Posts by Arjun

New Year Picks 2025: 9 Quality Stocks with up to 31% upside potential by Axis Securities

We continue to believe in the long-term growth story of the Indian equity market. However, with current valuations offering limited scope for further expansion, an increase in corporate earnings will be the primary driver of the market returns moving forward. Hence, bottom-up stock picking with a focus on ‘Growth at a Reasonable Price’ and ‘Quality’ would be keys to generating satisfactory returns in the next one year. We also suggest a “Buy on Dips” strategy in the stocks listed below with an investment horizon of over 12 months

Raymond Lifestyle has multiple growth drivers in place. Buy for target price of ₹3000 (49% upside): Motilal Oswal

RLL boasts a legacy of established brands such as Park Avenue, Raymond RTW, Parx, and Colorplus. However, the presence of RLL brands remain under-penetrated with 463 EBOs (including Ethnix EBOs).

PNB Housing is a strengthening franchise where the risk-reward profile is favorable for a long-term investor. Buy for target price of ₹1160 (38% upside): Motilal Oswal

PNBHF is pivoting its product mix toward the emerging and affordable housing segments, with both these relatively higher-yielding segments now contributing ~23% to the loan mix (compared to ~18% as of Mar’23). This pivot will gradually help the company secure a structural improvement in its blended yields and eventually deliver an expansion in its NIM profile.

Piramal Pharma is seeing strong momentum in CDMO. Buy for target price f ₹320 (27% upside): ICICI Direct

PPL owns 17 development and manufacturing facilities across India, US and UK with capabilities in sterile, API, formulations, drug discovery and manufacturing of nutrition products. The company holds 49% stake in AbbVie Therapeutics, JV with Allergan, and 33.33% in Yapan Bio which operates in the biologics / bio-therapeutics and vaccine segments

Hiren Ved has no Banking stocks in his portfolio. Ravi Dharamshi is very bullish about energy transition

Hiren Ved stated in his latest interview to CNBC TV18 that he has no Banking stocks in his portfolio because Banks are suffering a double whammy. On the one hand, they are unable to get cheap deposits from customers by way of FDs. At the same time, the RBI has imposed restrictions on their ability to give unsecured loans which was a highly profitable activity.

Protean eGov Technologies is a unique play on digital public infrastructure. Buy for target price of ₹2510 (24% upside): ICICI Direct

Protean eGov Technologies Ltd. (Protean), erstwhile known as NSDL e-Governance focuses on developing / modernising digital public infrastructure (DPI) and e-governance initiatives for various governmental bodies in India. Protean is a professionally managed company backed by several large financial institutions. Recently, NSE has sold its 20.31% stake, making Protean eligible to list on NSE

Saurabh Mukherjea’s Marcellus PMS Fund has added new stocks to the Kings of Capital, Rising Giants & Little Champs portfolios and exited Eureka Forbes

Saurabh Mukherjea says that the impact of slowing growth & NPA risks means that quality stocks in the Kings of Capital portfolio will thrive. He has added new stocks to the portfolio

Anant Raj is riding India’s data center localization wave. Buy for target price of ₹1100 (31% upside): Motilal Oswal

Anant Raj (ARCP) is transitioning from its stronghold in real estate to a diversified business model with strategic investments in data centers (DCs) and cloud services. This shift capitalizes on India’s burgeoning data localization and digital transformation trends. With a planned capacity of 300MW for DC over the next 4-5 years, the company is leveraging its existing technology parks to enhance execution speed and cost efficiency

Shriram Finance has delivered strong AUM growth of ~20% CAGR over 2 years post-merger, while continuously improving asset quality. Buy for target price of ₹3825 (30% upside): Axis Securities

We initiate coverage on Shriram Finance Ltd (SFL) with a BUY recommendation and a target price of Rs 3,825/share, implying an upside of 30% from the CMP. Born out of the merger of Shriram Transport Finance (SHTF), a pioneer in used CV financing and Shriram City Union Finance (SCUF), a diversified retail-focused NBFC – ‘Shriram Finance (SFL)’ is the flagship company of the Shriram Group. The company provides lending services from its diversified product suite. It has been able to deliver strong AUM growth of ~20% CAGR over the 2 years post-merger, while continuously improving asset quality

Awfis Space Solutions delivered 30%-plus revenue growth for FY25 and expansion in EBITDA margin upwards of 12%. Buy for target price of ₹1049 (44% upside): ICICI Securities

In H1FY25, Awfis Space Solutions (Awfis) delivered on two of its main FY25 guidance parameters, viz. 30%-plus revenue growth for FY25 and expansion in IGAAP EBITDA margin upwards of 12% (H1FY25 YoY revenue growth of 39% and IGAAP EBITDA margin of 13.3%)