Hot Stocks: 2 stocks that may give over 21% returns

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 price

SYRMA 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.