5 Stocks to Buy Now for a Potential Upside of Up to 42% – Do You Own Any?
5 Stocks to Buy : Indian stock markets witnessed a sharp correction on February 28, with the Sensex falling by 1,414 points (-2%) to 73,198.10 and the Nifty dropping by 420 points (-2%) to 22,124.70. However, market corrections often present attractive investment opportunities.
If you are looking for high-potential stocks with strong fundamentals, we have shortlisted five stocks that leading brokerages have recommended. These stocks have an upside potential of up to 42%, making them a great option for investors looking for growth.
1. Chalet Hotels – Target Price: ₹1,017 (35% Upside)
Company Overview:
Chalet Hotels is a leading owner, developer, and operator of luxury hotels across India, with properties in Mumbai, Bengaluru, Hyderabad, and Pune. It operates in three segments – Hospitality, Real Estate, and Rental/Annuity Business.
- Market Cap: ₹16,386.34 crore
- Current Price: ₹750.10
- Brokerage Call: ICICI Securities recommends a ‘Buy’ with a target price of ₹1,017, suggesting a 35% upside.
✅ Why Invest?
With strong occupancy rates, rising room tariffs, and increasing travel demand, Chalet Hotels is well-positioned for growth in the hospitality sector.
2. Royal Orchid Hotels – Target Price: ₹502 (42% Upside)
Company Overview:
Royal Orchid Hotels is a prominent hotel chain with a diverse portfolio of hotels and resorts across India, including Regenta Resort Vanya Mahal and Regenta Camellia Resort.
- Market Cap: ₹969.21 crore
- Current Price: ₹353.40
- Brokerage Call: Edelweiss recommends a ‘Buy’ with a target price of ₹502, indicating a 42% upside.
✅ Why Invest?
The growing tourism industry and expanding hotel network make Royal Orchid a promising stock in the hospitality space.
3. Federal Bank – Target Price: ₹236 (33% Upside)
Company Overview:
Federal Bank is a well-established private sector bank offering retail and corporate banking services. It operates across three segments – Treasury, Corporate/Wholesale Banking, and Retail Banking.
- Market Cap: ₹43,518.63 crore
- Current Price: ₹177.30
- Brokerage Call: BOB Capital Markets recommends a ‘Buy’ with a target price of ₹236, signaling a 33% upside.
✅ Why Invest?
Federal Bank has shown consistent growth in loan book, strong asset quality, and improving net interest margins, making it a solid banking stock.
4. KEI Industries – Target Price: ₹4,103 (32% Upside)
Company Overview:
KEI Industries is a major manufacturer of wires and cables, catering to various sectors such as power, infrastructure, and telecom.
- Market Cap: ₹29,518.11 crore
- Current Price: ₹3,089.20
- Brokerage Call: Geojit BNP Paribas suggests a ‘Buy’ with a target price of ₹4,103, indicating a 32% upside.
✅ Why Invest?
With rising demand for power transmission cables and government focus on infrastructure, KEI Industries is well-placed for sustained growth.
5. AU Small Finance Bank – Target Price: ₹725 (29% Upside)
Company Overview:
AU Small Finance Bank is a fast-growing financial institution providing retail and wholesale banking services.
- Market Cap: ₹42,132.48 crore
- Current Price: ₹566.00
- Brokerage Call: ICICI Securities has a ‘Buy’ rating with a target price of ₹725, suggesting a 29% upside.
✅ Why Invest?
With a strong presence in the semi-urban and rural banking sector, AU Small Finance Bank has significant growth potential.
Financial Snapshot of These Stocks
Here’s a quick comparison of the key financial metrics:
| Stock Name | CMP (₹) | Target Price (₹) | Upside (%) | Market Cap (₹ Cr) |
|---|---|---|---|---|
| Chalet Hotels | 750.10 | 1,017 | 35% | 16,386.34 |
| Royal Orchid Hotels | 353.40 | 502 | 42% | 969.21 |
| Federal Bank | 177.30 | 236 | 33% | 43,518.63 |
| KEI Industries | 3,089.20 | 4,103 | 32% | 29,518.11 |
| AU Small Finance Bank | 566.00 | 725 | 29% | 42,132.48 |
Final Thoughts: Should You Invest?
While the stock market has recently seen volatility, these five stocks have been identified by leading analysts as having strong upside potential. With well-defined growth drivers in place, these companies could offer attractive returns in the coming months.
However, it is always advisable to conduct your own research and consult a financial advisor before making investment decisions.
🔥 Which of these stocks do you own or plan to invest in? Share your thoughts in the comments!
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.