Since Q4FY21 results, analysts have been taking a second look at their calls on stocks and picking new favorites. Here are the five latest buy calls from analysts.
Power Grid Corporation: HDFC Securities' Anuj Upadhyay picks Power Grid Corporation for a BUY call, revising the brokerage's target upward to Rs. 271. "PGCIL has recently participated and won projects with a strike rate of above 50%, which highlights the strong competitive edge it enjoys over its peers," he writes, "The Board has also announced one bonus share for every three shares held. Further, with robust operating cash flow of ~INR310bn p.a, lower capex guidance of below INR100bn for FY22E, and comfortable net D/E of below 2.0x, PGCIL is well poised to benefit from the upcoming investment opportunity in the transmission space."
Zensar Technologies: The analysts at Motilal Oswal and ICICI Securities both issue BUY calls on this tech company. Motilal Oswal's Mukul Garg and team write, "Zensar’s current valuation at 15x FY23E EPS is the lowest in our midcap coverage and is at a 44% discount to the median valuations of peers." Their forecast? "We expect revenue growth to rebound as the new CEO Ajay Bhutoria's refreshed strategy, and reinvestment of margin gains in sales starts to pay off." The upside according to analysts is in the range of 16-18%, with MOswal's target at Rs 350 and ICICISec's at Rs 345.
Time Technoplast: There is a similar level of upside - around 16% - in Time Technoplast, according to ICICI Securities' Sanjay Manyal and Hitesh Taunk, in their BUY call. "The management has guided for improvement in RoCE to 20% by FY25E (~9% in FY21) led by various debt reduction initiatives such as improvement in cash conversion cycle and sale of none core assets," they write. "While the guidance seems to be slightly aggressive, we believe new opportunities on the CNG cascade front, improvement in EBITDA margin and initiatives to lighten the balance sheet are fundamental rationale to remain positive on the stock."
Lumax Industries: This auto ancillary company got a BUY from Edelweiss, with an upside of 17%+ from its current price. Analyst Vishal Srivatsav writes, "Expectations of an improved demand scenario from H2FY21 is encouraging for the company. With growth momentum improving, we believe LUMAX’s product mix will also catch up gradually. This should help the company to outgrow its volumes." Noting the broader environment, he adds, "Although shortage of semiconductors is a growing concern for the automobile industry and may impact production to some extent in FY22, underlying demand scenario remains healthy."
Navin Fluorine: This specialty chemicals company is getting noticed for the first time from analysts at Axis Direct, who initiated coverage on NF with a BUY call with an upside of 17%. Analysts Suvarna Joshi and Darshita Shah write that Navin Fluorine "is now moving up the value chain, and entering high margin businesses such as Specialty Chemicals, Contract Research and Manufacturing (CRAMS), and multi year long-term High Performance Products (HPP) contracts with global players." They note that the company has "well-nurtured" long-term relationships with customers, and the global environment is favorable: "Industry tailwinds like increased usage of fluorine based molecules in pharma and agrochemicals business is expected to drive higher margins."