1. Krishna Institute of Medical Sciences: Prabhudas Lilladher maintains its ‘Buy’ rating on this healthcare facilities company with a target price of Rs 1,660. This implies an upside of 22.6%. Analysts Param Desai and Sanketa Kohale are optimistic about the company as they expect its occupancy rates, profitability and scalability to rise in the coming quarters. They also see the firm’s plans to expand its operations in Karnataka and Maharashtra as key positives. 

The analysts expect an operational turnaround and a rise in occupancy rate in KIMS’ Kingsway unit in Nagpur as it plans to add more clinical talent and fill in therapeutic gaps like oncology radiation. They also anticipate the occupancy rate to increase in the firm’s new Sunshine unit in Secunderabad, Telangana.. “The new Sunshine unit will be moved to a new state-of-the-art facility in a prime location by the end of Q1FY24. This would attract clinical talent across other therapies,” they added. Desai and Kohale estimate the hospital chain’s revenue to grow at a CAGR of 21.9% over FY22-25.

2. Shree Cements: ICICI Securities maintains its ‘Buy’ rating on this cement manufacturer and increases its target price to Rs 29,130 from Rs 27,550. This implies an upside of 15.6%. Analyst Harsh Mittal is positive about the company’s prospects on the back of strong capacity additions and increased demand due to the upcoming general elections. He sees the firm’s plan to increase the share of premium cement sales to 15% from 7% in 12-15 months, as a key positive. 

He also believes that the company will be able to improve its realisations with the help of cost-saving initiatives such as increased use of alternative fuels. “Consumption cost for alternate fuels is around Rs 1.3-1.5 per kilocalorie (kcal). Shree Cements’ current fuel consumption cost is Rs 2.3 per kcal at its current thermal substitution rate of 4.5%, and the company aims to increase it to 15% in the next 12 months,” he added. 

Mittal expects sales volumes to rise, and the firm’s expansion plans are on track. He expects the cement company’s net profit to grow at a CAGR of 18.3% over FY22-25.

3. State Bank of India: Motilal Oswal gives a ‘Buy’ call to this bank with a target price of Rs 725, indicating an upside of 43.1%. Following an interactive session with State Bank of India’s Chairman Dinesh Kumar Kharato to discuss the bank’s growth and margin outlook, analysts Nitin Aggarwal and Yash Agarwal say, “The bank’s robust performance has been aided by strong loan growth, margin expansion and lower provisions.” 

They believe that a high mix of floating loans will continue to aid net interest income and earnings, even though the cost of deposits may increase. According to the analysts, manufacturing, export, renewables, batteries and EV segments are likely to be the key growth drivers for the bank. Aggarwal and Agarwal say, “Asset quality performance remains strong, with consistent improvements in headline asset quality ratios while the restructured book is under control at 0.9%.’

4. Zydus Lifesciences: Sharekhan maintains its ‘Buy’ rating on this pharmaceutical company with a target price of Rs 572, implying an upside of 18.8%. Analysts at the brokerage believe the company’s growth will be driven by new product launches and volume growth in the US and India. They also expect input and freight costs to stabilise, leading to better profitability. 

The analysts believe the firm will outperform the Indian pharma market in the long term by penetrating newer geographies, launching new products and improving institutional sales. “The company has one of the largest pipelines of biosimilar products among Indian players, as it has so far launched 14 products in India,” they add. 

Sharekhan’s analysts anticipate strong demand in the US market on the back of robust product approvals in the recent past. The management is optimistic about maintaining the sales growth momentum in the US, driven by new launches, as well as volume expansion of existing products. The analysts expect the company’s net profit to grow at a CAGR of 12% over FY22-25.

5. Jyothy Labs: Hem Securities initiates a ‘Buy’ call on this personal products company with a target price of Rs 225. This indicates an upside of 20.9%. In Q3FY23, the company’s profit and revenue have grown 75.4% YoY to Rs 67.4 crore and 15.7% YoY to Rs 627.9 crore respectively. Analyst Chinmay Bhandari says that the company has posted good results in the past few quarters despite input price inflation and slowdown in volume growth. 

According to Bhandari, brands such as Ujala and Henko continue to register strong growth, while Exo Bar and Pril increase their market share. The analyst believes that falling crude prices will help the company post better margins and points out that the management is trying to increase its distribution network of key brands in newer markets to improve its topline. 

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

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