1. Maruti Suzuki India:
KRChoksey maintains a ‘Buy’ rating on this cars and utility vehicles manufacturer with a target price of Rs 14,148, indicating a potential upside of 15.3%. The stock is currently in a strong PE buy zone. The company saw a strong performance in Q1FY25, where its net profit rose 48.9% YoY to Rs 3,759.7 crore, driven by cost reduction initiatives, favorable commodity prices and foreign exchange rate. Revenue grew 10.6% YoY to Rs 36,839.9 crore.
Analyst Unnati Jadhav says, “The growth was primarily driven by strong export sales which increased by 11.6% YoY, with Jimny being the highest exported vehicle during the quarter.” She notes the company’s plans to double its production to 4 million vehicles by FY30-31 from the current level of 2.2 million.
Jadhav anticipates that stronger rural markets will drive increased demand for hatchbacks, as the company aims to boost exports and CNG sales. Revenue, EBITDA, and adjusted PAT are expected to grow at a CAGR of 11.5%, 9.4%, and 12.6%, respectively, over FY25-FY26, as margins continue to improve.
2. Coal India:
ICICI Direct makes a ‘Buy’ call on this coal mining and production company with a target price of Rs 650 and a potential upside of 24.6%. The company reported a net profit of Rs 10,959.5 crore for Q1FY25, up 37.5% YoY. This increase was driven by lower material costs, reduced employee benefits, and decreased inventory. Its revenue grew 2.2% YoY to Rs 38,349.2 crore. Coal India is classified a strong performer as shown by its DVM score.
Analyst Shashank Kanodia and Manisha Kesari note that the company is expanding its portfolio into new areas, including coal gasification through JV agreements with BHEL and GAIL, investments in thermal power such as Mahanadi Basin Power and exploring acquisitions of critical mineral assets both domestically and internationally. They remain optimistic about Coal India, citing strong volume growth prospects, ongoing diversification into emerging sectors, a healthy net cash positive balance sheet, and dividend yield of approximately 5%. Analysts expect coal production to grow at an 11% CAGR from FY25 to FY26 to 950 metric tonne (MT) by FY26, and anticipate a 7% CAGR growth in sales and PAT over the same period.
3. Krishna Institute of Medical Sciences (KIMS):
Edelweiss retains a ‘Buy’ recommendation on Krishna Institute of Medical Sciences (KIMS) setting a target price of Rs 2,560, suggesting a potential upside of 15.2%. This healthcare facilities company posted a 7.2% YoY increase in net profit to Rs 86.6 crore and a 13.8% YoY rise in revenue to Rs 693 crore in Q1 FY25. Analysts Thakur Ranvir Singh and Pawan Bhatia say,”Growth in revenue was helped by 21% YoY rise in ARPOB, 8% YoY growth in IP volume and 10% rise in OP volume”.
KIMS plans to add approximately 1,800 beds in two years through various greenfield and brownfield plans. Analysts highlight that the company is on track to commence operations at its Nasik unit (300-beds) and newly acquired 200-bed multi-specialty Queen’s NRI Hospital (QNRI) at Vizag in Q2FY25, which is expected to improve performance in H2FY25.
Singh and Bhatia believe the company has a strong expansion plan for the next 3 years, anticipating an increase in the total bed capacity to approximately 6,300 in FY27 from 3,975 in FY24. They retain their FY25 estimates, with a revenue, EBITDA, PAT CAGR of 23%, 22%, 19% respectively for FY 25-26. They also revised theirFY26 revenue, EBITDA and PAT forecasts upwards by 6%, 5%, 8% due to the addition of new beds.
4. Oil And Natural Gas Corporation:
Emkay maintains a ‘Buy’ rating on this exploration and production company with a target price of Rs 360. This indicates an upside of 7.2%. The company has received approval for the restructuring of its ONGC Petro Additions (OPaL) project. The government has approved a Rs 10,501 crore investment in OPaL, including financial support for raw materials, with gas priced up to 20% above the Administered Price Mechanism (APM).
ONGC reported a revenue growth of 19% YoY to Rs 1,69,562.3 crore in Q1FY25, but missed the Forecaster estimates by 5.8%. The revenue increase was driven by higher crude sales, while lower gas output impacted results. ONGC Videsh (OVL) saw costs reduce due to a shift in royalty payments from cash to kind, though production remained unchanged.
Analysts Sabri Hazarika, Harsh Maru, and Arya Patel are optimistic about ONGC’s investment in green energy, targeting 10GW by CY30, and its plans to expand gas production capacity by developing new wells throughout the year. They anticipate positive developments in premium gas pricing and a boost from increased capex for Mozambique projects.
5. Tech Mahindra:
Geojit BNP Paribas upgrades this IT consulting firm to ‘Buy’ with a target price of Rs 1,645, indicating a potential upside of 9.4%. The company’s EBITDA margin improved by 180 bps, and lower interest expenses supported net profit growth in Q1FY25. However, revenue dropped 1.2% YoY to Rs 13,006 crore, impacted by the communications segment.
The company introduced TechM VerifAI, a framework for validating AI systems, and developed over 100 AI solutions. During the quarter, Tech Mahindra expanded its workforce by 2,165 employees, and continued strategic initiatives like Project Fortius and Turbocharge to enhance margins. The analyst says, “The company's investment in AI and its workforce expansion, coupled with cost-saving initiatives, should yield enhanced margins and drive growth in the manufacturing segment”. Additionally, they anticipate stable demand in the BFSI segment, as the company continues to explore new opportunities with existing clients.
Note: These recommendations are from various analysts and are not recommendations by Trendlyne.
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