Shares of State Bank of India (SBI) and VRL Logistics can give around 39-55% returns in a year. Brokerage house Motilal Oswal has selected these two stocks on the basis of their potential for profitability gains and their expansion plans. This firm saw a rise of 39% in State Bank of India and 55% in Logistics Company.
State Bank of India: Target Price – Rs 675
The brokerage firm feels that the public lender appears to be able to continue to strengthen its balance sheet and improve its return ratio. It added that while maintaining a strong focus on underwriting, the management’s focus has been on building a robust, high-quality loan portfolio, which has led to steady improvement in operating performance.
On Friday, SBI’s stock closed at Rs 490.70 on the National Stock Exchange (NSE). SBIN made its all-time high on February 7 this year at Rs 549.00. The brokerage firm thinks that this stock can reach Rs 675.
VRL Logistics : Target Price: Rs 690
Motilal Oswal says that VRL Logistics’ aggressive expansion plans will help in volume growth. The transport and logistics company plans to open 90-100 branches in FY 2022 and the same number in FY 2023.
The company has a strong presence in the LTL segment. It is well positioned to focus on increasing the number of branches and control costs. Its good balance sheet position and strong cash flows will enable it to meet its capital expenditure requirements for future growth.
On Friday, the stock of VRLL closed at 454.80. Like SBIN, it had also made an all-time high of Rs 591.90 on 7 February this year. The brokerage house has given its target of Rs 690.