1. Minda Corp:
Axis Direct maintains a ‘Buy’ rating on this auto parts and equipment manufacturer with a target price of Rs 502, indicating a potential upside of 7.5%. In Q4FY24 the company’s revenue grew 13.7% YoY to Rs 1,224.8 crore. Analyst Neeraj Chadawar highlights that during the quarter, Minda Corp secured orders worth approximately Rs. 2,000 crore, with electric vehicles making up over 30% of these orders. By March 2024, the total new orders amounted to Rs. 10,000 crore across various product lines.
Analysts are positive about the company’s growth due to new order wins and Minda’s focus on EVs. They expect EBITDA margins to improve from approximately 11.1% in FY24 to around 12.7% by FY26, driven by a richer product mix. They estimate a CAGR of 17% in revenue, 26% in EBITDA, and 38% in adjusted PAT over FY 25-26, supported by a strong order book and a confident management.
2. Praj Industries:
Prabhudas Lilladher maintains a ‘Buy’ rating on this industrial machinery company with a target price of Rs 815, indicating a potential upside of 19.1%. The analysts Amit Anwani and Shirom Kapur highlight the company’s goal to achieve three times its revenue by 2030, largely driven by exports. Praj intends to increase its export revenue share to around 50% by 2030 (vs 19% currently).
Anwani and Kapur remain positive on the company in the long run due to its leadership in domestic ethanol (50-55% market share) and the company’s focus on new technologies such as 2G ethanol,sustainable aviation fuel (SAF), bio-manufacturing, and multi-feedstock plants. They aim to expand their services business to approx. 10% of revenue by 2030 (vs 4% currently) by focusing on building distribution channels across global markets.
Anwani and Kapur note that the stock is currently trading at a P/E ratio of 37.4 times and 29.2 times for FY 25-26. They expect the stock to trade at a P/E of 34 times for FY26, factoring substantial long-term growth opportunities amid a stable policy environment.
3. Mankind Pharma:
Motilal Oswal initiates a ‘Buy’ rating on this pharma company with a target price of Rs 2,650, indicating a potential upside of 19.7%. Analysts Tushar Manudhane and Akash Manish Dobhada note that Mankind Pharma plans to boost growth over the next three to five years by expanding its business in chronic therapies with more niche products, and by strengthening its presence in metro and Tier-1 cities.
Analysts believe the company is broadening its reach by investing heavily in brand building, in both the prescription and consumer healthcare markets by acquiring Panacea Biotec to enter the transplant segment and licensing products like Neptaz, Symbicort, and Nobeglar to strengthen its position in cardiology, diabetes, and respiratory therapies.
Manudhane and Dobhada anticipate achieving a 16% earnings growth for FY 25-27, driven by a 12% sales increase and a 270 basis point margin expansion. They also expect the company to grow more brands into the INR 500 million to INR 1 billion range, given its strong brand presence and sustainable earnings growth.
4. CESC:
Sharekhan retains a ‘Buy’ rating on this electric utilities company with a target price of Rs 170, indicating a potential upside of 13.7%. In Q4FY24 the company’s revenue grew by 25.7% YoY, while its net profit fell 7.7% YoY to Rs 400 crore due to higher operating and depreciation expenses.
The analyst notes that CESC plans to aggressively expand its real estate portfolio, aiming to add 3 GW of capacity with a capital expenditure of approximately Rs. 12k-13k crore over the next 4-5 years. The growth offers a good value proposition to investors, according to the brokerage. The company is seeing lower real estate costs, strong growth prospects, and likely improvement in environmental, social, and governance (ESG) ratings. Additionally, its subsidiary CESC Projects has been awarded a contract by the Solar Energy Corporation of India to set up a 10,500 tonnes per annum green hydrogen production facility in India.
The analyst is optimistic about the real estate capex and the turnaround of power distribution businesses. They expect the valuation to be at 1.9 times its projected book value for FY2026, with a promising dividend yield of 3-4%.
5. SJS Enterprises:
Edelweiss reiterates ‘Buy’ rating on this auto parts & equipment smallcap manufacturer with a target price of Rs 980, indicating a potential upside of 25.8%.In Q4FY24 SJS’ revenue grew by 72% YoY to Rs 188.7 crore and its net profit rose 73.6% YoY to Rs 26.7 crore. These gains were driven by a shift towards premium products, increased content per vehicle, and significant cross-selling opportunities from the acquisitions of Exotech Plastics Pvt and Walter Pack India (WPI).
Analyst Piyush Parag notes that the company has recently focused on mergers and acquisitions to diversify its product portfolio and introduce value-added products. The management is also targeting the North American market through acquisitions to expand its client base and strengthen its product offerings, aiming to increase market presence and revenue.
Parag forecasts significant growth for the company, with a projected sales, EBITDA, and PAT CAGR of 20%, 25%, and 34% respectively from FY24 to FY26. He expects an adjusted Return on Equity (RoE) and Return on Capital Employed (RoCE) to reach 20% and 28% by FY26.
Note: These recommendations are from various analysts and are not recommendations by Trendlyne.
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