Indian Hotel, Just Dial, TARC among companies that saw brokerage initiations with up to 52% potential upside

Select stocks including Just Dial, Aegis Logistics, TARC, Indian Hotel Company, Gabriel India, Epigral, Krsnaa Diagnostics and Anant Raj have seen fresh interest from the various brokerage firms, who have recently initiated their coverage on these companies.
 

The host of domestic brokerages including Elara Capital, Phillip Capital, HDFC Securities, Ambit, Emkay Global, Systematix Institutional Equities, DAM Capital. All the other stocks have 'buy' ratings on them with an upside potential of up to 52 per cent each. Here's what brokerage said on these stocks:
 

DAM Capital on Anant Raj

Rating: Buy | Target Price: 620 | Upside Potential: 26%

Established in 1969 as a construction company, Anant Raj is a leading real estate developer in the NCR region with a fully paid land bank of 312 acres of which it holds 167 acres in the premium location of Golf Course Extension Road, Sector 63A, Gurugram, said DAM Capital's IPO note.
 

"The company is also venturing into the Data Center segment with the aim to reach a capacity of 307MW. We are initiating coverage on ARCP with a 'BUY' rating and a SOTP based target price of Rs 620," it added
 

Systematix Institutional Equities on Krsnaa Diagnostics

Rating: Buy | Target Price: 841 | Upside Potential: 24%

Krsnaa operates in the business to government segment with public private partnership (PPP) model, positioned as a high quality affordable diagnostic service provider. Over the last 5 years, KRSNAA clocked 34 per cent and 25 per cent CAGR in revenue and net earnings, respectively, said Systematix, initiating coverage with a target price of Rs 841 and a 'buy' call.
 

"We estimate 30 per cent and 47 per cent CAGR in KRSNAA’s revenue and net earnings, respectively over FY24-FY26E, led by superior utilization of its recently set up diagnostic centers and the opening of new centers. The company is present pan India in 14 states and 3 union territories, with 3,200+ total test centers and labs," it added.
 

Emkay Global on Epigral

Rating: Buy | Target Price: 2000 | Upside Potential: 29%

Epigral is poised to consistently grow its earnings at 25 per cent CAGR over the next few years, led by higher utilization or expansion of existing capacities, consumption of chlorine into derivatives/value-added products with large import substitution opportunity, and iii) scale up of existing/newer chemistries, said Emkay Global in its IC report.
 

"Backed by the idea of captive chlorine consumption in more downstream products, Epigral is now the largest player in ECH and CPVC, and the first mover in the chlorotoluene value chain. Revenue share of the legacy caustic soda business will reduce in coming years, towards more chlorine derivatives/value added products, driving multiple re-rating," it added with a 'buy' tag and a target price of Rs 2,000.
 

Elara Capital on Gabriel India

Rating: Buy | Target Price: 624 | Upside Potential: 27%

Gabriel India, with a 31 per cent market share in India’s 2-wheeler suspension segment market as on FY24, is likely to benefit from the industry recovery as well as rising premiumization trend. It has a first-mover advantage in e2 wheelers with a 70 per cent share as on Q4FY24 as per company. We expect a segment revenue CAGR  at 12 per cent over FY24-27E, said Elara Capital.
 

"We initiate on Gabriel India with a 'buy' rating and a target of Rs 624 based on 30times September 2026E P/E, which is at 15 per cent discount to Endurance Technologies despite in-line return ratios. We expect a revenue CAGR of 11 per cent during FY24-27E versus 2-wheeler industry volume CAGR of 8 per cent, an EBITDA CAGR of 17 per cent and a PAT CAGR of 20 per cent," it said.
 

Phillip Capital on Indian Hotel Company

Rating: Buy | Target Price: 704 | Upside Potential: 15%

Indian Hotels Company (IHCL), part of the Tata group, is a major hospitality enterprise with a diverse portfolio catering to luxury, upscale, and midscale segments through its popular hotel brands. With a portfolio of 310 hotels, IHCL is well-positioned to surf the wave of high demand and occupancy, leading to a positive structural shift in its revenue per room, said Phillip Capital.
 

"While we expect its existing portfolio to drive high operating leverage, the company’s incremental focus on asset-light expansion through management contracts will bring resilience to its business model. To diversify its revenue stream, IHCL has built growth plans for its ancillary services such as Amã Stays, Qmin, The Chambers, and Taj SATS," it added with a 'buy' tag and a target price of Rs 704.
 

Ambit on TARC

Rating: Buy | Target Price: 325 | Upside Potential: 48%

TARC, banking on its 5-decade legacy and over 500 acres land parcel, is now focusing on becoming a top luxury housing developer in NCR. Focus on 3Is – ideation, inspiration and implementation – will help it capitalise on the opportunity to build a brand in the trust-deficit NCR residential market, said Ambit with a buy call and a target price of Rs 325 on the stock.
 

"TARC continues to build architecture and nurture strategic partnerships (Bain) which, alongside strategic prime land parcels, will drive expected pre-sales of over 15,000 crore. Supported by strong FCF given legacy landbank, TARC would de lever existing balance sheets. TARC is where DLF was in early 2000s; executed well, it will be a structural compounding play over the next 2 decades," it added.
 

HDFC Securities on Aegis Logistics

Rating: Buy | Target Price: 1,050 | Upside Potential: 6%

Aegis Logistics’ stock price rallied 97 per cent, outperforming the Sensex by 90 per cent over the last 3 months. Despite this strong performance, we expect the stock to generate strong returns for the investors, said HDFC Securities.
 

"Our optimism on the stock is driven by strong earnings growth potential, balance sheet strength despite a heavy capex cycle, and management’s focus on capex for future growth. We initiate our coverage on the stock with a 'buy' rating and a target price of Rs 1,050 per share based on 40 times FY26E EPS," it said.
 

Phillip Capital on Just Dial

Rating: Buy | Target Price: 1,570 | Upside Potential: 52%

Just Dial is the leader in the B2C search engine, Just Dial operational and financial metrics have revived. In FY24 the company added a substantial 7 million listings to their platform and grew their ARPU by 14 per cent. Moving forward, its topline growth will be driven by growth in tier 2 and 3 cities ARPU and their improved focus in the B2B segment, JD Mart, said Phillip Capital.
 

"The company is expected to maintain margins in the range of 25-26 per cent and reinvest some towards advertising that would improve their conversion rates. Their ample synergy opportunities with Reliance, negative working capital cycle and high margin of safety makes us optimistic of their future prospects," it added with a 'buy' rating with a target price of Rs 1,570.

 

 

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