Top Brokerages Suggests Accumulate Two Multibagger Large Cap & Small Cap Stocks For High Returns

Mold-Tek Packaging Ltd

Mold-Tek Packaging Ltd (MTEP) is one of the leading manufacturers and suppliers of high-quality airtight and pilfer-proof containers/ pails in India for paints, lubricants, food and FMCG. Mold-Tek Packaging is a small-cap packaging sector company having a market cap of Rs 2,945.09 crore.

With the given target price of Rs 965 per share, the stock is likely to give potential gains of up to 9%. The stock last traded at Rs 889.20 per share on NSE. The stock touched its new 52-week high level on 19 August 2022 at Rs 1,958 and its 52 week low on 29 November 2021 at Rs 645.15, respectively.

The stock surged in a week, giving 4.67% positive return. However, it has fallen 3.21% & 7.03%, in 1 and 3 months, respectively. The stock has given 28.79% positive in a year. It has given 214.15% multibagger return in 3 years, and 184.45% multibagger return in 5 years, respectively.

Brokerage’s views & comments

According to Geojit, Q2FY23 revenue grew by 14% YoY, aided by ~11% YoY volumes. EBITDA/kg was down by 4% YoY, on account of higher input cost. EBITDA margins were down by 140bps YoY to 18.7% due to higher expenses.

MTEP is trading at a 1 year forward P/E of 29x. “We value MTEP at a P/E of 24x, as we roll forward to FY25E, and reiterate to Accumulate with a target price of Rs.965,” the brokerage has said.

Siemens Ltd

Siemens is a technology company focused on industry, infrastructure, transport, and healthcare. It is a Capital goods sector large cap company having a market cap of Rs 98.949.79 crore.

ICICI Securities in its recent report has recommended the stock of the company with Accumulate rating. The brokerage has estimated a target price of Rs 3,011 per share for the stock for gains up to 9%.  On NSE, the stock last traded at Rs 2,778.55 per share, 1.35% down as compared to its previous close. On 15 September 2022, the stock recorded its 52 week high at Rs 3,138.50 per share, the 52-week low level is Rs 2,303.60 per share, recorded on 29 November 2021. 

 
The stock over the past 5 days has given 2.11% negative returns, whereas, in the past 3 months it has given 3.64% negative returns. Over the past 1 year, the stock gave 18.18% positive return. It has given 82.61% positive returns in 3 years. In 5 years, it gave 133.03% multibagger returns.

Brokerage’s views & comments

According to the brokerage, Siemens witnessed moderation in execution with standalone revenue growing 11.7% YoY to Rs43bn against our expectations of Rs46bn for Q4FY22. Except mobility, all the segments reported execution below estimates. While gross margin expanded by ~200bps YoY to 32.7%, increase in ‘other expenses’ (+46.4% YoY – could be due to one-offs) impacted the EBITDA margin, down 25bps YoY to 10.8%. Hence EBITDA came in at Rs4.7bn (I-Sec: Rs5.2bn), up 11% YoY. ‘Other income’ increased by 114% YoY on account of robust cash balance (Rs57bn at FY22-end). PAT thus came in ~23% YoY higher at Rs3.9bn (I-Sec: Rs3.6bn). Greater demand for automation and digitisation augurs well for the company’s strong digital offerings. “We have marginally tweaked our estimates and maintain our ADD rating on the stock due to its consistent performance and favourable outlook on incremental capex. Revise our SoTP-based target price to Rs3,011 (earlier: 3,097),” the brokerage has said. 

Disclaimer

The stocks have been picked from the brokerage reports. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before making any investment decision.