Kaynes Technologies (KAYNES) is rapidly scaling up its smart meter business to tap the huge 250m (INR750b) smart meter market over the next few years. The company has recently inaugurated its electronics manufacturing facility in Hyderabad for the production of smart meters, and has acquired its client Iskraemeco
IREDA’s healthy growth momentum to aid valuation. Buy for target price of ₹280 (25% upside): ICICI Direct
IREDA is a systemically important non-deposit taking nonbanking financial company engaged in financing of renewable sector. The company has geographically diversified asset base with term loans outstanding across 23 states and 4 union territories
Oil India is a strong conviction BUY. Buy for target price of ₹720 (25% upside): Motilal Oswal
Amid weak crude oil prices, the share price of Oil India (OINL) has declined 22% in the last 5 weeks. However, we reiterate our BUY rating on the stock and highlight the following: 1) we estimate that the Standalone (SA) business (adjusted for investments and Numaligarh refinery stake) trades at 7x FY27E P/E, which we believe is inexpensive; 2) OINL’s strong production growth outlook (9% CAGR over FY24-FY27) hedges against the risk of lower oil/gas prices; and 3) the capacity expansion for Indradhanush gas grid and Numaligarh refinery, remains in line with the guided schedule, and will be instrumental in unlocking value in FY26 and beyond
Avalon Technologies stands out in the EMS landscape as the only player with a significant manufacturing presence in the US. Buy for TP ₹690 (26% upside): Motilal Oswal
Avalon Technologies (AVALON) stands out in the EMS landscape as the only player with a significant manufacturing presence in the US. While this has historically been a competitive advantage for the company, recent economic headwinds in the region have posed challenges. However, the company is successfully navigating these issues with a well-defined recovery plan for its US business, alongside continued growth in its domestic operations
Hyundai Motors India is a credible play on tangible growth story in PV space. Subscribe to the IPO: ICICI Direct
Hyundai Motors India (HMIL), is a part of South Korea based the “Hyundai Motor Group”, which is the third largest passenger vehicle (PV-OEM) manufacturer globally as of CY23. HMIL has for long been the second largest auto OEM in the domestic passenger vehicle market in terms of sales volumes
JTL Industries Ltd’s Capex to stimulate growth; value-addition to aid margins. Buy for target price of ₹294 (37.6% upside): SMIFS
JTL Industries Ltd (JTL), a prominent player in the structural steel tubes and pipes sector, has ascended as the fastest-growing company propelled by robust sectoral dynamics, augmented production capacities, and a strong offtake facilitated by an extensive network of distributors, dealers, and clients (both within the nation and overseas). Further, its strategic decision to prioritize the value-added product segments and to set up facilities near raw material suppliers(in conjunction with backward integrated plants) has proven to be effective, yielding an industry-leading EBITDA/ton
TRIL’s margin outperformance continues. Buy for target price of ₹980 (45% upside): Nuvama
TRIL beat our Q2FY25E by a mile powered by strong execution (+80% YoY), lifting OPM to ~15%. New OI grew ~3x YoY to INR10bn, jacking up backlog to INR35bn (executable over 15–18 months) even as tender pipeline is strong at INR170bn+ (20% strike rate). Management maintained FY25E revenue guidance of INR20bn with EBITDA margin of 14%-plus, expanding to INR45bn and 17%, respectively, by FY27E
Skipper Ltd is poised for a powerful performance. Buy for target price of ₹650 (44% upside): Nuvama
Skipper is ready to harness several tailwinds: i) power T&D capex of INR9.2tn over 2022–32; ii) improving product mix with a shift to margin-accretive HV segment; iii) doubling of capacity in four–five years; iv) a well-capitalised balance sheet with FY24 D/E at 0.49x (exhibit 32); and v) OPM improving from 9.7% in FY24 to 10.5% by FY27E (guidance of 11% for three years).
Jubilant Pharmova has a unique business with long-term earnings visibility. BUY for target price of ₹1450 (30% upside): Nuvama
Jubilant Pharmova (JPL) is undergoing a turnaround and adding new growth drivers, which provides long-term growth and earnings visibility. We argue JPL can expand its revenue/EBITDA at a CAGR of 11%/24% through: i) Ruby-Fill ramp-up; ii) turnaround of Radiopharmacy and generics business; iii) commissioning of Line-3 at Spokane; and iv) CRO growth. The real booster shot would be balance sheet improvement, lifting PAT 4x over FY24–27E
Thangamayil Jewellery is a a high-conviction BUY for target price of ₹2550: HDFC Securities
33%, and 41% revenue, EBITDA, and PAT CAGR, respectively, over FY24-27. This growth will be driven by the benefits of formalisation, accelerated store expansion, its value-for-money offerings, and the easy availability of capital at competitive interest rates. We view TJL as the D-Mart of Tamil Nadu’s jewellery retail sector, applying principles of “high inventory turns and reasonable margins,” in contrast to other listed jewellery players who focus on “high operating margins and low inventory turns” to generate respectable return ratios.
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