1. Jindal Stainless:

ICICI Securities maintains a ‘Buy’ rating on this steel manufacturer with a target price of Rs 760. This indicates an upside of 29.2%. Analysts Amit Dixit, Mohit Lohia, and Pritish Urumkar believe the new US tariffs, which apply to all countries, create a level playing field for Jindal Stainless (JSL) to compete in the US market. Additionally, unlike carbon steel players facing a 25% safeguard duty, there is no change in the stainless steel quota for Europe. As a result, they expect the company to maintain its market share in Europe while seeing higher volumes in the US.

The company's 1.2 million tonnes per annum (MTPA) greenfield stainless steel plant in Indonesia, developed with an investment of Rs 1,500 crore, is progressing as planned. JSL’s share in the project is Rs 715 crore, while Singapore’s New Yaking is the other partner. Upon completion, JSL’s total stainless steel capacity will expand from 3 MTPA to 4.2 MTPA.

Dixit, Lohia, and Urumkar believe the low capex required for the 1.2 MTPA project in Indonesia will help maintain JSL’s return on equity (RoE) at 16-18% in the near to medium term. They project the company’s revenue and net profit to grow at a CAGR of 12.6% and 14.6%, respectively, over FY25-27.

2. Bajaj Holdings & Investment:

Sharekhan maintains its ‘Buy’ rating on this holding company with a target price of Rs 14,346. This indicates an upside potential of 14.6%. Analysts highlight that Bajaj Holdings & Investment (BHIL) holds significant stakes in Bajaj Auto (34.21% stake) and Bajaj Finserv (39.03% stake).

Bajaj Finserv owns Bajaj Finance, Bajaj Allianz General Insurance, and Bajaj Allianz Life Insurance. Recently, Allianz SE has decided to divest its entire 26% stake in Bajaj Allianz Life and Bajaj Allianz General Insurance to Bajaj group companies. 

Bajaj Holdings & Investment will acquire a 20% stake in both life insurance and general insurance arms for Rs 18,553 crore, while Bajaj Finserv and Jamnalal Sons will acquire the remaining stake. The deal is expected to close by early FY26. Following the acquisition, the company may explore listing its insurance businesses, potentially unlocking value in the future.

Analysts note that BHIL’s performance depends upon the performance of its key group companies, which ultimately drive its valuations. With most of the key associates performing well, they expect a healthy outlook for all businesses to drive earnings growth, resulting in a healthy dividend income for the holding company.

3. Varun Beverages:

KRChoksey maintains its ‘Buy’ rating on this non-alcoholic beverages company, with a target price of Rs 657, indicating an upside potential of 27%. Analyst Dipak Saha highlights the company's strong CY24 performance was driven by 23.2% volume growth, a better product mix, and strategic acquisitions. Revenue rose 24.7% YoY to Rs 20,008 crore, while net profit increased 25.3% to Rs 2,634 crore.

The company's sales mix was dominated by Carbonated Soft Drinks (CSD), which contributed 74.2% to total sales, followed by packaged water and Juice-Based Drinks (JBD), which accounted for 19.6% and 6.2%, respectively. The company's net capex stood at Rs 4,500 crore, primarily for new plant setups in India and Africa.

Varun Beverages has now become net debt-free after repaying loans using QIP proceeds. Saha mentions that the company has expanded its partnership with PepsiCo, strengthening its snack segment with exclusive Cheetos chips manufacturing and distribution rights in Morocco, Zimbabwe, and Zambia. Additionally, it has increased its footprint in South Africa, Tanzania, and Ghana, further solidifying its presence in the African market.

4. Aurobindo Pharma:

BOB Capital Markets reiterates its ‘Buy’ rating on this pharma company with a target price of Rs 1,451. This indicates a potential upside of 21.4%. Aurobindo’s Eugia Unit 3 operated at over 70% peak capacity in FY24 but dropped to 50% in Q3FY25, leading to US injectable sales hitting an all-time low of $77 million. Analyst Foram Parekh expects capacity utilization to improve to ~65% in Q4 and exceed 70% in FY26, driving US injectable sales recovery to $100-125 million over the next two to three quarters.

The company's Pen-G plant in Andhra Pradesh is currently facing a loss of Rs 60 crore due to a slow ramp-up, and a temporary maintenance shutdown. Its production yield dropped to 170 tonnes per month. Parekh expects this to increase to 350 tonnes per month by the end of March 2025 and 650 tonnes per month in FY26.

Parekh believes increasing market share in the US, higher utilisation at Eugia Unit 3, improved yield at the Pen-G plant, and a strong pipeline of biosimilar products will drive growth. He projects the EBITDA margin to rise from 20.1% in FY24 to 22.4% by FY27.

5. Voltas:

Motilal Oswal maintains its ‘Buy’ rating on this air conditioner manufacturer with a target price of Rs 1,710, indicating a potential upside of 20.3%. The company's management notes that the current demand for room air conditioners (RAC) remains strong. Voltas aims to focus on market share by cutting costs instead of raising prices for profitability.

Analysts Sanjeev Singh, Mudit Agarwal, and Abhishek Sheth note that Voltas lost some market share in January 2025. The company is working to regain its position and expects improvements as production at its Chennai plant scales up. The plant is currently operating at 40-45% capacity and is expected to reach full capacity by FY26.

Singh, Agarwal, and Sheth highlighted that from April 2024 to January 2025, the industry grew 30% YoY, while Voltas' RAC volumes increased by 35% YoY. They expect strong demand for room air conditioners during the summer season of CY25 to boost the company’s growth in Q4FY25. Over the past year, the company's share price has risen by 33.5%.

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

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