We initiate on Trent, Tata Group’s fashion & lifestyle business, with a Buy and an SOTP-based TP of Rs9,250. Its transformation from a single-format (Westside) to a multi-format (Westside, Zudio, Star, Samoh, Utsa, Misbu, etc.) and multi-category (fashion & lifestyle, grocery, beauty personal care & fashion accessories) player led to a higher revenue CAGR (36% in FY19-24) vs. India’s leading consumer discretionary and retail peers
Skipper Limited is riding on the T&D Capex Wave. Buy for target price of ₹600 (44% upside): Axis Securities
Skipper is India’s largest and the world’s only integrated Transmission & Distribution (T&D) company present across the entire transmission chain
Arvind Smartspaces is one of the fastest growing real estate companies. Buy for target price of ₹1085 (43% upside): Axis Securities
We are initiating coverage on Arvind Smartspaces Ltd. (ARVSMART) with a BUY recommendation and a target price of Rs 1,085/share, which implies an upside of 43% from the CMP. Arvind Smartspaces began operations in 1897 when Lalbhai Dalpatbhai established the company’s first textile mill. Over the years, the business portfolio expanded to include textiles, dyes, chemicals, real estate, and engineering ventures, which were later demerged in 2016. Today, Arvind Smartspaces is one of the fastest growing real estate companies, holding a dominant market share in Ahmedabad and Bangalore
Lumax Auto Technologies is well diversified & poised for healthy growth ahead. Buy for target price of ₹750 (30% upside): ICICI Direct
Lumax Auto Technologies (LAT), is a leading auto ancillary player with diversified portfolio serving both OEMs and aftermarket.
Persistent Systems is in a league of its own as a diversified product engineering and IT services player, justifying a premium valuation multiple. Buy for target price of ₹6300 (21% upside): Motilal Oswal
PSYS is capitalizing on increased opportunities arising from fatigue among larger firms, positioning itself to fill the gaps and capture additional market share.
GAIL (India) is trading at an inexpensive 8.8X FY26E earnings. Buy for target price of ₹260 (23% upside): HDFC Sec
GAIL is trading at 11.6x Mar-26E EPS, only 1% premium to its five-year average despite the stronger volume growth outlook in its core business of gas transmission.
Adani Ports is expected to outpace India’s overall growth. Buy for target price of ₹1850 (31% upside): Motilal Oswal
APSEZ is expected to outpace India’s overall growth, driven by a balanced port mix along India’s western and eastern coastlines and a diversified cargo mix. The company continues to invest heavily in the port and logistics business to drive growth
Senco Gold has significant re-rating scope. Buy for target price of ₹1600 (14% upside): Emkay
Senco offers the best brand accessibility vs peers in terms of product, price, and penetration in the eastern region. Senco leverages its multi-decadal relationship with karigars (in Kolkata) to offer relatively light-weight ornaments with a heavy look. This helps Senco to differentiate itself from players who offer heavier jewelry (higher grammage). Merchandise at stores is localized with focus on addressing the entire middle class of the local catchment through its light-weight jewelry
Stovekraft is a challenger brand gunning for leadership position. Buy for target price of ₹1350 (56% upside): Emkay
We initiate coverage on Stovekraft (SKL), the leading kitchen and home appliance player (brand Pigeon), with BUY and TP of Rs1,350/sh at 20x Sep-26E EV/EBITDA (56% upside). SKL is growing significantly ahead of peers (~15pps share-gain) on i) massive cost-leadership, led by deeply-entrenched manufacturing; ii) strong new product innovation capabilities and strategic ‘value for money’ positioning; and iii) improving branding/distribution expansion, including new-age channels (e-com, modern retail).
Bajaj Housing Finance will be among top-4 mortgage players in the medium term. Buy for target price of ₹210 (27% upside): Philip Capital
Bajaj Housing Finance Ltd (BHFL) was classified as an upper-layer NBFC as per scale-based regulations, and so it got listed within three years of this classification. We have worked out three scenarios, and taken a hold-co discount of 15% to be conservative, even though present tax considerations don’t mandate a hold-co discount. We have taken a 50% weightage for our base scenario, 40% for our bear scenario, and 10% for a bull scenario. In the bull case, we assumed a P/E multiple of 30x – c.20% lower than +1sd of BAF. We are using earnings multiple for the standalone entity, given it is a fast-churn, high-velocity, consumption-driven credit business. We are using price-to-book multiple for the housing finance entity as it’s a traditional lending business
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