Large Cap Stocks: 5 Stocks That May Grow BIG

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Do you want to invest in stocks that may grow to large cap stocks in India? Many stock markets analyst and big bulls of Indian equity market believe that whole movie is still left. Whatever we have witnessed till now is just a trailer.

Although, Indian equity markets are at its lifetime high and is in its initial stage of the bull market. Furthermore, all eyes on small cap and mid cap stocks that may likely to become large cap stocks.

Read Also: Top 10 High Dividend Paying Stocks In India To Invest

Instead of focussing on Nifty and Sensex stocks, it is better to search for the real hidden gems in small cap stocks and mid cap stocks. Markets are at a high valuation and many stocks have already given a huge return. 

However, the growth trajectory of Indian economy is likely to continue in 2018 as well. So, the stock market may outperform too, especially from the pool of small cap and mid cap stocks.

5 Stocks That May Grow To Large Cap Stocks In India

Picking a stock at high valuation is really tough and so, I have screened 5 stocks that may have the potential to grow big. Let’s check out these stocks one by one.

Tata Coffee

Tata Coffee is a flagship company of Tata Group and its main objective is the cultivation of coffee, pepper, oranges, paddy, cardamom, and other plantation & agricultural products. It has a strong potential that may grow to one of the large cap stocks.

Its market cap is around 1700 Crore and P/E ratio 18. Currently, the stock is trading at 92-93 levels. So you can invest in Tata Coffee for a near-term target of 115-152-172 and keep Stop Loss at 88.

Performance
As on Jan 24, 2019
YTD 1-Month 3-Month 1-Year 3-Year 5-Year 10-Year
Tata Coffee -3.60 -1.73 -2.44 -40.58 0.39 0.57 19.97
NIFTY Smallcap 100 -2.96 -0.84 6.79 -32.80 8.48 13.74 15.39
NIFTY FMCG -1.57 0.29 4.91 7.70 17.36 12.20 19.82
 

Indian Hotels

Indian Hotels are collectively known as Taj Group and managed by Tata group itself. It is one of Asia’s largest group of hotels and also it is a market leader in the hotel industry with a market cap of above 16K Crore.

Its P/E ratio is on the higher side of 88 and it has been a laggard as compared to others. Presently, the stock price of Indian Hotels has multiple resistance at 135-140.

So, invest in Indian Hotels with Stop Loss at 105 and for long-term buyers exit price will be 75.

Performance
 
As on Jan 24, 2019
YTD 1-Month 3-Month 1-Year 3-Year 5-Year 10-Year
Indian Hotels -8.16 -7.12 8.35 -10.20 9.72 19.36 14.19
NIFTY Midcap 100 -3.32 -1.74 5.51 -20.13 12.21 17.66 17.91
NIFTY Service Sector 0.60 2.58 8.13 1.79 15.90 14.14 16.34

GVK Power & Infrastructure

GVK Power & Infrastructure is a diversified company having an operation in power, roads, airports, infrastructure, hotels and much more.

GVKPIL has P/E ratio of 17+ and has a market cap of above Rs. 1097 Crore. It is currently trading at 6-7 and you can expect it to hit 20. You can remain invested by putting Stop Loss at 4.50. Once it sustains above 20, it may likely to go beyond 50+.

Performance
 
As on Jan 24, 2019
YTD 1-Month 3-Month 1-Year 3-Year 5-Year 10-Year
GVK Power & Infrastructure -10.32 -12.58 0.00 -67.90 -3.35 -6.54 -9.51
NIFTY Smallcap 100 -2.96 -0.84 6.79 -32.80 8.48 13.74 15.39
NIFTY Energy 4.57 7.16 9.96 3.35 22.00 14.17 10.32

Alphageo India

Alphageo India is an onshore integrated seismic related service provider and is a market leader in seismic survey category. It offers seismic related services to oil exploration and production sector.

Currently, Alphageo India has a market cap of around 300 Crore and P/E ratio is above 5.5. Short-term investors can expect 755-920 and don’t forget to put Stop Loss at 400.

For long-term investors, just hold the stocks with a Stop Loss at 240 and let it grow with the economy.

Performance
As on Jan 24, 2019
YTD 1-Month 3-Month 1-Year 3-Year 5-Year 10-Year
Alphageo (India) -1.00 3.52 -0.06 -49.36 -1.15 42.15 18.54
NIFTY Smallcap 100 -2.96 -0.84 6.79 -32.80 8.48 13.74 15.39
NIFTY Financial Services -0.35 1.86 10.32 2.97 21.22 19.99 21.69
 

Allcargo Logistics

Allcargo Logistics is one of the favorite stocks of many veteran investors and big bulls of Indian stock markets. It is a market leader in integrated logistics having a market cap of above 2600 Crore.

Basically, it offers logistics services across Multimodal Transport Operations and Container Freight Station Operations.

Allcargo Logistics has a P/E ratio just above 16. Its stock is trading at around 95 levels for some time now and soon it may retest its lifetime high. So, go long on it with a Stop Loss at 68 for short-term investors. However, for long-term investors just sit tight with an SL at 50.

Performance
As on Jan 24, 2019
YTD 1-Month 3-Month 1-Year 3-Year 5-Year 10-Year
Allcargo Logistics -0.97 2.09 9.14 -45.91 -15.88 9.68 5.04
NIFTY Smallcap 100 -2.96 -0.84 6.79 -32.80 8.48 13.74 15.39
NIFTY Service Sector 0.60 2.58 8.13 1.79 15.90 14.14 16.34

If you like this 5 stocks that may likely to become large cap stocks then do share it on your social networks like Facebook, Twitter, and Google+. You can also express your views in the comments section. 

Published on: Feb 2, 2018
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