Fundamental picks: These stocks have an upside of 14% & 20% respectively

SMC | May 12, 2015, midnight

CRISIL - 14% upside


Valuation:According to the management, advisory business should see some better numbers in CY 2017 as comdpared to CY 2016. Due to regulatory and hybrid pro ucts introduction, together with improvement in infrastructure, power and road projects going forward, the segment should do well in comingyear. Nbreover: in Research business, after performing strongly in CY 2016, the outlook for CY 2017 continues to remain optimistic. Increasing requirements of complex research due to regulatory requirements and in house risk assessment regluirements has led to new opportunities for bot existing products and newer products. Strong demand remains for benchmarking analytic tools and analysis in the international arena. Thus, it is expected that the stock will see a price target of Rs.2230 in 8 to 10 months time frame on a current P/ Eof 47. 28x and CY 17 EPS of Rs.47. 16.

Sharda CropChem - 20% upside


Valuation:The company has strong fundamentals and robust outlook. Its strong focus on brand building and customer reach is helping the company in increasing its market share in major addressable markets. Management's focus on identification of generic molecules, preparing dossiers, seeking registrations, marketing & distributing formulations through third party distributors would accelerate the further grth for the company. Thus, it is expected that the stock will see a price target of Rs587 in 8 to 10 months time frame on an expected P/ E of 24x and FY18 EPS of Rs24.47.

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