Alkem Laboratories: HDFC Securities is a BUY on this pharma company with an upside of 11.9% on a target price of Rs 3960. Analysts Bansi Desai and Karan Vora write, "Alkem's Q1 revenue/EBITDA beat estimates by 26%/37%, led by good growth in India and international markets. India business delivered a stellar growth of 65% YoY - a 25% two-year CAGR - led by strong recovery in acute and outperformance in chronic and trade generic businesses." They note the steadiness of the main business. "Barring the COVID-led boost to vitamins, the performance was largely driven by good growth in the core portfolio, which is encouraging."

Indo Count Industries:  Edelweiss' Kapil Jagasia and Praveen Sahay are bullish on this textile company, with an upside of 44% on a target price of Rs. 394, noting, "Indo Count Industries’ growth momentum continued in Q1FY22 despite (a) Q1 being generally a weak quarter, and (b) the additional impact of Covid led disruptions." They add that the outlook is strong, "Due to large forex gains of ~INR30cr, PAT at INR117cr beat our estimates of INR92cr. We expect ICIL to witness volume-led growth and steady improvement in margins over FY22-23E."

Escorts: Axis Securities is a BUY on this auto company, with an eye on an upcoming surge in tractor sales. They assign it a 12% upside on a target price of Rs. 1350. "Tractor volumes grew by ~6% YoY during May-Jul’ 21.The demand sentiment is expected to remain positive in the second half of the year on the back of strong macroeconomic factors such as good crop production along with hold-up of most crop prices, uniform availability of water, and availability of retail financing along with recovery in commercial-use demand," analyst Darshan Gangar writes. In addition he notes, input price increases have become less of a factor. "The overall raw material inflation was in the range of  8-10% in the last year. With the price increase in Jul’21 (the third price hike in the last nine months), it has completely passed on all commodity cost inflation witnessed till June 21."

Tata Communications: ICICI Securities is a BUY on this telecom infra company, with a target price of Rs. 1725 and an upside of 15.8%, saying that despite a muted performance in Q1 due to Covid, outlook is strong. "Growth to be driven by platforms like a) cloud, edge, security, b) next generation connectivity, c) NetFoundry d) MOVE, IoT, wherein each have robust market size growth potential of 15-25% CAGR in next four to five years," analyst Bhupendra Tiwary writes, "We expect ~8% revenue CAGR in FY21-23E in the overall data segment, driven by likely acceleration in growth from H2FY22 onwards."

State Bank of India: Motilal Oswal is bullish on this banking behemoth, assigning it a big upside of 37% on a target price of Rs. 600. "Asset quality ratios deteriorated marginally on elevated slippage in Retail/SME. However, the management clarified that slippage worth ~INR48b has already been recovered/upgraded in July’21," the analyst team notes. "We expect slippage to subside going ahead, assuming there is no third COVID wave or no severe impact from it. The bank is well on track to keeping credit costs in check."