Fundamental picks: These stocks have an upside of 23% & 15% respectively

SMC | April 23, 2015, midnight

Trident - 23% upside


Valuation:
With major capex behind, a strong financial performance in the coming years will enable to generate significant free cash flows, which it believes will create tremendous value for all its stakeholders. The company has plans to continue to target new markets to diversify customer base geographically leverage existing customer relationships to ramp-up Bed-Linen marketing. Thus, it is expected that the stock will see a price target of Rs74 in 8 to 10 months time frame on a target P/ E of 9x and FY18 (E) earnings of Rs8. 2.


Indian Hume Pipe Company - 15% upside


Valuation:
The company is one of the few pipe companies to have a recognized R&D division which is responsible for implementing a strict and uniform quality control process on all its manufacturing units. Thus, it is expected that the stock will see a price target of Rs434 in 8 to 10 months time frame on a target P/ E of 21x and FY18 (E) earnings of Rs20. 65.

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