With strategic capacity expansion in place, favourable steel demand and improvement in profitability, JSW Steel is poised to deliver record performance (450 bps improvement in margins) going forward. We assign BUY rating to the stock and value it at ₹ 1,125 i.e. 8x FY26E EV/EBITDA
PCBL has Robust volume growth & High capex intensity. Buy for target price of ₹327 (26% upside): SMIFS
PCBL reported a good show on numbers by maintaining its gross & operating spreads per kg near highest levels similar to last quarter. The good performance was backed by stronger volumes which helped maintain its operating metrics. Volumes have grown by 20% YoY & 5% QoQ because of additional volumes from Chennai (Normal carbon black) & Mundra (Speciality black) facility aiding volume momentum. We are expecting stronger pickup in volumes particularly to EU owing to ban on Russian CB supplies effective June 24 which will directly benefit Indian CB players
DERIVATIVE STRATEGIES – ELECTION 2024 by HDFC Securities
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Election results hold immense significance for Indian markets. We are not psephologists and do not claim to have any unique insights into how this cookie will crumble. Over the past four election (2004, 2009, 2014, 2019), the Nifty experienced considerable volatility, with fluctuations of 30%, 30%, 14%, and 8%, respectively in the election month period.
Archean Chemical will benefit from increased usage of Bromine in Agrochem and Pharma, forward integration into high-value business. Buy for target price of ₹865 (39% upside):Axis Securities
The company remains confident in its Bromine Derivatives project and the strategic acquisition of Oren, which is expected to contribute to the topline in FY25. Given its smaller size and large addressable market, ACIL is optimistic about achieving 60-70% utilization from the new derivative plants. The company also anticipates continued strong uptake from the Industrial Salt segment and a recovery in the SOP segment
NRB Bearing’s valuation at 18x P/E on FY26E looks extremely attractive. Buy for target price of ₹400 (24% upside): ICICI Direct
With a healthy visibility on earnings growth and focus on strengthening balance sheet, NRB’s valuation at 18x P/E on FY26E looks extremely attractive in the bearings space (as other players quoting at 40x-52x P/E on FY26E). We believe that, company’s valuation discount to its peers (though factoring in the fact that NRB’s presence in only auto space) is unjustified to some extent. Thus, we recommend Buy on NRB Bearings with at target price of ₹ 400 (i.e. 22x FY26E P/E)
DLF has strong cash flow despite higher BD, launch pipeline intensifies. Buy for target price of ₹1081: Nuvama
We are upbeat on DLFU’s growth prospects driven by strong sectoral tailwinds (record low inventory in its home market, industry-wide consolidation, and a greater preference for branded luxury inventory), an extensive launch pipeline, and expansion of its annuity portfolio. A strong Balance Sheet, with consistent cash flow, lends comfort. We upgrade our TP to INR1,081 (from INR1,021) to account for project additions and an expanded launch pipeline. Maintain ‘BUY’
Beta Drugs is one of the fastest growing scaled up companies in the Indian branded Oncology pharma market. Buy for target price of ₹1600 (32% upside): Nuvama
Beta is one of the fastest growing scaled up companies in the Indian branded Oncology pharma market. It has shown a strong growth over the years with a bright future ahead. H2FY24 faced some pressure on the EBITDA margins due to higher raw material prices and a loss in the cosmeceutical division but the management expects a recovery in the margins in FY25
Amara Raja has a capital efficient business model, healthy net cash positive B/S & inexpensive valuations. Buy for target price of ₹1200 (28% upside): ICICI Direct
Amara Raja Energy & Mobility (AREM) is a part of the duopolistic organised Indian lead acid battery market with a strong presence across Automotive (OEM & aftermarket) and Industrial battery space (UPS, Telecom, etc.)
Man Infraconstruction has strong upcoming Order Book and Surging Net Profits. BUY for target price of ₹270 (34% upside): Axis Securities
We maintain a BUY rating on the stock as we continue to remain positive on the company’s long-term prospects
TCI express is leading ground express player with the company claiming to have a market share of ~7%. Buy for target price of ₹1490 (35% upside): Kotak Securities
TCI express is leading ground express player with the company claiming to have a market share of ~7%. In CY16, Transport Corporation of India (TCI) completed the de-merger of its express division and over FY17 to FY23, despite Covid TCIEXP reported revenue CAGR of 6.2% and earnings CAGR of 21.2% with high return ratios.
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