Balaji Amines: Edelweiss maintains a ‘Buy’ rating on this chemicals company and increases its target price to Rs 4,150. This indicates an upside of 42.9%. The company posted strong revenue growth of 44.1% YoY to Rs 565 crore and net profit growth of 19% YoY to Rs 90 crore in Q3FY22. The company’s performance is driven by higher realizations and robust performance by the subsidiary Balaji Specialty Chemicals. According to analyst Anshul Verdia, “Bottlenecks in the availability of key raw material ethylene oxide are easing off and may result in volume growth in the upcoming quarters.” Edelweiss remains positive about the chemicals company due to an increase in contribution from higher-margin products following removal of bottlenecks in its plants, commercialisation of dimethyl carbonate, and propylene glycol capacity by Q1FY23, and strong demand for products leading to improvement in utilization and realizations. Verdia also anticipates more capex announcements in the upcoming quarters.  

TVS Motors: Axis Direct maintains a ‘Buy’ rating on this automobile company and increases its target price to Rs 720 with an upside of 9.8%. “TVS Motors posted a robust set of numbers in Q3FY22 with the performance ahead of our expectations, driven by improved product mix leading to strong ASP growth and margin beat”, says analyst Darshan Gangar.  The company’s Q3FY22 net profit grew 8.5% YoY to Rs 288 crore (25% higher than Axis Direct’s profit estimates) and net sales increased 5.8% YoY to Rs 5,760 crore (5% higher than Axis Direct’s estimates). The company is also witnessing strong sequential recovery across its portfolio in domestic as well as international markets. Considering the better business visibility, new product launches, and healthy demand and exports, Gangar expects the company's volumes to grow by 9.5% CAGR over FY 21-24 and expect robust revenue and earnings CAGR of 16% and 36% over FY 21-24.

Aditya Birla Capital: HDFC Securities gives this financial services company a ‘Buy’ rating with a target price of Rs 157, indicating an upside of 38.3%. According to analysts Krishnan ASV, Deepak Shinde, and Sahej Mittal, the company is steadily repositioning its lending business mix towards retail, small and mid-size enterprise loans and this is reflected in improved franchise earnings. The insurance businesses are steadily building their profitability trajectory. The life insurance business, despite soft growth, witnessed a better net value of new business margins at 11.2% while the health insurance business remains on track to break even over the next couple of quarters. Along with Aditya Birla Capital, HDFC Securities is also bullish on the company’s asset management arm Aditya Birla Sun Life AMC with a target price of Rs 720.

Affle (India): ICICI Securities gives this advertisement technology company a ‘Buy’ rating with a target price of Rs 1,500, indicating an upside of 27.3%. The company posted strong results for Q3FY22. The net profits increased 86.35% YoY and fell 20.9% QoQ to Rs 12.5 crore and revenue increased  125.5% YoY and 23.6% QoQ to Rs 339 crore. The EBITDA margin grew by 100 bps QoQ to 19.9%. The analyst Sameer Pardikar expects the company to add 600 crore connected consumer devices globally by FY25. There is also a significant expectation of an increase in India’s digital user base from 52.5 crore in FY20 to 90.2 crore by FY25, at 11.4% CAGR. In the same period, mobile ad spending is expected to rise by 32.4% CAGR. “We expect 48% revenue growth in FY 21-24 (organic & inorganic combined),” says analyst Sameer Pardikar. 

Union Bank of India: Motilal Oswal gives this bank a ‘Buy’ call with a target price of Rs 65 and an upside of 46.9%. Analysts Nitin Aggarwal and Yash Agarwal say “reported healthy earnings, supported by a pickup in loan growth and controlled provisions, as fresh slippage / special mention accounts moderated further.” The bank reported 49% YoY growth in profit to Rs 1,090 crore, supported by 10% YoY growth in core revenues. On the business front, loan books grew 6% QoQ to Rs 6.2 lakh crore. On the asset quality front, fresh slippage stood at Rs 3,410 crore due to slippage in the corporate portfolio. The total stressed book declined to 6% in December 2021 v/s 16% at the start of Covid-19. The analysts expect loans and deposits to grow in the 6–8% range. The company’s management expects loan growth to be likely at 11–12% for FY23. The analysts expect the improving asset quality will reduce net non-performing assets by 2.2% in FY23. The brokerage expects the bank’s return on assets and return of equity to be at 0.8% and 14%, respectively by FY24.