Posts by Arjun

India’s Electronics Manufacturing Services (EMS) industry is witnessing a strong revenue growth trajectory. Top stocks to buy by Motilal Oswal

India’s Electronics Manufacturing Services (EMS) industry is witnessing a strong revenue growth trajectory, primarily driven by healthy industry demand, the addition of new segments and onboarding of new customers, increasing domestic manufacturing, import substitution, and global partnerships. In this report, we discuss the healthy revenue growth visibility within the sector and the scope to improve margin, leading to a strong earnings growth trajectory. Our coverage universe includes Kaynes Technology (KAYNES), Avalon Technologies (AVALON), Syrma SGS Technology (SYRMA), Cyient DLM (CYIENTDL), Data Patterns (DATAPATT), Dixon Technologies (DIXON), and Amber Enterprises (AMBER)

Buy NMDC for target price of ₹286 (33% upside) as Iron ore prices are bottoming across the globe; expect short-term rally: Nuvama

NMDC’s stock has been under pressure amid falling iron ore prices along with lower volumes during Apr-Aug‘24 due to labour strikes, heavy monsoons and a few logistics constraints. We believe global iron ore prices have bottomed out at ~USD90/t and reckon they shall recover and average USD105–110/t in FY25E/26E

SENCO is one of the most promising players in the organized retail jewelry market. Buy for target price of ₹1350 (23% upside): Motilal Oswal

SENCO is strategically expanding its presence in eastern markets and other regions. The company aims to grow its consumer base by focusing on lightweight jewelry and capitalizing on the trend of studded jewelry, thereby expanding into more geographical areas. We reiterate our BUY rating on the stock with a TP of INR1,350 (based on 35x Jun’26 P/E).

Federal Bank is a credible alternative to larger private sector banks. Buy for target price of ₹225 (22% upside): HDFC Sec

We recently met Mr. Shyam Srinivasan, the outgoing CEO of Federal Bank (FB), to reflect on the bank’s evolution during his tenure and the key areas that need incremental attention for the bank to reset its ceiling. With its loan book at INR2.2trn and the deposit base at INR2.7trn, FB has broken through the midsized banks league and has steadily narrowed the gap with larger peers.

VA Tech Wabag bagged a mammoth order of INR 27bn (equivalent to its FY24 revenue). Hold for target price of ₹1541 (17% upside): ICICI Securities

VA Tech Wabag (Wabag) bagged a mammoth order of INR 27bn (equivalent to its FY24 revenue) from the Middle East for a desalination plant – the entire order is for EPC. As a result, Wabag’s EPC order book (OB) is now close to INR 79bn or >3x book to bill ratio. Order inflow (OI) has been a concern for the last 18 months – FY24/Q1FY25 OI undershot Street’s expectations (lower than revenues)

Va Tech Wabag Ltd is ‘RIDING THE WAVE’. It is well-placed to serve the growing water security/conservation market. Buy for target price of ₹1700 (30% upside): Axis Securities

Headquartered in Chennai, WABAG Group has a history spanning more than 90 years. With a presence in four continents, WABAG is a pure-play water technology multinational offering a wide range of solutions focused on conservation, optimization, recycling, and reuse of resources, addressing global water challenges. The group currently has a workforce of over 2,000 employees across more than 25 countries.

Bajaj Housing Finance is an HFC to Own. It is the second largest, fast growing, most diversified and profitable HFC: Yes Securities

With an AUM of Rs971bn as of June 30th 2024, Bajaj Housing Finance (BHFL) is the second largest HFC in the country and is owned 100% by Bajaj Finance. BHFL’s AUM has witnessed a CAGR of 33% in past three fiscals with stable underwriting metrics. Notably, franchise diversity has increased reflected in a) significant increase in contribution of LRD and Developer Finance, 2) increase in share of SENP customers within Home Loan and LAP portfolios, and 3) broadening of borrowing mix with improved share of NHB refinance and NCDs

High Conviction Stocks Portfolio by InCred Equities with up to 72% upside potential. Nifty 50 target is 26,736

InCred Equities has released its much awaited list of high-conviction stocks for September 2024. TCS, Bajaj Finance, Lupin and Hero MotoCorp have been to its high-conviction stock list while removing Ajanta Pharma and others. The research house has projected a maintains a target of 26,736 for the Nifty 50

‘Amrit Kaal’ basket of 16 stocks with up to 47% upside potential in 12 months recommended by Rahul Sharma of JMFICS

Rahul Sharma of JMFICS has recommended an ‘Amrit Kaal’ basket of 16 stocks with up to 47% upside potential in 12 months. 14 stocks are large-cap Blue-Chips while 2 are ‘Dark Horses’.

IPO: Bajaj Housing Finance Ltd is the second largest housing finance company (HFC) in India with an AUM of Rs 97,071 cr as of 1QFY25: SBI Securities

Bajaj Housing Finance Ltd (BHFL) is the second largest housing finance company (HFC) in India with an AUM of Rs 97,071 cr as of 1QFY25. The company was registered as a non-deposit taking HFC with the National Housing Bank (NHB) since 24th Sep, 2015 and is engaged in mortgage lending since FY18. BHFL offers financial solutions to individuals and corporate entities for the purchase & renovation of homes and commercial spaces