Posts in category investments

Affle (India) has strong revenue growth with margin expansion. Buy for target price of ₹2538 (60.3%): Keynote Capitals

Affle (India) Ltd. (Affle) reported a strong topline growth of 26% on a YoY basis, delivering 95 Mn conversions at a CPCU rate of Rs. 57.1. This resulted in CPCU revenue of Rs. 5,416 Mn, reflecting an increase of 35.2% on a YoY basis

Ratnaveer Precision Engineering has strong demand traction, capacity expansions and favourable product mix. Buy for target price of ₹290 (36% upside): ICICI Direct

Ratnaveer Precision Engineering (RPEL), is a Gujarat based stainless steel (SS) product manufacturer focused on producing finished sheets, washers, solar roofing hooks, pipes and tubes

Repco Home Finance is the beneficiary of tailwinds in the housing sector. Buy for target price of ₹610 (32% upside): Nuvama

REPCO is hopeful of getting its borrowing sanctioned through NHB as it is meeting all the required criteria. Opex will stay as guided with a C/I ratio of ~24%. It has started expanding its collections team and is guiding at lowering GNPA to INR450cr (from INR580cr QoQ) and Stage-2 to 10% by FY25-end. Credit cost will stay subdued (on additional write backs in coming quarters), thus driving profitability

Awfis Space Solutions has good long-term growth prospects. Buy for target price of ₹1013 (33% upside): Nuvama

We are bullish on AWFIS’ long-term growth prospects given the: i) favourable demand-supply gap, ii) strong inventory additions, iii) improving occupancy, iv) capital-light growth, and v) robust Balance Sheet. We are confident in the management’s ability to deliver profitable growth. At the CMP, the stock trades at a FY27E P/E of 17.6x. Maintain ‘BUY’

Hi-Tech pipes has mammoth growth prospects in the structural steel tubes space. Buy for target price of ₹215 (23%): 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)

Power Grid is trading at attractive valuations with a dividend yield of 4.3%. Buy for target price of ₹426 (36% upside): Motilal Oswal

In the analyst meet, PWGR management highlighted a total capex potential of INR6.6t in Inter-State Transmission Systems, where PWGR holds a leading 50-60% market share. Management also highlighted six upcoming HVDC projects and three cross-border linkage projects (India-Bangladesh, India Myanmar, and India-Sri Lanka), in which PWGR remains well placed to compete and execute

Saurabh Mukherjea’s Marcellus Fund has added 5 stocks to the Rising Giants PMS portfolio

Grauer and Weil (G&W) enjoys a strong moat in its core Electroplating Chemicals business around: the recipe of the chemicals (IP), customising the product to the requirements of the customer and providing customer service through Pan-India technical centres. Consequently, there are strong entry barriers/barriers to scale in the industry with G&W and Artek being the only 2 large Indian companies alongside a few MNC players. Moreover, G&W has created strong competitive edge through backward integration into engineering electroplating equipments as well to the in-house manufacturing of certain intermediates

Avalon Technologies is expected to show strong revenue and profitability. Buy for target price of ₹920 (+30% upside): Motilal Oswal

Avalon Technologies (AVALON) reported a strong quarter, with revenue growing 37% YoY in 2QFY25, led by a healthy recovery in US operations (up 57% YoY) and consistent performance in the Indian business (up 16% YoY). Operating profitability improved (up 470bp) led by a shift in ~45- 50% of the US manufacturing operations to India and favorable operating leverage

Yatharth Hospital has significant growth opportunities. Buy for target price of ₹790 (30% upside): SMIFS

Yatharth Hospitals reported a healthy revenue growth which was marginally below our estimates, while EBITDA was slightly below our expectations due to increased employee cost on recruiting leading doctors in the NCR region during Q2FY25

J.B. Chemicals is well-positioned to capitalize on immediate growth opportunities. Buy for target price of ₹2217 (19% upside): SMIFS

JBCP is well-positioned to capitalize on immediate growth opportunities. We expect 29% EPS CAGR over FY24-26E aided by 1) Strong growth from domestic business (CAGR of 15% FY24-FY27E), 2) ~30% growth over FY24-FY26E from acquired portfolios, 3) scaling up of high margin CDMO business on the back of new therapy launches and 4) robust FCF generation. We maintain our Buy rating on the stock with similar target price to Rs 2,217, valuing the company at 36x Sept’26E EPS