1. United Breweries:
Anand Rathi maintains its ‘Buy’ rating on this breweries & distilleries company with a target price of Rs 2,610, indicating a potential upside of 29%. Telangana recently announced a 15% price hike on beer, following a pause in supply from UB. The company had suspended supplies to Telangana Beverages Corp due to losses from unchanged base prices for two years. The state's price hike now enables the company to resume sales with better margins.
United Breweries holds a 70% market share in Telangana's beer market, contributing around 15% to its revenue. Analyst Ajay Thakur expects a 2% rise in revenue and a 200 bps improvement in margins due to this price hike.
United Breweries is focusing on cost-saving initiatives, some of which will incur upfront costs in FY25. Thakur highlights that these efforts are expected to result in annual fixed cost savings of 1.5–3%. Thakur projects a 380 bps expansion in EBITDA margin from these.
Thakur also expects a strong start to seasonal sales, as reports suggest a hot summer. He said, “Last year, multiple election phases negatively impacted the sales of beer and alcoholic beverages, but this won’t be the case this time, allowing for better capture of seasonal demand.” He has factored in an 11.5% revenue CAGR over FY25-27.
2. Fortis Healthcare:
Prabhudas Lilladhar maintains a ‘Buy’ rating on this healthcare facilities company with a target price of Rs 760, indicating an upside potential of 25.8%. The company’s Q3FY25 net profit rose 84.1% YoY to Rs 247.9 crore, aided by a Rs 23.5 crore exceptional gain from the sale of its Richmond Road facility in Bangalore in December 2024. Revenue increased 14.8% YoY to Rs 1,928.3 crore.
Analysts Param Desai and Sanketa Kohale highlight that the hospital business revenue grew 17% YoY to Rs 1,620 crore, supported by higher occupancy and an improved average revenue per occupied bed (ARPOB). Occupancy rose to 67% from 64% in Q3FY24, while ARPOB increased 10% YoY to Rs 67,100, driven by a favorable case mix and price revisions in February 2024.
The analysts note that the company plans to add 400 brownfield beds at Fortis Memorial Research Institute, Faridabad, and Noida by FY26. Of its 350 planned greenfield beds in Manesar, 50 are operational, with another 50 expected by March 2025. Management targets 350-400 brownfield bed additions annually for two years. Desai and Kohale expect a CAGR of 13.2% in sales, 19.7% in EBITDA, and 21.7% in net profit over FY25-27.
3. Eicher Motors:
Emkay maintains a ‘Buy’ rating on this motorcycle manufacturer with a target price of Rs 6,100. This indicates an upside potential of 29.3%. Eicher Motors’ Q3FY25 net profit grew 17.5% YoY to Rs 1,170.5 crore. Revenue increased 18.7% YoY to Rs 5,261.9 crore, helped by higher two-wheeler and commercial vehicle sales.
Analysts Chirag Jain, Jaimin Desai and others note the company achieved 17% volume growth in Q3FY25, outperforming the industry, thanks to new product launches like the Battalion Black Edition of the Classic 350 and Hunter 350. Royal Enfield’s domestic motorcycle market share increased to 8%, a 1.1% YoY rise. Eicher Motors also increased brand awareness with targeted marketing spends (~Rs 70 crore), which helped drive demand.
The analysts highlight that the company expects to reduce discounts and increase prices due to new emission rules (OBD2 Phase B), which require higher manufacturing costs. With strong government capex support, the company is on track to meet its FY25 capex target of Rs 1,000 crore. They expect a CAGR growth of 12.8% in revenue, 13.9% in net profit, and 8.9% in Royal Enfield volumes over FY25-27.
4. Va Tech Wabag:
Axis Direct maintains a ‘Buy’ rating on this non-electrical utilities firm with a target price of Rs 1,970. This indicates a potential upside of 51.7%. The company has secured new orders worth over Rs 2,781 crore in Q3FY25, taking its total order book to around Rs 14,200 crore. It also recently won a Rs 3,251 crore consortium order for the Al Haer Independent Sewage Treatment Plant in Saudi Arabia. Analysts Sani Vishe and Shivani More expect the company to surpass its Rs 16,000 crore order book target by the end of FY25.
The company reported a 15% YoY growth in revenue to Rs 811 crore in Q3. EBITDA margin stood at 12.4%. The company’s management noted that margins were lower during the quarter due to project-specific variations, but expects improvement in the medium term. EBITDA margins are projected to be in the 13-15% range, possibly exceeding the upper limit. They are confident of a stronger performance in Q4, as it is typically the best quarter of the year in terms of performance.
Vishe and More are upbeat about Va Tech's focus on expanding its share of higher-margin international, industrial, and operations and maintenance (O&M) contracts. They believe the company's strong order book, which provides revenue visibility for the next 3-4 years, particularly from international projects, will help it achieve its targeted margins.
5. EPL:
Motilal Oswal reiterates its ‘Buy’ rating on this packaging firm with a target price of Rs 300. This indicates a potential upside of 20.8%. In Q3FY25, the company’s revenue grew 4% YoY to Rs 1,010 crore. EBITDA margin increased by 107 bps to 19.9%, helped by better margins in the Americas and Europe. The company’s management expects these strong margins to continue, supported by demand in Brazil, which is prompting the company to accelerate its capacity expansion in the region.
Analysts Sumant Kumar, Meet Jain, and Nirvik Saini noted that potential tariffs do not impact the company’s US operations as it manufactures locally and sources laminates from India. If China faces trade restrictions, EPL could gain market share. Additionally, EPL is establishing a beauty & cosmetics manufacturing facility in Thailand to improve delivery speed and localization. The company is targeting a market of 150 crore units annually and plans to expand into Indonesia, Vietnam, and Malaysia.
The company’s Q3 financials were impacted by currency devaluation in Brazil and Egypt. However, the management expects forex fluctuations to balance out over time, and anticipates some reversal of forex losses in Q4.
Note: These recommendations are from various analysts and are not recommendations by Trendlyne.
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