Kaynes Technology India Ltd. and Aadhar Housing Finance Ltd. are on the radar of Kotak Institutional Equities. While Emkay Global Financial Services initiated coverage on Ceat Ltd. and Kotak Securities on FIEM Industries Ltd.
NDTV Profit tracks what brokerages are putting out on stocks and sectors. Here are all the top calls from analysts you need to know about on Tuesday.
Kotak Institutional Equities On Aadhar Housing Finance
Initiated coverage with a target price of Rs 550 apiece, implying a potential upside of 41% from the previous close.
Stands out versus most affordable peers due to a larger balance sheet and 7% market share.
Low nonperforming loans due to unique underwriting.
Expects the company to deliver 22% earnings per share at a compounded annual growth rate during financial years 2024–27E and high teens return on equities.
Increase in leverage to aid core profitability with a return on asset of 4.4% to 4.7%.
Citi On Tech Mahindra
Retained a 'sell' rating on the stock and a target price of Rs 1,230 apiece, implying a potential downside of 24.8% from the previous close.
Continues to be very focused on the 15% earnings before interest and taxes margin target in three years.
Valuations are at nearly 25 times the FY26E consensus EPS.
Valuations at nearly 21 times the March 2026E EPS.
Company is at a premium to the five-year historical average of ~16 times.
The view is that a lot of improvement is already priced in.
Kotak Institutional Equities On Kaynes Technology India
Retained a 'buy' rating on the stock and raised target price to Rs 4,950 apiece from Rs 4,650 per share, implying a potential upside of 1% from the previous close.
Semiconductor approval is a potential game changer for Kaynes.
Focus in the near term would be to ramp up execution.
Medium-term focus would be on shifting revenues towards advanced packaging solutions.
These hold key to moving margins and return profiles in line with global peers.
Expects company to start commercial production from second quarter of financial year 2026.
Global players enjoy 20%+ Ebitda margins.
Diversifying into new growth areas—smart metering a near-term catalyst.
Emkay On Ceat
Initiated with a 'buy' rating on the stock and a target price of Rs 3,650 apiece, implying a potential upside of 30.6% from the previous close.
Initiated coverage despite street concerns about margin volatility.
Expects tyre industry's profitability to gradually delink from raw material prices.
Ceat has outperformed across parameters in last five years.
Company shows greater resilience to raw material price volatility versus peers.
Growth levers include revival in two-wheelers and exports of overhead hoist transportation systems.
Expects 30% EPS CAGR over financial year 2025 to 2027.
Kotak Securities On FIEM
Initiated coverage with a 'buy' rating on the stock and a target price of Rs 2,150 apiece, implying a potential upside of 33% from the previous close.
FIEM Industries is well-placed to benefit from two-wheeler industry recovery.
Rising LED lighting adoption in the automotive segment to aid growth.
Passenger vehicle segment provides significant growth opportunity over the medium term.
Earnings expected to grow at a healthy 19% CAGR over financial year 2024 to financial year 2027E.
Values the stock at a price to earnings ratio of 20 times the fiscal 2027E earnings.
As a Subscriber you get
Stories
RECOMMENDED FOR YOU
M&M Rating Raised To 'Buy' By Kotak As Revival Seen In Tractor Industry
Nov 04, 2024
Brokerage Views: Jefferies On Nykaa, Morgan Stanley On Auto Sales And More
Nov 04, 2024
Kotak Bank's Target Price Hiked By Analysts As They Say Structural Story Intact
Oct 21, 2024
Aadhar Housing Finance Gets 'Buy' From Investec As It Sees 30% Upside
Oct 01, 2024
POPULAR