1. Thyrocare Technologies:

ICICI Securities maintains a ‘Buy’ rating on this healthcare services company with a target price of Rs 825, indicating a potential upside of 6.3%. In Q1FY25 the company’s net profit rose 39.7% YoY to Rs 24.2 crore, beating Trendlyne’s Forecaster estimates by 11.4%. Its operating revenue grew 16.3% to Rs 156.9 crore, driven by the pathology business. 

Analysts Abdulkader Puranwala and Nisha Shetty state, "Thyrocare’s management is diversifying its historically high-volume test-focused business model." They note the recent launch of bundled test packages like 'Jaanch,' which grew 25% year-over-year, and the acquisition of Polo Labs and Think Healthcare to expand Thyrocare’s test menu and service offerings.

Puranwala and Shetty expect Thyrocare to achieve a 33% earnings CAGR from FY25 to FY26, with an RoCE of approximately 22.3% by FY26. They project cumulative free cash flow generation of Rs 260 crore over the same period. While the stock has recently hit a fresh year high, it has underperformed the Sensex and Nifty over five years.

2. Jindal Steel & Power:

Motilal Oswal reiterates a ‘Buy’ rating on this iron and steel products company with a target price of Rs 1,200, indicating a potential upside of 22.9%. In Q1FY25 the company’s net profit fell 20.5% YoY to Rs 1,340.2 crore, but beat Trendlyne’s Forecaster estimates by 6.9%. Revenue grew 8% to Rs 13,652.3 crore, driven by healthy volumes.

Analysts Alok Deora and Sonu Upadhyay note that as of June 2024, the company has spent approximately Rs 17,500 crore of the Rs 31,000 crore allocated for its capital expenditure plan and aims to incur the remaining Rs 13,500 crore over the next three years. They also highlight that the management does not anticipate any cost increases due to the delay in the BOF-II plant expansion, which is expected to be completed by the second quarter of FY25.

Analysts say, “While first-quarter results were slightly below our estimate, the outlook remains bright.” They expect ongoing capital expenditures to lead to more value-added products, resulting in better profitability.

3. Pitti Engineering:

KRChoksey retains a ‘Buy’ rating on this electrical equipment manufacturer with a target price of Rs 1,379, indicating a potential upside of 15.1%. In FY24 the company reported a net profit rise of 53.3% to Rs 90.2 crore, beating Forecaster estimates by 21.5%. Operating revenue grew 9.2% to Rs 1,201.6 crore.

Analyst Unnati Jadhav notes that the company has agreed to acquire 100% of Dakshin Foundry’s equity for Rs 153.1 crore. Dakshin Foundry specializes in high-quality castings from materials like ductile iron, grey iron, low carbon steel and alloy steel. In March 2024, the company also acquired Bagadia Chaitra Industries (BCIPL) for Rs 124.9 crore. The analyst believes these acquisitions will boost production capacity and operational capabilities, supporting the company's inorganic growth strategy.

Jadhav expects a CAGR of 26.8% for revenue, 29.7% for EBITDA, and 42.9% for PAT over FY25-26 and anticipates FY26 EPS to be Rs 57.5 due to strong demand across various sectors, and increased capacity from recent acquisitions.

4. Coforge:

Axis Direct maintains a ‘Buy’ rating on this IT consulting and software company with a target price of Rs 6,895. This indicates an upside of 9.2%. In Q1FY25, the company‘s revenue grew 1.8% YoY to Rs 2,400.8 crore, but missed Trendlyne’s Forecaster estimates by 1.1%. Net profit fell by 19.4% YoY to Rs 133.2 crore due to higher operating expenses and acquisition-related costs. The company witnessed increased demand in North America, which contributes 50% of its revenue.

Analyst Omkar Tanksale highlights that the company’s growth is supported by a strong deal pipeline, with significant wins in the banking, financial services and insurance (BFSI) and travel sectors. He expects continued momentum from these deals and anticipates the revival of the BFSI sector, projecting double-digit growth in FY25.  

Tanksale notes concerns about cross-currency headwinds affecting margins but remains positive about the company’s growth potential and strong deal pipeline in the long term perspective.He projects a revenue CAGR of 20.9% and an adjusted PAT CAGR of 29.7% over FY25-26.

5. Schaeffler India:

Sharekhan maintains a ‘Buy’ rating on this auto parts and equipment manufacturer with an upgraded target price of Rs 4,764. This indicates an upside of 13.3%. In Q2CY24, Schaeffler’s net profit grew 12.8% YoY to Rs 253 crore. Analysts attribute this growth to increased exports and expansion into new markets in Asia. The analysts state “The improvement in export performance can be attributed to the completion of de-stocking in the European market, and the rise of new markets in the Asia-Pacific region.”

Analysts highlight Schaeffler’s focus on high-value electric vehicle components, domestic demand, and export revenues. They expect continued momentum from its railways business and see potential growth in the non-bearings segment, driven by innovative solutions for hybrid power trains.The management remains positive about the company's order wins, backed by its technological expertise and cost-effective manufacturing.

The analysts project revenue and net profit CAGR of 16.8% and 19.5% respectively, over CY25-26, driven by Schaeffler’s strategic focus on localisation, expanding its product portfolio, and leveraging its brand equity in the aftermarket business.

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

(You can find all analyst picks here)