Sterlite, Mrs Bectors, Piramal among 6 stocks that saw brokerage initiations with up to 45% upside target

Select stocks including Piramal Enterprises, Prestige Estates, UGRO Capital, Mrs Bectors Food Specialities, Sterlite Technologies and Jyothi Labs have seen fresh interest from the various domestic brokerage firms, who have recently initiated their coverage on these companies.

The host of brokerages including JM Financial, Axis Securities, Nuvama Institutional Equities, Emkay Global, Kotak 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 102 per cent. Here's why these analysts are positive on them:

Axis Securities on Sterlite Technologies
Rating: Buy | Target Price: Rs 1,500 | Upside: 34%
Axis Securities believe KPIT is well-placed to revive its growth momentum and this recovery. which would aid KPIT in achieving sustainable growth in the long term. "We initiate coverage on KPIT Technologies (KPIT) with a 'buy' rating and target price of Rs 1500 per share," said Axis.

"The growth driven by opportunities in the ER&D space in the automobile vertical; sustainable operating margins on account of better services mix and improving operational efficiencies; robust balance sheet, strong return ratios, and healthy free cash flow generation; efficient execution capabilities; and company’s ramp up in new deal wins along with strong client additions," it said.

Kotak Securities on Mrs Bectors Food Specialities
Rating: Buy | Target Price: Rs 1,150 | Upside: 8%
Mrs. Bectors Food Specialities (Bectors) is among the fastest-growing companies in the biscuits and bakery segment in India. It markets its products in 23 states in India and exports to 69 countries under the brand names of 'Cremica' for biscuits and 'English Oven' for breads. The company is expanding its domestic biscuits and branded breads business into new regions, said Kotak.

There is focus on premiumisation within existing product segments with intent to provide customers with differentiated products, improve realizations & volume and drive margin expansion. Strong relationships with institutional customers augurs well. Improving share in biscuits, increased premiumization, strong pricing power, improving direct distribution network, and management bandwidth would drive growth for Bectors going forward, it said with a 'buy' rating target price of Rs 1,150.

Emkay Global on UGRO Capital
Rating: Buy | Target Price: Rs 425 | Upside: 45%
We initiate coverage on UGRO Capital with a 'buy' recommendation and target price of Rs425 per share. UGRO’s relative obscurity is mainly due to its private equity business model—techenabled, talent-intensive and frontloaded cost structure—designed to support scale while minimizing risk, said Emkay Global. "UGRO stock is set to pole-vault to a core portfolio holding."

"Its conviction about UGRO’s strategy rests on three pillars- MSME-focused lending with large TAM; business model optimized for sectors, with stress on data homogeneity and underwriting tech models for six sigma events like GST/pandemic; Its unique asset underwriting skills that can be symbiotically exploited to co-lend/co-originate with PSBs/others," it added.

Nuvama Institutional Equities on Prestige Estates Projects
Rating: Buy | Target Price: Rs 917 | Upside: 20%
Prestige Estates boasts a robust pre-sales momentum, strong execution credentials and a track record of developing and monetising high-quality annuity assets. Improving geographical diversification should help the company sustain its growth trajectory and clock a pre-sales CAGR of 18 per cent over FY23–26E, said Nuvama Institutional Equities in its IC report.

"While a supportive housing cycle shall supply growth capital to scale up the annuity business, market concerns about debt trajectory would abate only after significant leasing in office projects. Initiate at ‘BUY’ with an SoTP-based target price of Rs 917," it added, citing slowdown in office leasing as a key risk.

JM Financial on Piramal Enterprises
Rating: Buy | Target Price: Rs 1,250 | Upside: 32%
Piramal Enterprise (PEL) is a diversified NBFC with a presence across retail, wholesale lending and fund-based platforms. PEL is transforming itself into a retail-led franchise by changing its portfolio mix and running down its wholesale book, said JM Financial, while initiating coverage with a 'buy' rating and a target price of Rs 1,250.

"Its business model revolves around servicing the underserved customers, focus on risk management, and ability to ensure timely collections. PEL is well-placed to benefit from the benign credit environment and its diversified profile and driven by its transformation towards high yielding assets, PEL should be able to deliver average core RoA of 0.7 per cent over FY24-FY25E," it said.

Axis Securities on Jyothy Labs
Rating: Buy | Target Price: Rs 440 | Upside: 26%
Axis Securities' confidence on Jyothy Labs is underpinned by the company's robust and consistent performance over the last several quarters, driven by a series of strategic initiatives it has undertaken in the recent past, It initiated coverage on Jyothy Labs with a 'buy' recommendation and a target price of Rs 440 per share.

The company has been scaling up value offerings through low unit packs and driving the premiumisation agenda, particularly in detergents and dishwash segments, expanding into the larger body wash segment as opposed to its earlier presence in the niche segment, thereby broadening its product portfolio, the management's strategic efforts to expand its direct distribution reach, targeting an increase from the current 1.1 million outlets, in tandem with enhancing on-ground execution through its strong sales force of 3,000 and streamlining the distribution channel, it added.

 

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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