Every week, Trendlyne picks five interesting buy calls made by analysts.
1) Steel Strip Wheels: "Exponential growth on the anvil," is what Axis Direct analysts say about this auto ancillary company, giving it an upside of 13%+ on a target price of Rs 2122. "We continue to like the growth story of the company driven by increasing contribution from the PV exports and Al-alloy wheels," analyst Sneha Prashant writes, "Furthermore, the company is positive about the domestic revival of the CV industry which has been down for the past two years. The company envisages the CV industry to contribute about Rs 500-800 Cr to the topline as the cycle turns around."
2) P&G Health: This pharma and OTC company gets a thumbs up from ICICI Direct analysts, with an upside of 18.3% on a target price of Rs. 6555. PGHL, previously known as Merck, has multiple legacy brands in its stable including Seven Seas. "The key differentiator for PGHL is that its core category is Vitamins/Minerals/Supplements," analysts Siddhanth Khandekar and Mitesh Shah write, "which, as a therapeutic category, is likely to be rediscovered due to increased awareness post the current pandemic." Volatility in margins, they note, remains a key risk.
3) Bajaj Finance: A former multibagger is back in the good books for Motilal Oswal, with analysts noting a key event for this NBFC: Bajaj Finserv has got an in-principle approval from SEBI for sponsoring a Mutual Fund (MF). This, analysts Abhijit Tibrewal and team note, is likely to benefit the entire BajFin group, and they give Bajaj Finance an upside of 10.5% on a target price of Rs. 7,700. "Increasing per capita income, the gradual financialization of savings, a growing awareness with targeted marketing campaigns such as ‘Mutual Funds Sahi Hai’, and improving reach with digital platforms, will lead to strong AUM growth ahead."
4) Cadila Healthcare: The approval of Cadila Healthcare's needle-less ZyCov-D Covid19 vaccine has triggered a buy call from Prabhudas Lilladhar, with an upside of 26%+ on a share price of Rs.695. "Thermo-stability (2-8 degree temperature for storage) of the vaccine helps in easing storage and transportation costs," analysts Surajit Pal and Akshaya Shinde write, "Stock filling of the vaccine and commercial supply across India will commence in Oct’21, with an annual manufacturing capacity of 100-120mn doses from the newly built vaccine plant."
5) Transpek Industry: This chemicals company has caught the eye of analysts at BPWealth, with an upside of 32%+ on a target price of Rs. 2714. "A long-term contract with an MNC client helped the company deliver stellar growth in topline and bottom-line in FY19 and FY20, resulting in higher sales concentration from the polymer business," they say. "Management is looking to reduce this dependence over 2-3 years, "by launching 4-5 new products and increasing applications of existing products in non-polymer segments (mainly pharma and agrochemicals)."
See all analyst buy calls here.
