1. Indian Hotels Company:
Motilal Oswal reiterates its ‘Buy’ rating on this hotel company with a target price of Rs 950, indicating an upside potential of 13.9%. Analysts Sumant Kumar and Meet Jain highlight that the room addition through management contracts grew 18% CAGR from FY19-24, compared to just 2% for owned hotels.
The analysts note that Ginger Hotels, run by its subsidiary Roots Corp, has delivered 13% revenue CAGR and 55% EBITDA CAGR over the same period. By FY27, the company plans to add 874 new rooms under the Ginger brand. Overall, Indian Hotels plans to add nearly 8,000 rooms by FY27, with over 85% of these through management contracts.
The company is focusing on its premium verticals like The Chambers and Taj SATS, whose contribution to total revenue is projected to rise to 12-14% by FY30 from the current 2%. The company is also increasing its stake in its international and domestic subsidiaries like PIEM Hotels, International Hotel Operating Company BV (IHOCO BV), and Taj Cape Town to gain better control and align them with its growth plan. Kumar and Jain expect the company to clock a CAGR of 18% in revenue, 24% in EBITDA, and 26% in net profit over FY25-27.
2. Zydus Lifesciences:
Geojit BNP Paribas upgrades its rating to ‘Buy’ on this pharma company with a target price of Rs 975, an upside of 14.3%. In March, Zydus acquired an 85.6% stake in France-based Amplitude Surgical for Rs 2,430 crore, marking its entry into the med-tech sector with a focus on hip implants. Analysts believe this move will open up new growth opportunities and support the company’s long-term prospects. They also highlight Zydus expanding its nephrology and cardiology segments through organic and inorganic moves.
In Q3FY25, the company’s revenue grew 17% YoY to Rs 5,269 crore, driven by strong performance in its pharmaceuticals and consumer products segments. EBITDA margin improved by 180 bps to 26.3%. Trendlyne’s Forecaster estimates the company’s net profit to rise by 10.7% YoY in Q4FY25, with revenue growth of 17.3%.
During the December quarter, the company filed 10 abbreviated new drug applications (ANDAs) and received approval for three new products. Analysts project its revenue to grow at a 4.8% CAGR over FY25-27.
3. HDFC Life Insurance:
KR Choksey reiterates its ‘Buy’ rating on this life insurance firm with a target price of Rs 831, indicating a potential upside of 16%. In Q4FY25, the company’s gross written premium (GWP) grew by 14.8% YoY to over Rs 24,000 crore, thanks to stronger individual and group businesses. The value of new business (VNB) grew by 11.6%, driven by strong growth in annualised premium equivalent (APE or the total annual premium from new policies sold).
Analyst Ishank Gupta notes that HDFC Life outperformed both the private sector and the overall insurance sector in terms of APE growth, thanks to strong sales efforts. The company anticipates continued growth in coverage plans, with increasing demand for life insurance products in Tier 1, Tier 2, and Tier 3 cities.
Gupta highlighted that HDFC Life expects range-bound margins in the short term due to ongoing investments in sales and technology. However, long-term margins are expected to improve with the success of its technology upgrades under its Project Inspire initiative.
4. Vishal Mega Mart:
ICICI Securities maintains its ‘Buy’ rating on this department store chain with a target price of Rs 140, indicating an upside potential of 24.3%. Analysts Manoj Menon, Dhiraj Mistry and others highlight the company’s private label strategy in the fast-moving consumer goods (FMCG) segment sets it apart from its competitors and improves footfall. The FMCG segment contributes about 27% of total revenue.
The company focuses on selling large pack sizes in its FMCG range, targeting monthly consumption needs of middle-class families. This value-for-money approach has increased store footfalls and helped attract new customers to other categories like general merchandise and apparel. The model replicates to some extent, the highly successful business model of Costco in the US.
The analysts note that the V-Mart’s private label food products are made by reputed manufacturers, to maintain quality and ensure repeat purchases. As a result, the private label revenue contribution in FMCG has reached nearly 40%, offering better margins compared to its peers. While larger players like DMart and Reliance Retail benefit from scale, V-Mart stands out for its focus on private labels, allowing it to offer better value in a price-sensitive market.
5. Kansai Nerolac Paints:
Asit C. Mehta Investment Intermediates maintains a ‘Buy’ rating on this paint company with a target price of Rs 335. This indicates an upside potential of 24.1%. Analyst Mrunmayee Jogalekar notes that Kansai Nerolac Paints (KNP) holds the top position in India’s automotive and powder coatings market, and the third position in the decorative and general industrial segments.
The management aims to position KNP as the second-largest player in the Indian paint industry by 2030. The company targets a 10% growth in annual revenue and an EBITDA margin of 18% compared to the current level of 14% in FY24. KNP plans to strengthen its presence in the general industrial and high-performance coatings segments.
Jogalekar expects KNP’s performance to improve from H2CY25, supported by expectations of a favorable monsoon and reduced competitive pressures. He estimates KNP's revenue to grow at a 9.5% CAGR and net profit to grow at a 15% CAGR over FY25- 27.
Note: These recommendations are from various analysts and are not recommendations by Trendlyne.
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