1. Yatharth Hospital & Trauma Care Services:
Edelweiss initiates a ‘Buy’ rating on Yatharth Hospital & Trauma Care Services with a target price of Rs 740, suggesting a 30.4% upside. Analysts Thakur Ranvir Singh and Pawan Bhatia highlight that this healthcare facilities provider aims to increase its bed capacity from 1,605 in Q1FY25 to around 3,000 beds by FY28 through organic and inorganic growth.
Yatharth Hospital recently acquired a 200-bed hospital in Faridabad and announced expansions in Noida, boosting total capacity to 1,300 beds by FY27. The company plans to acquire one hospital annually and improve occupancy rates, which rose to 61% in Q1FY25. Yatharth's focus on specialty care like oncology and cardiology is expected to increase average revenue per occupied bed (ARPOB), while its healthy balance sheet supports expansion plans.
Singh and Bhatia project a CAGR of 31% in revenue, 30% in EBITDA, and 31% in net profit over FY 25-27. They highlight that the stock trades at 14 times its FY26 EV/EBITDA, about 39% lower than its peers like Max Healthcare, Fortis, and Global Health.
2. Senco Gold:
Emkay reiterates its ‘Buy’ rating on this Bengal-based jewellery company with a target price of Rs 1,600, indicating a potential upside of 10.1%. Analysts Devanshu Bansal and Vishal Panjwani say, “We expect a strong pick-up in jewellery retail as recent cooling in gold prices rushed consumers to stores.” They highlight that the firm’s price-to-earnings (PE) ratio is currently trading at a 45-55% discount to its peers Titan and Kalyan, and ~25% lower than the recent IPO, PN Gadgil.
Senco plans to expand its footprint in non-eastern regions, focusing on Delhi-NCR and Uttar Pradesh. Bansal and Panjwani anticipate the initial expansion coming from company-owned stores, with plans to transition towards asset-light franchisee stores once the brand is established. They estimate a lower investment of Rs 2 crore in inventory for franchisee-owned, franchisee operated (FOFO) stores, compared to Rs 25 crore for company-owned, company-operated (COCO) stores.
Senco's revenue per store is lower due to reduced gold consumption in eastern India (200g/wedding compared to 350g in the south). However, it benefits from higher margins on handmade jewellery and lower inventory needs, maintaining a competitive return on capital compared to peers.
3. Pitti Engineering:
Axis Direct maintains its ‘Buy’ rating on this electrical equipment manufacturer with a target price of Rs 1,572, indicating a potential upside of 22.3%. Analysts Sani Vishe and Shivani More note that the company is expanding its production capacities from 56,000 tonnes per annum (TPA) to 90,000 TPA, with plans to reach 100,000 TPA by Jan '25. The company is expanding its Aurangabad facility with new capacity, while closing its lamination operations in Hyderabad. In Hyderabad, it will now focus on machining, while Aurangabad will handle lamination, machining, assemblies, and shaft manufacturing.
Analyst highlights that the company is upgrading to 4 & 5 Axis computer numerical control machines and importing advanced machinery from Germany and Taiwan. In terms of the value chain, lamination and copper winding each represent 25% of motor manufacturing. Additionally, to reduce logistics costs, it is restructuring operations and building a new manufacturing unit in Hyderabad alongside a large plant in Aurangabad, supporting a multi-year deal with Wabtec.
Analysts Vishe and More expect the company's revenue, net profit, and EBITDA to grow at a CAGR of 36.6%, 42.2%, and 38.6% respectively, over FY 25-26.
4. HEG:
ICICI Direct continues to recommend a ‘Buy’ on this industrial goods company, setting a target price of Rs 2,520, which suggests a possible upside of 3.5%. Analysts Shashank Kanodia and Manisha Kesar note that the company is well-positioned for growth, driven by the global steel industry's transition to Electric Arc Furnace (EAF) technology, which reduces carbon emissions by 75% and cuts production costs. EAF’s share in crude steel production (excluding China) is projected to grow from 50% to 55% in the next 3-4 years.
The analysts note that the company expects demand recovery by the second half of FY25. The company is also entering the graphite anode business by setting up a 20,000 ton capacity at an investment of Rs 1800 crore, driven by the increasing demand for Li-ion batteries, with production starting in FY27.
Kanodia and Kesar are optimistic on HEG, driven by the global shift towards the EAF route and expansion-led volume growth. They project a revenue CAGR of 11.8% and an EBITDA CAGR of 35% for FY 25-26.
5. Transport Corporation of India:
Sharekhan maintains a ‘Buy’ rating on this logistics solutions provider with a target price of Rs 1,400. This indicates an upside of 26.2%. Transport Corporation of India (TCIL) reported a 12.9% YoY growth in daily average e-way bills and a 6.8% YoY increase in FASTag volumes for August 2024. The company’s management anticipates revenue and net profit growth of 10-15% YoY for FY25, aligning with analysts' projections of 10% and 12.5% respectively.
The company has signed a contract to purchase two cellular container vessels, each with a 7,300 MT capacity, for Rs 324 crore. The delivery is expected in late 2026 or early 2027, with each vessel projected to generate Rs 80 crore in FY28. The analyst expects TCIL to benefit from an improving domestic trade environment from the end of July, thanks to the end of the monsoon and early inventory stocking for the festive season.
Note: These recommendations are from various analysts and are not recommendations by Trendlyne.
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