Brokerage firms that have lately started covering certain stocks, such as Doms Industries, Indo Count Industries, Fedbank Financial Services, Gulf Oil Lubricants, Hindalco Industries, Juniper Hotels, and Happy Forgings, have shown renewed interest in these companies.
Numerous brokerages, such as Motilal Oswal Finance Services, Equirus Securities, ICICI Securities, Systematix Institutional Equities, IIFL Securities, Share India Securities, Elara Capital, and Motilal Oswal Securities, have released their first reports on these stocks. The vast majority of these companies have 'buy' ratings, suggesting a potential upside of 60%. This is the reason these analysts think well of them:
Hindalco Industries Systematix Institutional Equities Rating: Buy; Target Price: Rs. 693 and Potential Gains: 30%
Operating through four businesses, Hindalco Industries is an integrated manufacturer of copper and aluminum. Novelis, a wholly-owned company located in the US, is the world's largest producer of aluminum flat-rolled products (FRP). Reducing carbon footprint by 30% by FY26 is a measured step towards a greener future, according to Systematix Institutional Equities.
"Hindalco is one of the world's lowest-cost producers of aluminum thanks to its technologically superior manufacturing facilities, backward integration, and raw material security. In addition to accomplishing its long-term growth objectives through strong operational performance and cash flow generation, Hindalco is concentrating on deleveraging its balance sheet," it said with a 'buy' call and target price of Rs 693.
Juniper Hotels by Elara Capital: Buy, target price of Rs. 545, upside of 21%
The largest owner of Hyatt-affiliated properties in India is Juniper properties, which is jointly promoted by the Saraf Group and Hyatt Hotels Corporation. Juniper Hotels is supported by its unique positioning in the premium hotel development segment. Additionally, Hyatt has made a strategic equity investment in it, making it the only hotel firm in India. According to Elara Capital, Juniper is really in a wonderful position in terms of ancestry.
"As a Hyatt affiliate, Juniper is anticipated to trade higher than its competitors. With several prospects for both organic and inorganic growth and a robust promoter lineage, we anticipate topline, Ebitra, and PAT CAGRs of 17%, 20%, and 33% through FY24E–27E, in that order. Based on 22 times the FY26E EV/Ebitda, start with a "buy" position at the FY26E target price of Rs 545," it added.
IIFL Securities on Doms Industries: Buy - 32% upside with target price of Rs 1,875
With a market share of 12%, Doms is the second-biggest player in India's branded stationery and art product market and the fastest-growing stationery and arts materials brand. Robust top-line success has been ensured by superior product quality, world-class manufacturing facilities, a strong brand recall, and a synergistic cooperation with FILA, according to IIFL Securities.
"Scale-up of adjacencies (pens, sketch-pens, back-to-school categories and more) and steady growth in existing core categories will drive sales and EPS CAGR of 25-28 per cent, respectively over FY24-26. We initiate our coverage with a 'buy' rating and target price of Rs 1,875," It continued, indicating a 32% increase from the previous closing.
Gulf Oil Lubricants at ICICI Securities: Target Price: Rs. 1,250 with an Upside of 21%
At a target price of Rs 1,250, we begin coverage of Gulf Oil Lubricants with a 'buy' recommendation. With an estimated 7-8% market share in its target categories of automotive and industrial lubricants, Gulf Oil is the second largest private operator in the petroleum lubricant arena, according to the firm. Over the previous three years, it has steadily cornered market share,
Gulf Oil's strong branding and distribution strategy, together with its diversification efforts into battery and electric vehicle (EV) fluids and chargers, should maintain its industry-leading earnings momentum over FY24–27E. According to the statement, the company's main risks are a decline in demand, execution delays, and competitive pressures. It factors in a 11.4% EPS CAGR over FY24–27E and values it using an average of PER, EV/EBITDA, and PEG.
Utkarsh Small Finance Bank's Kotak Institutional Equities has a buy rating, a fair value of Rs 60, and a 30% upside
According to Kotak Institutional Equities, Utkarsh Small Finance Bank (SFB) is well-positioned to produce a robust loan book CAGR of 28% over FY2024–27E. This is due to a significant growth opportunity, stable senior leadership, an increasing liability franchise, and an improved asset quality environment.
"We anticipate the bank to provide a return on equity (RoE) of 17–19 percent, driven mostly by a very successful microbanking division. We start coverage with a BUY rating and an RGM-based Fair Value of Rs 65 since we think the current prices are appropriate," the statement continued.
Happy Forgings with Motilal Oswal Finance Services: Target Price: Rs. 1,125 with Upside of 22%
A company called Happy Forgings (HFL) is situated in Ludhiana and specializes in a variety of forging and machining services. With more than 40 years of experience in the field, it produces and delivers complex, high-quality parts. According to Motilal Oswal, the company is well-established in the markets it caters to, which include large commercial vehicles, farm equipment, off-highway vehicles, and industrials.
"HFL is well poised to grow in the coming years, led by expansion through increased capacities, product diversification, client acquisition, and emerging opportunities in industrials and exports. We expect 21 per cent, 25 per cent and 30 per cent CAGR over FY24E-26E in standalone revenues, Ebitda and PAT, respectively," the statement said that 'Buy' rating and target of Rs 1,125 was set when it began coverage.
Equirus Securities on Fedbank Financial Services. Buy Rating: Target Price- Rs 160 with 30% Upside
The purpose of Fedbank Financial (Fedfina) was to create loans for Federal Bank. After True North invested and the new management were brought on board, it changed into a retail lending platform in 2018. It is an MSME sector-focused NBFC with a retail focus. Equirus Securities stated that their secured book, which has a target price of Rs 160 and a 'long' rating, makes about 85% of its portfolio.
"During FY18-9MFY24, Fedfina clocked an impressive 42 per cent AUM CAGR to Rs 10,710 crore. Gold, mortgage and business loans formed 31.8 per cent, 51.1 per cent, and 15.5 per cent of AUM as of 9MFY24, respectively. We believe a bank backing offers a sharp competitive edge. With a diversified/secured asset portfolio, it is well placed to benefit from MSME credit tailwinds," it said.
Indo Count Industries' Share India Securities are rated as Buy, with a target price of Rs 500 and a 60% Upside
Bed sheet exports and manufactures worldwide are dominated by Indo Count Industries. The company is concentrating more on the high margin, value-added product $11 billion addressable market. It is a risky investment in the textile sector because to a combination of industry tailwinds and potent structural levers, according to Share India's IC report.
"We believe the company is on path to emerge from a cyclical textile player to a de-risked stable player resulting in re-rating of P/E multiple. We estimate PAT to grow at a CAGR of 31 per cent over Financial Year 23-FY26. On assigning a P/E multiple of 16 times on its FY26 EPS, we arrive at a target price of Rs 500," it said.
