Select stocks including Jash Engineering, SingatureGlobal (India), Goodluck India, Privi Speciality Chemicals, PG Electroplast, Baazar Style Retail, Aurionpro Solutions and JK Paper have seen fresh interest from the various brokerage firms, who have recently initiated their coverage on these companies.
The host of brokerages including Aditya Birla Money, Nuvama, SBI Securities, PESB Research, Geojit Financial Services, Monarch Networth Capital and BoB Capital Markets have launched their maiden reports on these stocks. Except PG Electroplast, which has an 'accumulate' rating from Geojit, all other three stocks have 'buy' ratings on them with an upside potential of 72 per cent. Here's what brokerage said on these stocks:
Aditya Birla Money on Jash Engineering
Rating: Buy | Target Price: Rs 715 | Upside Potential: 30%
Jash Engineering is making big strides in the water and wastewater treatment space, exporting to over 45 countries and focusing on high-potential English-speaking markets worth Rs 10,000-11,000 crore. Its revenue mix is led by water control gates and valves at 62 per cent, followed by screening equipment at 10 per cent and hydropower & pumping at 19 per cent, said AB Capital.
"With the global water and wastewater market set to grow at 7.5% annually, reaching $617 bn by 2032 with the US alone contributing $314 bn - Jash is well-positioned to capitalize on this opportunity. We expect Jash to achieve a 17 per cent/17 per cent/19 per cent CAGR in revenue, Ebitda, and PAT and initiate coverage with a buy rating and a target price of Rs 715," it added.
BoB Capital Markets on JK Paper
Rating: Buy | Target Price: Rs 450 | Upside Potential: 45%
BoB Capital Markets believe JK Paper could undertake large capex via the organic and inorganic routes due to strong balance sheet positions and large size of operations; its business risk profile has improved due to rising share of fast growing packaging revenue; it could likely generate superior return ratio profiles due to cost leadership in a commoditized product due to a diversified manufacturing base.
It has efficient operations and low dependency on expensive imported pulp; and it has reasonable valuations, which make it an attractive bet, it said. "We have valued the stock at an EV/Ebitda multiple of 6.0 times on FY27E," it added in the IC report with a 'buy' rating and a target price of Rs 450 on the stock.
Monarch Networth Capital on Aurionpro Solutions
Rating: Buy | Target Price: Rs 2,020 | Upside Potential: 22%
"Aurionpro is a prominent IT products company that is rapidly scaling up, with world-class banking solutions, a dominant transit business, and a fast-growing foothold in data centres. With top-tier clients like SBI, HDFC Bank, and ADCB Bank (UAE), Aurionpro is rapidly expanding its global presence, said Monarch Networth Capital, initiating coverage on Aurionpro Solutions with a 'buy' and a target price of Rs 2,020.
"Under the leadership of new, revenue and headcount has more than doubled over the last three years while maintaining OPM at 22 per cent. Game-changing products like Auropay and Aurobees, plus a strategic partnership with Murex, FIS & Finastra, are set to fuel further momentum. Operating in high-growth segments with massive TAMs and an orderbook of Rs 1,300 crore, Aurionpro is set to sustain its strong growth trajectory," Monarch said.
Nuvama Research on Baazar Style Retail
Rating: Buy | Target Price: Rs 450 | Upside Potential: 72%
Baazar Style Retail is one of the fastest growing value retail players in East India. It caters to the neo-middle class in Tier II and III cities through its 214 stores across nine states and more than 175 cities, with a strong footprint in North and East India. These stores are spread over 9,000 sq. ft., contributing to a total retail area of more than 18lk sq. ft, said Nuvama.
"In the last few years, it has posted a strong SSSG on greater throughput driven by sectoral tailwinds which resulted in a higher operating leverage and better return ratios.The stock is a strong candidate for a valuation re-rating on better store economics, aggressive growth plans, and size of the opportunity. We initiate coverage with a ‘buy’ rating and target price of Rs 388," it added.
Geojit Financial Services on PG Electroplast
Rating: Buy | Target Price: Rs 1,084 | Upside Potential: 17%
PG Electroplast's product business contributes 68 per cent of the total revenue. This segment will continue to contribute a hefty part of the top-line going forward and factor a revenue CAGR of 29 per cent over FY25E-FY27E. It is planning to add more capacity in IDU, ODU, and window AC in FY26 to cater to the need for aspirational buyers and changing weather patterns in India, said Geojit.
The plastic and other component business to register 20 per cent CAGR revenue over FY25E-FY27E by investing in technologies for making import substitution products in India. PGEL, with subsidiary PG Technoplast, has entered into a strategic partnership with Spiro Mobility (Africa) to manufacture EVs, lithium-ion batteries, and related components. "We initiate coverage with an 'accumulate' rating and a target price of Rs 1,084," it said.
PESB Research on Privi Speciality Chemicals
Rating: Buy | Target Price: Rs 2,600 | Upside Potential: 60%
Privi Speciality Chemicals is a leading manufacturer of aroma and fragrance chemicals, supplying to global fragrance houses and FMCG giants. With a well-integrated manufacturing setup, backward integration into raw materials, and a diversified product portfolio, the company has established itself as a strong player in the global aroma chemicals market, said PESB Research.
"The company is actively expanding its production capacity to cater to rising demand. Ongoing capex projects, including new plants for key intermediates, are expected to drive revenue growth and enhance profitability. Its Privi’s entry into value-added derivatives and its strategic tie-ups further enhances its growth prospects. We recommend ‘buy’ rating on the stock with a target price of Rs 2,600," it added.
SBI Securities on Goodluck India
Rating: Buy | Target Price: Rs 2,600 | Upside Potential: 32%
Goodluck India brings in a rich experience of more than 37 years of industry presence with a demonstrated track record of innovation and engineering allowing it to cater marquee clients worldwide. Its diversified product portfolio has enabled the company to onboard over 600 customers and spread across 100 countries globally, said SBI Securities with a 'buy' rating on it.
"We expect revenue/Ebitda/net profit to grow at a CAGR of 13.6 per cent/18.1 per cent/25 per cent between FY24-FY26E to Rs 4,550 crore/Rs 394 crore/Rs 207 crore, respectively. It is trading at 14 times/10.5 times P/E multiple based on expected EPS of Rs 47.3/63.1 for FY25E/FY26E respectively. We value the business at 15 times P/E multiple based on its FY26E earnings and arrive at a target price of Rs 947," it said.
Nuvama Institutional Equities on SingatureGlobal (India)
Rating: Buy | Target Price: Rs 2,600 | Upside Potential: 27%
SignatureGlobal has built up a robust pre-sales momentum, notable presence in the supply-constrained Gurugram market and a capital-efficient business model (among lowest capital employed/unit of pre-sales). It is on track to achieve a net cash status aided by robust cash flow and minimal working capital needs, said Nuvama Institutional Equities.
"The ongoing realty upcycle and SGIL’s successful transition to the premium housing segment shall help it clock a pre-sales CAGR of 21 per cent over FY25–27E. Potential entry into Noida/Delhi shall be a re-rating trigger in our view. Initiate at ‘buy’ with a target price of Rs 1,436," it added, with slowdown in the Gurugram market is a key risk.