Missed IPO allotments? Here are 5 recently listed stocks with good growth potential to buy; upside seen at 25-31%

The Primary market witnessed massive response from retail investors in 2021, the year which saw as many as 61 IPOs raising around Rs 1.2lakh crore. The highest number of applications from retail investors in 2021-22 were received by Glenmark Life Sciences (33.95 lakhs) , Devyani International (32.67 lakhs) and Latent View (31.87 lakhs).  

At Rs Rs 18,300 crore, the year also saw India's largest IPO ever, One 97 Communications (Paytm), hitting the Dalal Street. Other big IPOs, primarily included new age companies, were Zomato (Rs 9,375 crore), Star Health (Rs 6,019 crore), PB Fintech (Policybazaar) (Rs 5,710 crore), Sona BLW (Rs 5,550 crore) and FSN E-Commerce (Nykaa) (Rs 5,350 crore). Four out of the top 6 IPOs were from new age technology companies (NATCs) which together raised Rs 38,734 crore.

The year 2021 was a blockbuster year from IPOs point of views for two reasons—one they clocked record money and the other most of the IPOs generated a listing premium like never before.  

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As markets have been trading lower amid volatility and offer good entry points in many of the recently listed IPO, Religare Broking has shortlisted 5 such stocks that can generate good return and offer good long-term potential growth.  

Those who missed the opportunity to apply for these IPOs still have a chance to buy these stocks at attractive valuations. These stocks are Clean Science and Technology Ltd, Data Patterns India Ltd, Heranba Industries Ltd, Latent View Analytics and MedPlus Health Services. Religare Broking sees an upside of up to 31% on March 25 closing price.  

Clean Science and Technology

Stating that specialty chemicals are poised to witness strong growth, the brokerage gave a buy rating with target price of Rs 2509, which is an upside of 26% on CMP of Rs 1991 (recorded on March 25).  

Maintaining that differentiated products and exports are pillars of growth, it said, CST is well-positioned both in Indian as well as global markets. On the financial front, the company is debt free and over the years their performance has been encouraging. We have estimated revenue and PAT to grow at a CAGR of 25.0% and 25.6% over FY22-24E and have assigned a buy rating with a target of Rs. 2,509."

Data Patterns India Ltd  

The brokerage assigned buy rating with target price of Rs 842, which is 25.1% on CMP of Rs 673. Data Patterns has closed at Rs 675 a share on the BSE on Monday.

Data Pattern is well placed in defence and aerospace electronics sector and it would benefit from the 'Make in India' policy as it has strong manufacturing capability in India and its presence across the entire value chain.  In the near term, the company has plans to expand its manufacturing infrastructure which will cater to growing demand as well as enhance its product portfolio.  
Going forward, the company intends to continue the expansion of its product portfolio with complex technology-based products, increase its services business as well as exports.  

"We have estimated its revenue and PAT to grow at a CAGR of 20% and 22% over FY22-24E. We have a positive view on the company for the long term and have assigned a buy rating on the stock with a target price of Rs. 842," said the brokerage.  

Heranba Industries Ltd

Religare Broking sees maximum upside in this agro chemical stock. It gave a buy rating for Heranba Industries with target price of Rs 832.  This turns out to be a return of 31% on CMP of Rs 635. On Monday, the agro chemical stock closed at Rs 607 a share, making it even more attractive.  

Heranba has well-positioned itself as a vertically integrated company that has a presence across the entire value chain of synthetic pyrethroids. It is one of the leaders in synthetic pyrethroids and has been well-positioned both in domestic and global agrochemical markets.  

"Given its expertise in agrochemicals, coupled with a wide distribution network, strong manufacturing capability and expansion plan bodes well for future growth. The financial performance has been decent and we have estimated its revenue and PAT to grow at a CAGR of 20.0% and 21.7% over FY22E-24E. We have assigned a buy on the stock with a target price of Rs. 832.
 
Latent View Analytics

Latent view has distinctive product offerings, relevant experience and capabilities to manage customers which will aid in driving the company’s revenue and operating efficiencies.  

The company has maintained long-term relationships with several marquee enterprises by providing quality and customized services.  

Going ahead, the company’s strategy is to work towards innovation, increase geographic presence and expand via inorganic growth opportunities.  

"On the financial front, the company's performance has been strong and we have estimated its revenue and PAT CAGR of 20.0% and 21.4%. We have assigned a buy rating with a target price of Rs 532."  

This is an upside of 28.6% on CMP of Rs 414. The stock closed at Rs 400.55 a share on the BSE on Monday.  

Medplus Health Services

The brokerage assigned a buy rating for this pharma stock with target price of Rs 1215 a share. It translates into an upside of 27% on CMP of Rs 957. The stock closed at Rs 973 per share on the BSE on Monday.  

Medplus has strongly positioned itself in the retail pharmacy space given its wide product offering, genuine and good quality pharmaceutical products offering, online & offline operations and last-mile delivery capabilities (2-hours delivery). Besides, investment in technology infrastructure, improving the supply chain as well as increasing operating efficiency will help drive margins.  
"We have estimated its revenue and PAT to grow at a CAGR of 18.0% and 23.4% over FY22-24E and have assigned a Buy rating on the stock with a target price of Rs. 1,215," said Religare Broking.  

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)