Additionally, well-managed balance sheet, strict working capital controls, and healthy return ratios are added positives. Given the favourable outlook, we initiate coverage with a Target Price of Rs905/share (15x Sept’25 estimated EPS), representing an upside potential of ~20%

We are strongly convinced of the company’s competitive position, and is well placed for the mid-to-long term growth opportunities. It’s a debt-free and has always generated positive cash flows in the last 11 years

We trust Gabriel has a very promising future on account of 1) benefits due to sustained demand recovery in the coming years across automobile segments, 2) well-diversified product portfolio, 3) key customers gaining share, 4) winning new orders from electric vehicle OEMs, 5) steady revenue growth visibility into the aftermarket sales, 6) entering into high growth, better margin products viz. automotive sunroof, and we anticipate further introduction of new technology agnostic products to drive growth higher than the industry

Divi is strategically poised to capitalize on emerging opportunities presented by recently off-patent molecules. Company is seeing softening of RM and logistics costs which will improve the margins further. We forecast Revenue / EBITDA / PAT CAGR during FY23- 25E at 16.7%/31.5%/27.5%. We value the stock based on SOTP valuation strategy and arrive at a target price of INR 4,041. Accumulate

We are of the opinion that SJS at ease will be able to achieve PAT growth @18% CAGR FY22-FY25e with sustainable margin of about 25%+ level. Over & above, the team is aggressively hunting for inorganic acquisition, which can add a new wing in either technology, futuristic products, markets and/or customers

Currently, the stock is trading at comforting valuation on FY25E EV/EBITDA of 15x. We value the stock at 20x (in line with its historical average) due to capacity and geographical expansion, improved margins and robust revenue growth, thereby, arrive at target price of Rs 1,682 per share which offers upside of 18% from current valuations. Therefore, we assign BUY rating on the stock.

Supreme Petrochem (SPL) has very strong business model in Polystyrene (PS) & Expandable Polystyrene (EPS) along with its downstream derivatives like XPS & SPC. The company is expanding its capacity in all business segments viewing the growth opportunities available post closure of business of its nearest competitor in India, increasing demand growth & strong balance sheet to fund capital expenditure.

Strong business fundamentals such as diversified segments mix and strong product portfolio along with high return ratios make Indoco an attractive investment proposition

Currently, the stock is trading at inexpensive valuation on FY25E P/E of ~9.3x. We value the stock on forward P/E multiple of 12.5x owing to increasing share of speciality business, robust volume growth & rising exports share and, thereby, arrive at target price of Rs 183 per share which offers upside of 35% from current valuations.

SMIFS has recommended four stocks to buy with good risk-reward ratios.