1. State Bank of India:

Sharekhan maintains its ‘Buy’ rating on this bank with a target price of Rs 980, indicating a potential upside of 33%. State Bank of India expects 14-15% YoY loan growth over the next few quarters. The bank sees growth in personal loans picking up, as the recent slowdown was mainly due to stricter credit approval standards. It has a strong corporate loan pipeline of Rs 4.8 lakh crore.

The analysts highlight that the bank's asset quality remains stable, with a net NPA of 0.5% and no major signs of loan stress. They expect credit costs to gradually normalize unless a major economic downturn occurs.

The bank expects net interest margins (NIMs) to remain around 2.9-3% over the next few quarters. The analysts note that the impact of rate cuts on net interest margins should be limited, as only about 28% of the loan book is linked to the repo rate, and the rate cut cycle is expected to be shallow.

2. Tata Consumer Products:

Geojit BNP Paribas upgrades its rating to ‘Buy’ on this tea & coffee company with a target price of Rs 1,067. This indicates a potential upside of 12.7%. In Q3FY25, the company’s revenue grew 16% YoY, helped by strong growth in the domestic tea segment. However, its net profit remained flat at Rs 285 crore, mainly due to amortization costs of around Rs 60 crore for the acquisitions of Capital Foods and Organic India. Higher interest costs also impacted profitability.

Tata Consumer Products has focused on premium offerings with new launches such as Tata Tea Premium Care, Tetley Instant Green Tea Ready Mix, and Monsoon Malabar Coffee. The analysts are positive about the company’s focus on premiumization and expansion into new channels like food services and pharma. They believe this strategy will support growth and estimate a revenue CAGR of 11% over FY25-27.

3. Tata Communications:

Coming to yet another Tata pick by analysts - ICICI Securities upgrades its rating to ‘Buy’ on this telecommunications company with a target price of Rs 1,840. This indicates an upside potential of 22.2%. The upgrade follows a stock price decline due to short-term revenue weakness, making valuations attractive. 

Analysts Sanjesh Jain, Mohit Mishra and Aparajita Chakraborty highlight that Tata Communications faced challenges in FY24, including a cable cut in the Red Sea and slow order book growth. However, with the Red Sea issue resolved and strong double-digit order book growth in FY25, revenue is expected to improve.

The analysts mention that the company is expanding its digital services portfolio, with a focus on cloud and AI-driven solutions. Digital services revenue is expected to grow at a 17% CAGR over FY25-27, driven by new product launches such as AI Studio and GPU-as-a-Service. Large deal executions are expected to accelerate revenue from Q4FY25, with digital services likely to break even at the EBITDA level by FY27. The company also plans a Rs 5,500 crore capital expenditure over FY25-27, for network expansion and fiber replacement.

4. Venus Pipes & Tubes:

Anand Rathi retains a ‘Buy’ rating on this small cap pipes & tubes manufacturer with a target price of Rs 1,700, indicating an upside potential of 30.9%. The company expanded its production capacity 4.1X over five years to 38,400 tons, during which its market share grew from 3.6% to 6.2%. It is now increasing its capacity to 46,800 metric tons by adding high-grade stainless steel and titanium-welded tubes, fittings, and seamless pipes.

Analysts Parthiv Jhonsa and Prakhar Khajanchi highlight that Venus Pipes has improved its backward integration by producing 14,400 tons of mother hollow pipes, reducing its reliance on external suppliers. Its Rs 180 crore capex plan includes new seamless pipe and tube lines, fittings, and a 4,800-ton piercing line, funded through warrants, long-term debt, and internal accruals.

Jhonsa and Khajanchi expect revenue, EBITDA, and net profit to grow at a CAGR of 24%, 26%, and 28%, respectively, over FY25-27, driven by expanded capacity, improved backward integration, rising domestic market share, and surging exports, which have grown 36 times since FY20 and now contribute 32.2% of revenue.

5. Supreme Industries:

BOB Capital Markets maintains a ‘Buy’ rating on this plastic products manufacturer with a target price of Rs 5,150. This indicates an upside potential of 50.5%. The company signed a memorandum of understanding with Wavin Industries to acquire its Indian piping and fittings business for $30 million (approximately Rs 260 crore) plus net working capital. The acquisition includes exclusive access to Wavin BV’s existing and future technologies for India and SAARC countries for seven years.

Analyst Utkarsh Nopany notes that Wavin, a subsidiary of the Netherlands-based Orbia Group, entered India’s plastic pipe market in 2017 and operates three plants with a total capacity of 73,052 metric tons per annum (TPA). He also mentioned that this acquisition will expand Supreme Industries’ piping capacity from 820,000 TPA in December 2024 to 973,000 TPA by June 2025, improving its presence in North and South India. Nopany expects a CAGR of 16.2% in revenue and 22.5% in net profit over FY25-27.

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

(You can find all analyst picks here)