1. Ipca Laboratories:

Motilal Oswal maintains a ‘Buy’ rating on this pharmaceutical company with a target price of Rs 1,980, indicating a potential upside of 13.5%. Analysts Tushar Manudhane, Akash Dobhada, and Viraj Shah highlight that after a muted performance in the US over the past eight years due to compliance issues, Ipca Labs is well-positioned to revive its US business. This will be supported by new product launches, relaunches, stable pricing in its base business, and the integration of the Unichem business over the next 12-24 months.

Ipca Labs has received 11 approvals from the US FDA in the 12 months ending September 2024. While the company has already shipped products to the US, it plans to file 15-17 more products over the next two years. The company also aims to enter the Chilean market, where the drug authority accepts US FDA-approved drugs without extra testing. Unichem’s strong presence in the US will help speed up approvals in Chile, significantly reducing the time needed for market entry.

Manudhane, Dobhada, and Shah expect a 52% CAGR in US sales for Ipca Labs over FY25-27, driven by improved process efficiency, new drug filings, and the integration of Unichem’s front-end operations. The company is also focusing on launching new divisions in high-growth therapies, such as cosmeto-dermatology and orthopedics.

2. Amara Raja Energy & Mobility:

Hem Securities reiterates its ‘Buy’ rating on this battery manufacturer with a target price of Rs 1,397. This indicates an upside potential of 16.2%. In Q2FY25, the company reported a revenue growth of 9.8% YoY to Rs 3,250.7 crore, driven by the lead-acid battery business.

Amara Raja Energy is focusing on cost reduction by increasing in-house manufacturing, with a tubular battery facility set to begin production by the end of FY25. Additionally, the company is improving lead refining operations at its Tamil Nadu plant, targeting a 2-3% improvement in lead recovery to reduce material costs. 

The business is expanding its lithium-ion battery and electric vehicle (EV) charger segments, having already invested Rs 850 crore, with plans for further investment of Rs 500-600 crore. The company plans to invest approximately Rs 1,200 crore in FY25 for the Giga Corridor and lithium-ion projects, with additional investments planned for FY26 to expand advanced chemistry cell manufacturing.

Analysts mention that the investments in electric vehicle (EV) and energy storage system (ESS) batteries position the company for future growth and expect a CAGR of 18.9% in net sales and 19.9% in net profit.

3. Man Infraconstruction:

Axis Securities maintains a ‘Buy’ rating on this Mumbai-based construction company with a target price of Rs 280, indicating an upside of 11.3%. Man Infraconstruction (MICL) recorded Rs 670 crore in collections for H1FY25, up 44% YoY from Rs 465 crore in H1FY24. Its pre-sales for the period totalled Rs 900 crore, driven by projects like Ghatkopar One Earth and Atmosphere in Mulund. MICL has achieved about 50% sales in the Ghatkopar ‘One Park’ project, with a potential revenue of Rs 1,200 crore. The company expects another Rs 500 crore in pre-sales in H2FY25.

MICL sold 3.2 lakh square feet of carpet area in Q2FY25, and its upcoming project pipeline is seen as promising by analysts. Upcoming developments include projects in Vile Parle, Malabar Hills, Dahisar and Pali Hill. Analysts Eesha Shah and Preeyam Tolia said, "These projects are expected to contribute Rs 3,500-4,000 crore to the topline. The company will continue focusing on an asset-light development strategy, with joint venture (JV) and development management (DM) projects in the upcoming pipeline."

Shah and Tolia believe the company is in a launching phase after making several acquisitions and will start realizing benefits in the upcoming financial year. They also note that the asset-light model has led to the highest profit margins in the industry, and are expected to grow further.

4. APL Apollo Tubes:

Sharekhan maintains its ‘Buy’ rating on this steel products manufacturer with a target price of Rs 1,850. This indicates a potential upside of 16.6%. Analysts note that domestic steel prices have improved and stabilized after a recent decline. They expect Q3FY25 earnings to improve due to higher steel prices and growth in volumes. However, the near-term outlook remains weak.

APL Apollo’s current capacity stands at 4.3 million tonnes per annum (MTPA) and is expected to increase to 5 MTPA by FY26. The company plans to set up three greenfield units in Uttar Pradesh (1.1 lakh tonnes per annum or LTPA), West Bengal (2 LTPA), and Karnataka (3 LTPA), along with brownfield expansions of 0.9 LTPA. Analysts expect the structural steel tubes market to grow at a 12% CAGR from 2023 to 2030, reaching around 17 million tonnes by 2030.

The analysts project APL to achieve a revenue CAGR of 24% and a net profit CAGR of 33% over FY25-27. They highlight that the management is sticking to its sales volume targets of 3.2 million tonnes for FY25, with further growth to 4 million tonnes in FY26 and 5 million tonnes in FY27.

5. Torrent Power:

Geojit BNP Paribas upgrades its rating to ‘Buy’ on this electric utilities company with a target price of Rs 1,709. This indicates an upside potential of 11.1%. In H1FY25, the company's revenue grew 13.4% YoY to Rs 16,210 crore, and net profit surged 38.8% to Rs 1,492 crore. However, Q2 net profit declined 8.5% YoY to Rs 481 crore due to weaker renewable and thermal generation, and lower electricity demand caused by extended monsoons.

Analyst Arun Kailasan noted that the company recently raised Rs 3,500 crore through its first Qualified Institutional Placement (QIP), which was oversubscribed 4X. Investors such as SBI Mutual Fund, Capital Group, Norges Bank, and Kotak Mutual Fund participated. The issue price was Rs 1,503 per share, and proceeds will be used to repay debt and to fund corporate expenses.

Kailasan expects expansion plans for over 4.3GW of renewable capacities in the next 3 to 4 years. He also expects EBITDA to grow by 18% CAGR in FY25-27, supported by strong addition to renewables portfolio and net profit to grow at a CAGR of 23.8% over the same period.

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

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