Buy into these four stocks for 10-38% returns

ET takes a look at some of the stock recommendations by analysts of late. These stocks are expected to return between 10% and 38% as per analysts’ price targets.

City Union Bank
Brokerage: IDBI Capital
Price Target: Rs 230
CMP: Rs 180.55

Upside: 27.4%
IDBI Capital has initiated coverage on City Union Bank with a buy rating citing attractive valuations. The stock is trading at an estimated FY24 Price to Adjusted Book Value (P/ ABV) of 1.7 times. The price target values the stock at 2.2 times P/ABV FY24, which is its average valuation of FY15-20, the brokerage said

Ethos
Brokerage: Emkay Global
Price Target: Rs 1,400
CMP: Rs 1,016
Upside: 37.8%
Emkay has initiated coverage on the luxury watch retailer with a buy rating citing growth prospects. The brokerage said India is at the cusp of exponential growth in luxury watch sales and Ethos has a 15% market share by value with a pan-India physical presence (50 stores in 17 cities) and a strong online presence. Emkay said it sees potential for the industry’s revenues to 13-14% on a compounded basis over FY25-35.

Ambuja Cements
Brokerage: Investec
Price Target: Rs 752
CMP: Rs 564.50
Upside: 33.3%
Investec raised its price target on the stock to Rs 752 from Rs 432 after the company sought shareholders’ approval to raise Rs 20,000 crore through a preferential issue (warrants) to the new promoters — Adani Group — at Rs 418.87 apiece. “This to us signals promoter’s commitment to the business (stake potentially rising to 70.15%), enables the management to chase growth and help realize synergies/cost efficiencies, a significant positive,” the brokerage said.

Campus Activewear/Metro Shoes
Brokerage: Motilal Oswal
Price Targets: Rs 640/Rs 1,000
CMPs: Rs 581/Rs 820
Upside: 10.15%/22%
The brokerage has initiated coverage on footwear retailers with buy ratings on Campus and Metro. At an estimated FY24 Price to Earnings ratio of 47 times for Metro and 65 times for Campus, valuations appear rich, factoring in growth prospects over the next two years, said Motilal Oswal. “Yet, we believe, the next 3-5 years growth in business does offer reasonable upside in the stock given: a) the huge opportunity in the footwear market, b) both Metro and Campus’ superior capability and intention to grow at an accelerated pace, and c) only a handful of players have achieved scale with profitability.”