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After rising 67% since 2008, what lies ahead for these 5 super performers

Ajanta Pharma, Eicher Motors, PI Industries, Cera Sanitaryware and Natco are 5 such stocks which have given returns of 47-67% between FY09 and FY17.

, ET Bureau|
Updated: Mar 29, 2017, 08.09 AM IST
ET spoke to analysts about their near-term prospects.
ET spoke to analysts about their near-term prospects.
Since the global financial crisis in 2008, markets have seen several ups and downs but there are stocks which have stood the test of time. Ajanta Pharma, Eicher Motors, PI Industries, Cera Sanitaryware and Natco Pharma are five such stocks which have given returns of 47-67% on a compounded basis between FY09 and FY17. ET spoke to analysts about their near-term prospects.

CMP: Rs 1,784.40
Market Cap: Rs 15,703.61 crore
CAGR Return (%) since FY09: 67.20
Last 1 year Return (%): 27.94
P/E: 29.76
Consensus Rating: 4 Buy / 1 Hold / 2 Sell

The company’s focus on the fast-growing specialty therapies like ophthalmology, dermatology, cardiology and pain management, along with focus on niche products has helped it gain an edge in the last few years. Motilal Oswal, which recently initiated coverage on the stock with ‘buy’ rating, said the company has a low US base business and therefore minimum regulatory risks over the medium term. “If the stock holds above the resistance of Rs 1,850, then it can move higher to Rs 2,000,” said Chandan Taparia, derivative analyst at Motilal Oswal.

CMP: Rs 2,749.55
Market Cap: Rs 3,576.03 crore
CAGR Return (%) since FY09: 47.16
Last 1 year Return (%): 50.66
P/E: 36.17
Consensus Rating: 4 Buy / 1 Hold / 2 Sell

Cera Sanitaryware, a pioneer in the sanitaryware segment, has been a key benefi ciary of the booming housing sector in India, reporting net profi t at a compounded annual growth rate of 22.8% in FY09- FY16 period. “With the government focus on sanitation and low-costhousing, it will continue to do well. It will also benefi t from the Goods and Services Tax coming in,” said Basudeb Banerjee, analyst at Antique Stock Broking. “I won’t be surprised if it touches Rs 3,000 in the next 12 months,” added Banerjee.

CMP: Rs 24,936.80
Market Cap: `67,853.65 crore
CAGR Return (%) since FY09: 58.03
Last 1 year Return (%): 35.46
Consensus Rating: 25 Buy / 7 Hold / 9 Sell

The success of its Royal Enfield bikes has made the stock one of the most talked about multi-baggers in recent times. It has delivered profit at a CAGR of 39.8% during FY09-FY16, while in the nine months ended December, profi t rose 51% from the same period a year ago. HSBC in a note on Monday said the stock is fully valued but valuations are justifi edgiven the premium earnings growth. Chandan Taparia of Motilal Oswal said the stock may rise to Rs 25,550 in the near term, breaching which,
Rs 26,200 would be the next target.

CMP: Rs 848.90
Market Cap: Rs 11,679.73 crore
CAGR Return (%) since FY09: 63.21
Last 1 year Return (%): 51.04
P/E: 27.98
Consensus Rating: 18 Buy / 17 Hold / 3 Sell

Agriculture inputs provider PI Industries’ custom synthesis business has been a key growth driver for the company in recent years, providing it an edge over its peers. It is the key reason for sustained interest in the stock. The CSM business contributes 60% of the revenue from 20% a few years earlier and also generates higher margin than agrochemicals business, analysts said. However, they feel that the valuation does not leave much room for upside in the near term.

CMP: Rs 784.05
Market Cap: Rs 13,666 crore
CAGR Return (%) since FY09: 46.72
Last 1 year Return (%): 91.55
P/E: 35.51
Consensus Rating: 15 Buy / 1 Hold / 3 Sell

Analysts attributed the strong returns over the years to Natco’s robust pipeline, especially in the segments of Hepatitis C and export formulation. Given the strong pipeline in the US and an uptick in the domestic market, it will continue to command premium valuations, said analysts. Natco’s profi t has grown at a CAGR of 15% in FY09-FY16. “As the stock has run up a lot, it is likely to consolidate between Rs 765 and Rs 810, but a breakdown below Rs 765 can lead to further profi t booking,” said Dharmesh Shah, AVP-Technical at ICICI Securities.

Note: P/E ratio is on a 12-month trailing basis. Consensus Rating Data Source: Bloomberg. CAGR data source: ETIG Database
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