1. JK Lakshmi Cement:

Axis Direct recommends a ‘Buy’ rating on this cement and cement products company with a target price of Rs 915, indicating a potential upside of 7.1%. Analyst Neeraj Chadawar notes that the company achieved its highest EBITDA/tonne of Rs 1,080 in Q4FY24, due to initiatives like optimizing its geo-mix, increasing blended cement production and sales, boosting trade sales, promoting premium products and higher renewable energy use.

Chadawar highlights that the company is setting up a grinding unit in Surat with a capacity of 1.35 million tonnes per annum (mtpa), costing Rs 220 crore, which is expected to commence operations between FY25 and FY26. The company also plans to expand its capacity by 4.6 mtpa for cement grinding and 2.3 mtpa for clinker, costing Rs 2,50 crore(USD 65/tonne), commissioned in phases over FY 26-27.

The analyst expects revenue, EBITDA, and PAT to grow at a CAGR of 9%, 22%, and 23% respectively for FY 25-26, driven by JK Lakshmi Cement's strong market presence in North, West, and East India. The business is benefiting from government infrastructure spending and robust real estate demand.

2. L&T Finance:

Sharekhan maintains a ‘Buy’ rating on this holding company stock with a target price of Rs 205, indicating a potential upside of 13.5%. The company’s revenue grew 7.6% YoY to Rs 3,677 crore in Q4FY24, and its net profit rose 10.5% YoY to Rs 553 crore, thanks to improvements in operational efficiency.

L&T Finance Holdings (LTFH) plans to grow by targeting prime customers and expanding its secured retail loans. The company is pushing to increase retail loan disbursements by 25-30%, focusing on sectors like microfinance, two-wheeler loans, home loans, and SME financing. The analyst expects LTFH to strengthen its market position through more cross-selling and expand its corporate agency business to increase fee income.

Sharekhan has confidence in LTFH's ability to handle evolving market conditions and deliver consistent performance in the coming years. It expects the company to benefit from its retail-focused model. This positions the firm favorably to achieve its targeted post-tax consolidated RoA of 2.8-3% by FY26.

3. Elgi Equipments:

ICICI Direct maintains a ‘Buy’ rating on this industrial machinery manufacturer with a target price of Rs 835, indicating a potential upside of 8.1%. In Q4FY24 the company’s net revenue saw single-digit 2.5% YoY growth to Rs 880.5 crore. Analyst Chirag J Shah notes, “FY24 saw muted volume growth due to enterprise resource planning (ERP) implementation issues in the US, and demand concerns in Europe”.

The analyst notes the company’s plans to expand its capacity in the screw compressor segment due to high utilization rates and strong demand in sectors such as mining, construction, and industrials. This expansion involves a capex of Rs 125 crore. Elgi is also expanding its global support centres for spares and parts, requiring another Rs 125 crore investment. These expansions are scheduled to be completed by FY26.

Shah estimates revenue, EBITDA, and PAT to grow at approximately 14.5%, 21%, and 25% CAGR respectively for FY 25-26. He expects margins to recover and ROCE to remain above 23% through FY26, boosted by favorable conditions across the industrial sector.

4. Trent:

Motilal Oswal maintains a ‘Buy’ rating on this department store company with a target price of Rs 5,800, indicating a potential upside of 7.5%. The company’s revenue grew 50% YoY to Rs 12,400 crore in FY24, and its net profit rose 160% YoY to Rs 1,040 crore.

Analyst Tanmay Gupta highlights Trent's strong performance in the apparel segment, particularly through its Zudio and Westside brands. He is optimistic about Trent's active store expansions and increasing market share in the value retail segment. Despite weak demand in tier 2-3 cities and a slow turnaround of Star, Trent outperformed the industry with over 10% like-for-like growth, increasing its market share.

Gupta expects Trent’s successful store performance and healthy store economics to sustain its growth trajectory over the next three to five years. He anticipates the firm to post a revenue CAGR of 36% and an adjusted net profit CAGR of 41.4% over FY25-26.

5. Canara Bank:

BOB Capital maintains a ‘Buy’ rating on this bank, raising its target price to Rs 140, indicating a potential upside of 19.2%. In Q4FY24, the company reported net interest income growth of 11.2% YoY to Rs 9,580.2 crore, with a 4 bps improvement in net interest margin. Analyst Ajit Agrawal attributes this growth to Canara Bank's improved asset quality, controlled slippages, and strategic shift towards retail lending

Agrawal says, “Canara Bank anticipates 9-10% business growth in FY25, focusing on retail lending to maintain a NIM of 2.9-3%.” He is upbeat about the bank's future, citing improved asset quality and a stable cost-to-income ratio of around 47%, which should support further growth. The bank aims to increase its CASA ratio to 35% over the next two years.

The analyst is optimistic as Canara Bank is aiming for a credit/deposit growth of 12%, and expects stable margins. He highlights the bank's aim to reduce GNPA and NNPA to 3.5% and 1.1% in FY25. Agrawal underscores the strategic shift towards higher-yielding retail and SME segments for enhanced profitability and strengthened asset quality.

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

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