Fundamental picks: These stocks have an upside of 23% & 25% respectively

SMC | April 20, 2015, midnight

Exide Industries - 23% upside

As the company is one of the largest leaders in the battery space, it is likely to get benefit, if the demand scenario improves. Moreover it is also expected that cost reduction initiative and focus on profitable segment would drive the margins going forward. Thus, it is expected that the stock will see a price target of Rs221 in 8 to 10 months time frame on a target P/ E of 27x and FY17 (E) earnings of Rs8.19.

Greaves Cotton - 25% upside

The Company sustains its leadership position through seven state-of-the-art manufacturing units which produce world class products backed by comprehensive marketing and service / Parts network throughout the country. Ongoing R&D e forts of innovation through frugal engineering and technology would continue to nurture the fundamental business model and enable continued leadership in the segments of operation. As per mana ement of the company, in FY'17, decent pickup in dgemand for the engines would give good strength to the return on equity (RoE) and earnings per share (EPS). Thus, it is expected that the stock willsee a price target of Rs180 in 8 to 10 months time frame on a 3 year average P/ E of 22. 48X and FY17 (E) earnings of Rs7. 99.

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