Adani Power, Cello World, Concord among 7 shares where analysts see up to 35% upside

Select stocks including Tejas Networks, Five Star Business Finance, Concord Biotech, Kfin Technologies, Cello World, Protean eGov Technologies and Adani Power have seen fresh interest from the various domestic and global brokerage firms, who have recently initiated their coverage on these companies.

The host of brokerages including Emkay Global, DAM Capital, Choice Broking, Avendus Spark, ICICI Securities, Equirus Securities and Ventura Securities  have launched their maiden reports on these stocks. Majority of these stocks have 'buy' ratings on them with an upside potential of up to 35 per cent. Here's why these analysts are positive on them:

Emkay Global on Tejas Networks
Rating: Buy | Target Price: Rs 1,050 | Upside: 21%
Tejas Networks (Tejas), India’s largest R&D-driven telecom equipment company, designs and manufactures wireline/wireless networking products, said Emkay Global. It expects Tejas to execute orders worth at least Rs 29,200 crore over FY24-28E, and generate revenue andEBITDA above Rs 30,000 crore and Rs 6,000 crore, respectively, led by the BSNL and BharatNet projects.

"We see revenue peaking in FY25 and settling at 5 times FY24 levels. Tejas is expected to benefit chiefly from GoI emphasis on domestic manufacturing and the PLI scheme; large spends on BSNL, BharatNet and the Railways; increasing demand in critical infra/India private sector; and global move to replace Chinese telecom equipment," it initiated coverage with a buy and a target price of Rs 1,050.

DAM Capital on Five Star Business Finance
Rating: Buy | Target Price: Rs 1,000 | Upside: 36%
Five-Star Business Finance (Five Star) is focused on providing secured financial solutions to small business customers and self-employed individuals who are largely cut-off from the formal lending ecosystem. New to credit borrowers account for 25 per cent, and the one’s with credit score have a very limited history through their MFI and gold or 2W loans in the past, said DAM Capital.

"They offer a ticket size range of Rs 1lakh to 10 lakh with ATS of Rs 3.4 lakh to the borrowers. Based on high potential growth, strong return ratios given less potential competition and one of the best longevity of current management, we believe the business has the potential to command a higher multiple. We assign a target price of Rs 1,000 with a 'buy' rating," he said.

Choice Broking on Concord Biotech
Rating: Outperform | Target Price: Rs 1,715 | Upside: 16%
Concord Biotech is a R&D driven biopharma company that manufactures API, offering products across diversified therapeutic segments. It is known for its products and has a presence in more than 70 countries worldwide with efficient distribution infrastructure in markets like the USA, Europe, Japan, Latin America, Africa, Asia, besides significant presence in the Indian market, said Choice.

"We are optimistic on Concord due to fermentation APIs gaining market share with expansion of API portfolio; formulations segment picking-up on the back of new launches; ready capacities and low utilization levels; margin expansion; and completion of significant capex. We value the stock at 36 times FY26E EPS to arrive at a target price of Rs 1,715  with an 'outperform' rating."

Avendus Spark on Kfin Technologies
Rating: Buy | Target Price: Rs 1,500 | Upside: 16%
KFIN Technologies offers a diversified portfolio, providing exposure to both strong cash-generating businesses such as MF RTA/ company issuer services, and potential nonlinear growth stories, including international issuer solutions, fund accounting & AIF. There is potential for nonlinear businesses to positively surprise by acquiring more clients, expansion, and cross-selling more products, said Avendus Spark.

"The cash-rich businesses benefit from macro tailwinds, with strong growth in MF AAUM led by MTM gains, sticky SIP & retail flows, and increased retail participation/IPO activity, leading to a rise in folios for the company issuer business. We expect steady growth in these segments during FY23-26E. We value KFIN at a similar multiple to CAMS to arrive at a target price of Rs 560," it added with a buy rating in its IC report.

ICICI Securities on Cello World
Rating: Buy | Target Price: Rs 920 | Upside: 17%
Cello has developed strong competitive advantages in the commodity-plus category of plastic-moulded products. Cello and Unomax brands, with a portfolio of sub-brands, generate EBITDA margins and RoCE of more than 25 per cent and 30 per cent, respectively. It has developed multiple manufacturing units and established a pan-India multi-channel distribution network, said ICICI Securities.

It has tied up with the global media house Disney to strengthen the brand equity. We model Cello to benefit from industry growth of 10 per cent and formalisation of the sector, as the unorganised market share is still 35 per cent. Cello has been working on a strong template of steady distribution expansion and differentiated product launches, it added with a 'buy' and a target price of Rs 1,050.

Equirus Securities on Protean eGov Technologies
Rating: Long | Target Price: Rs 1,500 | Upside: 16%
Protean eGov Technologies (Protean) is amongst the select set of Indian private entities providing technology solutions for e-governance projects and Digital India initiatives. It leads the market in tax infrastructure, retirement, and identity authentication & management services. It aims to build core capabilities around India stack, open digital ecosystem, and cloud services, said Equirus.

It offers diversified, granular, and annuity-based services, earning less than a sixth of its revenues from the government. We expect new businesses of open network for digital commerce (ONDC), cloud, and international expansion to drive growth ahead. Core EBITDA margins should touch 20.9 per cent by FY26E, it said initiating coverage with 'long' and target price of Rs 1500.

Ventura Securities on Adani Power
Rating: Buy | Target Price: Rs 707 | Upside: 35%
Adani Power is the largest private thermal power producer in India. The company distributes electricity generated from its projects through a strategic blend of long-term & short-term Power Purchase Agreements (PPAs), and merchant transactions. The company currently has an installed capacity of 15.2 GW with an additional 1.6 GW under construction.

"The company’s installed capacity has grown at a 5 per cent CAGR from 12.4 GW in FY21 to 13.6GW at the end of FY23 and it is expected to reach more than 16.8 GW by FY27. We initiate coverage on Adani Power with a price target of Rs 707," said Ventura Securities. Changes in regulatory policies and fluctuations in raw material supply and prices  are risks to its thesis. 

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.

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.

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