Top 5 Multibagger Stocks To Buy 2017 By Religare

SML Isuzu will benefit from the proposed vehicle scrapping policy, which, in its phase 1 of implementation will scrap commercial vehicles older than 15 years. The GST, when implemented, will reduce logistics hurdles and reduce time at check posts. This will ultimately improve fleet productivity and push demand from the logistics landscape. The perpetually improving condition of the infrastructure sector, coupled with higher disposable incomes, is expected to pick up demand in the Indian CV market. Also, demand for buses will improve further due to new orders from State Road Transport Undertakings(SRTU), urban infra development, increasing number of schools, etc. We expect the company to report CAGR of 17% and 30% on Revenue and profit fronts respectively, over FY16-FY18E. At CMP of Rs. 1,280, the stock is trading at FY18E P/E of 21.5x. We recommend a Buy on the stock with a target of Rs. 1,560.