We maintain our BUY rating on the stock with a revised TP at Rs 1,180/share, implying an upside of 37% from the CMP. We believe the current market environment remains conducive for the business and the dilution of equity (around 35 Lc shares to be added) is unlikely to impact the valuation significantly.
Equity Investment Strategy Post Lok sabha Election 2024 by Axis Securities
With this development, the volatility in the domestic market is likely to remain on the higher side for some time. Against this backdrop, the market positioning is likely to shift towards Quality and Low Volatility stocks with some tilt towards defensive names. Based on this development, the money may flow towards Largecaps in the near term. Hence, we recommend investors to remain invested in the market and use yesterday’s dip to build a position in high-quality companies (where the earnings visibility is quite high) with an investment horizon of 12-18 months
Neogen Chemicals’ Battery materials is a growth engine. Buy for target price of ₹1936 (30% upside): HDFC Securities
Neogen Chemicals’ (NCL’s) earnings will grow at a CAGR of 43% over FY24- 30E while RoE will improve from 6% in FY24 to 23% in FY30E. New-age chemicals from its battery material business will drive growth
V2 Retail has turned around its business with healthy growth in revenue/EBITDA in FY24. Buy for target price of ₹841 (54% upside): Nuvama
VREL added 10 stores in Q4 and store addition for FY24 stood at 15 (net). Over the last two quarters (14 net additions), footprint expansion has picked up pace as business has started generating healthy margins. VREL’s store rationalisation program is now complete and we don’t expect store addition to further pick up from here on as its new stores are witnessing healthy throughput and SSSG from mature stores is also strong
Buy Apollo Hospitals for target price of ₹7230 (24% upside): SMIFS
We hold a positive outlook on Apollo’s future, driven by favourable demand dynamics. We anticipate strong performance in both healthcare services and the pharmacy segment. Furthermore, we anticipate AHLL to achieve remarkable outcomes. Based on SOTP valuation we arrive at target price of 7,230 (implied EV/EBITDA multiple of 25.5 on its FY26E EBITDA), offering 24% upside from current levels. Buy.
Sell NOCIL Ltd due to High competitive intensity, premium valuations & bumpy road ahead for target price of ₹213 (18% downside): SMIFS
NOCIL reported weak operational performance during the quarter. Revenue de-grew by ~9% YoY but grew by ~5% QoQ. Volume grew by 2% YoY & 12% QoQ largely led by strong offtake in export market, although realization remained weak declining by 11% YoY & 7% QoQ. Domestic market remained muted because of heavy imports from China & it is anticipated to continue in the coming quarters as well.
J.B.Chemicals & Pharmaceuticals Ltd is in the Spotlight for maximizing therapy dominance. Buy for target price of ₹1987 (19% upside): SMIFS
JB Chemicals and Pharmaceuticals Ltd (JBCP) is a rapidly growing mid-sized pharmaceutical company in India, focusing on expanding its domestic presence through strategic acquisitions and CDMO business scaling up. In India, JBCP’s growth is accelerated by the market share gain and Rx increase in the acquired portfolio, successful lifecycle management of key brands, and increased contribution by domestic portfolio from 41.6% in FY18 to 54.4% in FY24
HINDWARE HOME INNOVATION provided upbeat outlook in anticipation of recovery in demand Buy for target price of ₹600 (51% upside): BOB Caps
Maintain BUY with unchanged TP of Rs 600: We maintain our BUY rating on the stock due to strong earnings growth prospects (in anticipation of healthy revenue growth prospect with levers of margin improvement for each segments) and reasonable valuations (stock trades at 29.1x on 1Y forward P/E vs historical average of 41.6x). We have reduced our EPS estimates by 26.8%/23.5% for FY25/FY26, but have kept our TP unchanged at Rs 600 as we roll forward our valuation from Sep’25 to Mar’26. We value HINDWARE at an unchanged P/E of 30x on Mar’26E EPS
Senco has huge headroom to grow. Buy for target price of ₹1025 (17.3% upside): SBI Securities
We believe Senco has huge headroom to grow given its strong legacy in the jewellery business, expanding footprint through a strong and diverse distribution channel, focus on light affordable jewellery with better price point and healthy growth visibility from both its company operated and franchise stores
NTPC has the best of both (CORE) worlds. Buy for target price of ₹495 (32% upside): ICICI Securities
NTPC is one of the best plays on the increasing total addressable market for power capex – led by security of the grid and increasing renewables penetration. It is the beneficiary of both the worlds – conventional (CO) and renewables (RE). It has laid out a plan to add 24GW of thermal capacities and 64GW of RE capacities by 2032. As a result, visibility on cost plus or regulated earnings has improved. We estimate cost plus earnings to grow at 10-12% CAGR in medium term. We expect NTPC to accelerate RE capacity addition on the back of 20GW tied up capacity. As a result, we expect EBITDA of RE capacity to grow at 30% CAGR over the next three years. We resume coverage on NTPC with BUY and SoTP-based target price of INR 495 per share.
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