Select buzzing stocks including JSW Infrastructure, Cyient DLM, SJS Enterprises, Gopal Snacks, Happy Forgings, Jana Small Finance Bank, JTL Industries and Suyog Telematics have seen fresh interest from the various brokerage firms, who have recently initiated their coverage on these companies.
The host of domestic brokerages including Nuvama Institutional Equities, KR Choksey, LKP Securities, Emkay Global Financial Services, Equirus Securities, ICICI Securities, SMIFS and Ventura Securities. All of these stocks have positive ratings with an upside potential of up to 64 per cent. Here's what brokerage said on these stocks:
Nuvama Institutional Equities on JSW Infrastructure Rating: Buy | Target Price: Rs 390 | Upside Potential: 22% JSW Infrastructure, part of India’s leading conglomerate JSW Group, is the second-largest private port company in India with a 25% volume CAGR over FY19–24. JSWIL is poised to sustain strong long-term growth on the back of favourable macro tailwinds supported by organic—and inorganic growth in the ports and logistics segments, said Nuvama Institutional Equities.
"We reckon JSWIL shall post revenue/EBITDA/PAT CAGR of 19/16/15% over FY24–27E. We value the stock at 25 times FY28E EV/EBITDA, discounted back to Dec-25E, yielding a target price of Rs 390," it said with a 'buy' rating. Nuvama has highlighted any inordinate delay in commissioning of JSWIL/JSW Steel projects as the key risk.
KR Choksey on Cyient DLM Rating: Buy | Target Price: Rs 842 | Upside Potential: 20% KR Choksey anticipates that the Aerospace & Defense (A&D) segment will remain a key driver of Cyient DLM's growth, contributing significantly to its profitability. Its strategic focus on expanding its presence in the industrial and medical segment should support overall performance. It projects revenue, EBITDA, and net profit growth of 30%, 49%, and 59%, respectively, over FY24-FY26E, it said.
"The order book, which has seen moderation due to its lumpy nature, is expected to rebound by Q4FY25, supported by the addition of major global clients across key sectors. With management aiming for a 30% revenue CAGR, Cyient DLM is poised for profitable growth. Based on these strong fundamentals," it added initiating coverage with a 'buy' rating and target price of Rs 842.
LKP Securities on SJS Enterprises Rating: Buy | Target Price: Rs 1,300 | Upside Potential: 28% SJS has always been at the forefront to adapt to new challenges through launch of some trend setting products and also through synergistic and profitable acquisitions, said LKP Securities. "We believe that the acquisitions in Exotech and WPI were strategic fit, positioning SJS for enhanced business prospects. The company has demonstrated resilience in navigating such challenges," it said.
"We find that SJS is well-placed to grow largely at par on revenue/Ebitda /PAT in the period between FY24-FY27E with some of the other ancillary players. While the EBITDA margin should be significantly higher compared to large peers, SJS’s return ratios are expected to be at par with them. Despite expectation of robust financials, industry tailwinds and operational triggers, SJS is trading at a discount to some of its peers," it added with a target price of Rs 1,300 and a buy rating.
Emkay Global Financial Services on Gopal Snacks Rating: Buy | Target Price: Rs 600 | Upside Potential: 35% Management has enhanced focus via onboarding professionals who have further enabled five pillars of growth like strong backend; production innovation and renovations; faster pan-India expansion with added focus on alternate channels; branding supports falling into place; logistics back-end that would aid freshness.
"Key markets suggest better thrust on revenue growth, with trade seeing execution support. Given Gopal’s appealing financial ratios, we see business growth returning and helping drive a valuation re-rating. We initiate coverage on Gopal Snacks with 'buy' and target price of Rs600/share, based on 40 times P/E. Stock valuations at 32 times for FY26E look attractive," it added.
Equirus Securities on Happy Forgings Rating: Long | Target Price: Rs 2,779 | Upside Potential: 31% Happy Forgings is one of India's leading forging and machining companies, offering a range of solutions in HCVs, farm equipment, off-highway construction, PVs and industrial equipment. With its 14,000 ton press forging capabilities, it is second only to Bharat Forge. In heavy forging production, it has one of the best return matrices in the domestic forging landscape, said Equirus.
It is much smaller than peers in many segments. Nevertheless, with inherent capabilities, new global customer relationships, and diversification into PVs and industrials, the company has massive growth opportunities in multiple sectors/regions. We initiate coverage on HFL with a 'long' and believe it is one of the best bets on the forging segment, it said with a target price of Rs 1,451.
ICICI Securities on Jana Small Finance Bank Rating: Adds | Target Price: Rs 294 | Upside Potential: 15% Jana Small Finance Bank has undergone a significant metamorphosis – post a change in guard on August 17. With revamped management came renewed strategic focus. Jana has its eyes firmly set on building a diversified secured retail portfolio; calibrating growth in micro-finance; a granularised deposit base; and strengthening its tech capabilities, said ICICI Securities.
"Jana’s efforts are bearing fruit with the initial harvest includes: unsecured exposure falling to 38% as of Q1FY25; CASA + retail deposit base improving to 65%; CD ratio improving to 102%. In parallel, a sharp turnaround in profitability has come about too with RoA improving to 2.4% in FY24 over FY20–23 and loss in FY19," initiating coverage with 'Add' and target price of Rs 630.
SMIFS on JTL Industries Rating: Buy | Target Price: Rs 294 | Upside Potential: 38% JTL Industries is a prominent player in the structural steel tubes and pipes sector. Its strategic decision to prioritize the value-added product segments and to set up facilities near raw material suppliers has proven to be effective, yielding an industry-leading EBITDA/ton. The funds are largely in-place for the imminent expansion, and warrants issued over the past few years, said JTL Industries.
"JTL is expected to sustain its notable growth trajectory, driven by its objective to expand its capacity to 1mn MTPA in FY25, with plans to more than triple the existing capacity over the next three years. JTL is embracing advanced DFT, which is anticipated to facilitate the company's expansion of SKUs, in-turn, notable rise in EBITDA/ton and profitability with better product mix," it said with a 'buy' rating and target price of Rs 294.
Ventura Securities on Suyog Telematics Rating: Buy | Target Price: Rs 2,779 | Upside Potential: 64% Suyog Telematics is a passive telecom infrastructure play is best placed to benefit from this. Ventura expects its revenue to grow at a CAGR of 50% to Rs 545 crore by FY27 driven by increase from macro sites to Rs 227 crore on the back of Rs 500 crore to increase installation to 8000 tenancy from the current 542 tenancy. Increase in revenue from micro sites to Rs 228 crore, it said.
As a result, we expect Ebitda and PAT to grow at a 44% and 35% CAGR to Rs 364 crore and 157 crore by FY27. Ebitda and PAT margins are expected to decline to 67% and 32%, respectively. Return ratios ROE and ROIC are expected to dip initially on account of heavy capex taking time to realize. STL will incur a capex of 900 crore, said with a 'buy' and a target price of Rs 2,779.