HSIL (CMP Rs. 315, TP Rs. 600; Gains: 90% by Mehta Equities)
Considering the overall rationales, we believe HSIL stands out to be the leading player to capture the rising demand of sanitaryware in the organised space. With Govt focus on sanitation, high replacement market and expansion plans in place; HSIL gives a good investment opportunity for healthy returns. At the CMP, the stock is trading at a valuation of 17x to FY16EPS of Rs 18.8. Hence, we recommend to “Accumulate/ Buy” with a target price of Rs 600 with medium to long term investment horizon and also expect the stock to be re-rated going forward.
Amara Raja Batteries (CMP Rs. 552, TP Rs. 660; Gains: 19% by Maximus Securities)
Considering the clean balance sheet, strong financial performance during recession, scope for increasing market share and imminent recovery in the Indian economy, we value Amara Raja Batteries Ltd with a P/E of 19.5x FY16E EPS to arrive at a target price of Rs. 660/share.