Buy

Scaling New Heights in Real Estate

We retain a Buy on Supreme Industries Limited (SIL) with an unchanged PT of Rs. 5,700. The recent correction due to falling PVC prices provides a good buying opportunity

We initiate coverage on Sonata Software (SSOF) with BUY and TP of Rs780, at 30x Dec-26E earnings. In its International IT Services business, SSOF delivered ~26% revenue CAGR over FY21-24 and ~4.3% CQGR over the last 10 quarters which remain among the top quartile revenue growth performances.

As of Sep’24, Lemon Tree Hotels (LEMONTRE) has 10,318 operational keys across 112 hotels. The company has an aggressive room expansion plan for H2FY25–FY29 with an incremental 5,220 keys – should take overall operational keys to 15,538 by FY29–30E.

We attended the INOXGFL Group Vision Day held on 2 Dec’24; takeaways being the INOXGFL group’s foray into renewable power generation for the commercial and industrial (C&I) sector with an envisaged capacity of 3GW by FY27/FY28.

HDFC Bank has largely outperformed its large private peers in the recent past, primarily on account of its relatively better margin, asset quality outcomes amid rising asset quality noises in unsecured loans.

We maintain BUY with a revised PT of Rs. 2,180 (valued at 28x Dec26E EPS). At CMP, the stock trades at 29.6/26.6/23.6x its FY25/26/27E EPS.