Select buzzing stocks including Anant Raj, Piramal Pharma, Deep Industries, Himadri Speciality Chemical, Galaxy Surfactants, Shriram Finance, Brianbees Solutions (FirstCry), Quess Corp and Oberoi Realty have seen fresh interest from the various brokerage firms, who have recently initiated their coverage on these companies.
The host of domestic brokerages including Motilal Oswal Financial Services, Antique Stock Broking, JM Financial, ULJK Research, ICICI Securities, YES Securities and Axis Securities. All of these stocks have 'buy' or 'add' ratings with an upside potential of up to 40 per cent. Here's what brokerage said on these stocks:
Motilal Oswal Financial Services on Anand Raj Rating: Buy | Target Price: Rs 1,100 | Upside: 31% Motilal Oswal expects Anant Raj's DC revenue to grow materially, with capacity increasing from 6 MW in FY24 to 307 MW by FY32, and a shift towards cloud services, which will expand from 0.5 MW to 77 MW over the same period. This growth, coupled with a projected Ebitda margin expansion to 77 per cent by FY30E, reflects its ability to scale operations and strong profitability, it said.
"We expect data center business to start generating positive EBIT from FY26 onwards and positive free cash flows from FY30 onwards. We expect NOPAT to reach Rs 6,000 crore from Data center business by FY32. We set a target price of Rs 1,100 based on our SOTP-based valuation and initiate coverage on the stock with a 'buy' rating," Motilal Oswal added.
Axis Securities on Oberoi Realty Rating: Buy | Target Price: Rs 2,560 | Upside: 12% Oberoi Realty is a leading player in Mumbai, specializing in developments across residential, retail, hospitality, and social infrastructure segments. It is one of the strongest brands in the Mumbai Metropolitan Region, said Axis Securities.
"We initiate coverage on Oberoi Realty with a 'buy' recommendation. Our recommendation is supported by a dominant position in MMR, robust Annuity Scaleup, entry into new key markets, and low leverage with strong cash flows. We value the company using the DCF method and arrive at a target price of Rs 2,560," it added.
Antique Stock Broking on Quess Corp Rating: Buy | Target Price: Rs 1,000 | Upside: 40% Quess Corp is the largest staffing company in India and the 46th largest global staffing company by revenue. It offers a wide array of services such as staffing solutions, facility management, and IT services. Quess is a clear beneficiary of strong hiring trends across various segments, said Antique Stock Broking.
"With the rapid urbanization in India and the rampant growth of GCCs in the country and Quess experiencing a strong momentum in the BFSI, manufacturing, telecom sectors we believe the company's revenue is expected to grow at 12-14 per cent CAGR over FY24-27. We initiate coverage on Quess Corp with 'buy' rating and a target price of Rs 1,000 from the current price," it said.
JM Financial on Piramal Pharma Rating: Buy | Target Price: Rs 340 | Upside: 38% Piramal Pharma's differentiated offerings, global manufacturing presence and end-to-end capabilities set it apart from listed Indian CDMO peers. This will help the company capitalize on the on-going industry expansion. The company’s CDMO business – its largest revenue segment - is key to the company’s outperformance, said , said JM Financial
"Combined with steady growth in complex hospital generics and scale-up of consumer health business, topline is expected to grow 15 per cent over FY24-27. With the increasing contribution of on-patent manufacturing margins are likely to expand 360bps to 18 per cent over the same period. We value the company on a SOTP basis to derive a target price of Rs 340," JM added.
ULJK Research on Deep Industries Rating: Buy | Target Price: Rs 690 | Upside: 15% Deep Industries' expansion strategy, including its addition of new rigs, the barge asset 'Prabha,' and a natural gas processing service, positions the company for sustained growth. The company's ability to dominate key segments such as natural gas compression, where it holds a 90 per cent market share, and integrated project management services, said ULJK Research.
"Its recent Rs 1,402 crore ONGC contract and strong order book, coupled with promising growth from its bidding pipeline, should drive revenue growth. With solid margins in core businesses and a strategic focus on capacity expansion, Deep Industries is set for significant upside potential, with enhanced revenue contribution expected from Q4 FY25 , projecting a target of Rs 690," it said.
YES Securities on Galaxy Surfactants Rating: Add | Target Price: Rs 3,250 | Upside: 19% A proxy to the FMCG industry Galaxy surfactants is well-positioned to capitalize on growing demand for personal care and home care (HPC) products globally. Its relentless focus on expanding the high-margin specialty care product segment, currently fetching 40 per cent of revenues, is expected to drive an EBITDA CAGR of 14.3 per cent over the span FY24-27, said YES Securities.
"As regards the raw material volatility, Galaxy has the ability to pass on the hike to consumers with a lag, thereby normalizing its margins annually. Galaxy’s capacity expansion of Rs 1,500 crore capex, with utilization projected to rise from 70-85 per cent over the next three years, ably supports 6-8 per cent volume CAGR. We initiate coverage with an 'add' rating and a target price of Rs 3,250," it said.
ICICI Securities on Himadri Speciality Chemical Rating: Add | Target Price: Rs 600 | Upside: 11% Himadri Specialty Chemical’s strong moat in the coal tar value chain complemented by an integrated production model allows it a firm grasp to maximise profits. The company is expanding its coat-tar pitch supplies to export markets such as South Africa, ME and Australia, which should help boost coal distillation utilisation and lift profitability, said ICICI Securities.
"Himadri is also scaling its specialty carbon black capacity to tap into prevalent market potential. it is deploying cash flows towards growing new businesses, viz. its foray into tyres. It also aims to establish a prominent standing in battery chemicals. We initiate coverage on Himadri with an 'added' rating, and target price of Rs 600," it said.
Axis Securities on Shriram Finance Rating: Buy | Target Price: Rs 1,100 | Upside: 30% Shriram Finance is the flagship company of the Shriram Group. The company provides lending services from its diversified product suite. It has been able to deliver strong AUM growth of 20 per cent CAGR over the 2 years post-merger, while continuously improving asset quality, said Axis Securities with a 'buy' rating and a target price of Rs 3,825.
We remain confident on its ability to continue its growth trajectory and expect a strong 17/17/19% CAGR AUM/NII/Earnings growth over FY24-27E, driven by healthy growth primarily in the non-vehicle segment, stable NIMs supported by a diversified borrowing franchise and a favourable mix of better-yielding segments, gradually declining Opex ratios, it added.
JM Financial on Brainbees Solutions (FirstCry) Rating: Buy | Target Price: Rs 614 | Upside: 14% FirstCry’s revenue grew at a CAGR of 38 per cent in FY21-24, with the company turning adjusted Ebitda profitable in FY21. It values India multi-channel / Globalbees Brands at 40 times / 30 times FY27E adjusted Ebitda while valuing International segment at 4x FY27E sales, said JM Financial.
We forecast it to deliver c.20% revenue growth over FY24-29, while adjusted Ebitda CAGR would be 51 per cent, driven by sharp margin expansion across segments, aided by 440bps gross margin expansion and the consequential operating leverage, resulting in FY29E Adjusted Ebitda margin of 12 per cent, it added with a 'buy' rating and a target price of Rs 614.