1. Suzlon Energy:

This heavy electrical equipment company has surged 9.4% over the past week and touched a new 52-week high of Rs 86 on Thursday. The rise comes after it secured a significant 1,166 MW order from NTPC's arm, NTPC Green Energy, making it the largest wind energy order in India. In addition, Morgan Stanley reiterated its ‘Overweight’ stance on the company after the order win. The brokerage noted this PSU contract as a major milestone for the company, as it was previously not allowed to bid because of its negative net worth.

The order requires Suzlon to install 370 S144 WTGs (wind turbine generators) with a rated capacity of around 3.2 MW each, which will generate electricity to power 30 lakh households. The project will be executed across three sites in Gujarat and also includes erection and commissioning, as well as operations & maintenance services post?commissioning. With this, the company’s order book nears 5 GW. As of June 2024, the company’s order book stood at 3.8 GW, 5x the FY24 WTG volume of 710MW. 

In Q1FY25, Suzlon’s net profit had jumped almost 3X to Rs 302.3 crore, helped by lower finance costs and foreign exchange shifts. Revenue increased by 50.1% YoY to Rs 2,044.4 crore. The wind turbine generator segment (which contributes over 70% to the revenue) grew by 86.3% YoY during the quarter. 

India's wind energy sector has been witnessing a recovery, due to rising power needs, wind-focused tenders, and growing industrial demand, offering opportunities for domestic players like Suzlon Energy. JP Chalasani, the Group CEO, said, “We anticipate an increase in wind installations in India between 5 to 5.5 GW in FY25, potentially reaching up to 9 GW in future years”.  

Morgan Stanley believes the large contract from NTPC will enhance Suzlon's earnings visibility for FY26-27. It has a target price of Rs 73, which the stock has already surpassed. The company is trading in the Strong Sell Zone, indicating that it is currently trading above its historical PE.

2. Divi’s Laboratories:

This pharmaceutical manufacturer surged 7.4% over the past week after the US House of Representatives approved the Biosecure Act. The bill is yet to be cleared by the US Senate. The legislation bans American firms from partnering with certain Chinese biotech and drug manufacturers over the next eight years, in a bid to prevent the potential misuse of US genomic data. This will prompt a major shift in the pharmaceutical supply chain.

Analysts expect the introduction of the Act by the US to accelerate the growth of CDMOs (contract development and manufacturing organisations) and CROs (contract research organisations) in India. According to Mordor Intelligence, the contract manufacturing segment is estimated to be worth $22.5 billion in 2024 and is projected to reach $44.6 billion by 2029, growing at a CAGR of 14.7%.

In Q1FY25, the company reported an 18% YoY revenue growth to Rs 2,197 crore, with net profit rising 20.8% YoY to Rs 430 crore. Exports accounted for about 86% of the revenue, with 70% coming from Europe and the US. The product mix between generics and custom synthesis (contract manufacturing) stood at 51% and 49%, respectively.

CEO Kiran Divi said, “With the Biosecure Act, we are now seeing more orders for Phase-II and Phase-III molecules than before, along with significant interest on the generic side.” She also highlighted that the company is planning a capacity expansion, with an investment of Rs 650 crore to Rs 700 crore.

KR Choksey maintains a ‘Hold’ rating on Divi's Laboratories as its Q1 results came in slightly below estimates due to weakness in generic pricing. They expect growth in custom synthesis and new generics to drive margins, and forecast revenue and net profit CAGR of 11% and 23.1%, respectively, over FY25-26.

3. Tata Steel:

This iron and steel company jumped 2.4% to Rs 152.4 per share on Thursday after it secured a £500 million (approx. Rs 5,475.1 crore) grant from the UK government to support a £1.25 billion green steel project in Port Talbot, South Wales. The project involves installing an Electric Arc Furnace (EAF) at the Port Talbot steelworks. The EAF will significantly reduce carbon emissions, both for the UK as a whole and for the Port Talbot plant. The project is expected to preserve 5,000 jobs in the UK steel industry that were impacted when operations were halted in July 2024 due to the company’s initiative to transition to green steel production. Tata Steel is offering voluntary redundancy, support packages, and paid retraining programs for affected employees.

In Q1FY25, the company had reported a 51.4% YoY increase in consolidated net profit, reaching Rs 959.6 crore, as operations in the Netherlands returned to normal levels. The profit growth was also supported by lower expenses and reduced raw material costs. Consolidated total revenue stood at Rs 54,771.4 crore, a 7.9% decline YoY due to subdued steel demand across many regions. Both revenue and net profit fell short of Trendlyne’s Forecaster estimates by 2.7% and 32.2%, respectively.

The management reported a buildup in working capital during the quarter, mainly driven by stock accumulation in the UK ahead of the closure of heavy-end facilities, as well as seasonal factors in India. Koushik Chatterjee, Executive Director and CFO of Tata Steel said, “We are focused on optimizing working capital. The net debt stands at about Rs. 82,162 crores and our group liquidity remains strong at about Rs. 36,460 crores, which includes about Rs. 10,799 crores of cash and cash equivalents.” 

BOB Capital Markets maintains a 'Hold' rating on Tata Steel but has raised the target price from Rs 170 to Rs 175, indicating an expected upside of 7%. They believe the stock to be overvalued now, however, they are confident in the company's ability to grow its earnings.

4. Global Health:

This healthcare facilities company rose by 3.8% over the past month. However  the company had announced last month that they are set to construct a 500-bed super specialty hospital in Mumbai with a Rs 1,200 crore investment. The project, financed equally by debt and internal funds, is expected to be completed in 3-4 years. In July 2024, the land for the hospital was acquired in Oshiwara through a public auction. Once finished, it will become the second largest private hospital, following the 750-bed Kokilaben Dhirubhai Ambani Hospital & Medical Research Institute (KDAH).

For Q1FY25, the company’s net profit rose by 4.2% YoY to 106.3 crore, while its revenue rose by 11.1% YoY due to improved traction in matured hospitals. The firm beat Trendlyne’s Forecaster estimates for revenue by 2.1% but missed the net profit estimate by 11.7% due to a flat Average Revenue per Occupied Bed (ARPOB) and a slight increase in occupancies. ARPOB increased to Rs 64,035, up 1.4% YoY, while occupancies improved by 70bps YoY. The low occupancies were primarily due to under-development hospitals. The stock appears in a screener for stocks with broker upgrades.

Analysts report that the company’s established hospitals are experiencing healthy annual volume growth of 7-8%, with a particularly strong performance over the past 2-3 months. While volume growth might slow after FY26 due to limited bed expansion, opportunities for bed optimization could still boost overall sales and EBITDA for these mature hospitals. The company, with a robust presence in northern and central India, currently has approximately 3,440 beds as of Q1FY25. by the end of FY25. The company’s management aims to grow their capacity to ~5,173 beds over the longer term. Area wise they plan to add 50 beds in Gurugram and Lucknow each, 150 beds in Patna, and 300 beds in Noida by the end of FY25. 

Motilal Oswal has maintained a “Buy” rating on Global Health, with a target price of Rs 1,380. The brokerage anticipates an 18% earnings CAGR from FY25-26. It notes that, while MEDANTA's ongoing efforts like expanding its operations in Lucknow and Patna, increasing bed capacity, and hiring additional clinical talent may lead to moderate earnings in FY25, robust earnings growth will follow from FY26 onwards.

5. JSW Infrastructure:

This port operator rose 7.4% over the past week after it approved a capital expenditure of Rs 2,359 crore for expanding capacity at its Jaigarh and Dharamtar ports. The expansion will boost the company's total cargo-handling capacity from 170 million tonnes per annum (MTPA) to 400 MTPA by 2030, with Jaigarh's capacity increasing to 70 MTPA and Dharamtar's to 55 MTPA. The Dharamtar port expansion focuses on handling increased cargo volumes from an anchor customer associated with a new 5 MTPA steel plant in Dolvi, Maharashtra.

JSW Infrastructure acquired a 70.4% stake in Navkar Corp for Rs 1,012 crore during Q1FY25. The company plans to become a complete logistics solutions provider by leveraging Navkar's existing resources, without requiring additional capital expenditure. CFO Lalit Singhvi said, "While the return on capital employed (ROCE) may see a temporary decline due to these investments, we expect it to recover to 18-19% in the long term as asset utilization improves and synergies with other group businesses come into play over the next 2-3 years.”

The company has outperformed the marine port services industry by 9.5% over the previous quarter. JSW Infra’s volumes grew 9% YoY to 27.8 million tonnes, despite its Dolvi plant shutdown. Singhvi explained that the 9% YoY growth was largely due to new acquisitions that were not part of the business last year. He also expects overall growth to be around 10-12% as the impact of these new assets fully reflects and existing operations continue to grow.

Jefferies initiates a ‘Buy’ on the firm with a target price of Rs 375, implying a potential upside of 13%. The brokerage believes the company’s recent entry into logistics through Navkar’s acquisition will drive significant growth. It expects JSW Infra's growth over 20% from current levels, with existing volumes showing strong capacity use.

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