InterGlobe Aviation - 15% upside
Valuation: With improved visibility on delivery from Pratt & Whitney (P&W) supplier of its GTF engines for A320 neos and strong domestic traffic growth, management highlighted it may increase fleet guidance of 154 planes for Mar'18. The company continues to see robust traffic growth ahead and it will continue to grow and strengthen network with a view to maximizing long-term profitability. Thus, it is expected that the stock will see a price target of 1265 in 8 to 10 months time frame on a current P/E of 21.98x and FY18 (E) earnings of 57.53.
J Kumar Infraprojects - 27% upside
Valuation: Strong balance sheet, low debt and healthy order book would give strong base for the growth of the company. A higher capital expenditure on roads and railways would benefit the company in near term. Moreover, the government's focus on social and urban infrastructure would result healthy order pipeline for the company. Thus, it is expected that the stock will see a price target of 322 in 8 to 10 months time frame on an expected 3 year average P/E of 17.86x and FY18 (E) earnings of 18.04.
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