Incorporating revised earnings, our estimates don’t undergo any major change. We value Nifty at 27,500 i.e. 22x PE on FY26E, offering healthy 12% potential upside. This is our 12 months rolling target. We are upgrading our PE valuation multiples to 22x vs. 20x earlier amid greater macro-economic stability, firm political mandate, thrust on policy continuity & further attractiveness of equity as an investment class vs. peers. Decline in interest rates will be further positive.
APL Apollo Tubes (APAT) during the quarter reported 9.4%/-0.2% YoY increase in Net sales/PAT at Rs 4,974 cr and Rs 193 cr respectively. The company achieved its highest ever quarterly sales volume of 7,21,000 tonnes in 1QFY25 with EBITDA and PAT increasing 8%/13% QoQ. The demand environment for the structural steel tubes industry was tough, impacted by general elections and ongoing slowdown in retail spending
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. We maintain BUY on the stock and upgrade our target price to Rs 1,319 which implies an upside potential of 20.0% for 12-18 months
TCI has been affected by a sluggish macro environment, although it has performed well vis-à-vis industry peers. The company remains on track to achieve profitable growth, although some volume gets sacrificed in the near term. We introduce our FY2027E earnings in this note
Factoring in its recent blockbuster performance, we have upgraded our estimates slightly. We expect revenue/EBITDA/PAT to grow 53%/56%/70% over FY24–27. Its recent fund raising will result in a slight dilution in EPS which we expect to grow at 63% CAGR. SKYGOLD can be a longterm compounding story. Given its record of overachieving its targets in the past; aggressive growth for FY24-27 and execution capabilities of management, we think that SKYGOLD can be a long-term growth story
Hindalco, part of Aditya Birla group, is India’s largest fully integrated aluminium and copper manufacturer. US based wholly owned subsidiary i.e. Novelis is the world’s largest aluminium flat-rolled products (FRP) producer and recycler.
At the current price, the stock is trading at 47.2x/29.5x of its FY25E/FY26E earnings respectively. We maintain our buy rating on the stock with an upgraded price target of Rs 1,246/- thus providing an upside potential of 24.6%.
We believe Azad stands at an interesting juncture where a massive TAM is complemented by an upcoming 95,000m2 facility. The comparison with engine products division shows that a company with 80x revenue can also record EBITDA growth of 31% and record EBITDA margin of 31.2%. Hence, we believe Azad’s journey has just begun, particularly in view of its existing customer base and potential. Besides, the adjacent opportunities in nuclear power and ATGG engines are a plus. We maintain BUY on Azad with DCF-based unchanged TP of INR 2,450
Sobha continues to provide strong growth visibility by unlocking its vast land reserves. Additionally, the ongoing fund raise and strong cash flows will enable the company to focus on new land acquisitions, which will further enhance its growth pipeline
JB Chemicals’ (JBCP) Q1FY25 revenue growth was largely in line with our estimates. Slightly higher than-expected revenue from the domestic business and improved gross margins resulted in expansion of EBITDA margins. Revenue witnessed growth of 12% YoY and 17% QoQ to ~Rs10Bn. The YoY increase was mainly driven by 22% YoY growth in the domestic formulations business whereas flat growth witnessed in the overall export business.
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