Select stocks including PDS Ltd, SAMHI Hotels Ltd, Kalpataru Projects International Ltd and CG Power & Industrials Ltd have seen initiation or re-initiation of coverages by brokerages namely Kotak Institutional Equities, Ambit, JM Financial and InCred Equities. These brokerages see up to 58 per cent upside potential on these stocks. Here's why these brokerages say:Ambit on SAMHI Hotels Rating: Buy | Target Price: Rs 270 | Upside: 39% SAMHI blitzscaled last decade to become India’s largest institution- backed hotel asset owner with 4,800 keys at 1HFY24-end. Marquee brand tie-ups and strategic locations drove ADR premium and lower staff-to-room ratio, owing to shared service centers. Track record of acquisition-led turnaround of dislocated assets drives confidence in integration and turnaround of ACIC portfolio, said Ambit. This cut in ESOP cost implies 8 percentage points Ebitda growth, driving 32 per cent Ebitda CAGR over FY24-26E. “We remain positive on the sector given the favorable demand-supply situation. Higher EBITDA flow-through, deleveraging potential and 40-80 per cent discount to peers to ride the upcycle,” it added with a 'buy' tag and a target price of Rs 270 apiece.InCred Equities on Kalpataru Projects International Rating: Add | Target Price: Rs 900 | Upside: 13% Kalpataru Projects is an infrastructure play backed by robust promoter bandwidth which showcases its ability to initiate, expand, develop, grow and monetize assets. Divestment of T&D assets, real estate and refinancing of debt in road projects to release equity capital and lower funding from the parent to its subsidiaries, said InCred Equities. "We initiate coverage with an 'add' rating and SOTP- based target price of Rs 900, valuing the standalone business at 15 times FY26F and all investments/arms at Rs32 per share," it added.JM Financial on PDS Rating: Buy | Target Price: Rs 950 | Upside: 56% PDS derives bulk of its revenue from the UK, European Union and the US while its sourcing is concentrated in Bangladesh, Sri Lanka and China. PDS clocked a revenue CAGR of 12 per cent over the last decade as its business model and service offerings evolved in response to the dynamic changes in global supply chains, said JM Financial. PDS is an established strategy partner to global retailers and at the cusp of significant growth in profitability. We expect it to deliver 20 per cent CAGR revenue growth over FY24-FY27E, driving a 37 per cent CAGR in earnings. The return profile of the company is expected to range between 22-24 per cent, given low working capital and capital expenditure requirements, JM Financial said while suggesting a ‘Buy’ call and a target price of Rs 950.Kotak Institutional Equities on CG Power & Industrial Rating: Sell | Fair Value: Rs 360 | Upside: -23% Kotak Institutional Equities has reinitiated coverage on CG Power with a 'sell' rating and DCF-based fair value of Rs 360, implying 41 times and 43 times March 2026E EPS, adjusting/not adjusting for 5 per cent option value for new investments, including OSAT. "We expect CG Power to lead our capital goods coverage with a 19 per cent EBITDA CAGR over FY2023-28," it said. CG Power’s manufacturing prowess, business exposure, healthy cash generation and ambition make it a strong play on key tailwinds for the capital goods sector- capex cycle, China+1, green manufacturing and new manufacturing, it said. The key upside risk is partnerships that can accelerate the relevance of new businesses, it said.
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