Latest broker research reports from Monarch Networth Capital Limited buy, sell, hold, neutral recommendations along with
share price targets forecast and upside.
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- Broker has maintained previous recommendation but increased share price target.
We retain BUY on Central Depository Services Ltd (CDSL) with a target price revised upwards to Rs650. CDSL stands to gain from the strong revival in capital market activities evident in a) increase in Beneficiary accounts (BO), b) surge in deliverybased volumes, c) continued traction in KYC business, and d) steady-rise in annual issuer charges. GoI initiatives (as laid out in the recent Budget), including efforts by CDSL at enhancing its digital footprint, Aadhar-based authentication, online licensing etc. will aid in strong revenue growth / newer revenue opportunities. We are factoring in 20.2%25.1% CAGR in revenue/net profit over FY20-23E. Businesses with a healthy margin profile, asset-light model, and duopoly nature of existence...
We maintain Accumulate rating but raise TP to Rs1,830 due to increase in FY22/FY23 EPS, increase in valuation multiple and roll over of valuations to FY23 estimates. Higher multiple is attributed to continuous recovery in Carbon Steel (CS) pipe orders, clarity on revival of Stainless Steel (SS) pipe orders and new demand drivers for SS pipes as we believe RMT will be foremost beneficiary of any revival in spending from refineries. Pandemic related weakness in order booking led to ~55% YoY drop in CS pipe sales impacting revenues in...
We maintain our TP of Rs190 and re-iterate BUY rating on Kirloskar Ferrous Industries Ltd. (KFIL). With commissioning of VSL steel pig iron plant (by end of Feb'21), up-gradation of MBF2 & PCI and phase II of coke oven-power plant, we expect strong growth in revenues and sustainable cost savings over FY20-23E which will keep earnings elevated even in a steel down-cycle scenario. A combination of robust pig iron spreads, strong castings demand and structural cost saving initiatives led to record quarterly profit in 3QFY21. We...
Outlook: As per our previous update, the MSP hike for FY2021 has continued with key crops' price being raised by an average of ~4%. With most regional reservoirs consistently clocking healthy water level (> 10-year average) and the normal monsoon that we have recently witnessed; we stick to our view of low rural water woes for the coming year. Based on lockdown led pent-up production and sales surge in FY21, we...
We raise our TP to Rs950 and re-iterate BUY rating on Tata Metaliks (TML). The fast tracking of DI pipe expansion eliminates the overhang of capacity constraint for FY22/FY23 and provides for upward revision in TP as we roll over valuations to FY23 estimates. On the demand side, doubling of its DI pipe order book to 14-16months indicates release of funds for water projects and strong outlook for TML's DI pipe business for the next two years. Multiple price hikes for foundry grade pig iron and low cost iron ore inventory led to record high pig iron spreads in 3QFY21. We expect...
Indian Railway Finance Corp (IRFC), acting through the Ministry of Railways (MOR), Government of India is a dedicated borrowing arm of the Indian Railways. Healthy asset growth, diversified borrowing mix, regulated lending margins, and lean cost structure are characteristics unique to IRFC, a PSU NBFC. This coupled with NIL NPA and robust capital adequacy (400%+ CAR), is a perfect recipe for superior returns. With ~Rs15tn of capital outlay towards infrastructure development by the Indian Railways till FY25, IRFC offers a play on the fast-growing railway infrastructure. On the valuation front, the IPO is priced at 1x H1FY21 ABV (at the higher end of the price band). In our...
We initiate on Kirloskar Ferrous Industries Ltd (KFIL), a proxy play on the booming tractor and steel industry, with a TP of Rs190 (~36% upside) and BUY. After drastic improvement in the castings business with reduction in rejections, addition of ten new customers and increase in high-margin machined casting sales, KFIL's casting business is all set to witness enormous growth in profitability supported by favourable demand drivers for tractorled castings. Cost-saving projects like pulverised coal injection (PCI), coke oven, captive iron ore and power will structurally elevate its margin profile,...
Long standing multi-year client relationships with 25% of 360+ clients associated with Syngene for more than 5 years. Capex ramp up in core business (Discovery, Development, RnD) to...
We initiate coverage on Suven Pharmaceuticals (SPL), a pure-play new chemical entity (NCE)-based contract development & manufacturing organisation (CDMO) and a highly under-researched stock, with BUY and TP of Rs580 (40% upside). India being at the cusp of a multi decadal opportunity in Innovator pharma outsourcing, with rising R&D; spends and outsourcing penetration, further supplemented by China+1 strategy, is a bazooka for CDMO players. SPL's eminently successful execution track record of NCE-based projects, best-in-class EBITDA margins and robust return ratios are a testimony to the quality of...
About the company - La Opala RG Limited was the first to introduce opal glass in India. The Company is engaged in the manufacture and marketing of opal glass tableware and 24% lead crystalware products. Over the years, the Company has emerged as India's largest tableware and glassware lifestyle brand. La Opala is the market leader in Opalware segment with a dominant market share of 50% in its category. The company has two state of the art plants located at Sitarganj...
