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
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)
Zen Technologies is a niche defense play! Buy for target price of ₹1775 (31% upside): Motilal Oswal
Asset-light model can potentially generate strong RoE and RoCE: The company boasts an asset-light business model that does not require high capex. Instead, ZEN invests in R&D to build robust Intellectual Property Rights (IPRs). The manufacturing of simulators is outsourced, which helps generate a healthy fixed asset turnover ratio. Material costs account for 20-25% of sales, resulting in a significantly higher gross margin. The asset-light business model also helps to generate an RoCE of 30-40%.
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