1. Nazara Technologies:

ICICI Securities maintains a ‘Buy’ rating on this internet software company with a target price of Rs 1,080. This indicates an upside potential of 16.9%. Analysts Abhisek Banerjee and Jayram Shetty highlight its strong growth potential, supported by recent acquisitions, business expansion, and a solid market position in gaming, eSports, and ad-tech.

The company is expanding through acquisitions, including a 60% stake in indoor play center Funky Monkeys for Rs 43.7 crore, marking its entry into the physical entertainment gaming segment. It also acquired CATS: Crash Arena and King of Thieves from ZeptoLab for Rs 65.5 crore, strengthening its mobile gaming portfolio. Additionally, its eSports subsidiary, Nodwin Gaming, acquired esports events business StarLadder for Rs 46.8 crore, enhancing its global eSports leadership.

Banerjee and Shetty note that the investor interest remains strong, with Axana Estates investing ~Rs 495 crore for a 5.4% stake, alongside a public offer for an additional 26%. Management targets Rs 300 crore EBITDA by FY27, driven by scaling up its content library and expanding partnerships with game developers and publishers.

2. Marico:

Sharekhan retains its ‘Buy’ rating on this consumer goods manufacturer with a target price of Rs 780, indicating a potential upside of 25.4%. The company’s Q3FY25 revenue rose 15.4% YoY to Rs 2,794 crore due to growth in core categories such as coconut oil, hair oils, and premium refined edible oils, along with contributions from new business expansion, while its net profit increased 4.2% YoY to Rs 399 crore.

The analysts note that the domestic volume grew 6%, improving from 5% in Q2 and 4% in Q1. International sales rose 16%, driven by 20% growth in Bangladesh, 35% in the Middle East and North Africa, and 17% in South Africa. Operating profit rose, but operating margin fell 210 bps YoY to 19.1% due to higher copra and vegetable oil prices.

The company’s management believes that the consistent growth in the core portfolio, driven by brands like Parachute and Saffola, and over 20% growth in the foods and premium personal care portfolio, led by Saffola Oats, True Elements, Plix and Beardo. Additionally, a double-digit growth in the international business will help revenue expansion in the medium term. Analysts are optimistic about the company and expect a CAGR of 11.9% in revenue and 15.1% in net profit over FY25-27.

3. Federal Bank:

Emkay retains its ‘Buy’ rating on this bank with a target price of Rs 240, indicating an upside potential of 34.3%. Analysts Anand Dama and Nikhil Vaishnav highlight the bank’s efforts under new MD & CEO KVS Manian to strengthen its core and become a top private bank.

Dama and Vaishnav note that the bank has built a strong digital and physical network, a diverse loan portfolio, and stable leadership. The bank now aims to improve profitability with a return on assets (RoA) of 1.4-2.3% over the next 3-4 years and join top private banks like ICICI Bank and HDFC Bank. To achieve this, it is focusing on improving margins and asset quality.

Recently, the bank has taken steps such as deliberately slowing growth to manage liquidity and asset quality risks, increasing provisions for bad loans, and shifting auto loans to fixed rates to handle interest rate changes better. It plans to improve its CASA (current and savings account) ratio to 36% from 30% by FY28 by expanding in Tier-2 cities, attracting non-resident deposits, and offering wealth management services. 

4. Indus Towers:

Ventura initiates coverage on this telecom infrastructure company with a ‘Buy’ rating and a target price of Rs 450. This indicates a potential upside of 35.7%. The company’s net profit surged 2.6X YoY to Rs 4,003 crore in Q3FY25. This increase was mainly after Indus reversed a Rs 3,020 crore provision (previously set aside for doubtful payments from Vodafone Idea), bringing the total pending amount down to Rs 500 crore. Additionally, the company raised Rs 1,910 crore in Q3 by selling a pledged 3% stake held by Vodafone PLC.

The analysts highlight that 5G rollouts are driving demand for towers and co-locations. In Q3, Indus Towers added 4,985 macro towers and 7,583 co-locations. They note that growing 5G adoption will require more infrastructure to manage increasing traffic. Indus Towers is expanding its In-Building Solutions (IBS) portfolio, with small cell deployment in malls, airports, and stadiums to improve indoor coverage and network capacity.

The analysts expect the company’s tenancy ratio (average tenants per tower) to increase from the current 1.65X to 1.7X by FY27.

5. Ethos:

Axis Securities maintains a ‘Buy’ rating on this specialty retail firm with a target price of Rs 3,070, indicating a potential upside of 20.7%. A retailer of luxury watches and accessories, Ethos added five new stores in Q3FY25, bringing the total count to 73. The company’s management stated that it remains committed to expansion and aims to open six more boutiques by the end of FY25.

Ethos reported a 32% YoY revenue growth in Q3, reaching Rs 376 crore. EBITDA margins stood at 15.4%, down 42 bps, impacted by higher costs from hiring staff for new stores and rent for recently opened stores that are still in their early sales phase.

Analysts Preeyam Tolia and Suhanee Shome project the company's revenue to grow at a 34.5% CAGR over FY25-27, driven by a higher share of high-margin exclusive brands and expansion into luxury segments like luggage and jewellery. The company’s management aims for 10x revenue growth over the next decade.

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

(You can find all analyst picks here)