Brokerages initiated coverage on Syrma SGS and Vedanta Aluminium with buy ratings. Their price targets imply returns of a little over 21% over Thursday’s closing priceSYRMA SGS BROKERAGE: HSBC Price Target: Rs 1,750 CMP: Rs 1,441.70 | Upside:21.4% High estimated Price to Earnings Ratio of 53 times justifi ed, given its high growth; Current PE is 44 times. EMS companies command high double-digit P/E multiples due to growing TAM, government support, backward integration and strategic joint ventures. VEDANTA ALUMINIUM BROKERAGE: MOTILAL OSWAL FINANCIAL Price Target: Rs 540 CMP: Rs 444.45 | Upside:21.6% One of the most compelling structural stories in the global aluminium space. Transition toward becoming more captive and backward integration will support structural re-rating of valuation multiples.
Hot Stocks: 2 stocks that may give over 21% returns
Brokerages initiated coverage on Syrma SGS and Vedanta Aluminium with buy ratings. HSBC set a price target of Rs 1,750 for Syrma SGS, implying a 21.4% upside. Motilal Oswal Financial set a Rs 540 target for Vedanta Aluminium, indicating a 21.6% potential gain. These targets suggest significant returns over current trading prices. Both companies are seen as having strong growth prospects and structural advantages.
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