Lemon Tree, Uniparts, Landmark Cars, Gulf Oil among 6 stocks that saw brokerage initiations

Select stocks including Lemon Tree Hotels, Uniparts India, Landmark Cars, Gulf Oil Lubricants, Bajaj Consumer Care and Poly Medicure saw a host of brokerage firms initiating coverage on them. Majority of these stocks have 'buy' ratings on them with an upside potential of up to 114 per cent in the next one to two years period. Here's what brokerage firms said on these counters in their maiden reports:Dalal & Broacha Stock broking on Lemon Tree Hotels Rating: Buy | Target Price: Rs 121 | Upside: 35% We initiate coverage on Lemon Tree Hotels with a 'buy'' rating with a target price of 121, valuing it at 17x FY25E EV/EBITDA. Lemon Tree Hotels is the country’s largest hotel chain catering to mid-market segment, with a market share of 12 per cent, said Dalal & Broacha Stock Broking With majority of its inventory being catered towards corporates, Lemon Tree stands to gain from this revival within the industry and its focus of shifting to an asset-light model, the hotel chain has been rapidly expanding its fleet of managed hotels in India. Lower capital requirements for managed hotels and cost optimization have been able to generate industry leading EBITDA margins, it said.HDFC Securities on Poly Medicure Rating: Buy | Target Price: Rs 1,068-1,138 | Upside: 11-17% "Being a market leader in infusion therapy, Poly Medicure (Polymed) is poised to grow at robust pace by tapping strong demand in both domestic and international markets, given a wide scale of operations across geographies. Since 70 per cent of the medical devices are imported currently, we see a huge opportunity in the domestic market," said HDFC Securities' initiating coverage report. New capacity expansion will drive incremental growth. With higher focus on the domestic market and overall demand expected to remain robust for medical disposables, dialysis and diagnostics, operating margin could see steady improvement in the coming years. Investors can buy the stock for a base case target of Rs 1,068 and bull case target of Rs 1,138, it added.Monarch Networth Capital on Landmark Cars Rating: Buy | Target Price: Rs 830 | Upside: 34% We initiate coverage on Landmark Cars with a target price of Rs 830. It is a standout entity for its uniqueness – the only listed auto dealer in India and that too focused on luxury vehicles. Landmark offers not just a diversified revenue stream across retailing, servicing, pre-owned vehicles and insurance, said Monarch Networth's maiden report on the stock. "Landmark Cars is also a play on India’s incipient but aggressive luxury products growth; luxury cars growth continues to convincingly outstrip regular cars. We deep-dive into the criticality of dealers to auto OEMs, the global dealership scenario that provides a sneak peek into Landmark’s future and illustrates Landmark’s potential," it added.Ventura Securities on Gulf Oil Lubricants Rating: Buy | Target Price: Rs 813 | Upside: 95% The demand for lubricants is expected to surge due to the pick-up in the commercial vehicle cycle, improving freight movement on national highways, rising industrial output, and increasing sales of utility vehicles. These factors are expected to drive strong demand for lubricants from the B2B segment, which is responsible for generating 35-40 per cent of its lubricant & oil volumes, said Ventura. Additionally, It is proactively expanding its dealer network in new geographies to enhance the scope for its B2C lubricant business, which generates 60-65 per cent lubricant & oil volumes at better margins compared to its B2B business. Its strategic efforts are expected to positively impact its market share and financial performance, it added with a buy rating and a target price of Rs 813 in next 24 months.Arihant Capital Markets on Bajaj Consumer Care Rating: Buy | Target Price: Rs 364 | Upside: 115% Arihant Capital believes that Bajaj Consumer Care has a steady growth trajectory and significant margin expansion ahead of it owing to its existing market leadership in light hair oils, softening commodity input prices, aggressive premiumization-driven portfolio expansion and growing brand equity. It gave a buy rating on the stock with a target price of Rs 364 in its IC report. "The company has shown its resilience through the trials and tribulations presented by the pandemic, delivering a profitable performance throughout. It is continuously growing its addressable market, as well as the geographical presence of its new products across the country with the help of their already large distribution network, deepening its penetration in core markets, especially in rural areas," Arihant added.Sunidhi Institutional Research on Uniparts India Rating: Buy | Target Price: Rs 800 | Upside: 40% Uniparts India (UIL) is a leading manufacturer of engineered components for off-highway markets in the agriculture, construction, forestry and mining equipment. The key products include 3-point linkages (3PL) and precision machine parts (PMP) along with recent forays in adjacent product verticals such as hydraulic cylinders and power take offs (PTOs), said Sunidhi's IC report. UIL trades at 12 times of TTM EPS of Rs 45 and at 8 times of EV/EBITDA based on TTM EBITDA of Rs 301 crore. On a forward basis, UIL trades at 10 times of FY25 estimated EPS of Rs 53 and 7 times FY25 estimated EBITDA of Rs 354.1 crore. The bottom-line is projected to grow from Rs 168.8 crore in FY22 to Rs 240.6 crore in FY25E translating into an EPS of Rs 53 for FY25, it said giving a target price of Rs 800 on the stock.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)

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