Swiggy, Vishal Mega Mart among 4 stocks saw brokerage initiations with up to 45% upside

Select stocks including Swiggy, Bansal Wire Industries Ltd, Vishal Mega Mart and Aster DM Healthcare Ltd have seen fresh interest from the various brokerage firms including IIFL Securities, HDFC Securities, BNP Paribas and Anand Rathi Shares & Stock Brokers, who have recently initiated their coverage on these companies. All stocks have positive ratings on them with an upside potential of 45 per cent. Here's what brokerage said on these stocks:

Anand Rathi Shares & Stock Brokers of Bansal Wire Industries
Rating: Buy | Target Price: Rs 550 | Stop Loss: Rs 45%
Bansal Wire is the second largest manufacturer of steel wire in India and the largest stainless steel wire manufacturer. With five plants in north India it expects to raise consolidated capacity 2.5 times to 0.679 million tonnes, surpassing Tata Steel’s 7-8 per cent market share in steel wiring, said Anand Rathi in its IC report on the stock with a 'buy 'rating.

"It is venturing into high-growth, high-margin steel cord, low relaxation prestressed concrete and bead wires This would improve Ebitda margins. We expect a 24 per cent sales volume CAGR, 25 per cent revenue CAGR and 26 per cent EBITDA CAGR over FY25-27 on capacity expansions, high-margin VAPs, RM backward integration, diverse customers and ‘cost plus’ model" it said with a target price of Rs 550.

BNP Paribas on Swiggy
Rating: Buy | Target Price: Rs 455 | Stop Loss: Rs 15%
We initiate coverage on Swiggy Ltd at outperform and prefer it to Eternal. Swiggy has been a pioneer in food delivery (FD) and quick commerce (QC) and has built its business organically. Having created categories, it has lost some ground to Eternal which has executed better and made the right acquisitions, said BNP Paribas.

"We value Swiggy using SoTP and value the FD business at 35 time FY27E EV/EBITDA. THe QC business using DCF that translates into 1 times FY27E EV/NOV. The FD business is Ebitda positive with minimal capex. QC cash burn to reduce from here and further equity raise may not be necessary. QC turning contribution positive in the next 3-4 quarters should be a positive catalyst," it added with a target price of Rs 455.

IIFL Securities on Vishal Mega Mart
Rating: Buy | Target Price: Rs 150 | Stop Loss: Rs 15%
Vishal Mega Mart Ltd (VMM) is a fashion dominant general retailer providing 'value for money' to aspirational Indians. With 73 per cent revenue from private labels, the company is able to provide value while operating at healthy margins, said IIFL Securities in its IC report.

"Our detailed store mapping exercise derives a 1,100 new store opportunity, which will take a decade to execute, providing a long growth runway. A 22 per cent FY25- 28 EPS CAGR and 43 Shilpa Suryawanshi FY25 ROIC available at 73 times/58 times FY26/27 PE is good relative value," it initiate with 'buy' and a target price of Rs 150.

HDFC Securities on Aster DM Healthcare
Rating: Add | Target Price: Rs 620 | Upside Potential: 11%
Aster DM is among the top five healthcare companies in India, operating 19 hospitals and a network of pharmacies and diagnostic centres (262 labs/ PECs^, 203 pharmacies) across the southern India region. It has recently unlocked value by segregating its legacy GCC business in April 2024, generating $908 million, which has solidified its cash position, said HDFC Securities.

"We believe Aster will have further scope for multiple expansion, led by strong visibility of Ebitda growth, Ebitda per bed, and merger with QCIL, creating a hospital network amongst the top three chains in India. We initiate coverage with an 'add' rating and a target price of Rs 620, based on 26 times Q1FY28E EV/Ebitda. We have not factored Quality Care into our estimates," it added.