ET asked leading stock market experts Porinju Veliyath, Basant Maheshwari, Saurabh Mukherjea, Manish Sonthalia and Govind Parikh to recommend 5 stocks that can give multibagger gains over the next 5 years:
Porinju Veliyath recommended Tata Communications. He said the stock is underpriced and has many ingredients which long-term investors must seriously look at.
“I would strongly look at it when we play the digital transformation theme. There is a huge global opportunity in digital solutions. It has traditionally been a company providing data and voice infrastructure. It is getting transformed into a real global solutions company and the opportunity size is really big,” he advised.
He pointed out that Tata Communications has guided for 15-20 per cent growth for the next few years which is amazing because the GDP is growing at 8-10 per cent maximum.
Saurabh Mukherjea recommended Titan, the Tata-owned lifestyle products retailer. He said the company will continue to compound for the next few years at 30 per cent as it has done for the last 20 years both in cash flows and in share prices.
Basant Maheshwari recommended a buy of Tata Motor DVR, which he called “The poor man’s Tesla”. He said the stock is the best hedge against high crude oil prices. If crude stays at $120, EVs would be more in demand.
Manish Sonthalia recommended Vedant Fashions, which owns ethnic wear brand Manyavar. The stock that got listed in February this year is trading 11 per cent higher than its IPO price of Rs 866. The average price target of 6 analysts shows an upside potential of 18 per cent,.
Govind Parikh recommended auto component maker Sundram Fasteners. The stock is down over 13 per cent in the last one year. It is now hovering near its 52-week low of Rs 674.80. The consensus recommendation from five analysts for Sundram Fasteners is BUY. The average target price suggests an upside potential of up to 41 per cent from the current market price in the next one year.