Select stocks including Dr Agarwals Health Care, PCBL, Waaree Energies Ltd, Unimech Aerospace & Manufacturing, Suzlon Energy Ltd, Union Bank of India, Laxmi Dental and Avenue Supermarts Ltd have seen fresh interest from the various brokerage firms, who have recently initiated their coverage on these companies.
The host of brokerages including Motilal Oswal Financial Services, Prabhudas Lilladher, Nuvama Institutional Equities and Anand Rathi Share and Stock Brokers have launched their maiden reports on these stocks. Except Avenue Supermarts, which has a 'hold' rating from Anand Rathi, all other three stocks have 'buy' ratings on them with an upside potential of 35 per cent. Here's what brokerage said on these stocks:
Motilal Oswal Financial Services on Dr Agarwals Health Care Rating: Buy | Target Price: Rs 510 | Upside Potential: 18% With three generations of the promoter family involved in comprehensive eye care services, Dr Agarwals Health Care (DAHL) has built one of the largest eye care franchises in India. DAHL offers a comprehensive range of services, including surgeries, consultation, and products such as opticals and pharmaceuticals, said Motilal Oswal.
"DAHL is strengthening its reach by deepening market penetration and expanding through a hub-and-spoke model. With a focus on established locations, it has the potential to add 40-50 centers annually. We value DAHL on an SoTP basis to arrive at our TP of Rs 510. Initiate coverage with a 'buy' rating," it added.
Prabhudas Lilladher on PCBL Rating: Buy | Target Price: Rs 543 | Upside Potential: 30% PCBL has emerged as India’s largest and world’s 7th largest carbon black manufacturer. With plans to expand to 1mmtpa+ by FY28/FY29 and focus on innovation, it is set to strengthen both the old age economy of CB as well as new age applications like nano silicon, said Prabhudas Lilladher. It expects EBITDA/mt to increase FY24 to Rs23,657 in FY27E led by the rising contribution of specialty grade.
EBITDA is likely to clock 22 per cent CAGR during the period, aided by rising contribution from specialty and overall volumes. A significant rerating of the stock is likely once the Aquapharm business and JV with Kinaltek gather steam. The stock is trading at 19 times FY27. With EPS CAGR of 20 per cent in FY24-27E, we initiate coverage with a 'buy' and a target price of Rs 543," it added.
Nuvama Institutional Equities on Waaree Energies Rating: Buy | Target Price: Rs 2,805 | Upside Potential: 15% Waaree is not just solar; it is strategically pivoting for exponential growth across the nascent, but multi-decadal renewable energy/green hydrogen opportunity. The company’s ballooning capacity and burnishing DCR-linked realisation underpin FY24–27E revenue/Ebitda CAGR of 30 per cent/54 per cent. The cell plant start-up would fastcharge Ebitda by Rs 2,000 crore in FY26E, said Nuvama.
"Margins would moderate over the medium term, but comprehensive integration—G H2, electrolysers, inverters, battery, BESS, RE—shall help sustain growth and de-risk. Meanwhile, the early-stage high-growth industry life cycle calls for even higher valuation. Initiating with a 'buy' with a target price of Rs 2,805," it added with a caveat emptor: imponderable risks.
Anand Rathi Share and Stock Brokers on Unimech Aerospace & Manufacturing Rating: Buy | Target Price: Rs 1,315 | Upside Potential: 35% Driven by its focus on high-mix, low-volume production, Unimech specializes in complex, high-precision aero tooling, electromechanical sub-assemblies and precision components. Led by advanced manufacturing and strong OEM/licensee relationships, it plans to penetrate deeper into aerospace and nuclear energy, while diversifying into other high-mix, low-volume sectors organically and inorganically, said Anand Rathi.
"The company is strategically positioned to capture structural tailwinds in aerospace, defence and energy sectors. The pre-IPO capital raise offers multiple growth opportunities, while ongoing capacity expansions provide the flexibility to scale up. Excluding the M&A impact. We initiate coverage on the stock, with a 'buy' rating and a target price of Rs 1,315," it added.
Motilal Oswal Financial Services on Suzlon Energy Rating: Buy | Target Price: Rs 70 | Upside Potential: 22% We initiate coverage on Suzlon Energy with a 'buy' rating and a target price of Rs 70 per share. Suzlon is a global leader in wind energy with an installed capacity of ~20.9GW across 17 countries. Suzlon's operations span wind turbine generator (WTG) sales, project execution, foundry and forging components and O&M services, said Motilal Oswal.
"Suzlon's projects India’s new wind energy installations to reach 4GW in FY25, 6GW in FY26, and 7-8 GW annually from FY27 onward and we estimate Suzlon's order book execution to be 3.2GW in FY27. We estimate a CAGR of 51 per cent/52 per cent/63 per cent in revenue/EBITDA/adjusted PAT over FY 24-27 with consol. EBITDA margins at 14-16 per cent in FY25/FY26/FY27," it said.
Prabhudas Lilladher on Union Bank of India Rating: Buy | Target Price: Rs 140 | Upside Potential: 17% "We initiate coverage on Union Bank of India with ‘buy’ given the consistent improvement in earnings quality as reflected by steady stress reduction leading to material decline in provisions; lower NIM fall due to profitability focus; improving fee to asset ratio; and enhancing capital adequacy," said Prabhudas Lilladher.
While GNPA has materially reduced over FY22-9MFY25 to 3.9 per cent, it could further fall. With all wage-related provisions accounted for, opex should not see any negative surprises and may grow in tandem with loans, PL said. "We expect core RoA/RoE of 0.9 per cent/12 per cent to sustain over the medium term. Valuation is attractive," it added with a target price of Rs 140.
Nuvama Institutional Equities on Laxmi Dental Rating: Buy | Target Price: Rs 570 | Upside Potential: 38% Laxmi Dental is India’s only fully-integrated dental products company offering customised crowns, bridges, aligner solutions and paediatric products. It is the second-largest domestic lab with a 22,000-plus dental network and is the largest export lab in India. Indian remains an underpenetrated and fragmented dental care market with organised market share in a mere single digit, said Nuvama.
"We believe Laxmi is poised to capture a meaningful share of the pie given its wide portfolio and scale aided by tailwinds such as preference for aesthetics, digitalisation and rising income. We forecast a revenue/adjusted PAT CAGR of 26 per cent/59 per cent with RoCE rising from 19 per cent to 29 per cent over FY25E–28E, it was added and initiated with 'buy' and a target price of Rs 570.
Anand Rathi Share and Stock Brokers on Avenue Supermarts Rating: Hold | Target Price: Rs 4,254 | Upside Potential: 6% Avenue Supermart is poised to benefit from market expansion and a shift towards organized grocery retail and FMCG retail market projected to grow at an 18 per cent CAGR over 2023-28, outpacing the overall market. DMart’s ability to drive volumes through its EDLC/EDLP model, along with continued store expansions while focusing on underpenetrated markets strengthens its growth trajectory, said Anand Rathi.
"Its strategic approach to e-commerce and strong cost controls will enhance profitability. Its debt-free balance sheet and healthy return ratios would persist despite expansion plans. With its focused expansion strategy, steady sales growth, EDLC/EDLP-driven cost-efficiency model and healthy cashflows, we expect premium valuations to sustain," it said, initiating coverage with a 'hold' rating and a target price of Rs 4,254.