Top Stock Picks: These 10 midcap stocks can give up to 113% upside in 3 years

Polycab India: The brokerage has an add rating on the stock with a 3-year target price of ₹3,883 and a 1-year target price of ₹2,768. This implies a potential upside of 47 percent in 3 years and 6 percent in 1 year. Polycab is a market leader in the wires and cables space with a 22-24 percent share of the organized market, said the brokerage. Despite recent correction in commodity prices, it expect the firm to achieve close to its FY26 revenue target of ₹20,000 crore, it added.

Apollo Tyres: The brokerage has a long rating on the stock with a 3-year target price of ₹597 and a 1-year target price of ₹383. This implies a potential upside of 113 percent in 3 years and 37 percent in 1 year. Due to its industry-leading R&D spends over the last 10 years, the firm has attained leadership in two fast-growing tyre segments, noted Equirus. Free cash flows will improve significantly from FY23 with good visibility on the same till FY27, it added. With raw material prices softening, margins should improve from Q3, predicted the brokerage.

JK Cement: The brokerage has a long rating on the stock with a 3-year target price of ₹4,623 and a 1-year target price of ₹3,083. This implies a potential upside of 61 percent in 3 years and 8 percent in 1 year. India’s cement industry is set to clock a high single-digit to low double-digit CAGR over the next 4-5 years and large organized players are likely to be key beneficiaries, noted the brokerage. It added that with its timely expansion, JK Cement is set to beat industry-volume growth. Benefiting from its cost efficiency measures, the company has maintained healthy profitability with the trend likely to continue ahead, it predicted.

IDFC First Bank: The brokerage has a long rating on the stock with a 3-year target price of ₹90 and a 1-year target price of ₹60. This implies a potential upside of 76 percent in 3 years and 18 percent in 1 year. Post June 2022, with its infrastructure book below 5 percent, IDFC First Bank is on a strong footing to grow and capture market share, highlighted the brokerage. Further, asset quality trends are normalizing with SMA loans/restructured book at manageable levels and legacy infra-assets has taken care of, it added. Another positive is a strong and stable management team with a clear focus on building a solid foundation for the bank, noted Equirus.

Uno Minda: The brokerage has a long rating on the stock with a 3-year target price of ₹966 and a 1-year target price of ₹627. This implies a potential upside of 72 percent in 3 years and 12 percent in 1 year. The firm has a proven track record of identifying future emerging opportunities in the industry and working on them ahead of competitors, stated the brokerage. The company had identified increasing electronic content in vehicles 6-7 years back, and results are visible in its product portfolio today, it added.

Century Ply: The brokerage has a long rating on the stock with a 3-year target price of ₹1,116 and a 1-year target price of ₹777. This implies a potential upside of 62 percent in 3 years and 12 percent in 1 year. Century is an integrated wood panel player with the highest plywood market share. The revenue share of laminates and MDF is increasing, which will lead to margin expansion as both products are high in the margin, said Equirus, adding that healthy topline and margins have resulted in strong cash flows, enabling the company to deleverage its balance sheet efficiently over the years. Considering a growing share of high-margin products and strong cash flows, it believes the company will trade at higher multiples versus industry peers of similar size.

Oberoi Realty: The brokerage has a long rating on the stock with a 3-year target price of ₹1,547 and a 1-year target price of ₹1,166. This implies a potential upside of 45 percent in 3 years and 9 percent in 1 year. During FY22, the firm's residential business recorded a strong performance with sales of ₹3890 crore, said Equirus, adding that further in 1QFY23, Oberoi sold 0.4 msf of the area with a booking value of ₹760 crore. Given a solid residential launch pipeline, sizeable addition to its leasing portfolio and a stable balance sheet, Oberoi is set for strong growth in the near-to-mid-term, it predicted.

Persistent Systems: The brokerage has a long rating on the stock with a 3-year target price of ₹5,475 and a 1-year target price of ₹4,030. This implies a potential upside of 66 percent in 3 years and 22 percent in 1 year. The brokerage expects Persistent’s revenue growth to continue to outperform vs most of its peers ahead given its strong positioning in digital services, OPD-led cost take-out deals and increasing traction in the managed services. It expects this not only in the long term but also in the near to medium term despite increasing macro-led demand headwinds and likely increase in client-specific issues in the near-medium term. It also sees relatively better order intake ahead for PSYS vs most of its peers. It sees that risk-reward is turning favourable for the long-term investment horizon.

ABFRL: The brokerage has a long rating on the stock with a 3-year target price of ₹511 and a 1-year target price of ₹387. This implies a potential upside of 53 percent in 3 years and 16 percent in 1 year. ABFRL is India’s largest fashion apparel retailer with a diversified portfolio of dominant brands across price points and a robust retail store franchise – Pantaloons. Strong brand recall and store expansion in smaller towns should drive growth in the core business – Lifestyle brands and Pantaloons, noted Equirus. Risk-reward seems favourable given the strong business opportunity and increased balance sheet strength to support aggressive expansion, noted the brokerage.

Carborundum: The brokerage has a long rating on the stock with a 3-year target price of ₹1,330 and a 1-year target price of ₹990. This implies a potential upside of 44 percent in 3 years and 7 percent in 1 year. Carborundum Universal (CUMI) has shifted gears with its recent acquisitions in abrasives and thermal energy storage. All three acquisitions are in line with the company’s strategy of expanding technological capabilities and market reach, said Equirus. The firm is on a definite path of becoming a major material science company over the long term – probably the only listed player to have such a wide portfolio of performance materials, it noted. While the company delivered a strong performance in the Russian business last quarter, near-term geo-pol risks have somewhat dampened sentiments. Normalization over the mid-term would make a strong case for multiple re-rating, stated the brokerage.