Angel One, Niva Bupa, INOX India among 5 stock saw brokerage initiations; check targets

Select stocks including Angel One, Niva Bupa Health Insurance, India Shelter Finance Corporation, Action Construction Equipment, INOX India and Godrej Properties have seen fresh interest from the various brokerage firms, who have recently initiated their coverage on these companies.

The host of brokerages including JM Financial, Kotak Institutional Equities, Wallfort Financial Services and Phillip Capital have launched their maiden reports on these stocks. Except Niva Bupa Health, which has an 'add' rating from Kotak, all other five stocks have 'buy' ratings on them with an upside potential of 38 per cent. Here's what brokerage said on these stocks:

Kotak Institutional Equities on Angel One
Rating: Buy | Target Price: Rs 2,800 | Upside Potential: 20%
"We initiate coverage on Angel One, with a 'buy' rating and DCF-based fair value of Rs 2,800, valuing the business at 21 times March 2027E. We build 15 per cent EPS decline in FY2026E, reflecting fairly conservative assumptions on client adds and activity levels over the next 12 months," said Kotak Institutional Equities.

Its recovery over the following years, drives 20 per cent EPS CAGR over FY2027-28E. A wide range of P&L outcomes in the near term makes it challenging to build a strong investment thesis. For now, relatively reasonable valuations along with strong execution track-record underpin, it added.

JM Financial on INOX India
Rating: Buy | Target Price: Rs 1,240 | Upside Potential: 26%
INOX India is India’s largest manufacturer of cryogenic equipment, a dominant player, 4 times the size of its nearest competitor. Its key strengths are over 30 years of expertise in engineering and design, quality management, and testing; an impeccable execution track record; and most globally required certifications in place, all of which make it a preferred supplier for its clients, said JM Financial.

"INOX operates in three business areas – Industrial Gas, LNG, and Cryo Scientific Division (CSD), of which industrial gases contributed 63 per cent to FY24 revenue. Given the steady growth opportunities in Industrial Gas storage and transportation, orders in LNG and CSD, and contribution from the recently commenced kegs business, we forecast a FY24-27E EPS CAGR of 16 per cent and average RoEs of 30 per cent," it added with a 'buy' rating and target price of Rs 1,240.

Phillip Capital on India Shelter Finance Corporation
Rating: Add | Target Price: Rs 1,009 | Upside Potential: 26%
India Shelter plans to add 40-45 branches every year, coupled with productivity improvements of branches with ageing, will enable it to post 37 per cent AUM CAGR. India Shelter’s improving ROE profile, with high core yields and low leverage, despite a potential compression in yields, improving ROEs with higher leverage, lower cost of borrowing and improving opex metrics, said Phillip Capital.

"India Shelter is an affordable housing finance company with presence in 15 states. It also maintains asset quality at par with industry. We expect the Total Income/PrePOP /PAT to grow at CAGR of 32 per cent/ 36 per cent/ 36 per cent CAGR growth respectively over FY24-FY27E. We initiate coverage on the company with a target of Rs 1009," it added.

Wallfort Financial Services on Action Construction Equipment
Rating: Buy | Target Price: Rs 2,500 | Upside Potential: 38%
Action Construction holds a market share of over 60 per cent in the mobile crane segment in India. In the tower crane segment, ACE competes with the Canadian company Portal Cranes, which holds a 30-35 per cent market share. its dominant position in the market, it would be able to report 15 per cent YoY revenue growth till FY27E, said Wallfort Financial Services in the IC report.

It is progressing as planned with its announced capex, which is expected to drive annual revenue to Rs 5,000–5,100 crore. This greenfield expansion is dedicated exclusively to tower crane sales, with the new facility enabling the production of 3,000 units annually. We initiate coverage on Action Construction Equipment with 'strong buy' rating with target price of 1,753," it added.

Kotak Institutional Equities on Niva Bupa Health Insurance
Rating: Add | Target Price: Rs 75 | Upside Potential: 13%
Niva Bupa is well-placed to deliver high growth, continuing its market share gain spree through a diversified retail bouquet offering, focus on the mass affluent segment and a fairly balanced distribution mix. Its improving operating leverage will drive RoE expansion to the high teens over the medium term, underpinned by its best-in-class claims ratio, said Kotak Institutional Equities.

"We initiate coverage on Niva Bupa with an 'add' rating and fair value of Rs 85. Niva Bupa’s strong growth trajectory on the long retail health insurance runway, its smooth execution track record, low claims ratios and increasing operating leverage driving profitability improvements are key drivers in commanding premium valuations," it added.

JM Financial on Godrej Properties
Rating: Buy | Target Price: Rs 2,500 | Upside Potential: 21%
Godrej Properties (GPL) has delivered a CAGR of 34 per cent in bookings over the 5-year period FY19-24 driven by a significant share of sales from new launches. GPL was able to ramp up its launches from 12msf in FY19 to 20msf in FY24. Its market share doubled from 2 per cent to 4 per cent (on a pan-India basis) as it was one of the biggest beneficiaries of industry tailwinds, said JM Financial.

"It has already built a pipeline of c.100 msf and with the recent fund-raise of Rs 6,000 crore, the management intends to double down in existing markets with new project additions, which will enable it to deliver consistent growth over the medium term. We expect bookings/collections to grow at a 19 per cent/22 per cent CAGR over FY25-27E to Rs 40,000 crore/Rs 25,300 crore, respectively," it added with a 'buy' and a target price of Rs 2,500.