RR Kabel, Jupiter Life Line, RBL Bank, Fusion Micro among 8 stocks that saw brokerage initiations; check details here

Select popular stocks such as RR Kabel, Jupiter Life Line Hospitals, RBL Bank, Fusion Micro Finance, JK Tyre & Industries, IIFL Finance, Triveni Engineering and Industries have seen fresh interest from the various domestic and global brokerage firms, who have recently initiated their coverage on the said companies. The host of brokerages including Prabhudas Lilladher, Ventura Securities, Centrum Broking, Investec Securities, DAM Capital, HSBC Global Research and Monarch Networth Capital have launched their maiden reports recently with an upside target of up to 45 per cent. Here's why these brokerages are positive on the stocks:Ventura Securities on Jupiter Life Line Hospitals Rating: Buy | Target Price: Rs 1,185 | Upside: 10% We initiate coverage on Jupiter Life Line Hospitals with a 'buy' for a price target of Rs 1,185 per share (40.4 times P/E), representing an upside of 10 per cent. Over the period FY23-26E, we expect JLHL’s revenue to grow at a CAGR of 13.5 per cent to Rs 1,304 crore by FY26 driven by higher contribution from facilities from Indore, Pune, Thane and commissioning of Dombivali facility.Prabhudas Lilladher on RR Kabel Rating: Buy | Target Price: Rs 1,407 | Upside: 19% We initiate coverage on RR Kabel with a ‘buy’ rating and target price of Rs 1,407 valuing at 35 times FY25 earnings. We believe RR Kabel is a play on several opportunities in the wires & cables segment given strong brand with diverse product portfolio; well-structured capacity expansion plans; increasing dealers/distribution network; and distribution led export business said Prabhudas.

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"Although the company has grown its FMEG portfolio inorganically, it expects to minimize losses in coming years by transitioning towards premium markets. In FMEG, too, the company has enhanced its brand presence, positioning and manufacturing capabilities to minimize losses," it added.Monarch Networth Capital on Triveni Engineering and Industries Rating: Buy | Target Price: Rs 460 | Upside: 19% "We initiate on Triveni Engineering and Industries (TEIL), a sugar-to-engineering conglomerate, with a 'buy' and target price of Rs 460. In the throes of a pathbreaking business (and perception) transformation from a commodity to a profitable trifecta of ethanol, power transmission and gearboxes, TEIL is poised for both value delivery and relative stability," said Monarch Networth. "TEIL’s dominant position and local advantage in sugar and industry tailwinds of fuel ethanol are noteworthy, it is the underrated high-speed gearboxes, a monopoly business, that could be a gamechanger, with a 15 times export TAM potential opened up since this year. Our estimates and target prices are significantly ahead of consensus," it added.HSBC Global Research on IIFL Finance Rating: Buy | Target Price: Rs 790 | Upside: 35% "We think IIFL’s potential rerating will be driven by strong retail AUM growth, potentially lower volatility in asset quality in the next cycle, and RoA expansion. We value IIFL at 2.3x FY25e consolidated BVPS using a Gordon growth model, translating into a target price of Rs 790," said HSBC Global Research. Downside risks include cyclicality in businesses and asset quality, regulatory changes in co-lending, risk of adverse selection in new business-like digital loans, liquidity tightness, and any increase in repo rate souring sentiment for NBFCs, it added in its maiden report on the stock.DAM Capital on JK Tyre & Industries Rating: Buy | Target Price: Rs 315 | Upside: 23% With new product launches, better quality and brand equity improvement, the company has witnessed better pricing and margins over the past three years. Its consolidated EBITDA margins improved from pre-Covid 10.7 per cent in FY19 to current 12.3 per cent in Q1FY24, said DAM Capital. "We expect pricing to remain largely stable, while volume growth would be supported by better replacement demand and rebound in the exports. Its improved brand image, better margins, debt reduction-led better balance sheet position and controlled capex are key triggers for valuation expansion," it added in its ICe report with a 'buy' rating and a target price of Rs 315.Investec Securities on Fusion Micro Finance Rating: Buy | Target Price: Rs 780 | Upside: 27% Fusion’s diversified presence, capability building before scaling, customer base driven AUM growth and buffer creation in good years is testament to its prudence. Also, multiple underwriting checks/balances complemented by a strong audit team, low field attrition and stable middle/top management lend strength to the business, said Investec. With the flexibility in calibrating state level growth and a clean book, we forecast Fusion to deliver strong AUM growth and profitability over the next 3 years. Current valuation we believe underappreciated Fusion’s execution record and strong outlook," it initiated coverage with a 'buy' and a target price of Rs 780. "Vulnerability to economic shocks and political events are the key risks."Centrum Broking on RBL Bank Rating: Buy | Target Price: Rs 331 | Upside: 44% RBL Bank is coming out of the risk-off phase which led to stagnant growth over FY20-23.Notably, this change is driven on the back of retailization of both parts of the balance sheet. On the asset side, RBL has increased its bouquet of offerings by launching new retail products leading to a retail portfolio. Similarly, on the liability side RBL’s efforts are clearly showing results with retail deposits, said Centrum. RBL is one of the few banks which has been able to improve its CASA ratio. RBL has improved its asset quality with GNPA/NNPA ratios reducing to 3.2 per cent/1 per cent as of 1QFY24 coupled with adequate liquidity. Therefore, we believe that RBL has addressed investor concerns on corporate governance, liability franchise and lack of growth" it said with a buy and a target of Rs 331.Systematix Institutional Equities on Shriram Properties Rating: Buy | Target Price: Rs 124 | Upside: 45% Shriram Properties is one of the leading residential real estate development companies in South India, primarily focused on the mid-market and affordable housing categories. The company initiated its journey in Bengaluru in the year 2000. We initiate coverage on Shriram Properties with a 'buy' rating and a target price of Rs 124, said Systematix Institutional Equities. "Its competitive strengths include scalable asset light business model; development management model is value accretive; operating efficiencies playing out; brand equity; experienced and qualified professional management; residential real estate on a long term upcycle; consolidation in the real estate sector; legacy issues largely behind; and unlocking of the Kolkata land bank," it said.Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

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