These metal and pharma stocks can give up to 87% return in one year—Details here

Dr Lal PathLabs (DLPL) and Coal India can give up to 87% return within a period of one year at current levels, as per Centrum Broking.  

Metal and Pharma sectors grew exponentially last year amid lockdown as the indices contributed significantly in the market's bull rally in 2021. Though metal still remains strong, pharmaceutical space has seen huge deal of correction of late. However, both Dr Lal PathLabs (DLPL) from Pharma space and Coal India from metal segment have the potential to outperform market going forward.  

Dr Lal PathLabs (DLPL) | Target: Rs 4,999

Centrum Broking sees a target price of Rs 4,999 for Dr Lal PathLabs shares in one year. It translates into an upside of approximately 87% on Wednesday's closing price of Rs 2643.55.  

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Cyndrella Carvalho, Research Analyst, Pharmaceuticals, Centrum Broking, is of the view that DLPL holds leadership position in Indian diagnostic market, a very strong presence in NCR region, which has fueled expansion, and the recent acquisition on suburban will lead to its growth story. 

"The low penetration of diagnostic, the growing wellness opportunity would further boost sustainable visibility of growth in the sector," she adds.  

Coal India Ltd | Target Price: 252

At closing price of Rs 159.10 per share on the BSE, this stock from metal and mining space has the potential to see a target price of Rs 252, which translates into nearly 60% upside in one year. 

Speaking of investment rationale in government-owned coal mining and refining company, Ashish Kejriwal, Research Analyst, Metals, Centrum Broking, says the power demand is on rise due to increased industrial activities resulting supply deficit of coal in the market and expected price hike in March 2022 could benefit going forward. 

"Hike in FSA price, elevated e-auction prices and increase in coal sales volume and higher e-auction volume will be key triggers to watch out for," he said.  

(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.)