1. Awfis Space Solutions:
ICICI Securities maintains its ‘Buy’ rating on this consumer services company with a target price of Rs 1,049, indicating an upside of 44.7%. Awfis Space Solutions provides workspace rentals and enterprise workspace design and building services. The company has a pipeline of 150,649 seats, with over 110,000 operational as of September 2024. Analysts Adhidev Chattopadhyay and Saishwar Ravekar expect a modest increase in seat prices (4-5% like-to-like) over FY25–27, with steady occupancy of around 71% in its operational portfolio during this period, as new centres typically take 6-12 months to fully mature.
The analysts highlight that workspaces are increasingly integrating flexible office spaces into their portfolios as part of “Core + Flex” strategies. According to a survey, ~30% of respondents plan to expand their presence in flexible office spaces over the next 12 months. Chattopadhyay and Ravekar said, "We estimate the company will achieve a 31% revenue CAGR over FY25–27, driven by seat expansion. Additionally, we expect EBITDA margin to rise to 14.6% by FY27, up from 9.2% in FY24, as the non-seat revenue increases and cost-optimisation initiatives in existing centres take effect."
2. Oberoi Realty:
Axis Direct initiates a ‘Buy’ rating on this realty company with a target price of Rs 2,560, indicating an upside potential of 10.2%. Oberoi Realty is a major real estate developer in Mumbai, active in residential, retail, hospitality, and social infrastructure projects, and in the luxury and ultra-luxury real estate market.
The analysts Eesha Shah and Preeyam Tolia highlight that the company plans to expand into key markets such as Delhi NCR, where rising demand for premium properties is an opportunity for high-end projects. The company has around 17.2 million sq ft of upcoming projects in MMR and Delhi region. The analysts note that the company has completed over 35 projects and holds a portfolio of ~30 Mn sq ft of ongoing and future developments. The company is expected to achieve a pre-sales CAGR of 25% between FY25-27.
Shah and Tolia expect a CAGR of 17.8% in net sales and 20.2% in net profit over FY25-27. Additionally, they also expect collections to grow at a CAGR of 20% over the same period.
3. PNB Housing Finance:
Motilal Oswal reiterates its ‘Buy’ rating on this housing finance company with a target price of Rs 1,160, indicating an upside potential of 36.4%. Analysts Abhijit Tibrewal, Nitin Aggarwal and Raghav Khemani highlight that the company is shifting its loan mix toward higher-yield emerging and affordable housing segments. These segments now account for 23% of its portfolio, up from 18% in March 2023.
This shift is driven by leveraging the Credit Linked Subsidy Scheme (CLSS) scheme under the Pradhan Mantri Awas Yojana (PMAY), which is expected to improve yields and expand net interest margins (NIMs). The analysts also note that the company plans to open 15 new branches in the affordable housing segment during FY25. Further, they target to add around 50 new branches every year from FY26 onwards.
Tibrewal, Nitin Aggarwal and Raghav Khemani believe the company is well-positioned to navigate the headwinds in net interest margin (NIM) growth and further offset it with an improvement in product mix. They expect the firm's revenue to grow at a CAGR of 26.6% over FY25-27, with the loan book expanding at ~18% CAGR and net profit at ~23% CAGR over the same period.
4. Bharat Forge:
Geojit BNP Paribas upgrades its rating to ‘Buy’ on this industrial products manufacturer with a target price of Rs 1,558. This indicates an upside of 18.6%. In H1FY25, the company's revenue grew 2% YoY to Rs 7,795 crore, while net profit increased significantly by 32.1% to Rs 598 crore. EBITDA margin improved by 190 bps to 17.8%, driven by a favorable product mix and strong domestic business performance.
Bharat Forge’s (BFL) capital expenditure (capex) for the first half of the year totalled Rs 820 crore, primarily focused on US operations and investments in the EV business. Analyst Antu Thomas expects the EV segment to achieve EBITDA break-even in the next two to three quarters, despite the current slowdown in Europe.
The company secured new orders worth approximately Rs 646 crore in H1, contributing to a total order book of Rs 2,200 crore, primarily from defence. Thomas expects continued growth in the defence order book, which should help expand margins, along with long-term improvements in overseas operations strengthening BFL’s stability.
5. Lumax Auto Technologies:
Sharekhan reiterates its ‘Buy’ rating on this small cap auto parts & equipment manufacturer with a target price of Rs 767, indicating an upside potential of 23.6%. Lumax Auto Technologies (LATL) has entered the CNG segment by acquiring a 60% stake in Greenfuel Energy Solutions for Rs 153.1 crore.
The analysts say that this acquisition will provide access to the growing green fuels market, including CNG, hydrogen, and related technologies. The deal is expected to generate annual revenue of Rs 300-350 crore with a CAGR of 25-30% for the next few years. They also highlight that LATL’s order book has reached Rs 1,050 crore in Q2FY25, with 40% dedicated to EV models.
The analysts believe the company is focusing on increasing content per vehicle, pursuing joint ventures and acquisitions to introduce new product categories, and strengthening partnerships with original equipment manufacturers (OEMs). LATL is also investing in research and development for advanced technologies such as autonomous driving assistance, electronics integration, and Human-Machine Interface. As a result, they expect a CAGR of 12.9% in revenue for FY25-27.
Note: These recommendations are from various analysts and are not recommendations by Trendlyne.
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