PNC Infratech - 24% upside
Valuation: In the coming quarters, the company's construction business is expected make larger contribution to its roads projects given the expectation of improvement in execution of projects. The robust order book and the opportunities in road segments provide visibility to future revenue growth. Thus, we expect the stock to see a price target of Rs131 in 8 to 10 month's time frame on a one year expected P/ E of 17. 73x and FY18 (E) earnings of Rs7. 39.
Gabriel India - 19% upside
Valuation: The company exports Ride Control products to developed markets in North America, Europe, Australia and the Asia-Pacific region. The management of the company has focused approach on exports has opened multiple global opportunities including few breakthroughs in high potential markets. Moreover, it is focusing to develop the replacement market in South East Asian countries. Exports and aftermarket will be the major drivers in its future growth, thus it is expected that the stock will see a price target of Rs130 in 8 to 10 months time frame on a three year average P/ E of 18. 82x and PY18 (E) earnings of Rs6. 92.
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