CAMS, JK Cement, Muthoot among 5 stock saw brokerage initiations; check targets

Select stocks including Entero Healthcare Solutions, Zaggle Prepaid Ocean Services, Computer Age Management Services (CAMS), JK Cement, and Muthoot Finance have seen fresh interest from the various brokerage firms, who have recently initiated their coverage on these companies.

The host of brokerages including IIFL Capital, Bajaj Broking, Geojit Financial Services, B&K Securities and LKP Securities have launched their maiden reports on these stocks. Except CAMS, which has an 'accumulate' rating from Geojit, all other three stocks have 'buy' ratings on them with an upside potential of 30 per cent. Here's what brokerage said on these stocks:

IIFL Capital on Entero Healthcare Solutions
Rating: Buy | Target Price: Rs 1,500 | Upside Potential: 30%
Entero Healthcare is one of the largest and fastest growing pharma distribution platforms in the fragmented Indian market. The 3 large/national healthcare product distributors have a combined market share of 8-10 per cent, which is expected to increase to 20-30 per cent by FY28, led by consolidation in the Rs 3.3 lakh crore TAM which is growing at 10-11 per cent CAGR, said IIFL Capital.

"We expect Entero’s revenue to grow at 24 per cent CAGR over FY25-28, driven by 16.5 per cent organic revenue growth and balance 8-8.5 per cent annual growth contribution from acquisitions. With procurement efficiencies, increasing contribution of higher-margin medical devices and operating leverage, we forecast Entero’s Ebitda/EPS to grow at 45/46 per cent CAGR over FY25-28ii," it added with a 'buy' rating and a target price of Rs 1,500.

B&K Securities on JK Cement
Rating: Buy | Target Price: Rs 5,739 | Upside Potential: 17%
JK Cement, one of the top five cement producers in India, is on a strong growth trajectory with pipeline to double its installed capacity from 25mt currently to 50mt by FY30 at a CAGR of 15 per cent, said B&K Securities in its IC reported which has a 'buy' rating on the stock with a target price of Rs 5,739.

"With a well-balanced regional presence/planned expansion and improving cost curve, Ebitda is expected to witness healthy growth over FY25E-27E whereas OCF is transitioning to higher scale. This would support an accelerated growth capex without straining the balance sheet," it added.

Bajaj Broking on Zaggle Prepaid Ocean Services
Rating: Buy | Target Price: Rs 456 | Upside Potential: 30%
Zaggle is well-positioned in India’s rapidly growing fintech sector, supported by strong banking partnerships, diversified revenue streams, and an aggressive expansion strategy. Zaggle is aggressively expanding through strategic acquisitions and new product verticals, solidifying its position as an evolving fintech powerhouse, said Bajaj Broking.

"It targets 58-63 per cent revenue growth, driven by increased corporate adoption, and aims to achieve a 15-16 per cent EBITDA margin within four years, reflecting its focus on profitability. Zaggle presents a compelling investment opportunity. Based on a FY27 PE multiple of 31 times and an estimated FY27 EPS of Rs 14.72, we initiate a 'buy' tag with a target price of Rs 456," it said.

LKP Securities on Muthoot Finance
Rating: Buy | Target Price: Rs 2849 | Upside Potential: 22%
Muthoot Finance represents a classic 'zero to one' story in the Indian financial landscape—transforming gold-backed lending from an informal, fragmented practice into a structured, scalable and highly profitable business model. It has carved out a niche by institutionalizing the gold loan segment, leveraging its first-mover advantage, deep customer trust and an extensive distribution network, said LKP.

"Its rigorous asset quality management, underpinned by conservative collateral valuation and disciplined risk practices, ensures a high-quality loan book even at high LTV levels. The company has a consistent track record of maintaining healthy profitability. We expect the company to deliver ROA/ROE of 5.4 per cent/21.4 per cent for FY27E, driven by expanding reach," it added with a 'buy' and a target price of Rs 2,849.

Geojit Investments on Computer Age Management Services
Rating: Accumulate | Target Price: Rs 4,425 | Upside Potential: 17%
CAMS is India’s largest registrar and transfer agent of AMCs with an aggregate market share of 68 per cent based on mutual fund AAUM managed by its clients and serviced by it. In Q3FY25, it serviced Rs 46.3 lakh crore AUM. In Q3FY25 equity net inflows touched Rs 97,000 crore, which is a staggering 89 per cent increase on a YoY basis, said Geojit.

"The penetration potential of the industry is high. Being the market leader, CAMS is all set to capitalize on this huge growth potential supported by a healthy balance sheet and return ratios. CAMS is currently trading at 36 times (5 year average at 40 times), we value at 36 times to arrive at a target price of Rs 4,425, recommend 'accumulate' rating," it added.