Oberoi Realty: Due to its focus on land acquisition and financial health Motilal Oswal gives this realty company a ‘Buy’ rating with a target price of Rs 1,200, indicating an upside of 26.8%. The company reported its highest ever quarterly sales of Rs 1,960 crore (up 102% YoY) in Q3FY22 driven by the successful launch of Goregaon project, Elysian and increased sales in its Borivali and JVLR projects. While revenue rose only 0.4% YoY to Rs 830 crore, net profits grew 62.9% YoY to Rs 460 crore as the company commenced profit recognition for its JV project in Worli. Analyst Pritesh Sheth and Sourabh Gilda think there are ample opportunities for business development. In addition, Oberoi Realty’s existing projects would be more than adequate to fund any land acquisition and management expects meaningful progress over the near term. “Without factoring in any further improvement in sales velocity for existing projects, its sales bookings are expected to see a 15% CAGR to Rs 5,000 crore over FY 21–24,” said the analysts. 

Sun Pharmaceutical Industries: ICICI Direct maintains a ‘Buy’ rating on this pharma stock but increases its target price to Rs 1,075, indicating an upside of 20.3%. “Sun Pharma’s Q3FY22 operational performance was in line with I-Direct estimates with sustained momentum and good growth across businesses,” say analysts Siddhant Khandekar and Raunak Thakur. The company posted an 11.6% YoY increase in sales to Rs 9863.1 crore and an 11.1% YoY increase in net profits to Rs 2,058.8 crore. The analysts believe that higher contribution from specialty and the strong domestic franchise is likely to change the product mix towards higher margins by FY23. The company also adopted a strategy of signing contracts for gaining permission from innovators for manufacturing their latest generation patented products for the Indian market. The analysts believe the above strategy would have positive implications for margins. 

UPL: Chola Wealth maintains a ‘Buy’ rating on this chemical company’s stock with a target price of Rs 940 with an upside of 22.5%. “UPL reported a robust performance for Q3FY22 as revenue beat our consensus estimates by 9%/10% on the back of strong volume (+11%) and improved price realization (+13%),” says analyst Nilesh Patil. The company’s revenues surged 24% YoY to Rs 11,300 crore and net profits grew 17.9% YoY to Rs 940 crore, 4% more than Chola Wealth’s estimates. UPL is set to sustain its strong earnings momentum in the near future on the back of robust agricultural demand and a better pricing environment. Analysts at Chola Wealth believe that enhancing market share, increasing the contribution of high margin bio-solutions business, and expanding geographical presence via acquisitions will act as a key growth catalyst.

Crompton Greaves Consumer Electricals: Edelweiss maintains a ‘Buy’ rating on this company and has a target price of Rs 583 with an upside of 41.2%. The company reported soft numbers after delivering a strong performance in the last five quarters, which is a result of its long-term initiatives such as the go-to-market strategy, cost-saving measures, and leveraging of alternate channels. “But the company continued to gain market share in fans and achieved an all-time-high market share during the quarter, which will continue to benefit it in the coming years,” say analysts Praveen Sahay and Ajit Sahu. Revenues grew 4.6% to Rs 1,411 crore and EBITDA grew 0.7% to Rs 202 crore. Edelweiss revises FY22 and FY23 earnings downwards by 3.1% and 1.9%, respectively but still remains positive on the stock.

Asian Paints: Ashika Research gives this paints company a ‘Buy’ rating with a target price of Rs 3,690 and an upside of 14.0%. Analysts at Ashika Research note, “The paint industry is expected to continue to report healthy volume growth led by immense demand for repainting as well from higher construction activities”. The analysts expect it to continue to grow at a CAGR of 13% to 14% between FY20 and FY24. The paints company has a two-year CAGR volume growth of 20.2% in 9MFY22. The company has lined up the next phase of growth from rural and Tier 3 and Tier 4 cities and is expanding its capacity in the next 2-3 years, according to management.  The paints company has also strategized to expand its retail footprint further on home décor and services portfolios to take its share in the total business to 17% to 18% in the next 2-3 years. Hence, the brokerage remains positive on the stock.