estimated incomes) that exists between Inox and PVR would be bridged as return ratios of the 2 converge on the back of better margins for Inox due to an improving profits mix, maturing of screen portfolio and development in running metrics.7) Manappuram Financing (Target: Rs 130): The business has actually embarked on a method of diversifying into microfinance, househome mortgage, industrial vehicle funding. The brokerage thinks return on assets/return on equity to improve further by 30 basis points and 440 basis points to 3.2/ 17.6 percent respectively in FY2018.8) Shaily Engineering Plastics (Target: Rs 811): The business capability to manufacture ingenious products on a consistent basis with exceptional quality at low costs made a place for itself in the list of favored suppliers for numerous big domestic and international customers, the brokerage said. Its income and net revenue is expected to grow at a CAGR of 13/36 per cent respectively over FY2016-19, the brokerage stated.9) Swaraj Engines (Target 1,429): Moving forward, need outlook remains strong with healing in tractor sales visible across many states in India, the brokerage said. Structural motorists for domestic tractor growth story are strong, which must result in a 10 percent compound annual growth rate (CAGR) for the market over the next 5 years, it included.10) Cipla (Target Rs 700): The brokerage anticipates high teenagers to mid-twenties growth in Ciplas earnings over the next five year owned by ANDA approvals in the US.Disclaimer: Financiers are advised to make their own evaluation prior to acting on the details.