- Oberoi Realty: HDFC Securities maintains its ‘Buy’ rating on this realty stock with a target price of Rs 1,158. This implies an upside of 11.3%. Analysts Parikshit D Kandpal, Manoj Rawat and Nikhil Kanodia expect new project launches to drive future growth for the company. They predict the firm’s pre-sales to grow by 27.5% YoY to Rs 6,500 crore in FY24, on the back of new launches in Gurugram and Thane.
The analysts also add that the company “will generate robust cash flows from ready-to-move-in inventory in the 360W and Mulund projects.” New business development outside the Mumbai Metropolitan Region is expected to drive further rerating.
Kandpal, Rawat and Kanodia believe that the real estate sector in India will witness long-term steady growth due to rising per capita income, higher disposable incomes, and urbanisation. They expect this industry tailwind to benefit the company’s growth, as it is focusing on expanding into newer markets. The analysts anticipate the firm’s revenue to grow at a CAGR of 6.9% over FY23-25.
Samvardhana Motherson International: ICICI Securities maintains a 'Buy' rating on this auto parts and equipment company, with a target price of Rs 98, indicating an upside of 7.9%. Analysts Basudeb Banerjee and Vishakha Maliwal are positive on the firm, considering its recent agreement with the Honda group to acquire an 81% stake in Yachio Industry's 4-wheeler component business. Honda group currently owns a 51% stake in the company, which is publicly listed.
The analysts believe that Yachio’s valuations are highly attractive at 145 million euros, especially when compared to its FY23 EBITDA of 92 million euros. Additionally, the company is a net cash entity. Yachio derives nearly 90% of its revenue from Honda and possesses a sunroof capacity of 2.5 million units. The analysts believe that since there are no restrictions on supplying to select original equipment manufacturers (OEMs), it will be advantageous for Motherson to enter the sunroof business in the Indian and European markets. Moreover, they predict that this deal will facilitate the cross-selling of Motherson's existing products in the Japanese market and expand its presence there.
Dr. Reddy's Laboratories: Sharekhan upgrades its rating on this pharmaceutical company to ‘Buy’ from ‘Hold’ and raises the target price to Rs 5,963. This implies an upside of 15.1% from its current market price. According to analysts at Sharekhan, the firm’s performance in FY23 has been exceptional, driven by new product launches. They also see steady revenue growth coming from the company’s acquisition of 45 prescription products from Mayne Pharma, and 25-30 new product launches in North America.
In the Indian market, the analysts believe that the company’s “entry into the trade generics business will lead to higher volumes and improved operating leverage, driving profitability in the medium to long term.” Overall, they believe the pharmaceutical stock is trading at an attractive valuation and has a strong balance sheet. The analysts expect the company’s net profit to grow at a CAGR of 10.2% over FY23-25.
Praj Industries: Axis Direct maintains a ‘Buy’ call on this construction and engineering company with a target price of Rs 500, indicating an upside of 22.6%. The brokerage reiterates its recommendation following the company’s agreement with Indian Oil Corp.
Praj Industries and Indian Oil Corp have signed a term sheet to enhance biofuel production capacities in India. This memorandum of understanding covers various biofuels such as sustainable aviation fuel, ethanol, compressed biogas, biodiesel and bio-bitumen. Shrikant Madhav Vaidya, Chairman of Indian Oil, believes that this collaboration will help in achieving net-zero operational emissions by 2046 and maintaining leadership in the green energy domain.
Analyst Prathamesh Sawant says, “Praj Industries is the pure equity play on India’s ethanol revolution, and is now looking at a global footprint.” He remains confident in the company’s growth prospects and suggests that it has a strong focus on engineering solutions across segments that cater to the growing industry.
Ashok Leyland: KRChoksey maintains a ‘Buy’ call on this automobile manufacturer in an annual update with a target price of Rs 194. This indicates an upside of 17.3%. In FY23, the company reported a net profit of Rs 1,240.8 crore, as against a loss of Rs 358.6 crore in FY22. Its revenue also grew by 58.7% during the same period.
Analyst Abhishek Agarwal says, “Ashok Leyland has continued to benefit from strong industry tailwinds and the benefit is expected to continue, driven by infrastructure spending, replacement demand and an improving macro environment.” He also believes that the government’s scrappage policy will be extended, providing support to the industry over the next few years. The analyst expects the company to gain market share on the back of product launches, network expansion, and closing the network gap in North and East India.
Agarwal remains optimistic about the company, citing improving EBITDA due to softening input cost, better rationalization, and operating leverage. He expects revenue and profit CAGR of 14.9% and 45.1% respectively for FY24-FY25.
Note: These recommendations are from various analysts and are not recommendations by Trendlyne.
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