In 2023, the Indian equity markets have demonstrated resilience, with benchmark indices such as the S&P BSE Sensex and Nifty50 rising by up to 8 percent.
The BSE Midcap and BSE Smallcap indices have also performed strongly, surging up to 28 percent during the same period.
Analysts at DAM Capital have identified 11 stocks with the potential to double in value over the next three years, based on their Ebitda.
1. KEC International: KEC International, currently priced at Rs 664 per share, is expected to benefit from a growing transmission and distribution (T&D) business, domestic tenders, and international inquiries.
2. Trent (India): Trent, with a current price of Rs 2,084 per share, is a leading retailer with well-known brands like Westside, Zudio, Star, and a Zara joint venture. It is poised for significant growth.
3. Escorts Kubota: Escorts Kubota, priced at Rs 3,186 per share, is expected to benefit from synergy with Kubota in terms of operations, cost management, and product development.
4. Bharat Forge: Bharat Forge, currently priced at Rs 1,092 per share, is anticipated to see growth in export revenues, driven by a healthy order book and government initiatives in defense products.
5. Astral Pipes: Astral Pipes, priced at Rs 1,915 per share, is considered a valuable addition to long-term portfolios due to its strong execution, corporate governance, and free cash-flow generation.
6. TVS Motor: TVS Motor, at Rs 1,525 per share, is expected to experience robust double-digit growth in exports, which could be a significant catalyst for earnings and a re-rating of the stock.
7. IDFC First Bank: IDFC First Bank, priced at Rs 95 per share, is showing improvements in cost metrics and is expected to see an increase in return on equity (RoE) driven by retail loans and asset quality improvements.
8. IndiaMART IndiaMesh: IndiaMART IndiaMesh, currently priced at Rs 2,877 per share, is poised for fundamental growth due to increased digitization among SMEs, a strong network effect, and effective capital allocation strategies.