NCC is a key beneficiary of the tailwinds in the buildings, roads, water, mining and electrical segments. Given the strong order book visibility, execution is likely to improve ahead
Stylam Industries has strong revenue visibility from upcoming plant. Buy for target price of ₹2800 (60% upside): HDFC Securities
We interacted with the Stylam Industries (Stylam) promoter. Management is targeting to double its revenue in the next 4 years. It is confident domestic sales will pick up in next 2-3 quarters. It has major plans to ramp up sales in the US market, which will accelerate the company’s growth rates. Management’s focus is to sell higher value-added products, which will improve the company’s margin profile. As per management assessment, in the next few months, the government might levy anti-dumping duty on low-cost and low-quality acrylic dumping by Chinese/Korean entities.
H.G. Infra Engineering’s margin remains elevated; Prospects remains bright! Buy for target price of ₹1914 (51.4% upside): SMIFS
HG Infra is well-positioned to achieve 16.1% revenue CAGR over FY24-27E, to be propelled by its strong existing order book position and expectations of better inflows. Further, margins are likely to remain elevated with an expectation of 15.5% in FY27. Consequently, EBITDA is projected to improve at 14.7% CAGR. Furthermore, we anticipate 14.6% (adj.) PAT CAGR over FY24-27E with controlled depreciation and finance costs. At CMP, the stock (excl. investments) is trading at 7.5x FY27E P/E. On SOTP methodology, our target price arrives at Rs1,914/share. BUY
PVR Inox stock is presently undervalued. Buy for target price of ₹1860 (66% upside): ICICI Securities
PVR Inox’s ad revenue grew ~36% QoQ to ~INR 1.48bn (highest quarterly ad-income post Covid) in Q3FY25, which in our view is an encouraging development. However, sustainability of ad revenue is contingent on recovery of content pipeline. While Hollywood pipeline looks better in CY25 compared to what we saw over the last 2 years, there is still limited visibility of Hindi content. Also, asset monetisation plan, which could have materially improved EBITDA to PAT conversion, is unlikely to materialise in near term. Therefore, we have cut PAT by 38.3%/21.0% for FY26/27E and TP to INR 1,860 (17.3%). We believe the stock is presently undervalued and steps taken by the management such as moving towards a more capital-efficient model may re-rate the stock in medium term. Maintain BUY
5 Value Pick Stocks By Chola Securities
For this report emphasis was on finding value buys having regard to probable turnaround upcycles. Optically the companies may appear expensive in light of lower earnings due to current fiscal year business slow down. Going by past cycles, we believe the basket of companies under consideration will deliver better earnings growth in FY’26
Radico Khaitan is a high-conviction BUY with a target price of INR 2,600: HDFC Securities
We continue to maintain Radico as a high-conviction BUY with a target price of INR 2,600 (52x FY27 EPS). We expect the company to deliver revenue/EBITDA/PAT CAGRs of 15%/26%/34%, respectively, over FY24-27, driven by the following factors
Aditya Birla Capital Ltd has reiterated its guidance on both growth and credit cost fronts. Buy for target price of ₹280 (67% upside): SBI Securities
For Aditya Birla Sun Life AMC Ltd, we expect 12-15% YoY growth in AUM in FY25E & FY26E and for Life insurance business, we expect top-line growth at 20%+ CAGR over the next 2 years along with steady VNB margin at 17%-18%. We maintain a buy rating on the company. We value the stock at Rs 280 on a SOTP basis. We have valued the NBFC at 2.0x of its FY26E BV, HFC at 1.8x of its FY26E BV, AMC business at 20x FY26E EPS, ABSLIC at 1.8x of FY24 EV, health insurance is valued based on recent deal value and other companies at 1x current Market cap
16 High Quality Stocks With Strong Fundamentals & High Dividend Yield by IDBI Capital
Selection criteria – Market cap should be more than 500 Cr, Dividend yield should be more than 3%, the company should be profit making for past 3 years, Five year average ROE should be more than 9, Special Dividend (one off) are not taken into consideration, while consistent Special Dividend are considered, Consistent dividend paying track record
Review of 4 Hotel stocks, namely, Chalet Hotels, Indian Hotels, Lemon Tree Hotels & Park Hotels for up to 37% upside by IDBI Capital
New hotels addition continued at healthy pace: The organized players continued to add new inventory, majorly through management contract and license agreement. New inventory addition has been robust as IHCL and LTH added 7 and 6 hotels respectively, while Royal Orchid added 2 hotels in January, 2025
Protean eGov Technologies has strong balance sheet with net cash of ₹750 cr+. Buy for target of ₹2000 (45% upside): ICICI Direct
The company has strong balance sheet with net cash of ₹750 cr+. Asset light unique business model shall enable Protean to attract rich valuations. However, considering muted Q3 result and volatile market scenario, we cut our target multiple and earning estimate. We factor revenue/EBITDA/PAT CAGR of 9.4%/30.5%/22.8% resp. over FY24-27E. We maintain BUY rating on the stock with a revised target price of ₹ 2000 (valued at 45x P/E on FY27E)
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