1. Persistent Systems:
Motilal Oswal reiterates its ‘Buy’ rating on this IT consulting firm with a target price of Rs 7,600. This indicates an upside potential of 28.6%. In Q3FY25, the company reported a net profit growth of 14.8% QoQ to Rs 373 crore. Revenue rose 5.5% QoQ to Rs 3,104.9 crore, led by improvements in the banking, financial services & insurance (BFSI), healthcare & life sciences, and hi-tech segments.
Analysts Abhishek Pathak, Keval Bhagat, and Tushar Dhonde highlight that the company targets a revenue of $2 billion (~Rs 17,302 crore) by FY27 and $5 billion (~Rs 43,255 crore) by FY31. To achieve this, it plans to strengthen relationships with its top 100 clients, diversify into new areas like private equity, and develop 12-15 growth engines within three main verticals.
Pathak, Bhagat, and Dhonde expect a growth of 24.2% YoY in revenue, 27.3% YoY in EBIT, and 22.9% YoY in net profit for Q4FY25, with BFSI and Hi-Tech to be the fastest-growing sectors. They also expect a CAGR of 20.1% in sales and 23.4% in net profit over FY25-27.
2. V2 Retail:
Edelweiss maintains a ‘Buy’ rating on this department stores company with a target price of Rs 2,230. This indicates an upside potential of 25%. In Q3FY25 the company’s net profit rose 1.2X YoY to Rs 51.2 crore. Revenue grew 58.1% YoY to Rs 590.9 crore, driven by higher same-store sales growth and footprint expansion.
The company added 21 new outlets in the quarter, bringing its total store count to 160 as of Q3. Its retail footprint now covers approximately 17.2 lakh sq ft, a 51% YoY growth. Analyst Palash Kawale highlights that the management plans to open 20-25 more stores in Q4 which will take its FY25 store additions to around 70. He mentions that the company aims to be a national level value retail player in the next 4-5 years, with plans to add 100 stores in FY26 and focusing 80% of these additions in existing states.
Kawale expects a CAGR of 44.1% in revenue, 54.3% in revenue and 82.1% in net profit over FY25-27 on aggressive store additions, reaching 282 stores by FY27.
3. Polycab India:
BOB Capital Markets upgrades its rating to ‘Buy’ on this electrical equipment company with a target price of Rs 8,090. This indicates an upside potential of 42.6%. In Q3FY25 its net profit grew by 10.8% YoY to Rs 457.6 crore. Revenue rose 20.4% YoY to Rs 5,226.1 crore, driven by growth in wires & cables, and fast-moving electrical goods (FMEG).
Analyst Arshia Khosla points out that the international business saw a 62% YoY growth, contributing 8.3% to the company’s overall revenue. He notes that the company has introduced project Spring, which sets targets for FY30. These include growing its wires and cables business 1.5X faster than the industry and achieving domestic EBITDA margins of 11-13%. Additionally, it aims to expand international business share to 10% of total sales, helped by capital expenditure of Rs 6,000-8,000 crore over five years.
Khosla expects revenue to grow at a CAGR of 18.2% and net profit at 22.6% from FY25-27. The stock is in the PE Sell Zone, currently trading above its historical PE.
4. Karur Vysya Bank:
Emkay reiterates its ‘Buy’ rating on this bank with a target price of Rs 325, indicating a potential upside of 44.5%. In Q3FY25, Karur Vysya Bank (KVB) reported a credit growth of 14.6% YoY, driven by growth across most segments. However, its corporate loan book declined by ~5% due to planned reductions in low-yielding loans. Net interest margin (NIM) fell by 29 bps to 4%, mainly due to slower growth in high-yield segments like personal loans (PL), vehicle finance (VF), and microfinance (MFI), along with higher cost of funds (CoF).
KVB’s gross non-performing asset (GNPA) ratio improved by 75 bps YoY to 0.8%, thanks to lower gross slippages, higher write-offs, and better recoveries. Analysts Anand Dama, Nikhil Vaishnav, and Kunaal N highlighted that the bank’s MFI book of Rs 350 crore is mostly in Telangana, Andhra Pradesh, Karnataka, and Tamil Nadu, and has not seen any significant decline in quality. Additionally, the bank is setting aside funds to manage any potential risks to its assets, with a contingency buffer of Rs 100 crore and floating provisions of Rs 75 crore.
KVB is in the PE Buy Zone, currently trading below its historical PE. Dama, Vaishnav, and Kunaal expect the bank to maintain a return on assets (RoA) of 1.7% and a return on equity (RoE) of 17-18% over FY25-27.
5. Dalmia Bharat:
Axis Direct maintains a ‘Buy’ rating on this cement products manufacturer with a target price of Rs 2,000. This indicates a potential upside of 10.3%. The company's performance in Q3FY25 was affected by a 2% YoY decline in volume, leading to a 540 bps drop in its EBITDA margin.
However, the management expects Dalmia’s cement grinding capacity to increase to 49.5 million tonnes per annum (MTPA) by FY25, up from the current 46.6, which should support volume growth. Analysts Uttam Srimal and Shikha Doshi say, “We expect the company to achieve a 7.5% CAGR in volume growth over FY25-26.”
Dalmia Bharat highlighted that cement prices remained steady in Q3, with its management expecting a slight hike in Q4FY25. However, they ruled out any significant price increases due to heightened competition. To address performance declines, the company aims to reduce costs by Rs 150-200 per tonne over the next two years by improving operating efficiency.
Srimal and Doshi are optimistic about strong demand from infrastructure development, driven by large-scale projects and affordable housing initiatives. They project revenue to grow at a CAGR of 5% and net profit at 13% over FY25-26.
Note: These recommendations are from various analysts and are not recommendations by Trendlyne.
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