Diwali to Diwali Rocket Shares With Anil Singhvi: Westlife and Sun Pharma to give spectacular returns
Two powerful stocks have been revealed that are expected to give spectacular returns on show hosted by Zee Business Managing Editor Anil Singhvi, by Rahul Arora, CEO, Nirmal Bang and Sandeep Wagle, CEO, Sandeep Wagle Advisory Services.
Diwali to Diwali Rocket Shares: Two powerful stocks have been revealed that are expected to give spectacular returns on show hosted by Zee Business Managing Editor Anil Singhvi, by Rahul Arora, CEO, Nirmal Bang and Sandeep Wagle, CEO, Sandeep Wagle Advisory Services.
Rahul Arora recommends buying in Westlife Development. McDonald’s presence is in west and south region, they have 300 to 325 stores at present. If they open 25 to 30 stores every year, then in next 5 years there will be approximately 450 to 500 stores. Management has done many good things, there breakfast menu is doing pretty well, gross margins on McCafe coffee is much higher than system average which is doing well for them. 10 years ago, it was not possible to get delivery from Mcdonald’s, however now 1/3 of the sales are coming from delivery, margins are decent on delivery sales as well. Focus on Premiumization where the company is moving from Burgers to wraps or other high margin products will certainly benefit the stock. Considering all these points once can see that in next 2 years, RoE and RocE of the company will move in range of 15 to 20%. Market will definitely reward this stock going forward and can generate 25% to 30% return in next 1 year. Investors should buy at current market price with Target of Rs 480.
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Sandeep Wagle recommends buying Sun Pharma at current market price or on little dips with stop loss of Rs 430 and target of Rs 650. Pharma Index was leading the market after the lows made in March 2020, some large Pharma companies like Dr. Reddy’s Labs and Cipla have doubled from the lows made in March while Sun pharma has moved only 50% from the lows indicating it can move up further and catch-up pace with returns that other Pharma companies gave. Looking the RSI Levels, after crossing 50 it can show decent move, there is an indication of Bottom formation on the stock. Target of Rs 650 (30% to 35% potential upside) in 1 year is conservative, if one can hold this stock for 2 – 3 years; one can see 4 digits on Sun Pharma. Sandeep is holding this stock in his personnel portfolio for long term.
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