Each of these companies has been chosen for their strong growth potential and sustainability over a 3–5-year horizon. Our selection process emphasises not only growth sustainability but also the importance of current valuations, ensuring that investors can benefit from earnings compounding, translating into stock compounding
CanFin Homes (CFHL) was promoted by Canara Bank in 1987, with ~30% stake as of March 2025. The HFC has a presence in 234 locations across 21 states and union territories (UTs). Housing loans comprise ~86% of book; of which ~70% is to salaried customers. Average ticket size is ₹24 lakh for housing, ₹13 lakh for non-housing loans
Its choice of micro-markets and differentiated products make Suraj Estate stand out. On its long-standing operations (over 38 years’ delivery) in south-central Mumbai (high barriers to entry, paucity of land parcels), cost and time effective redevelopment model, keen focus on the value-luxury category (conforming to demographics) and select luxury developments, it has emerged as a real estate supplier of choice in its chosen markets
PEL reported revenue of Rs 469 Cr in Q4FY25, marking an increase of 43% YoY and 13% QoQ inline with our estimates. EBITDA stood at Rs 80 Cr, up 65% YoY and 20% QoQ, beating our estimates of Rs 76 Cr. EBITDA margins stood at 17.1%, surpassing our estimate of 15.9%, improving by 225 bps YoY.
Axis Bank is the third largest private sector bank in India with a balance sheet size of ~₹ 15 lakh crore. Strategy to focus on retail & MSME segment with emphasis on risk adjusted return has aided improvement in RoA & RoE. Retail and SME comprise ~71% of total loans
Swiggy is a crucial player in India’s hyerlocal delivery space due to its strong positioning in the duopolistic food delivery market as well as top three positioning in the fast expanding quick commerce market. Its food delivery business is likely to continue to outperform the organised food services market due to expanding consumer use-cases and improving quantity of restaurants on the platform.
IREDA reported strong performance in Q4FY25 with continued growth in AUM at 28% YoY to ₹76,282 crore. Operational performance remained robust (NII grew 21.2% YoY) driven by strong growth in AUM and ~42 bps YoY increase in margin at 3.27%. Resultantly, earnings grew at 49% YoY to ₹502 crore. Gross NPA improved by ~23 bps QoQ to 2.45%, though, credit cost remained higher at ₹129 crore in Q4FY25 vs ₹104 crore in Q3FY25
We like Genus Power Infrastructure, given its large size, its end-to-end services offerings, including setting up advanced metering infrastructure (AMI) and facility management systems (FMS) after installation. With only 25mn (including other scheme) smart meters installed as of Apr-25, we believe the growth opportunity is sizable, while execution remains the key
We expect stocks within our pharmaceutical universe to report low double-digit YoY revenue growth (~10%) during 4QFY25. Seasonal weakness in the domestic business could cause a QoQ slow down. We expect select companies in the US to benefit from the ramp up in generic Revlimid [Zydus Life (ZYDUSLIF IN) and Sun Pharmaceuticals (SUNP IN)]. While Cipla (CIPLA IN) may benefit from a revival in generic lanreotide sales (supply issues getting sorted), Lupin (LPC IN) may see a gain in its US portfolio from seasonality (flu and antibiotics).
ICICIBC is well on track for robust performance, driven by healthy credit growth, stable credit costs and a sustainable business model. RoA is likely to be in the 2.3-2.4% range and RoE 16.7-17.8% in FY25-FY28E. Given ICICIBC’s improved performance, we raise our SOTP-based TP to Rs 1,620 from Rs 1,415 set at 2.8x FY27E ABV
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