R Systems, Sansera, Affle, Indigo, BLS among 7 stocks that saw brokerage initiations with up to 40% upside

Select stocks including R Systems International, BLS International Services, Sansera Engineering, Affle (India), Indigo Paints, The Anup Engineering and Sonata Software have seen fresh interest from the various brokerage firms, who have recently initiated or re-initiated their coverage on these companies.
 

The host of domestic brokerages including Equirus Wealth, Nuvama Institutional Equities, IDBI Capital, Citi, Keynote Capital and Dalal & Broacha. All the other stocks have 'buy' ratings ( or positive ratings) on them with an upside potential of up to 40 per cent each. Here's what brokerage said on these stocks:
 

Equirus Wealth on R Systems International
Rating: Add | Target Price: Rs 570 | Uspide: 18%
R Systems International (RSI) enjoys a niche position in the outsourced product engineering (OPD) and digital transformation services market. Changes have started bearing fruit with deal wins above $1-3 million growing consistently with robust pipeline generation through proactive proposals, said Equirus Securities.
 

"Post acquisition of majority equity stake in RSI by the Blackstone Group, RSI underwent admirable metamorphosis in terms of augmenting leadership talent and partnering with major technology vendors, changing its GTM model to build a robust structure for client mining and hunting, and sharpening focus on larger deals," it added with an add rating and a target price of Rs 570.
 

Nuvama Institutional Equities on BLS International Services
Rating: Buy | Target Price: Rs 518 | Uspide: 40%
BLS International Services provides tech-enabled visa, consular, and citizen services to states and governments. In FY24, the company generated 81 per cent of its revenue from its global visa and consular service business and approximately 19 per cent from digital services, including e-governance and banking/business correspondent services, said Nuvama Institutional Equities.
 

"BLS is among the top three visa application outsourcing companies globally, offering services in 66 countries to 46 government clients, holding a 12 per cent market share in 2023. It began by serving the Portugal embassy and has since expanded widely. With the renewal of large contracts and increased travel, the company is set to grow its market share," it said with a 'buy' rating and a target price of Rs 518.
 

IDBI Capital on Sansera Engineering
Rating: Buy | Target Price: Rs 1,625 | Uspide: 18%
Sansera Engineering is a manufacturer of precision components, and is set for impressive growth. It projects a 37 per cent CAGR in non-ICE sales from FY24 to FY27E, far outpacing AutoICE sales growth. Expansion into high-margin export markets will further boost profitability and EPS, said IDBI Capital.
 

"With a robust order book of Rs 15,900 crore dominated by non-ICE and export, Sansera has strong revenue visibility. We expect revenue and PAT CAGR of 17 per cent and 35 per cent respectively over FY24-27E, positioning Sansera to outperform industry growth. We initiate coverage on Sansera Engineering  with a 'buy' rating and a target price of Rs 1,625 per share," it added.
 

Citi on Affle India
Rating: Buy | Target Price: Rs 1,600 | Uspide: 14%
"We initiate coverage on Affle with a Buy rating and a target price of Rs 1,600 per share. Affle is well positioned to benefit from recovery in mobile-ad budgets for user acquisitions across digital-first and omnichannel businesses in India/EM and its RoE focused M&A strategy should see business turnaround in large DM markets like the US," said Citi.
 

It has key competitive advantages including verticalization, conversions-based business model, data advantage in India/EM and strategic partnerships on the supply side with OEMs to access premium touchpoints It expect 20 per cent top-line CAGR over FY24-27E and c.400bps EBIT margin expansion over the period, added Citi.
 

Keynote Capital on Indigo Paints
Rating: Buy | Target Price: Rs 1,594 | Uspide: 8%
Indigo Paints ranks as India's fifth-largest decorative paint maker by revenue in FY24. It specializes in a diverse range of paints and allied products, including emulsions, enamels, wood coatings, distempers, primers, putties, and cement paints. It operates five manufacturing units with a total capacity of 160,000 KLPA for liquid paints and 138,000 MTPA for putty and cement paint, said Keynote.
 

"The company's extensive distribution network comprises 53 depots, serving 18,105 active dealers, and is supported by 9,842 tinting machines nationwide as of FY24. It acquired a 51 per cent stake in Apple Chemie to diversify into the waterproofing and construction chemicals segment, targeting the B2B market," Keynote added with a 'buy' rating and a target price of Rs 1,594.
 

Equirus Wealth on The Anup Engineering
Rating: Long | Target Price: Rs 2,092 | Uspide: 17%
Founded in 1962, The Anup Engineering, formerly Anveshan Heavy Engineering, demerged in 2019 from Arvind. Initially manufacturing dish heads and pipe caps for Ahmedabad's textile and chemical industries, it expanded into centrifuges, pressure vessels, heat exchangers, and columns for oil and gas refineries, petrochemical, fertilizer, chemical industries, and energy sectors, said Equirus.
 

"It operates advanced facilities in Kheda and Odhav, Gujarat. It supplies equipment globally across over 30 countries, with significant exports to the US & Middle East. It is set for growth with its new Kheda plant, acquisition of Mabel, and focus on high-metallurgy products for enhanced revenue; expanding into export markets to stabilize against domestic cyclicality; leveraging industry capex cycles and diversifying into new sectors to mitigate risks," it said with a 'buy' rating and a target price of Rs 1,797.
 

Dalal & Broacha on Sonata Software
Rating: Buy | Target Price: Rs 919 | Uspide: 32%
Sonata's focus on platform-related services, particularly those based on Microsoft Dynamics, demonstrates a strategic alignment with industry needs. With a robust relationship spanning two decades, Sonata's status as one of Microsoft's top implementation partners globally underscores its expertise and reliability, said IC report by Dalal & Broacha.
 

"Recent successes include winning a deal with a software product company in California, with Microsoft fabric playing a pivotal role in the value proposition. We initiate coverage on Sonata Software with a BUY rating valuing the company on 28 times FY27, arriving at a target price of Rs 919," it added.

 

 

 

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