1. Ambuja Cement:

This cement manufacturer is currently trading near its 52-week high of Rs 640.8. This comes after promoter Adani Group invested an additional Rs 8,339 crore in the company. With this, the Adani family’s total infusion into Ambuja Cement reaches Rs 20,000 crore, via preferential warrants. The group had acquired Switzerland-based Holcim’s 63.1% stake in Ambuja Cements in September 2022. It invested Rs 5,000 crore in October 2022 and Rs 6,661 crore in March 2024. Their stake in Ambuja Cements has now increased to 70.3%. 

The additional capital from the Adani family will enable Ambuja Cements to fast-track its expansion plans. The cement manufacturer is looking to establish dominance in the cement space, and plans to double its production capacity to 140 million tonnes per annum by FY28. Ajay Kapur, CEO of Ambuja Cements said, "This infusion of funds enables various initiatives including debottlenecking capex, to enhance operational performance and bring efficiencies across resources, supply chain”. 

Ambuja has expanded its capacity by 15% (9.9 MTPA) in the past year. The majority of capacity expansion was on account of the acquisition of Sanghi Industries (6.1 MTPA) and Asian Concrete & Cements (2.8 MTPA). In addition, Ambuja is doing a brownfield expansion of 12 MTPA. 

Ambuja Cement’s net profit TTM stands at Rs 3,166.6 crore, up 63.4% YoY, and revenue TTM at 32,231.6 crore. According to Trendlyne’s Forecaster, the company’s net profit is expected to grow by 47.2% YoY in Q4FY24.  

Earlier this week, Ambuja Cements signed an agreement to acquire My Home Group's 1.5 MTPA cement grinding unit in Tuticorin, Tamil Nadu for Rs 413.75 crore. This is expected to boost the company’s coastal footprint across southern markets of Tamil Nadu and Kerala.

ICICI Securities maintains its ‘Buy’ with a target price of Rs 831 (factoring in the equity dilution post-warrant conversion). The brokerage is optimistic about the company’s growth prospects and believes it has the potential to outperform its peers in capacity growth.

2. Phoenix Mills:

This realty company achieved an all-time high of Rs 3,265 on Thursday after rising 18.5% in the past month. This rise came after the company reported its business update for Q4 & FY24, which showed a 22% YoY increase in retail consumption in FY24  to Rs 11,327 crore. Global brokerages reiterated their bullish stance on the stock post-update.

Morgan Stanley reaffirmed its 'Overweight' rating, noting that same-store consumption has surpassed consensus expectations, indicating a revival in growth. Trendlyne’s Forecaster estimates a 36% YoY revenue growth to Rs 3,589 crore in FY24, with a 42.1% increase in EPS. According to the data released by the Ministry of Statistics, Indian households are spending less on food, and more on discretionary items. This justifies Phoenix’s growth, as 70% of its revenue comes from malls that deal in discretionary items.

Phoenix Mills aims to expand its office portfolio by 5.1 million square feet near its existing malls in the next three years, boosting its operational office space to 7 million square feet by 2027, a significant increase from the current 2 million square feet.

Managing Director, Shishir Shrivastava, noted the strong rebound in office space demand, nearing pre-pandemic levels in major cities like Mumbai, Pune, Bengaluru, and Chennai, where the company intends to develop office spaces. He emphasized the high demand for quality office space, reflected in low vacancy rates and strong rental trends in grade-A buildings in these cities.

The Hong Kong-based brokerage CLSA has maintained its outperform rating on the stock and increased its target price to Rs 3403 from the previous target of Rs 2825. This suggests a potential upside of 9% from the current levels.

3. Ramkrishna Forgings:

This industrial products manufacturer has risen by 11.9% in the past week after winning two orders. The firm bagged a Rs 270 crore order from the Bharat Heavy Electricals-Titagarh Rail Systems consortium for Vande Bharat train components. It also secured approval to supply powertrain components to the USA’s largest electric passenger vehicle producer.  The company appears in a screener for stocks outperforming the industry over a month.

In the past week, the company announced a ~9% increase in production capacity to 2,29,150 tonnes per annum, with an investment of around Rs 54.6 crore to cater to the growing customer demand. 

Trendlyne’s Forecaster expects Ramkrishna Forgings to report a 37% YoY growth in net profit in FY24 and a revenue increase of 10.3% YoY. Despite what the management calls challenging business conditions, they expect order growth and better capacity utilization (currently at 95.6%). They also estimate a 15-20% growth in volume over the medium term, supported by new client additions. The company has guided for a turnover of Rs 5,600-6,075 crore annually by FY26. 

“Our ongoing restructuring with arms like ACIL, JMT, MultiTech, and Mal Metalliks will streamline our approach and provide cross-selling opportunities to marquee clientele," says Managing Director Naresh Jalan. 

Ramkrishna Forgings is in diversification mode, looking to enhance its global presence, expand into non-auto products and electric vehicles. The company has expanded its international customer base and grown its export mix from 30.1% in FY19 to 41.5% in 9MFY24. The approval to supply components for electric vehicles enables its entry into the international electric passenger vehicle segment. The firm’s acquisition of JMT Auto will enhance revenue potential in the oil & gas segment, with an expected turnover of Rs 400-500 crore from JMT Auto in FY26. 

The company’s acquisition of Multitech Auto is also projected to result in an EBITDA growth of 18% by FY26. The firm has also planned the acquisition of ACIL to extend its reach into the tractors and passenger vehicles segment.

Sharekhan maintains a ‘Buy’ call on Ramkrishna Forgings on the back of its inorganic growth plan, diversification strategies, and focus on high operating margins.

4. Angel One: 

This capital markets stock declined 12.6% in two sessions after opening in the green on Thursday after the company posted its Q4FY24 results. The stock fell due to its EBITDA margin contracting by 7.7 percentage points YoY to 39% during the quarter. The company spent more on client acquisition and technological upgrades to fend off competition from online brokers such as Zerodha, Groww and Upstox.

Angel One’s net profit increased by 27.4% YoY to Rs 339.9 crore, while revenue rose by 64.4% YoY to Rs 1,357.3 crore on the back of increasing gross client acquisition and average daily turnover (ADTO). Its net profit and revenue beat Trendlyne’s Forecaster estimates by 13.9% and 48.6%. It appears in a screener of stocks with increasing revenue QoQ for the past three quarters.

In the company’s business update for Q4FY24, its overall average daily turnover (ADTO) improved by 139.9% YoY to Rs 44.3 lakh crore. Its client base also increased by 61.5% YoY to 2.2 crore, helped by a 123.7% growth in client acquisition. The company’s average daily turnover (ADTO) in the futures & options (F&O) segment also grew by 141.5% YoY. Despite the rise in ADTO, the company’s overall and FnO market share declined 470 bps and 300 bps YoY, respectively, due to increasing competition.

Speaking on the company’s results, its Chairman and Managing Director, Dinesh Thakkar, said, “Our digital outreach has enabled us to gain clients from tier 1 and 2 cities. We are not yet seeing price pressures or product fatigue in the space, and there are still opportunities for growth. For example, in the cash segment we are among the few players who are not charging customers.”

Post results, Motilal Oswal retains its ‘Buy’ rating on Angel One with an upgraded target price of Rs 4,200 per share. This indicates a potential upside of 56%. The brokerage believes that the company is well positioned to grow business across client acquisition, orders and MTF book due to its Rs 1,500 crore fundraising. It expects the company’s revenue to grow at a CAGR of 20.6% over FY24-26.

5. Bajaj Auto:

This 2&3 wheelers manufacturer’s stock declined by 2.4% on Friday after the company posted its Q4FY24 results on Thursday. The firm beat the Trendlyne Forecaster’s estimates for Q4FY24 for revenue by 0.9%, however missed the net profit estimate by 2.6%. For Q4FY24 the company’s net profit rose by 17.9% YoY to Rs 2,011.4 crore, while its revenue rose by 29.9% YoY on the back of 29.1% rise in the automotive segment revenue. The stock shows up in a screener for companies with low debt.

In Q4FY24 the company reported a 25.5% YoY increase in its total vehicle sales to 3.7 lakh units. The 2-wheeler domestic sales rose by 20% YoY in Q4 to 1.8 lakh units. The company emerged as the largest 125 cc+ player in FY24 where the growth rate was 8X the rest of the industry. In the commercial vehicle segment the company came close to 80% market share for the first time in FY24.

Rakesh Sharma, Executive Director, said: “We are looking for double-digit volume growth in FY25 if the industry grows at 7-8%. The export business environment remained challenging through the quarter and volumes were down sequentially by 20% MoM, largely because business came to a near standstill in Nigeria on account of election-related unrest, as well as demonetization.” However, retail has bounced back post elections”.

Bajaj Auto is managing inventory across 96 countries, of which 40 are key markets. Goldman Sachs revised its target price for Bajaj Auto to Rs 9,380 from Rs 8,780 earlier, with a “Neutral” rating. The brokerage raised the target price due to unexpected volume growth, falling EV battery costs, stable raw material prices, rupee depreciation aiding exports, and price adjustments on Pulsar models affecting the export mix.

Trendlyne's analysts identify stocks that are seeing interesting price movements, analyst calls, or new developments. These are not buy recommendations.