This multibagger stock could almost double in value. Yes Securities shares top picks for 2022

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Apollo Pipes Limited (APL) is a top leading PVC pipe manufacturer in India. The stock has gained more than 136 percent in a one-year period, making it multibagger returns, Shares of domestic brokerage house Yes Securities are seeing further gains. The demand of plastic pipe industry is moving from unorganized to organized. According to the brokerage, this should result in better performance by organized players in the coming years.

“Apollo Pipes is expected to gain market share from regional unorganized players in new geographies with the deepening of its presence in the North, hence we feel that Apollo Pipes will not only beat the industry growth but also generate 28% volume growth. Will be one of the fastest growing pipe company by reporting. Over FY21-FY24E,” the note added.

share stock as Top picks for 2022Comes with a target price of Buy Tag of Yes Securities 1,070, implying a potential return of over 85% from current levels.

APL has historically traded at a steep discount compared to its peers as the company was regarded as a ‘regional player’. While APL’s growth across the country with higher-margin products like CPVC, fitting contributions is likely to expand – Yes Securities believes APL should receive valuations similar to other peers.

The plastic pipe industry is primarily driven by irrigation followed by plumbing and WSS. The plastic pipe industry should be able to grow by 15% in FY20-FY25E, coupled with higher agricultural expenditure, on the back of Government of India initiatives like Jal Jeevan Mission, which is likely to witness a sharp increase in budgetary expenditure.

The top stocks of Yes Securities for 2022 also include CCL Products (Target Price: 500), CRISIL (TP: 3,750), ICICI Pru (TP: 836), IGL (TP: 620), Prestige (TP: 621), Reliance (TP: 2,860), vmart (tp: 4,516), Suntec (TP: 619)।

The views and recommendations given above are those of individual analysts or broking companies and not of Mint.

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