HDFC Life, Nuvama, Jana SFB, ACME Solar among 8 stock saw brokerage initiations; check targets

Select stocks including SH Kelkar & Company, Jana Small Finance Bank, Karur Vysya Bank, Fino Payments Bank, Nuvama Wealth Management, ACME Solar Holdings, Thejo Engineering and HDFC Life Insurance Company have seen fresh interest from the various brokerage firms, who have recently initiated their coverage on these companies.

The host of brokerages including Monarch Networth Capital, Nuvama, SMIFS, Emkay Global Financial Services, Ventura Securities and Aditya Birla Money have launched their maiden reports on these stocks. All stocks have 'buy' ratings on them with an upside potential of 55 per cent. Here's what brokerage said on these stocks:

Monarch Networth Capital on SH Kelkar & Company
Rating: Buy | Target Price: Rs 250 | Upside Potential: 44%
As India’s largest homegrown fragrance & flavor company, SH Kelkar & Company has built a strong global footprint, supplying to over 90 countries and securing multi-year contracts with leading MNCs. India’s F&F export market remains promising, and SHK has reinforced its position through strategic acquisitions that enhance capabilities and expand its reach, said Monarch's IC report.

"Despite macroeconomic challenges and the April 2024 fire incident, SHK demonstrated agility in recovery and remains on track for sustained profitability. With improving margins, a stronger cash position by FY27E, and robust FCF generation, we believe SH Kelkar is well-positioned for a re-rating. We initiate coverage on SH Kelkar with a 'buy' rating and a target price of Rs 250," it said.

Nuvama on Jana Small Finance Bank
Rating: Buy | Target Price: Rs 600 | Upside Potential: 36%
Jana Small Finance Bank (JSFB), since inception has focused on financial inclusion by serving underserved and unbanked populations in India. It evolved from an NBFC to an NBFC-MFI, then to a small finance bank, and became a scheduled commercial bank in 2019. In the past six years, JSFB has seen a remarkable transformation, said Nuvama.

"While FY25 could see a moderation in profitability due to higher credit cost and de-growth in its MFI loan book. FY26 is likely to be a normalized year with easing credit costs, healthy return ratios and stable growth on the balance sheet front. With attractive valuations and favorable risk-reward ratio we initiate coverage with a 'buy' rating and a target price of Rs 600," it added.

SMIFS on Karur Vysya Bank
Rating: Buy | Target Price: Rs 285 | Upside Potential: 40%
SMIFS believes that Karur Vysya Bank (KVB) is favourably placed to withstand the current industry headwinds. KVB has amongst the best-in-class asset quality metrics and 98 per cent secured loans. With high coverage and low & reducing incremental asset quality stress, KVB’s credit costs are likely to reduce versus the industry’s worsening profile, it said in the initiating coverage report.

"Its loan growth momentum remains strong and is likely to accelerate, bolstered by its RAM segment and a low CD ratio. Improvement in cost metrics will further strengthen the returns. KVB can consistently deliver 1.6-1.7 per cent ROA in the medium term. KVB is attractive with better-than-industry earnings growth, superior asset quality metrics and attractive valuation," it said with a 'buy' rating and target price of Rs 285.

Emkay Global Financial Services on Fino Payments Bank
Rating: Buy | Target Price: Rs 300 | Upside Potential: 46%
Fino Payments Bank has emerged as a distinctive, asset-light, and profitable payment bank, capitalizing on India’s rurban digitization wave. It now plans to transition into a unique SFB with payment cum lending business, delivering sustainably higher RoA and RoE in the long run, said Emkay Global.

"With most SFBs reeling under asset-quality pressure and earnings volatility frequently, and paytechs squeezed by losses, we believe Fino offers a unique long-term play on the payments cum lending business, delivering sustainably higher RoA/RoEs and available at attractive valuations. We initiate coverage on Fino with 'buy' and target of Rs 300, based on our ERE model," it added.

Ventura Securities on Nuvama Wealth Management
Rating: Buy | Target Price: Rs 8,292 | Upside Potential: 55%
Nuvama is an integrated wealth management platform, generating revenue through wealth management, asset services and capital market businesses. Nuvama's revenue model is well-diversified, with 29 per cent coming from its wealth management division, which caters to both HNI clients, said Ventura Securities.

"We initiate coverage with a 'buy' rating and a target price of Rs 8,292 At 14.4 times FY27E P/E, NWML is attractively valued relative to its growth potential," it added. Ventura cited fluctuations in equity markets and changes in wealth management regulations as the key risks to its thesis.

Aditya Birla Money on ACME Solar Holdings
Rating: Buy | Target Price: Rs 285 | Upside Potential: 46%
With India’s ambition to reach 500 GW of RE capacities by FY30 from current 200 GW (including Hydro), the private players in IPP business are set to play a crucial role. Government is likely to push the gears on tendering of RE projects to tap the run rate of 40-50 GW annually which is essential to reach the 500 GW target, said Aditya Birla Money.

"Acme Solar is one of the prominent players with an operating portfolio of 2,540 MW of plain vanilla solar capacity having a pipeline of 4,430 MW skewed towards high complexity FDRE projects. We expect the capacity/revenue/Ebitda to grow at a CAGR of 39 per cent/76 per cent/77 per cent over FY25-28. We initiate coverage with a BUY rating at a target price of Rs 290," it added.

Monarch Networth Capital on Thejo Engineering
Rating: Buy | Target Price: Rs 2,350 | Upside Potential: 33%
Thejo Engineering remains at the forefront of industrial solutions, reinforcing its reputation as a trusted partner in high performance engineering. It offers high-quality conveyor belt maintenance, mill liners, filtration spares, and impact protection systems. It has built a reputation for reliability and efficiency, said Monarch Networth Capital.

"Multiple operational international subsidiaries reflect its expanding global footprint. Thejo’s financial strength, strategic growth initiatives, and commitment to high-performance engineering solutions position it as a key player in the industry, driving sustainable and long-term success. We initiate coverage on Thejo Engineering with a 'buy' and a target price of Rs 2,350," it said.

SMIFS on HDFC Life Insurance Company
Rating: Buy | Target Price: Rs 800 | Upside Potential: 17%
HDFC Life has strengthened its position by gaining market share consistently and has emerged as one of India’s top three private sector life insurers. It holds the second position among private players in total premiums and ranks third in the overall insurance industry. HDFC Life has recorded strong APE growth of 17.4% CAGR from FY14 to FY24, supported by its well balanced product portfolio, said SMIFS.

"HDFC Life is focused on protection and annuity businesses, expanding its agency channel, and enhancing market presence in Tier 2 and Tier 3 cities. It has built a strong brand and invested significant capital in technology to improve customer experience and maintain strong persistence and client retention. It has proved its resilience with recent changes in surrender value norms, tax reforms, and the pandemic," it added with a 'buy' tag and target price of Rs 800.