These 5 mid-caps can give you 20% & more returns in a year

Brokerage Enam has issued a report on five mid-cap companies that investors can consider for their portfolio. Each of the shares mentioned below are expected to offer returns of more than 20 percent returns over the next year or so.

The companies are

•Whirlpool of India: Enam is bullish on the stock with a price target of Rs 247 per share against its current market price of Rs 186, reflecting a gain of 33 percent.

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Innovation in new products and higher realisations have led to a sharp improvement in the consumer durable maker’s market share, the brokerage said. Between 2006 and March 2011, its market share in refrigerators (24 percent), washing machines (21 percent) and air conditioners (5 percent) improved. That growth is expected to continue and result in compounded annual growth rate of 17 percent during between March 2011 and March 2014.

Whirlpool is expected to post a 19 percent jump in sales and 38 percent jump in net profit for the year ended March 2013.

•Supreme Industries: The target price for this leading polymer processor in India has been set at Rs 263 per share compared with its current price of Rs 203, reflecting potential growth of 30 percent. According to Enam, the company’s revenues are expected to double as it is expanding capacity at a cost of more than Rs 1,000 crore between 2012-2016.

In addition, plastics consumption in India is amongst the lowest in the world at 6.5 kg against the world average of 27 kg. Enam expects consumption to increase to 20 million tonnes by 2020 from 8 million tonnes currently. The company is expected to report 18 percent growth in sales and 24 percent growth in net profit for the year ended March 2013.

•Cox & Kings: The travel company’s share price is expected to rise to Rs 301 from the current price of Rs 184 a growth of almost 64 percent.

The report highlights two reasons: one, it expects India’s travel industry to grow to $70 billion from $30 billion in 2011 and two, the acquisition of European travel company Holiday Break (HBR) has enhanced opportunities for the company by giving it access to niche segments like education, camping, adventure etc. Enam expects the company to clock a sales growth of 23 percent and profit growth of 18 percent for the year ended March 2013.

•Tube Investment: The company’s share price is expected to increase to Rs 189 per share from the current price of Rs 148, reflecting a growth of 27 percent.

The company is spending up to Rs 600 crore to expand capacity across all divisions, which is expected to drive revenue growth. In the cycles segment (estimated to account for 36 percent of revenues in 2012), it is expected to continue its leadership position. Its engineering segment (accounting for 40 percent of revenues) is expected to grow in line with auto demand, while its metal formed products segment , which makes products like door frames, is expected to contribute 24 percent to revenues in 2012.

For the financial year ended March 2013, the company is expected to report a 16 percent growth in sales and 11.5 percent growth in net profit.

•Carborundum Universal: The stock has a target price of Rs 192 per share compared with its current price of Rs 157 per share. According to Enam, the company’s vision of becoming a global leader is evident in its three-pronged approach.

First, it has secured its raw material supply by acquiring Foskor Zirconia, (FZL) & Volzhsky Abrasive Works. Second, it has strategically based its manufacturing at low-cost locations like Russia, South Africa, China and India. Third, it has set up marketing subsidiaries across geographies to increase its local presence.

The company is expected to post revenues and net profit growth of 17 percent and 23 percent at a compounded annual growth rate over financial years 2011-2014.