Markets

Five stocks soared like Bitcoins, and may head even higher

Some domestic stocks have given Bitcoins a run for their money. Notwithstanding the high volatility, Bitcoins witnessed a staggering jump of 14 times in price this year. The rally in the Indian market this year, too, has thrown up stocks which have given multi-fold returns. ET takes a look at five such stocks and what 2018 holds for them:

HEG
CMP: Rs 1,998.50 I YTD Change (%): 1,214.80

The stock has had a strong run in 2017 thanks to rise in graphite electrode prices. Consolidation in global industry and environmental clampdown in China have led to a boom in graphite electrodes industry. “Higher realisations of graphite electrode should drive the earnings to reach two times over FY18-20. Any increase in the utilisation levels should be a positive surprise for the stock,” said Jefferies in a note last week, raising target price on the company to Rs 2,600 from Rs 1,753.

INDIABULLS VENTURES
CMP: ₹268.70 I YTD Change (%): 1,194.94

The company’s foray into consumer lending has boosted the stock. It also provides securities, commodities and currency broking services. The management remains bullish. ‘We potentially see something like a 5% market share in the personal loan product for Indiabulls Ventures and then we are also looking at how to take advantage of this entire opportunity around financialisation of Indian savings,” said Gagan Banga, vice-chairman, Indiabulls Housing Finance in an ET Now interview recently.

GRAPHITE INDIA
CMP: ₹662.70 I YTD Change (%): 808.43

The bull market in India and the boom in graphite electrode industry have produced a multibagger in the form of Graphite India. “We expect higher realisations of graphite electrode due to tight demand/supply situation to lead to 4 times increase in revenue over FY17-20,” said Jefferies, raising target price to Rs 830 from Rs 531. Brokerage Anand Rathi expects the company’s higher realisations to continue for the next two years but lowered rating to ‘hold’ as it sees limited upside potential in the stock.

RAIN INDUSTRIES
CMP: Rs 360.90 I YTD Change (%): 556.78
Rain is globally the second largest producer of calcine pet coke and coal tar pitch. It has benefited from demand growth and supply disruptions in China. Motilal Oswal, which has a ‘buy’ rating on it, said these tailwinds are likely to last for 2-3 years enabling a compounded profit (PAT CAGR) growth of 50% over 2016-19. In a sign of bullishness, investor Dolly Khanna has raised her stake in Rain Industries to 2% as of September from 1.3% a quarter ago.

VENKY’S (INDIA )
CMP: ₹2,839.10 I YTD Change (%): 541.24

The crackdown on illegal slaughterhouses in some states and beef ban has helped Venky’s India’s shares rise multi-fold this year. Going by Quantum Securities’ target price on Venky’s, the brokerage expects another 9% upside. Quantum Securities believes that the company is in a good spirit with benign raw material prices and strong poultry prices. The brokerage has a ‘buy’ rating on Venky’s and has raised target price on the stock to ₹3,100 due to its the company’s continued strong performance across verticals.

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