1.Infosys:

Axis Direct recommends a ‘Buy’ rating on this IT consulting and software company with a target price of Rs 1,950, indicating a potential upside of 6.1%. The bigwigs of IT have got a boost in Q1FY25 after several quarters of weak numbers and high attrition. In Q1FY25, the company's net profit fell by 20.1% QoQ to Rs 6,368 crore but showed a 7.1% YoY growth, beating Forecaster estimates by 1.3%. Revenue fell 1.2% QoQ to Rs 40,153 crore due to a reduction in the retail and hi-tech segments. 

Analyst Omkar Tanksale notes a strong recovery in BFSI and other verticals, which boosted the tech major. He notes that the management expects sustained demand for Gen AI and improved client engagement, which should lead to higher realizations. The company’s total contract value (TCV) surpassed expectations by securing deals worth $4.1 billion.

Tanksale expects improvement in the North American region and Europe to sustain strong demand. The company anticipates demand should pick up further as uncertainties resolve in the next 2-3 quarters, leading to consistent deal wins.

2. Bajaj Auto:

Sharekhan maintains a ‘Buy’ rating on this 2/3-wheeler manufacturer, with a target price of Rs 11,400, indicating an upside of 21.5%. In Q1FY25, the company reported revenue growth of 15% YoY to Rs 12,267.4 crore, with net profit up 18.1% YoY to Rs 1,941.8 crore. Analysts attribute this growth to an improved motorcycle sales mix and an expansion in EBITDA margin by 130 bps YoY to 23.6%.

Bajaj Auto (BAL) expects the 2-wheeler industry to grow by 6-7% in FY25, largely driven by the 125+ cc segment. The company plans to expand its manufacturing capacity for CNG motorcycles to 40,000 units per month by Q4FY25. The brokerage says, “We believe BAL's segment-specific brands are attracting attention as premium segment demand surpasses entry-level segments.” African markets have yet to fully recover, but the management expects improved export performance in Q2FY25 compared to Q1FY25.

Analysts are positive about BAL benefiting from the expanding CNG network in India, boosting demand for its CNG three-wheelers due to its market leadership. Sharekhan projects a revenue CAGR of 15.6% and an adjusted PAT CAGR of 17.9% for FY25-26.

3. India Glycols:

Edelweiss initiates a ‘Buy’ rating on this chemicals company, with a target price of Rs 1,365, indicating a potential upside of 31.1%. The stock also hit a new year high in the past week. Analyst Ranvir Singh is positive about the company’s prospects on the back of increased biofuel opportunities. The company's bio-based specialties and performance chemicals (BSPC) segment grew 26% YoY, contributing 65% to its revenue in FY24.

Singh expects India Glycols to benefit from its expanded ethanol production capacity, aiming to triple its production levels from FY23 by mid-FY25. He highlights the company’s diversification into biofuels, and expanded supplies for its spirits business as growth drivers. Additionally, the company has established a joint venture with Clariant International to enhance its specialty chemicals segment via Clariant’s expertise and resources.

Singh anticipates revenue and profit CAGR of 15.9% and 40% respectively over FY25-26. He notes that the firm is focused on refining the BSPC revenue mix and improving the balance sheet by reducing the debt.

4. Gabriel India:

ICICI Direct maintains a ‘Buy’ call on this auto parts and equipment manufacturer, with a target price of Rs 600, indicating an upside of 26.5%. The company’s net profit rose by 40% YoY to Rs 185 crore in FY24, while its revenue increased 12.5% YoY.

Gabriel holds a market share of over 30% in the 2-wheeler segment and a 70% share in the electric 2-wheeler market. Analysts Shashank Kanodia and Manisha Kesar are upbeat about the company's outlook, highlighting its outperformance in the 2-wheeler segment driven by strong domestic demand and recovering export volumes. The company also plans to expand its SUV presence by entering the sunroof segment through a JV with Inalfa Roof System, bolstering its growth potential.

Kanodia and Kesar foresee Gabriel benefiting from strong partnerships in the EV sector and a cash positive balance sheet, with continued margin strength and growth. They project a revenue and net profit CAGR of 9.3% and 24.2% respectively over FY25-26.

5. Reliance Industries:

BOB Capital reiterates its ‘Buy’ rating on this refineries and petroleum products company with a target price of Rs 3,585, indicating a potential upside of 20.4%. In Q1FY25 the company’s net profit fell 5.4% YoY to Rs 15,138 crore, missing Forecaster estimates by 9%. This decline was driven by a 5% lower EBITDA in retail and 4% lower in oil & gas. Revenue rose 11.7% YoY to Rs 231,784 crore due to an 18% YoY increase in revenue from the Oil-to-Chemicals (O2C) segment.

Despite the estimates miss, analyst Kirtan Mehta is upbeat, noting that Digital Services' EBITDA grew 8.9% YoY in Q1 and should accelerate further in Q2, due to recent tariff hikes of 13-20%. These hikes are expected to raise average revenue per user (ARPU) for Reliance Jio by 11% annually to Rs 245 by FY27. 

Mehta expects a 22% annual growth in EBITDA for both digital services and retail over FY25-FY27. Additionally, RIL’s overall EBITDA is projected to grow 11% annually during this period, primarily driven by a 22% CAGR in the consumer business.

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

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