Select stocks including RR Kabel Ltd, Suprajit Engineering Ltd, Newgen Software Technologies Ltd, VA Tech Wabag Ltd, CEAT Ltd and Meghmani Organics Ltd have seen fresh interest from the various brokerage firms, who have recently initiated their coverage on these companies.
The host of domestic brokerages including YES Securities, Anand Rathi Shares & Stock Brokers, Dolat Capital, Axis Securities, Emkay Global Financial Services and Sunidhi Institutional Research. All of these stocks have 'buy' ratings with an upside potential of up to 45 per cent. Here's what brokerage said on these stocks:
YES Securities on RR Kabel Rating: Buy | Target Price: Rs 2,083 | Upside: 33% "We initiate with 'buy' rating coverage on RR Kabel based on its commendable value prop including noteworthy certification and R&D investments, robust manufacturing capabilities and prudent capacity expansion, wide distribution and retail network, and improving margin trajectory," said YES Securities in its initiating coverage report on the stock.
"We expect revenue, Ebitda and PAT growth of 20 per cent, 36 per cent and 40 per cent, respectively over FY24-FY26E. The company would improve its margin by 190bps by FY26. The company’s enviable value prop should help it outperform the industry in good time, it added with a target price of Rs 2,083," it said valuing the company at 40 times FY26EPS.
Anand Rathi Shares & Stock Brokers on Suprajit Engineering Rating: Buy | Target Price: Rs 630 | Upside: 19% Suprajit Engineering is engaged in the business of manufacturing and selling automotive and other components. The rise in discretionary income and change in lifestyle with a significant preference for 2W and PV has led to the growth of the automobile sector and this has given a push to auto components suppliers to provide components while maintaining the standard quality, said Anand Rathi.
"The company’s strong product portfolio, healthy order book backed by its marquee clients are well placed to report profitability. We believe the stock to witness gradual re-rating on the back of operating efficiency and improved return ratios. We initiate the coverage with a 'buy' rating on this stock by assigning 33x of FY26E earnings with a target price of Rs 630," it added.
Dolat Capital on Newgen Software Technologies Rating: Buy | Target Price: Rs 1,300 | Upside: 22% Newgen Software is a low-Code, automation focused platform player that bridges an organization’s content, processes, and communication systems, and steering it towards efficiency and success. The company has a significant growth runway driven by its strong performance in the banking sector, consistent customer upgrades and success in rapid transition, said Dolat Capital.
Newgen aspires to achieve $500mn Revenue over next 4-5 years, supported by confidence of continued growth rate improvement over past run-rate. Noting Newgen’s varied capabilities, healthy customer addition, powering GTM strategy and revered industry recognition, we expect Newgen to deliver a strong growth and initiate coverage with a 'buy’ tag and a target price of Rs 1,300.
Axis Securities on VA Tech Wabag Rating: Buy | Target Price: Rs 1,700 | Upside: 25% Va Tech Wabag has a history spanning more than 90 years. With a presence in four continents, WABAG is a pure-play water technology multinational offering a wide range of solutions focused on conservation, optimization, recycling, and reuse of resources, addressing global water challenges. It has a workforce of over 2,000 employees across 25 countries, said Axis Securities.
"We initiate coverage on Va Tech Wabag with a 'buy' rating. Our recommendation is supported by strong industry tailwinds, improving profitability, robust order book, and expanding offerings. The stock currently trades at 18 times FY26E EPS. We value the stock at 23 times FY26E EPS and initiate coverage with a 'buy' rating on the stock with a target price of Rs 1,700," it said.
Emkay Global Financial Services on CEAT Rating: Buy | Target Price: Rs 3,650| Upside: 28% Despite street concerns about margin volatility due to spike in raw material (RM) prices, our analysis points to gradual de-linking of tyre industry profitability from the underlying RM. We initiate coverage on CEAT with 'buy' and target price of Rs 3,650, said Emkay Global in its IC report.
"Backed by best-in-class R&D, industry-leading marketing spends, and OEM relationship focus, CEAT has outperformed across parameters in the last 5 years, with leadership in consumer categories and is showing greater resilience to volatility. We build in RM-led pressure in the near term; price hikes, accelerating growth, and sustained high utilization are seen driving margins back to FY24 levels," it said.
Sunidhi Institutional Research on Meghmani Organics Rating: Buy | Target Price: Rs 3,650| Upside: 45% Meghmani Organics is a fully integrated, diversified chemical company, specializing in agrochemicals and pigments. It is also one of India's leading pesticides manufacturers with a marked presence across the entire value chain. It manufactures green and blue pigment products which are used in printing ink, plastic, paints, textiles, leather, and rubber, said Sunidhi Institutional Equities.
"It has established a global presence in 75 countries and a wide distribution network of 3,500 distributors and dealers across India. We believe the turnaround in agrochemicals expected in H2FY25 post prolonged destocking issues, improvement in utilization of TiO2 plant, and ramp up in Nano Urea to rewrite the company's growth story over the next 2-3 years," it added with a 'buy' and target price of Rs 156.