Select buzzing stocks including Yatharth Hospital & Trauma Care, JB Chemical & Pharmaceuticals, Adani Energy Solutions, Karur Vysya Bank, Aditya Vision, Indigo Paints, GMR Power & Urban Infra and Jindal Stainless have seen fresh interest from the various brokerage firms, who have recently initiated their coverage on these companies.
The host of domestic brokerages including Phillip Capital, JM Financial, ICICI Securities, YES Securities, Equirus Securities and Emkay Global Finance Services. All of these stocks have 'buy' or 'long' ratings with an upside potential of up to 45 per cent. Here's what brokerage said on these stocks:
JM Financial on Jindal Stainless Rating: Buy | Target Price: Rs 910 | Upside Potential: 15% Jindal Stainless (JSL) operates 16 advanced manufacturing facilities across India, Spain, and Indonesia, with flagship plants in Hisar and Jajpur making a total capacity of 3.0 MTPA. The company has undertaken a JV in Indonesia to increase its capacity to 4.2 MTPA by end of FY26. JSL operates as a value-added converter rather than a commodity player in the stainless-steel industry, said JM Financial.
"JSL recently announced a three-pronged strategy for capacity expansion through a capex of Rs 5,500 crore. JSL’s net debt may increase from Rs 3,600 crore in FY24 to Rs 5,600 crore in FY25. We anticipate a revenue/EBITDA/PAT CAGR of 16%/ 25%/ 33% over FY24-26E given capacity expansion and better product mix," it added with a 'buy' rating and a target price of Rs 910.
Emkay Global Finance Services on GMR Power & Urban Infra Rating: Buy | Target Price: Rs 180 | Upside Potential: 15% or 30% GMR Power & Urban Infra's (GPUIL) core thermal assets are nearing optimal performance on coal tie-ups, PPAs to the tune of 90 per cent capacity, and improving debt metrics. The management has a clear focus on deleveraging on the back of strong operating cash flows. Incremental smart meter contracts, monetization, and settlement of disputes provide sizable optional value, said Emkay Global.
"The company’s 180MW Bajoli Holi hydro-power asset has largely stabilized, while its 7.5mn smart meter installation contract opens up a lucrative asset-light business opportunity with Bosch, for vertical integration & unleashing its execution capabilities. We initiate coverage on GPUIL with 'buy' and a target price of Rs180 along with numerous optionalities for our bull case target price to Rs 205," it said.
Phillip Capital on Indigo Paints Rating: Buy | Target Price: Rs 1,937 | Upside Potential: 33% Indigo Paints has been one of the few paint manufacturers to enter the industry in the last 20 years and maintained both their profitability and presence in the market as the fifth largest paint manufacturer. They have been category creators that have allowed them to enter the Tier 3 and 4 markets easily, giving them a first mover advantage and pricing power, said Phillip Capital.
"We believe once this current capex starts reflecting in the revenues, we will see an improvement in return ratios. Further with strong industry tailwinds and multiple growth levers we project 19.9% / 23.7% / 23.26% in Revenue / EBITDA / PAT in the period between FY24-27E. We initiate a coverage with a target price of Rs 1937, an upside potential of 31 per cent," it said.
Equirus Securities on Aditya Vision Rating: Long | Target Price: Rs 601 | Upside Potential: 21% Aditya Vision is one of India’s prominent multi-brand consumer electronics retailers. From a single store in 1999 to 145 stores at FY24-end, the brand has cemented its position in states such as Bihar, Jharkhand, and UP. It would continue to aggressively expand its store network in existing markets, entering new markets of MP, Chhattisgarh, and West Bengal, said Equirus Securities.
"The company’s operative markets – mainly in the Hindi heartland – offer significant growth potential as they are characterised by lower penetration, rising income levels, lower competition from national players, and better electricity availability. We expect the store network to go from 145 at FY24 to 220 by FY27-end," it suggests to 'long' the stock with a target price of Rs 601.
YES Securities on Karur Vysya Bank Rating: Buy | Target Price: Rs 910 | Upside Potential: 24% We initiate coverage on Karur Vysya Bank (KVB) with a 'buy' rating as KVB has a healthy sustainable margin profile, being underpinned by a strong liability franchise, typified by industry-low SA card rates; KVB has affected a growth turnaround through digital under-writing; credit cost outlook seems reasonably comforting and asset quality volatility is a thing of the past, said YES Securities.
"We value KVB at 1.5 times FY26E P/BV for an FY25E/26E/27E RoE profile of 16.4/16.8/16.9%. We place KVB at no. 6 in our pecking order of 15 banks. It is our second most preferred private sector mid and smallcap bank pick behind FED. This report also contains a detailed comparison of 11 mid and smallcap private sector banks," it added with a target price of Rs 260.
ICICI Securities on Adani Energy Solutions Rating: Buy | Target Price: Rs 1,318 | Upside Potential: 31% Adani Energy Solutions (AESL) is operating a mix of regulated and unregulated businesses. It has transitioned from operating regulated transmission assets to becoming a leader in competitively built transmission and from operating regulated distribution assets to emerging as a leader in smart meter assets, said ICICI Securities.
It has tapped into unregulated businesses and scaled up emerging new opportunities. Earnings growth may be driven by new transmission opportunities, growth in Mumbai DISCOM, c) existing smart meter wins and new opportunities. We estimate Ebitda to grow at 32 per cent CAGR between FY24-FY27E, it added while Initiating coverage with 'buy' and target price of Rs 1,318.
JM Financial on JB Chemical & Pharmaceuticals Rating: Buy | Target Price: Rs 910 | Upside Potential: 20% KKR and the new management have transformed JB Chemical from a company with modest growth and suboptimal profitability into one of India’s fastest-growing pharmaceutical firms over FY20-24, with over 18 per cent revenue CAGR and 26 per cent margins. Key drivers of this success include strategic leadership hires from Cipla, streamlining of operations, targeted M&As, and a revival of the CMO business, said JM Financial.
"Over the past three years, JBCL has risen seven places to rank 21st in the Indian pharmaceutical market. The company holds significant market shares in its top four brands. It is also expanding into new therapeutic areas through acquisitions, replicating its success with products like Razel, Sporlac, and Azmarda. We assign a multiple of 36 times to September 26 EPS, arriving at a target price of Rs 2,210," it said with a 'buy' tag.
Phillip Capital on Yatharth Hospital & Trauma Care Rating: Buy | Target Price: Rs 1,318 | Upside Potential: 45% Yatharth is a multi-specialty tertiary healthcare player in the northern Indian region. With its bed addition plans which would take its current bed capacity of 1605 to 2800, we foresee healthy growth in business. We also anticipate growth in ARPOB owing to better therapy, patient and business mix, said Phillip Capital's IC report with a 'buy' rating.
"These two factors combined will exponentially boost the topline of the company. In our view, its geographic location also serves as a moat as it sits closer to high population density areas in the northern states. We expect the Rev/EBITDA/PAT to grow at CAGR of 29%/ 30% / 33% CAGR growth respectively over FY24-FY27E,. We initiate coverage on the with a price target of Rs 827," it said.