At the current price, the stock is trading at P/E multiple of 28.0x/24.1x of its FY25E/FY26E earnings respectively. The company has announced Rs 100 cr buyback at the maximum price of Rs 2,000 per share. The promoters will also be participating in buyback process. We maintained our buy rating on the stock with upgraded price target of Rs 2,223/- thus providing an upside potential of 21%.
Posts in category investments
Suraj Estate Developers has a robust project lineup and a healthy launch pipeline. Buy for target price of ₹935 (30% upside): Nuvama
Revenue for Suraj Estate Developers (SURAJEST) grew 31% YoY to INR134cr in Q1FY25 on a ramp up in execution, which led to a higher area hitting its sales recognition milestone. EBITDA grew 35% YoY to INR63cr, with a 171bp expansion in margin to 47.3% on the back of a better product mix and operating leverage benefits. PAT grew 107% YoY to INR30cr aided by lower (19%) interest cost. In Q1FY25, it re-financed the last tranche of its high-cost NCDs (INR32cr). The management expects rates to stay in the 13–13.5% range and has guided at an interest cost of INR65–70cr for FY25 (FY24: INR139cr). Pre-sales grew 5% YoY to INR140cr, led by a 13% growth in average realisation. Collections were muted at INR72cr
Zomato has built a resilient business model by securing multiple strategic verticals and delivering broad-based growth. Buy for target price of ₹280 (20% upside): Axis Securities
Zomato’s management sees strong broad-based growth across verticals, supported by robust GOV growth. We are constructive on the long-term outlook of the company and expect robust growth. We maintain our BUY rating on the stock and value it at Rs 280 on an SOTP valuation, implying an upside of 23% from the CMP
NIFTY Elliott wave perspective by HDFC Securities
NIFTY Elliott wave perspective. Big picture is strong 4Since index still hovers around our earlier target of 24800, we may see some retracement. If that happens, then it is a buy on dips opportunity. Overall in big picture, index is continuing the uptrend. As long as “Base – 24074” holds, we may see 25800 levels in coming months
Dividend Yield Monitor 1st Aug 2024 by SBI Securities
The dividend yield is computed based on the closing price of 31st July 2024. We have considered companies that have consistently paid dividend in the last 3 years – i.e FY23/CY22, FY22/CY21 and FY21/CY20.
Hi-Tech Pipes has mammoth growth prospects in the structural steel tubes space. Buy for target price of ₹190 (27% upside): SBI Securities
Hi-Tech Pipes has mammoth growth prospects in the structural steel tubes space given its (a) Capacity expansion from 0.58 MTPA in FY23, 0.75 MTPA in FY24 to 1 MTPA in FY25E, (b) Transition from generic products to value-added products, (c) Product portfolio enhancement on back of Solar torque tubes, color coated roofing sheets and (d) Healthy demand for structural steel tube over medium and long term (Budgeted Allocation for Jal Jeevan Mission of Rs 70,163 cr in Budget 24-25)
Sobha’s valuation is supportive, at discount vs. peers, risk-reward favourable. Buy for target price of ₹2639 (46% upside): HDFC Sec:
Sobha Developers Limited’s (SDL) FY24 annual report largely reflects operational excellence and market leadership in its home city with a vision of market expansion. Sobha clocked presales of INR 66.4bn in FY24 (+28% YoY growth) and 7% volume growth at 6.1msf. Largely, the market share remained unchanged with Bengaluru contributing ~70% of sales, followed by Kochi and NCR markets. With an ongoing, upcoming and tied-up BD pipeline of 45msf in volume and INR 500bn+ GDV, SDL is well-placed for FY24-30E presales CAGR of 27.6% to INR 280bn+. Moreover, the rights issue of INR 20bn fundraising (INR 10bn has come in 1st tranche) reiterates promoter confidence in the India business (promoter infusion 1 st tranche INR 5bn+) and Indian real estate. It’s time to step up the game now through market expansion. We maintain BUY with a target price of INR 2,639/sh
Transport Corporation of India is a stable play. Buy for target price of ₹1200 (25% upside): ICICI Securities
We see Transport Corporation of India (TCIL) as a good opportunity in the current subdued operating environment for the logistics sector. Key points: 1) In the process of refining freight mix in favour of higher-margin LTL business; 2) Capex in high-margin sea freight segment likely to improve overall margins; 3) Improving performance of JVs expected to result in further earnings improvement; and 4) Trading at relatively attractive valuation compared to peers. Going ahead, we believe that higher LTL proportion in freight business and addition of two new ships (despite seaways margin receding) in seaways division are the two main growth drivers. Factoring in favourable risk-reward at current valuations vs. peers, we initiate coverage on TCIL with a BUY rating and TP of INR 1,200 based on 22x FY26E EPS
Steel Strips Wheels Ltd is on a steady growth trajectory, re-rating is imminent. Buy for target price of ₹330 (40% upside): ICICI Direct
Steel Strips Wheels Ltd. (SSWL), is a Chandigarh based company involved in designing and manufacturing of automotive wheels – both steel and alloy wheels. It currently has five plants in India with total production capacity of ~2.4 crore wheels per annum (including ~0.36 crore of alloy wheels)
Mankind Pharma is unlocking new vertical through BSV acquisition. Buy for target price of ₹2650 (24% upside): Motilal Oswal
Mankind Pharma has agreed to acquire Bharat Serum Vaccines (BSV) for EV of INR136b, implying EV/EBITDA of 28x/22-23x on FY24/FY25 basis.
Recent Comments