1. Aadhar Housing Finance:

ICICI Securities maintains a ‘Buy’ rating on this housing finance company with a target price of Rs 550. This indicates a potential upside of 24.8%. Analysts Renish Bhuva, Chintan Shah, and Palak Bhatt highlight the company’s strong focus on geographical diversification. Unlike many mortgage players, where over 30% of assets under management (AUM) come from a single state, Aadhar Housing Finance (AHF) stands out with no single state contributing more than 15% of its AUM.

The company’s AUM stands at Rs 22,800 crore as of September 2024 which is among the highest in its listed peer group. AHF’s management reported minimal borrowings from the National Housing Bank (NHB) in H1FY25 but expects significant borrowing in H2FY25, which is likely to keep the cost of funds (CoF) in the range of 8.1-8.2%.  

Bhuva, Shah, and Bhatt note that AHF strategically targets the salaried segment beyond tier-2 cities, focusing on low-ticket loans under Rs 15 lakh. Aadhar’s early entry into underserved markets and focus on the formal salaried segment has helped its lending business. They expect AUM to grow at a CAGR of 20.8%, reaching Rs 31,046.2 crore by FY26.

2. The Ramco Cements:

ICICI Direct maintains a ‘Buy’ rating on this cement & cement products manufacturer with a target price of Rs 1,130, indicating an upside of 8.6%. The Ramco Cements is primarily based in South India, with around 84% of its cement capacity located in Tamil Nadu and Andhra Pradesh, while the remainder is in the East. The company added 4.6 million tonnes per annum (MTPA) of capacity between FY23 and H1FY25, bringing its total capacity to 24 MTPA, with plans to expand to 30 MTPA by FY26.

The company’s volume growth declined by 0.6% YoY in H1FY25, impacted by elections, monsoon, an extended heatwave, and pressure on cement prices. However, analysts Vijay Goel and Ankit Shah expect a recovery in sales volumes in H2, driven by capacity additions and stronger demand in key markets such as Tamil Nadu, Karnataka, and Andhra Pradesh. They believe that Ramco’s focus on expanding capacities at existing locations will support its market share growth.

The company has monetised Rs 376 crore of non-core assets during September-October 2024, aiding debt reduction and to support Rs 1,200 crore capex planned for FY25. Goel and Shah project a 12% revenue CAGR and a 64% net profit CAGR over FY25-27.

3. Lloyds Metals and Energy:

Anand Rathi initiates a ‘Buy’ rating on this mining firm with a target price of Rs 1,260, indicating an upside of 17.8%. Lloyds, the only iron ore miner in Maharashtra, holds around 157 million tonnes of extractable iron ore. Analysts Parthiv Jhonsa and Prakhar Khajanchi note that the company’s Surjagarh mine, awarded through an allocation route, exempts it from paying a premium to the government, making it one of the most cost-competitive miners in India.

Lloyds Metals and Energy is establishing integrated steel facilities in Ghughus and Konsari, set to begin operations between FY27-29. The company is also constructing a 10-million-tonne, 85km slurry pipeline between Hedri (pumping station) and the Konsari plant. This pipeline is expected to deliver benefits from FY26 and will save around Rs 600 crore annually when fully utilised.

In Q2FY25, Lloyds’ revenue grew by 25% YoY to Rs 1,364.4 crore, surpassing Trendlyne’s Forecaster estimates by 12.5%. However, its EBITDA margin declined by 130 bps to 24.9%, but analysts remain positive about margin growth. Jhonsa and Khajanchi said, “The company’s strong presence in Maharashtra and the development of integrated steel plants are expected to improve margins. Additionally, the construction of a slurry pipeline is likely to further drive up the EBITDA margin.”

4. Hindustan Unilever:

Motilal Oswal reiterates its ‘Buy’ rating on this personal products company with a target price of Rs 3,100, indicating an upside potential of 25.8%. In Q2FY25, the company reported a revenue growth of 2.1% YoY to Rs 16,145 crore, driven by the home care and beauty & wellbeing segments.

Despite a muted quarter for FMCG overall, analysts Naveen Trivedi and Tanu Jindal highlight that the company has a pipeline of innovative products in skin care and home care, aimed at capturing additional market share in the premium segment. The company is focusing on offering more premium products in beauty & wellbeing (B&W) and foods & refreshments (F&R) segments. HUL has a vast distribution network of 9 million outlets. Its Shikhar app services 1.4 million outlets, handling 50% of traditional trade demand. 

The analysts said, “The company remains focused on volume-led growth, complemented by low single-digit price hikes to offset raw material pressures.” HUL has achieved 30% ecommerce CAGR over the past three years.

Trivedi and Jindal note that the company aims for strong turnover growth by increasing volume, offering premium products, and changing its portfolio in B&W and F&R. They expect a CAGR of 7% in sales, 8% in EBITDA, and 9% in net profit over FY25-27.

5. Anant Raj:

Emkay initiates a ‘Buy’ rating on this realty company with a target price of Rs 925, indicating an upside potential of 28.1%. In Q2FY25, the company reported a net profit growth of 75.7% YoY to Rs 105.6 crore and revenue rose 54.3% to Rs 512.9 crore.

Analysts Ashwani Sharma, Harsh Pathak and Chinmay Kabra note that the company owns 220 acres of land, with approximately 120 acres of land yet to be developed. Also, the company has around 101 acres of land bank in Delhi which has a development potential of around 12 million square feet (msf), supporting its ability to launch new projects. The company plans to increase its data center and cloud capacity to 307 megawatts (MW) in the next 4-5 years, up from the current 6 MW. 

Sharma, Pathak and Kabra expect multifold growth in this segment, driven by digital adoption, 5G expansion, better optic fiber networks, and government efforts on data protection. They project residential sales to grow at a CAGR of 18%, reaching Rs 4,600 crore. This, they say, will drive collections to grow at a CAGR of 39%, reaching Rs 2,630 crore between FY25-27, leading to a strong cash flow for the company.

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

(You can find all analyst picks here)