1. Bharti Airtel:
Geojit BNP Paribas reiterates its ‘Buy’ rating on this telecom services provider with a target price of Rs 1,711, indicating an upside of 9.7%. The company reported a net profit growth of 168% YoY to Rs 3,593.2 crore in Q2FY25. Revenue increased by 11.6% YoY to Rs 41,728 crore, helped by improvements in the Indian mobile services, Airtel business, and home services segments.
The analyst highlights that average revenue per user (ARPU) of the company has increased to Rs 233 from Rs 203 a year earlier, supported by recent tariff hikes. Airtel's customer base grew 4.3% YoY to 563 million. The company installed 5,000 additional towers and 15,200 mobile broadband stations, enhancing connectivity. The capital expenditure for the quarter stands at Rs 7,675 crore, with Rs 6,260 crore incurred in India and Rs 1,415 crore in Africa.
Geojit expects a CAGR of 13.4% in sales, 14.8% in EBITDA, and 40.7% in net profit over FY25-26.
2. Sansera Engineering:
ICICI Direct retains its ‘Buy’ rating on this auto parts & equipment company, setting a target price of Rs 2,000, indicating an upside potential of 29.3%. The company reported a net profit growth of 7.8% YoY to Rs 50.7 crore in Q2FY25, while revenue rose 10.6% YoY to Rs 767.2 crore during the quarter.
Analysts Shashank Kanodia, Manisha Kesari and Bhavish Doshi highlight the company’s strong order book which stands at Rs 2,010 crore as of Q2FY25 (vs Rs 1,930 crore in Q2FY24), with 51% from higher-margin segments like non-auto and auto tech agnostic parts. Around 60% of orders are from international markets. Sansera is focusing on diversifying its revenue mix, aiming to lower automotive internal combustion engine dependency from 73% to 60% and improve tech agnostic and non-auto sectors to 20% each. The management aims to grow the non-auto segment with a CAGR of 35-40%.
Kanodia, Kesari, and Doshi expect a CAGR of 17% in revenue, 22.3% in EBITDA, and 36.4% in net profit for the period FY25-27, with revenue anticipated to reach around Rs 4,500 crore by FY27.
3. Sky Gold:
Edelweiss maintains a ‘Buy’ rating on this gems & jewellery manufacturer with a target price of Rs 4,500, indicating an upside potential of 16.9%. In Q2FY25, the company reported a net profit growth of 4X YoY to Rs 36.7 crore. Its revenue rose 98.7% YoY to Rs 788.6 crore, due to the recent duty cut which led to a surge in footfalls during the quarter.
Analyst Palash Kawale highlights that strong festive demand and recent acquisitions supported overall volume growth of 38% YoY to 345 kg/month this quarter. Management plans to increase volumes through new clients and higher sales to existing customers. Exports reached Rs 69 crore in Q2FY25 from Rs 14 crore in Q2FY24, contributing 9%, and are expected to reach 10% by year-end. Margin gains from value-added products, along with the sale of mutual fund holdings and reinvestment of the proceeds into fixed deposits, drove profitability.
Commenting on the results, Kawale said, “Given its record of overachieving its targets in the past combined with management’s execution capabilities, we believe that Sky Gold can be a long-term growth story.” The analyst expects revenue, EBITDA, and net profit to grow by 53%, 61%, and 73%, respectively over FY25-27.
4. CESC:
Sharekhan maintains a ‘Buy’ rating on this electric utilities company with a target price of Rs 217, indicating an upside of 24.5%. CESC reported a net profit growth of 1.4% YoY to Rs 353 crore in Q2FY25, driven by strong performances in Haldia and Dhariwal. Dhariwal Infrastructure and Haldia Energy’s profits increased by 19% and 12%, respectively, reaching Rs 81 crore and Rs 74 crore helped by higher power generation. However, the growth was partially offset by the standalone business due to higher interest expenses. The company’s revenue rose by 2% to Rs. 4,819 crore.
CESC plans to commission 1.5 GW of solar and 1.7 GW of wind capacity by FY29, with transmission connectivity of both expected to be granted in Q3FY25. Currently, 3.2 GW of wind projects are in engineering, procurement & construction (EPC) mode with Inox Wind, Suzlon, and Ecoren. Additionally, CESC Projects, a subsidiary of CESC, plans to set up a 10,500 TPA Green Hydrogen facility within the next three years.
The company implemented a 5.7% tariff hike starting in June to recover fuel and power purchase adjustment costs. The analysts say, "The 5.7% tariff hike, along with renewable energy investments and the turnaround of the distribution business, will boost earnings." They expect the company’s revenue and net profit to grow by 7.5% and 11.5%, respectively, over FY25-27.
5. Lemon Tree Hotels:
IDBI Capital maintains its ‘Buy’ rating on this hotels company with a target price of Rs 145. This indicates a potential upside of 11.6%. Lemon Tree Hotels’ (LTH) management highlights that Aurika Mumbai targets over 60% occupancy in Q3, up from 50% in Q2, by focusing on high-rate international crew business, which offers higher average rates and more predictable demand.
Analysts Archana Gude and Sarthak Awasthi note, “We remain positive on LTH within the mid-scale hotels segment due to its operational scale and the opening of Aurika, Mumbai, which will further boost earnings." They believe the management's strong outlook on inventory expansion and debt repayment is encouraging despite margin challenges in FY25 due to cost escalations.
In Q2FY25, the company reported a revenue growth of 21% YoY to Rs 284.4 crore, beating Trendlyne Forecaster estimates by 1.6%. However, net profit fell 27% due to lower available rooms and higher expenses from ongoing renovations.
The management is upbeat about growth in H2FY25, with October-November showing 15% revenue and 20% EBITDA growth YoY, driven by increasing wedding and banquet demand, particularly from destination weddings and social events. They expect renovation spending in FY25 to be Rs 100-110 crore, with 60% focused on high-value properties like Delhi and Mumbai.
Note: These recommendations are from various analysts and are not recommendations by Trendlyne.
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