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EClerx: This analytics and BPO services company - which has been in our top screeners for a while now - is a buy from ICICI Securities with an upside of 16%+ on a target price of Rs. 2650. "Traction in customer care, RPA, analytics & content development, cross sell and up sell to Personiv clients to drive growth," analyst Devang Bhatt writes, "Lower roll offs from one off client specific event, improving deal wins and revival in growth are expected to drive revenues."
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Oil India: HDFC Securities is bullish on this oil business, giving it a target price of 200 and an upside of 21%+. "Our reco is premised on (1) increase in crude price realisation and (2) improvement in domestic gas price realisation (at USD 2.5/mmbtu)," analyst Harshad Katkar and team write. "We expect oil price realisation to increase to ~USD 59/bbl in FY22E and USD 61/bbl in FY23E vs. USD 44/bbl in FY21, given the expected global economic rebound, post COVID. Q1FY22 revenue was 4% below our estimates while EBITDA was 3% above, owing to lower-than-expected crude realisation offset by lower-than-expected operating expenses."
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PNC Infratech: IDBI Capital is a buy on this infrastructure company, with analysts Vishal Periwal and Shouvik Chakraborty assigning it an upside of 27.9% on a target price of Rs. 350. "Q1FY22 PAT was in-line with our consensus estimate," they note, "Q1FY22 execution (revenue) was up 38% YoY with improved EBITDA margin of 14.0% vs 13.2% YoY. On toll collection front, Q1FY22 collection increased by 15% YoY and to grow further by Q3FY22. Q1FY21." The outlook looks bullish, they write, "Order book at Rs121bn provides revenue visibility (equals 2x TTM Revenue) and going ahead PNCL is focusing more on road construction project."
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Jindal Steel and Power: This steel company's prospects have improved, according to Prabhudas Lilladhar. "JSP's current net debt/EBITDA fell to comfortable level of 1.3x on normalised earnings assumed in FY23e with EBITDA margins at Rs12,000/t," Prabhudas Lilladhar analysts Kamlesh Bagmar and Amit Khimesra write, giving the company an upside of 18%+ on a target price of Rs. 500. "JSP underperformed its peers by an average of 40% over last four months due to concerns on JPL deal and pressure on margins due to high iron ore prices and softness in long product’s prices." One factor that has shifted recently, they note, is iron ore prices. "Recent weakness in iron ore prices allays the concerns on iron ore cost to a large extent while long product prices would improve as activity picks up post monsoon."
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Endurance Technologies: This company is "well poised for growth, despite reporting mixed quarterly results," according to Axis Direct, which gives it an upside of 15%+ on a target price of Rs. 1886. "The share of EV/Hybrid technology is expected to increase in the near future as the demand in Europe shifts towards less polluting vehicles to reduce carbon footprint," analyst Senha Prashant writes. "In this backdrop, we expect the company to post Revenues/EBIDTA/PAT CAGR of 11%/15%/16% respectively over FY20-23E."
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