1. Nippon Life India Asset Management: Axis Securities maintains a ‘Buy’ rating on this asset management company (AMC) but reduced its target price to Rs 410 from Rs 440, indicating an upside of 31.4%. The brokerage cut its target price as Nippon Life AMC’s Q4FY22 revenue missed its estimates by 8.6%. Revenue growth also lagged AUM (assets under management) growth due to pressure on equity yields. However, analyst Dnyanada Vaidya continues to remain bullish on the company as its market share improved 26 bps YoY in FY22 to 7.38%. Overall, AUM grew 24% YoY to Rs 2.83 lakh crore in FY22.

Vaidya says that “the company added 7 million folios in FY22 with a continuous focus on the retail segment. Retail AUM stood at Rs 79,300 crore which is 28% of AUM''. The company enjoys a leadership position in the ETF (exchange-traded funds) domain with a 68% share in ETF volumes on the National Stock Exchange and BSE. Axis expects profit to grow at a 14.4% CAGR over FY22-24.

2. Ashok Leyland: Motilal Oswal Motilal maintains a ‘Buy’ rating on this commercial vehicle maker with a target price of Rs 165, indicating an upside of 31.1%. The brokerage expects a revival in the commercial vehicle cycle and feels a rise in market share will drive strong growth for the company. Analysts Jinesh Gandhi, Vipul Agrawal, and Aniket Desai expect the company’s domestic M&HCV (medium & heavy commercial vehicles) market share to recover to 31-33% by the end of FY23. 

They also said that “the recovery will be driven by a recovery in the bus segment, plugging of product gaps, and revival in southern India”. The company’s M&HCV market share recovered by 3.6 and 4.3 percentage points QoQ to 26.1% and 30.4% in Q3FY22 and Q4FY22, respectively. Moreover, the analysts also expect growth in the LCV (light commercial vehicle) segment, exports and the spares business segment will aid in boosting revenue growth in the coming quarters. The analysts expect revenue to grow at a 32.9% CAGR over FY22-24.

3. Tatva Chintan Pharma Chem: ICICI Securities maintains a ‘Buy’ call on this pharmaceuticals company but reduced the target price to Rs 2,875 from Rs 3,000. This indicates an upside of 24.7%. In Q4FY22, the company’s profit fell 17.1% YoY to Rs 17.5 crore. The revenue fell 9.3% YoY to Rs 98.5 crore which was 11% below the brokerage’s estimate. The company expects the coming quarters to be weak due to continued chip shortage and anticipates revival only in H2FY23. 

“Tatva Chintan’s gross profit margin remains strong despite commodity inflation, due to pass-through agreement both from vendors and customers with a quarter lag. We also suspect inventory gains as the company is sitting on large inventory,” say analysts Sanjesh Jain and Akash Kumar. They added that, “new customer additions should also add to demand”. 

The company is adding new products like Flame retardant, high purity products in agro-chemical and pharmaceuticals, and monoglyme among others to its pipeline, the analysts said They believe that the new products increases growth visibility for the company in the medium term.

4. ICICI Bank: LKP Securities give a ‘Buy’ rating to this bank with a target price of Rs 1,037 indicating an upside of 40.4%. “Earnings in 4QFY22 re-acknowledge our conviction that ICICI Bank is preparing for sustainable and prudent growth, led by tech-driven initiatives and normalization in credit cost,” says analyst Ajit Kumar Kabi. In Q4FY22, the bank reported NII growth of 20.8% YoY to Rs 12,604.6 crore while profit grew 59.4% YoY to Rs 7,018.7 crore. 

In Q4FY22, the bank’s advances stood at Rs 8.6 lakh crore increasing 17.1% YoY and deposits stood at Rs 10.6 lakh crore which grew by 14% YoY. LKP expects the loan book to grow at 20% CAGR over FY22-24, led by technology initiatives, and expects the return on asset and return on equity to be at 1.8% and 15%, respectively. 

5. NTPC: ICICI Direct upgrades to a ‘Buy’ call from ‘Hold’ on this utilities company and gives it a target price of Rs 190 indicating an upside of 19.1%. “NTPC has set aggressive long term renewables capacity addition target of 60,000 MW by 2032, which was earlier pegged at 30,000 MW,” says analyst Chirag Shah. The company expects to spend 40% of the total capex planned for FY22-23 on renewable projects which will further increase in FY25. 

The company currently has 6,500 MW of renewable projects in various stages. NTPC has also started entering other avenues of green energy like hydrogen.  It recently has invited online bids from electrolyser technology providers, with whom it intends to participate in upcoming tenders on green hydrogen.

Shah adds that “with strong focus on alternative energy spectrum, NTPC may be able to break the underperformance of the last decade”. 

Note: These recommendations are from various analysts and are not recommendations by Trendlyne.