1. DLF:
Edelweiss maintains its ‘Buy’ rating on this Delhi-based realty company with a target price of Rs 1,040. This indicates an upside potential of 36.5%. In Q3FY25 its net profit grew 61.2% YoY to Rs 1,058.7 crore, helped by a deferred tax credit of Rs 820.3 crore and increase in revenue from its subsidiaries and joint ventures (JVs). Revenue increased by 5.7% YoY to Rs 1,737.5 crore, thanks to an improvement in new sales bookings.
Analysts Amit Agarwal and Akhil Lalchandani highlight a 34% YoY increase in pre-sales to Rs 12,093 crore, driven by strong demand and festive season buying. The company plans four launches in Q4, covering 9 million square feet (msf) with a gross development value (GDV) of Rs 44,100 crore. It also aims to launch 28 msf (Rs 70,400 crore) after FY25, bringing total planned launches over the next four years to 37 msf (Rs 114,500 crore).
Agarwal and Lalchandani are optimistic about the company driven by strong sectoral tailwinds, an extensive launch pipeline, and expansion of its annuity portfolio. They expect a CAGR of 9.1% in revenue and 15.3% in net profit over FY25-27.
2. Sumitomo Chemical India:
Anand Rathi maintains a ‘Buy’ rating on this agrochemicals company with a target price of Rs 630, indicating an upside of 20.2%. The company’s revenue grew 18.4% YoY to Rs 642 crore in Q3FY25, largely driven by a 54% increase in exports. Analyst Himanshu Binani points out that stable raw material prices, liquidation of high-cost stocks from previous quarters and a better product mix led to a 240 bps YoY rise in gross margin.
Sumitomo Chemical’s management highlighted that the domestic rainfall patterns (with more rain and uneven distribution) and disrupted spraying activities impacted offtake in Q3. However, for the rabi season in Q4, better soil moisture and higher reservoir levels offer a positive outlook. The company is focusing on improving collections and maintaining receivable days at 93, similar to last year. Its payable days increased from 78 to 89 during Q3. Binani expects the company to achieve revenue and net profit CAGR of 18% and 21%, respectively, over FY25-27.
3. Ami Organics:
KR Choksey upgrades its rating to ‘Buy’ on this pharma company with a target price of Rs 2,613. The stock has limited upside left, with just 0.7% remaining, as it hit a 20% upper circuit on January 29 after announcing its Q3 results. It has surged 29.2% in the last six sessions following the management’s upward revision of its FY25 revenue growth forecast to 35% from 30%.
In Q3FY25, the company’s revenue grew 65.2% YoY to Rs 275 crore, driven by an 86% increase in the advanced intermediates segment. Gross margins improved by 333 bps to 46.2%, thanks to a shift to higher-value pharma intermediates and contract development and manufacturing organisation (CDMO) products.
Ami Organics’ capex for 9MFY25 stood at Rs 118 crore, mainly directed towards the Ankleshwar site, as well as solar and electrolyte additive projects. The company is ramping up utilisation at Ankleshwar. Analyst Dipak Saha highlights that the Ankleshwar facility has helped optimise costs through better production efficiency and savings from solar power, boosting margins. Additionally, the company plans to develop a 4,000 metric tonne capacity for electronic additives, which is expected to impact revenue and margins.
Saha expects revenue to grow at a 28.7% CAGR and net profit at a 54.2% CAGR over FY25-FY27.
4. Westlife Foodworld:
Axis Direct maintains its ‘Buy’ rating on this restaurants chain with a target price of Rs 870. The stock has met its target post-budget by rising 20%, driven by expectations of increased footfalls and dining out due to income tax relief and higher disposable income.
Westlife Foodworld added 15 new stores in Q3FY25, bringing its total to 421 restaurants across 67 cities by December 2024. The company is focusing on expanding its presence in south India, along with smaller towns, and enhancing drive-thru options. It aims to open 45-50 new stores annually.
Analysts Preeyam Tolia and Suhanee Shome said, “We believe that the strategic initiatives outlined in Vision 2027 to drive the company’s growth trajectory remain intact, such as expanding the fast-growing categories and targeting 580-630 store openings by CY27.”
During Q3FY25, Westlife’s revenue grew by around 9% YoY, with same-store sales growth (SSSG) increasing by 2.8% YoY, driven by higher footfalls and consistent spending per customer. Tolia and Shome are optimistic about the long-term prospects for the quick service restaurant (QSR) industry, supported by rising disposable income and a growing dining-out culture. They expect Westlife’s revenue to grow at a CAGR of 16% over FY25-27.
5. Aditya Birla Sun Life AMC:
Motilal Oswal maintains its ‘Buy’ rating on this asset management company with a target price of Rs 850, indicating an upside potential of 24.8%. The company reported a net profit growth of 7.2% YoY to Rs 224.5 crore in Q3FY25. Revenue rose 30.4% YoY to Rs 445.1 crore, driven by an increase in quarterly average assets under management (QAAUM).
Analysts Prayesh Jain, Nitin Aggarwal, Muskan Chopra and Kartikeya Mohata note that systematic investment plan (SIP) inflows climbed 38% YoY to Rs 1,380 crore, supported by a nearly threefold growth in new SIP registrations to 670,000. About 95% of SIPs have a tenure of over five years, and 89% exceed ten years. They mention that in the coming quarter, the company plans to aggressively promote its new Global Blue Chip fund through GIFT City.
Jain, Aggarwal, Chopra, and Mohata say yields will improve slightly, mainly in the debt segment, due to higher expense ratios in some schemes. They believe the company's profitability will grow from its expanding alternate business, and a shift toward longer-duration debt funds. They expect a CAGR of 14.7% in average assets under management (AAUM) and 13.5% in net profit over FY25-27.
Note: These recommendations are from various analysts and are not recommendations by Trendlyne.
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