We assign BUY rating on PCBL amid better-than-expected margin and
return ratios profile, healthy volume growth in the offing, increasing share
of speciality grade carbon black & healthy cash flow generation with CFO
yield at ~10% over FY23-26E. We value PCBL at ₹330 i.e. 15x P/E on FY26E
There is a sustained focus on expanding the Non-MF businesses with an
aim to increase their share to 20% going ahead. Currently, we have a BUY
rating on the stock with a TP of INR3,450 (based on 32x FY26 earnings)
With a strong clientele, expanding product bouquet, entry into new export markets, shift in the product mix towards premium products, and cumulative capex of INR1,000cr by FY24-end, ICNT aims to double revenue over the next three-to-four years with margin expansion. We upgrade our TP to INR430 from INR350 earlier
APSEZ is well on track to cross its revised cargo volume guidance of 400 MMT during FY24. It continues to gain market share while generating strong cash flows and maintaining its leverage position, with a net debt-to-EBITDA ratio of 2.5x as of Dec’23. We increase our volume estimates by 2-3% for FY24-26. Over FY24-26, we expect APSEZ to register 10% volume growth and a CAGR of 15%/16%/18% in revenue/EBITDA/PAT. With consistent outperformance in cargo volumes, we increase the target multiple to 17x EV/EBITDA (earlier 16x) and reiterate our BUY rating with a revised TP of INR1,600
In FY23, the company is the 7th largest Maruti Suzuki dealer under Arena and 9th under Nexa in India by volume. Ranked fourth in Tata Motors Commercial dealership sales during FY23, the company contributed 76.7% and 48.0% of sales in Kerala and Tamil Nadu as of 1HFY24
We initiate coverage on J Kumar Infraprojects Limited (JKIL) with a BUY recommendation and a Target Price (TP) of Rs 800/share, implying an upside of 25% from the CMP. We believe JKIL, with its substantial order book, formidable market position, experienced management team, and sound financial standing, is poised to capitalize on the long-term structural changes in the infrastructure sector. These changes are being driven by the government’s emphasis on infrastructure development and the emergence of new opportunities in the construction space
In the Investor Meetings hosted by us, Can Fin Homes have expressed significant confidence in delivering improved disbursements and loan growth and lower NPLs and credit cost over the coming quarters. Spread/NIM is expected to remain resilient in the near-term and glide towards the guided level of 2.5%/3.5% in the medium term
HDFC Bank is expected to overcome the merger overhangs gradually led by 1) healthy balance sheet growth, 2) much higher provision then regulatory requirement in the balance sheet, 3) best in class underwriting and risk management practices. Given these strengths we expect HDFC Bank to remain one of the best among all the lending businesses. Thus, we continue to maintain BUY rating (given historical lower valuation) on the bank with revised target price of ₹1,762
We initiate coverage on NAM with ‘BUY’ rating given (1) consistent equity outperformance translating to improved net flows and in-turn market share gains (2) focus on stronger investment process and risk management and (3) robust retail franchise as indicated by enhancing SIP AUM and healthy addition of unique investors plus folios over FY19 to 9MFY24
We recommend Rossari Biotech as the Company has strong demand from end customer segments, Fineotex Chemicals for its strong growth potential from capacity expansion and improved products mix towards finishing processes and Balaji Amines for the expansion plans and longterm growth prospects
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