As the headline indices scale new highs on Dalal Street, domestic brokerage firm Axis Securities has initiated coverage on a number of stocks, which may deliver strong returns in the coming months. The list of stocks includes names like Skipper Ltd, Gravita India Ltd and Arvind Smartspaces Ltd. Here's what brokerage firm said about these counters:
Arvind SmartsSpaces | Rating: Buy | Target Price: Rs 1,085 | Upside: 29%
Arvind Smartspaces began operations in 1897 when Lalbhai Dalpatbhai established the company's first textile mill. Over the years, the business portfolio expanded to include textiles, dyes, chemicals, real estate, and engineering ventures, which were later demerged in 2016. Today, Arvind Smartspaces is one of the fastest growing real estate companies, holding a dominant market share in Ahmedabad and Bangalore. We are initiating coverage on Arvind Smartspaces with a 'buy' recommendation and a target price of Rs 1,085.
Skipper | Rating: Buy | Target Price: Rs 600 | Upside: 24%
Skipper is India’s largest and the world’s only integrated transmission & distribution (T&D) company present across the entire transmission chain. The company has its own structure rolling, manufacturing, tower load testing station, and transmission line EPC. Its capability to execute high-voltage power transmission projects gives it a distinct competitive edge over peers. It has 10-15 per cent market share in high-voltage transmission lines. To cater to the soaring T&D infrastructure demand, Skipper targets to double its capacity from the current 3 Lc tonnes to 6 Lc tonnes over the next 4-5 years with a total Capex of Rs 800 crore. We initiate coverage of Skipper with a 'buy' recommendation and a target price of Rs 600.
Gravita India | Rating: Buy | Target Price: Rs 600 | Upside: 20%
Established in 1992, Gravita India is a leading recycling company and one of the largest lead producers in India. The company's business is organized across four specialized verticals: lead Recycling, aluminum recycling, plastic recycling and turnkey projects. The company is headquartered in Jaipur, India and has multiple scrap collection & recycling facilities within India and at overseas locations. The company generates the majority of its revenues from lead recycling and is foraying into newer verticals which may benefit from the global push for the adoption of a circular economy. With its planned capacity additions, Gravita appears to be well-positioned to benefit from strong tailwinds in the sector. We believe Gravita provides a dual opportunity to benefit from the eminent growth of the recycling industry along with the rising preference for Sustainability/ESG-focused investments. We are initiating coverage on Gravita India with a 'buy' recommendation and a target price of Rs 3,000.