1. Solar Industries India:

This industrial products company rose by 23.7% over the past week as its subsidiary Economic Explosives(EEL) launched three new explosives, SEBEX-2, SITBEX-1 and SIMEX-4 last week. These explosives are expected to improve the effectiveness of warheads, aerial bombs, underwater weapons etc. Reports suggest that the Indian Navy has completed certification tests for all three explosives and have given orders for the same. 

For FY24, the company’s net profit increased by 10.4% YoY to Rs 835.9 crore, while its revenue declined by 12.1% YoY due a Rs 40 crore hit from hyperinflation in Ghana and Turkey, and currency depreciation (55% in Q4FY24) in Nigeria. The stock shows up in a screener for stocks with strong momentum.

In FY24, the company’s order book surged by 74.2% YoY to Rs 5,129 crore from Rs 2,944 crore in FY23. The defense order book was at ~Rs 2,600 crore out of which Rs 1,499 crore (57.7%) were export orders. For FY25 the company’s management expects defense revenue to rise 3X and domestic explosives volume to rise by 15%. On the FY24 results Manish Nuwal, the Managing Director & CEO, is bullish about growth, saying: “In FY24, improved domestic business and increased defense sales boosted margins, achieving a record EBITDA of Rs 1,414 crore. We plan a Rs 800 crore capital expenditure in FY25 to expand production capacities, particularly in defense and explosives..” The company is investing in counter drone technology and rocket systems.

Solar Industries says that it is in the “final stages” of negotiations for securing orders for Pinaka (multi-barrel rocket launcher) from the Indian Army and is already supplying the Nagastra1 exploding drones to the Indian Army. 

ICICI Securities has given Solar Industries India a “Buy” rating, with a target price of Rs 13,250. The brokerage, noting the improved prospects, has raised its P/E multiple to 65x (earlier 55x) based on FY26 EPS, resulting in an upgraded target price from the previous level of Rs 11,000.

2. Larsen & Toubro (L&T):

This construction and engineering firm surged 6.6% in the past month after winning significant (Rs 1,000 to 2,500 crore) as well as large (Rs 2,500 to 5,000 crore) orders from ONGC, including pipeline replacements and new developments off India’s west coast. Its power transmission & distribution arm also won a significant order to build a 185MW solar plant.

In FY24, L&T posted a revenue growth of 20.9% YoY to Rs 2,25,271 crore, with net profit growth of 24.7% YoY at Rs 13,059 crore. Trendlyne’s Forecaster estimates revenue growth of 11% YoY in Q1 FY25. The company appears in a screener of stocks with highest FII holdings.

Order inflows for L&T surged 31.4% YoY to Rs 3,02,812 crore, with 54% being international orders, up from 38% a year ago. Its energy segment’s contribution to total order inflow increased from 13% in FY23 to 24% in FY24.CFO Shankar Raman said, “L&T expects a 10% growth in domestic order inflow for FY25 due to the government’s investment-first approach.”

Whole-time Director & President of Energy at L&T, Subramanian Sarma said, “I think all in all, in both our core markets in the Middle East and West Asia, as well as in India, we see a large pipeline in the next 6 to 12 months.” He also highlighted the company’s focus on energy transition and green development.

ICICI Direct maintains a ‘Buy’ rating on L&T because of the company’s focus on improving ROE to 18% by FY26 from 14.9% in FY24. They aim to achieve this through profitable bidding, on-time execution and monetising non-core assets. With a target price of Rs 4,300, L&T has a potential upside of 18.6%.

3. Star Health and Allied Insurance:

This general insurance company has risen by 10.7% over the past week after outlining its growth plans at its analyst day. The company aims to double its gross written premium (GWP) to Rs 30,000 crore and triple its profit after tax (PAT) to Rs 2,500 crore by FY28.

Star Health witnessed strong growth in FY24, with a 37% YoY increase in net profit to Rs 845 crore. The company’s GWP grew by 18% YoY, benefiting from a strong market share in retail health and focused efforts on the employer-employee group segment, particularly in SMEs and MSMEs. Investments in technology, such as AI-powered fraud detection, have led to improved claim turnaround times and operational efficiency.

During the year, it achieved a 40% growth in digital channels, with  customer-centric initiatives to improve retention and drive future growth.The company plans to expand its distribution network by adding 1 lakh agents by FY25, improving digital capabilities, and partnerships with banks, NBFCs, and corporate agents. Star Health has a strong solvency ratio of 2.2, supporting their financial strength and growth potential. CEO Anand Roy says, “We are focusing on balanced growth, splitting 50-50 between value and volume. We are expanding our agency network, digital channels, and strengthening group health. We expect a 15-25% price hike in FY25. Compared to peers, we hold a 33% market share and lead the retail health segment.”

Motilal Oswal maintains a "Buy" rating on the stock with a target price of Rs 730. This indicates a potential upside of 24.7%. The brokerage believes Star Health's focus on high-quality business, stricter underwriting standards, and planned price increases for key products position them well to achieve their growth targets.

4. Cello World:

This household products manufacturer rose 3.1% and touched a 52-week high of Rs 1,025 per share on Thursday. This comes after it announced the launch of its Rs 775 crore qualified institutional placement (QIP). Cello plans to issue 86.5 lakh equity shares at a floor price of Rs 896.9. 

The funds raised from the QIP issue will be used for various purposes, including investment in Cello Consumerware. The investment will help set up a new facility to produce stainless-steel bottles, plastic insulated ware, and household articles. Cello World will also use the funds to repay debt, and for working capital requirements.

Over the past month, Cello World has risen by 16.3%. During FY24, the company’s revenue grew by 11.3% YoY to Rs 2,000.3 crore, driven by growth in the consumer ware segment. The segment contributes 66.2% to the total revenue. Its net profit rose 24% YoY. 

Cello World leads in terms of market capitalization in the household products industry. The company’s peers include Carisyl and smaller players like Hardwyn India and Interiors & More. Its PE TTM stands at 63.7, compared to the industry’s 60.8.  

During FY24, the company launched a new facility in Rajasthan with an annual capacity of around 20,000 tonnes, to expand the glassware segment. The capex for the project is Rs 250 crore. It is targeting Rs 460–475 crore in revenue from glassware and opalware in FY25. Cello plans to premiumize some of its product lines and also expand its existing portfolio by developing a new range of products. For FY25, Cello targets a 15–17% revenue growth, with EBITDA margins around 24–26%.

Motilal Oswal believes consumption trends will remain muted in Q1 in the consumer discretionary space but sees a gradual volume recovery. The brokerage expects improved consumer demand later in the year, helped by a normal monsoon, improving macros, and continued government spending. 

The brokerage has a ‘Buy’ rating on Cello World with a target price of Rs 1,090. The brokerage is optimistic due to the company’s plans for new product launches, inorganic acquisitions in existing segments, and expansion of the distribution network. However, the company is in the PE Strong Sell Zone indicating that it is currently trading above its historical PE.

5. KEC International:

This heavy electrical equipment manufacturer has risen 29.2% in the past month and hit its all-time high of Rs 968.8 on Wednesday. The price rise came after multiple order wins. It received orders worth Rs 1,017 crore for a solar PV project in Rajasthan and an EPC project in the Middle East. It also got Rs 1,025 crore worth of orders from India, Africa, and the Americas., it also announced that it had won additional orders worth Rs 2,063 crore in multiple verticals varying from T&D (transmission and distribution), railways, and cables to civil business work.

KEC International’s current order book stands at Rs 38,000 crore, approximately 2x the FY24 revenue. It has a bid pipeline of Rs 1.3 lakh crore. The management also expects an order intake of Rs 25,000 crore in FY25. Chief Financial Officer Rajeev Aggarwal says, “We expect a 15% growth in turnover and guide for 7.5% margins for FY25 and close to double-digit margins in FY26.” The management expects its peak debt to remain at the current level of around Rs 5,000 crore; however, it expects the finance charge as a percentage of revenue to decline to 2.5% from over 3% in FY24.

Trendlyne Forecaster estimates KEC International’s net profit to rise 4.3% in Q1FY25. In FY24, the company’s profit grew by 97% YoY to Rs 346.8 crore, while its revenue improved by 15.3% YoY. Its EBITDA margin increased by 130 basis points YoY to 6.1%. However, it missed Trendlyne Forecaster’s net profit estimate by 7.9%.

Prabhudas Lilladher maintains a ‘Hold’ call on KEC International given its healthy execution momentum and revenue visibility from non-T&D segments. The brokerage expects growth to be driven by domestic T&D and civil businesses and expects international T&D and railways to remain soft in FY25. The company appears in a screener for stocks with increasing shareholding by foreign investors and/or institutions.

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