Up to 34% upside potential! PTC Industries, Medanta, Indian Shelter among 4 stocks seeing brokerage initiations
Medanta boasts a robust brand equity. It has fortified its position with a strong moat, providing the highest standard of care and specializing in high-complexity work, said Axis Securities.
- Jun 4, 2024,
- Updated Jun 4, 2024 8:19 AM IST
Select stocks including Indian Shelter Finance Corporation Ltd, Amara Raja Energy & Mobility Ltd, PTC Industries Ltd and Global Health Ltd (Medanta) have seen fresh interest from the various brokerage firms, who have recently initiated or re-initiated their coverage on these companies.
The host of brokerages including ICICI Securities, Kotak Institutional Equities, Antique Stock Broking and Axis Securities have launched their maiden reports on these stocks. Except Amara Raja, which has a 'sell' rating from Kotak, all other three stocks have 'buy' ratings on them with an upside potential of 31-34 per cent each. Here's what brokerage said on these four stocks:
ICICI Securities on India Shelter Finance Corporation Rating: Buy | Target Price: Rs 800 | Upside Potential: 34% India Shelter is an attractive play on increasing formalisation of informal self-employed financing with robust technology helping it in keeping one of the lowest TAT and end-to-end digital loan process without any physical movement of loan file. It is also one of the fastest growing AHFCs, said ICICI Securities in initiating coverage report on the stock.
We believe higher proportion of LAP portfolio resulting in better spreads than peers, levers for cost of fund reduction, 70 per cent fixed rate loans and steady growth of over 30 per cent over FY24-26E would help India Shelter in sustaining better profitability than peers. We model 35 per cent AUM CAGR over FY24-26E, with a 'buy' call and a target price of Rs 800.
Antique Stock Broking on PTC Industries Rating: Buy | Target Price: Rs 13,010 | Upside Potential: 31% PTC Industries is India's leading manufacturer of titanium and other super alloys-materials and castings, catering to the entire spectrum of aerospace and defence sectors. The company has platform-independent technologies at par with the best in the world. PTC is setting up titanium and super alloy mills on VAR and EBCHR technologies and will start production in FY25, said Antique.
"The company has already signed contracts and MoUs with leading OEMs, which has created a significant order pipeline for it. Given the high growth visibility and significant value addition leading to over 50 per cent EBITDA margin, PTC is well poised to post a profit of Rs 1,000 crore in FY28 from a base of Rs 420 crore in FY24," it said with a 'buy' call and a target price of Rs 13,010.
Axis Securities on Global Health Rating: Buy | Target Price: Rs 1475 | Upside Potential: 31% Global Health (Medanta) boasts a robust brand equity. The company has fortified its position with a strong moat, providing the highest standard of care and specializing in high-complexity work. A diverse revenue mix, notably from complex specialties like cardiac, digestive, oncology, and neuro, contributes significantly to its financial profile, said Axis Securities.
"The institute of liver transplantation, kidney and urology, orthopedics, and internal medicine involve intricate procedures, further propelling the company's topline growth.We initiate coverage on Global Health Medanta with a 'buy' recommendation and target price of Rs 1,475 apiece," it added, implying an upside of 27 per cent from its previous close.
Kotak Institutional Equities on Amara Raja Energy & Mobility Rating: Sell | Target Price: Rs 1,000 | Upside Potential: -17% Amara Raja’s adjusted EBITDA came in at Rs 430 crore, led by strong top-line growth. Standalone revenues increased by 15 per cent YoY, led by strong growth in the aftermarket and export segments, said Kotak Institutional Equities which has assigned a fair value of Rs 1,000 to the stock.
"We believe the lead-acid business performance will remain steady in the medium term. However, there exists a terminal risk to the business, as we expect the industry to shift toward the lithium battery business. It is lagging behind in terms of capacity and technological partnership compared with competitors in the LiB business, it said, reinitiating coverage with a 'sell' call, suggesting a 17 per cent downside.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Select stocks including Indian Shelter Finance Corporation Ltd, Amara Raja Energy & Mobility Ltd, PTC Industries Ltd and Global Health Ltd (Medanta) have seen fresh interest from the various brokerage firms, who have recently initiated or re-initiated their coverage on these companies.
The host of brokerages including ICICI Securities, Kotak Institutional Equities, Antique Stock Broking and Axis Securities have launched their maiden reports on these stocks. Except Amara Raja, which has a 'sell' rating from Kotak, all other three stocks have 'buy' ratings on them with an upside potential of 31-34 per cent each. Here's what brokerage said on these four stocks:
ICICI Securities on India Shelter Finance Corporation Rating: Buy | Target Price: Rs 800 | Upside Potential: 34% India Shelter is an attractive play on increasing formalisation of informal self-employed financing with robust technology helping it in keeping one of the lowest TAT and end-to-end digital loan process without any physical movement of loan file. It is also one of the fastest growing AHFCs, said ICICI Securities in initiating coverage report on the stock.
We believe higher proportion of LAP portfolio resulting in better spreads than peers, levers for cost of fund reduction, 70 per cent fixed rate loans and steady growth of over 30 per cent over FY24-26E would help India Shelter in sustaining better profitability than peers. We model 35 per cent AUM CAGR over FY24-26E, with a 'buy' call and a target price of Rs 800.
Antique Stock Broking on PTC Industries Rating: Buy | Target Price: Rs 13,010 | Upside Potential: 31% PTC Industries is India's leading manufacturer of titanium and other super alloys-materials and castings, catering to the entire spectrum of aerospace and defence sectors. The company has platform-independent technologies at par with the best in the world. PTC is setting up titanium and super alloy mills on VAR and EBCHR technologies and will start production in FY25, said Antique.
"The company has already signed contracts and MoUs with leading OEMs, which has created a significant order pipeline for it. Given the high growth visibility and significant value addition leading to over 50 per cent EBITDA margin, PTC is well poised to post a profit of Rs 1,000 crore in FY28 from a base of Rs 420 crore in FY24," it said with a 'buy' call and a target price of Rs 13,010.
Axis Securities on Global Health Rating: Buy | Target Price: Rs 1475 | Upside Potential: 31% Global Health (Medanta) boasts a robust brand equity. The company has fortified its position with a strong moat, providing the highest standard of care and specializing in high-complexity work. A diverse revenue mix, notably from complex specialties like cardiac, digestive, oncology, and neuro, contributes significantly to its financial profile, said Axis Securities.
"The institute of liver transplantation, kidney and urology, orthopedics, and internal medicine involve intricate procedures, further propelling the company's topline growth.We initiate coverage on Global Health Medanta with a 'buy' recommendation and target price of Rs 1,475 apiece," it added, implying an upside of 27 per cent from its previous close.
Kotak Institutional Equities on Amara Raja Energy & Mobility Rating: Sell | Target Price: Rs 1,000 | Upside Potential: -17% Amara Raja’s adjusted EBITDA came in at Rs 430 crore, led by strong top-line growth. Standalone revenues increased by 15 per cent YoY, led by strong growth in the aftermarket and export segments, said Kotak Institutional Equities which has assigned a fair value of Rs 1,000 to the stock.
"We believe the lead-acid business performance will remain steady in the medium term. However, there exists a terminal risk to the business, as we expect the industry to shift toward the lithium battery business. It is lagging behind in terms of capacity and technological partnership compared with competitors in the LiB business, it said, reinitiating coverage with a 'sell' call, suggesting a 17 per cent downside.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.