1. Godrej Consumer Products:
Anand Rathi reiterates its ‘Buy’ rating on this personal products maker with a target price of Rs 1,430, indicating an upside of 12.9%. In Q4FY25, the company’s revenue rose 6.3% YoY to Rs 3,598 crore, driven by 6% volume growth. However, EBITDA margin declined 120 bps to 21.1% due to inflation in palm oil costs.
Analyst Ajay Thakur expects the overall EBITDA margin to rise by 130 bps to 22.2% over FY25–27. He attributes this to price hikes in soaps, easing palm oil prices, and improving profitability in the international business. The management also projects a 24–27% EBITDA margin in the domestic business over the medium term and expects double-digit EBITDA growth in FY26. In Q4, revenue from Indonesia grew by 5%, while the GUAM region (Africa, the US, and the Middle East) posted 23% organic growth.
Thakur is optimistic as the company’s focus on building new categories, and product innovation have driven high-potential launches like Fab liquid detergent and its entry into pet care. It introduced a pet care brand, Godrej Ninja, in Tamil Nadu, and plans a national rollout in FY26.
The company is also focusing on expanding rural distribution. Through Project VISTAAR, its distribution network grew from 35,000 to 80,000 villages, reaching 6,20,000 rural outlets in FY25. This project had a 100bps impact on EBITDA margin. Analyst projects a 9.7% growth in revenue for FY26-27.
2. Hindustan Petroleum Corp (HPCL):
Emkay retains its ‘Buy’ rating on this refineries & petro-products company with a target price of Rs 500, an upside of 28.6%. HPCL’s refining volume rose 15% YoY to 6.7 million metric tonnes (mmt) in Q4FY25, with strong utilisation at 118%. Domestic sales grew 2.6% even as the overall industry declined 1.8%. For FY25, HPCL gained 0.25% market share, outperforming its other PSU peers. It features in a screener of stocks outperforming their industry price change in the quarter.
HPCL’s capex for FY25 stood at Rs 14,510 crore. Analysts Sabri Hazarika and Arya Patel note that its current major investment cycle is nearing completion. The focus now is on generating returns from this capex before starting the next phase under its 5-year plan of Rs 77,000 crore. The company is also working to maintain a healthy debt-to-equity ratio and ensure that repayments stay manageable. Its capex for FY26-27 is targeted at Rs 13,000–14,000 crore annually, including Rs 4,000 crore in equity, Rs 5,000 crore for refining, and the rest on marketing and other areas.
Hazarika and Patel project HPCL’s revenue and net profit to grow at a CAGR of 2.7% and 6.9%, respectively, over FY26–28.
3. Alembic Pharmaceuticals:
BOB Capital Markets maintains a ‘Buy’ rating on this pharma company with a target price of Rs 1,032, a potential upside of 15.2%. Alembic Pharma’s US sales grew 20% YoY in Q4FY25, driven by higher volumes and four new product launches. The company plans to launch 15 new products in FY26, with analysts expecting 3–4 of them to generate significant revenue.
The company’s research & development (R&D) spending is set to rise to Rs 6,000 crore in FY26 from Rs 5,200 crore in FY25. About 40% of this will go towards peptides, complex injectables, and ophthalmic products (eye-related), while the rest will focus on active pharmaceutical ingredients (APIs) and oral solids. US sales are expected to grow at 13% CAGR over FY26–27.
In FY25, Alembic’s net profit fell 8% YoY due to a 40% jump in finance costs from higher short-term debt. Inventory days increased to 148 from 110 last year, as the company built up stock for multiple delayed product launches and its new Jarod plant in Gujarat. Analyst Foram Parekh expects this to normalise in FY26.
Parekh expects FY26 to outperform FY25 across all key areas, with double-digit growth in domestic sales, new product launches in the US, and stronger growth in the high-margin Rest of the World (RoW) markets.
4. Ami Organics:
IDBI Capital upgrades its rating to 'Buy' on this pharma company with a target price of Rs 1,368, a potential upside of 16.5%. The company's revenue grew 37.2% in Q4FY25, and profit increased by 148.4%, driven by growth in its contract development and manufacturing organization (CDMO) business.
The management aims to achieve 25% revenue growth in FY26, up from the current 23%, driven by new product launches such as lithium-ion battery additives and a new specialty chemical product. The company plans to invest Rs 2,000 crore in FY26 to develop electrolyte additives, a solar power plant, and a pilot plant in Gujarat.
Analyst Jason highlights that the company aims to generate Rs 1,000 crore in revenue from its CDMO business by FY28 to meet growing demand. They expect the company to benefit from new CDMO contracts in H2FY26, driven by the shift from China to India. Analysts project a revenue CAGR of 25-30% for the company over the next two years.
5. APL Apollo Tubes:
Axis Direct maintains a ‘Buy’ rating on the steel tube manufacturer with a target price of Rs 1,920, implying a 11.3% upside. In Q4FY25, the company’s revenue grew 17% YoY to Rs 5,324 crore, driven by higher steel tube prices. Net profit rose 72% to Rs 293 crore, helped by lower energy costs and improved plant efficiency.
Analysts Aditya Welekar and Darsh Solanki expect the company to achieve EBITDA/tonne of Rs 5,000 in FY26, up from Rs 4,864, driven by higher volumes in the value-added products (VAP) portfolio and a reduction in employee cost per tonne from Rs 1,000 to Rs 600 by FY27.
Management aims to increase capacity from 4.5 million tonnes per annum (MTPA) to 6.8 MTPA by FY28 to tap into new markets in East India and raise exports to 10% from the current 6%, with an investment of Rs 1,500 crore. Analysts expect steel tube volumes to grow by 20% annually over the next 2–3 years and return on capital employed (ROCE) to improve to 35% in FY26, up from 25% in FY25.
Note: These recommendations are from various analysts and are not recommendations by Trendlyne.
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