Hot stocks that can give over 70% returns in next one year

MUMBAI: The Indian markets have made fresh highs today. At this time the big question is whether to make fresh buys, hold on to stocks or book profits.

Investors say there are certain stocks that can still give good returns if held for a long-term period.
India Nivesh has identified a couple of stocks that can give over 70 per cent returns over one year. These stocks have already gained upto 20 per cent on Monday as investors lapped them up.

Onmobile Global Target price Rs 82

According to the brokerage, change in leadership in Onmobile (OGL) may bring back the strong historical performance for the company; on-going business restructuring is likely to bring turnaround visibility, no major accounting one-offs and surprises is expected from hereon, Latam and other key geography are expected to drive the international performance, domestic revenue is expected to stabilize from hereon, and strong cash balance brings lot of cushion to the investors.

“In our view, OGL’s financial results depend on corporate actions rather than only on supply and demand factors. As discussed, this is the story of the operational turnaround with major organizational restructuring along with top management reorganization,” the report said.

“Going ahead revenue growth is likely to grow at 5.1% CAGR over FY14-16E, while EBITDA growth is likely to be higher at 335.1% CAGR on back of various restructuring initiatives,” the report added.

India Nivesh has ‘Buy‘ rating on the stock with a target price of Rs 82 per share.

The stock ended at 20 per cent upper circuit at Rs 46.80 on the BSE. Over 29.3 lakh shares were traded in the counter against two-week average of 4 lakh shares.

Camson Bio Technologies Target price Rs 252

Camson Bio Technologies is engaged in the business of biocides, bio-fertilizers and hybrid seeds. According to India Nivesh, the company has been aggressive with its capacity expansions through organic and inorganic routes in order to become dominant global player in field of bio agriculture.

“Product offerings are tailored to domestic landscape which preserves stability and fertility of soil. The company’s products aim to provide safe organic food at affordable prices to all while ensuring better price realization for farmers,” the report said.

The brokerage is of the view that if the company maintains its present run rate of over 30 per cent growth in agribiotech products and 15 per cent on hybrid seeds business on sequential basis for next couple of years and delivers annualized PAT margin of around 14 per cent; its FY’16 EPS works out to be Rs 12.61.

“Valuing the company at P/E multiple of 20x for FY’16 the target stock price comes at Rs 252. We recommend buy and accumulate on ‘Camson,’” the report added

The stock ended at Rs 147.85, up 7.02 per cent, on the BSE. Over 6.3 lakh shares were traded in the counter against two-week average of 86,000 lakh share.