Skipper is ready to harness several tailwinds: i) power T&D capex of INR9.2tn over 2022–32; ii) improving product mix with a shift to margin-accretive HV segment; iii) doubling of capacity in four–five years; iv) a well-capitalised balance sheet with FY24 D/E at 0.49x (exhibit 32); and v) OPM improving from 9.7% in FY24 to 10.5% by FY27E (guidance of 11% for three years).
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Jubilant Pharmova has a unique business with long-term earnings visibility. BUY for target price of ₹1450 (30% upside): Nuvama
Jubilant Pharmova (JPL) is undergoing a turnaround and adding new growth drivers, which provides long-term growth and earnings visibility. We argue JPL can expand its revenue/EBITDA at a CAGR of 11%/24% through: i) Ruby-Fill ramp-up; ii) turnaround of Radiopharmacy and generics business; iii) commissioning of Line-3 at Spokane; and iv) CRO growth. The real booster shot would be balance sheet improvement, lifting PAT 4x over FY24–27E
Thangamayil Jewellery is a a high-conviction BUY for target price of ₹2550: HDFC Securities
33%, and 41% revenue, EBITDA, and PAT CAGR, respectively, over FY24-27. This growth will be driven by the benefits of formalisation, accelerated store expansion, its value-for-money offerings, and the easy availability of capital at competitive interest rates. We view TJL as the D-Mart of Tamil Nadu’s jewellery retail sector, applying principles of “high inventory turns and reasonable margins,” in contrast to other listed jewellery players who focus on “high operating margins and low inventory turns” to generate respectable return ratios.
Aeroflex Industries is a conviction pick riding on multiple tailwinds. Buy for target price of ₹230 (29% upside): ICICI Direct
Aeroflex Industries Limited (AERIND), incorporated in 1993, is engaged in the business of manufacturing and supply of metallic flexible flow solutions made with stainless steel
V2 Retail is firing on all cylinders; expect re-rating to continue. Buy for target price of ₹1754 (27% upside): Nuvama
V2 Retail (VREL) posted a 64% YoY growth in revenue to INR380cr on the back of a strong SSSG of 36% and footprint expansion, reflecting a strong demand. The company added 14 gross new stores (closed 2) during the quarter, with total store count at 139 by the end of Q2FY25. Total area stood at 14.82lksq.ft. with a growth of 35%YoY. Company’s sharp focus on growing its revenue/sq.ft. (growth of 30% during the quarter), assortments & designs and pricing strategies is yielding the results for the company
Top Picks Basket for Oct 2024 for Nifty Target of 24600 by Axis Securities
The Axis Top Picks Basket delivered an excellent return of 10.4% in the last three months against the 7.5% returns posted by Nifty 50 over the same period. Moreover, the basket climbed up by 2.3% in the last one month. It gives us immense joy to share that our Top Picks Basket has delivered an impressive return of 348% since its inception (May’20), which stands well above the 178% return delivered by the NIFTY 50 index over the same period. In light of this, we continue to believe in our thematic approach to Top Picks selection
Dividend Yield Monitor 30 September 2024 by SBI Securities
The dividend yield is computed based on the closing price of 27th September 2024. We have considered companies that have consistently paid dividend in the last 3 years – i.e FY24/CY23, FY23/CY22 and FY22/CY21. The * mark indicates data for CY23. The **mark indicates data for Jun’23.
JB Chemicals offers a healthy cocktail of a robust domestic franchise, niche CMO presence and measured exports strategy, aided by peerless execution. Buy for target price of ₹2255 (23% upside): Kotak Institutional Equities
We hosted JB’s CEO, Nikhil Chopra, for a roadshow in the UK. The company remains optimistic on its growth prospects across India, CMO, Russia and South Africa. With the current management team keen on running the business, the company does not expect any change in its business plan even if there is any ownership change.
Stylam Industries has industry-leading growth (~2x vs industry) and EBITDA margin (~20%). Buy for target price of ₹2875 (41% upside): HDFC Sec
We like Stylam for its industry-leading growth (~2x vs industry) and EBITDA margin (~20%), healthy balance sheet (net cash), and impressive return ratio (ROE ~25%). We have modelled 17/22/20/20% volume/revenue/EBITDA/APAT CAGRs for FY24-27E. We expect strong laminate volume growth for the company in FY26/27 on the back of a pick-up in demand and ramp-up of sales from ongoing brownfield expansion
Piramal Pharma has chalked out strategic goals for the future. Buy for target price of ₹280 (22% upside): ICICI Direct
Piramal Pharma Limited (PPL) is part of the Piramal group of companies. The company operates in 3 major segments. – 1) Contract development and manufacturing organisations (CDMO), 2) Complex hospital generics (critical care), 3) Consumer healthcare (OTC).
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