
Select stocks including Indian Energy Exchange Ltd, Welspun Living, Time Technoplast Ltd, E2E Networks and Go Fashion (India) have seen fresh interest from the various brokerage firms including JM Financial , Motilal Oswal Financial Services, Jefferies and Dalal & Broacha who have recently initiated their coverage on these companies, with up to 33 per cent upside potential. Here's what analysts said on these stocks:
JM Financial on Indian Energy Exchange
Rating: Buy | Target Price: Rs 231 | Upside Potential: 11%
The short-term power market is growing at 18 per cent versus demand growth of 5-6 per cent. This is poised for strong growth driven by burgeoning power demand, increasing share of variable RE, and new market instruments like virtual PPAs. IEX, with 84 per cent market share, has consistently adapted to market dynamics by consistently introducing new products, said JM Financial.
"We believe that the risk-reward is not in favour of market coupling (MC), the current overhang. We expect the trading volume to grow at a CAGR of 13 per cent during FY25-28, which will drive growth in IEX’s revenue and PAT at a CAGR of 16 per cent and 14 per cent respectively," it added with a 'buy' rating and a target price of Rs 231.
Motilal Oswal Financial Services on Time Technoplast
Rating: Buy | Target Price: Rs 578 | Upside Potential: 33%
Motilal Oswal is optimistic about Time's value-added composite products (LPG and CNG cascade cylinders), stable and long-standing industrial packaging business, and focus on improving financials to turn net debt-free over the next 1-2 years. Asset monetization, business restructuring, and cost reduction measures will improve operational efficiency and strengthen the balance sheet.
"We estimate a CAGR of 15 per cent, 16 per cent and 23 per cent over FY25-28E, led by strong performance in its value-added product (VAP) segment and strong cash flow generation. Considering its robust prospects and attractive valuation, we initiate coverage on Time Technoplast with a 'buy' rating and a target price of Rs 578," it added.
Jefferies on Welspun Living
Rating: Buy | Target Price: Rs 185 | Upside Potential: 33%
Welspun Living Ltd is India's leading home textile exporter with the US as its largest market. It would be a key beneficiary of India's potential trade deals with the US and EU, similar to the one finalised with the UK. Welspun Living is a play on India's growing attractiveness for manufacturing and is a key beneficiary of potential FTAs with US and the EU, said Jefferies.
Welspun Living has expanded over time, entering new categories and building a branded play, and should deliver 18 per cent EPS CAGR over FY25-28e, even as FY26 would be muted due to near-term tariff uncertainty, it said and initiated coverage with a 'buy' and target price of Rs 185. It has cited unfavorable tariffs, weak consumer demand in the US/EU, higher cotton prices as key risks.
Dalal & Broacha on E2E Networks
Rating: Buy | Target Price: Rs 3,750 | Upside Potential: 38%
"We initiate coverage on E2E Networks Ltd with a 'buy' rating and recommend that investors consider adding the stock during any corrections in the midcap and smallcap sectors. We project a revenue, Ebitda , PAT and EPS CAGR of 79 per cent, 97 per cent, 19 per cent and 19 per cent over FY25-27E. We value E2E Networks at 20x EV/Ebitda, arriving at a target price of Rs 3,750," said Dalal & Broacha.
The lower PAT and EPS growth compared to revenue and EBITDA is due to a higher depreciation charge-a non-cash expense-stemming from the sizable capex of Rs 1,000 crore , which has weighed on profitability, it said. "We believe EV/Ebitda is a more appropriate valuation metric for E2E than PE, given the ongoing high-capex phase driven by strong growth, and the non-cash nature of depreciation which dilutes PAT."
Motilal Oswal Financial Services on Go Fashion (India)
Rating: Buy | Target Price: Rs 1,127 | Upside Potential: 30%
Go Fashion (India) Ltd is well-positioned to leverage its leadership in the women’s bottom-wear segment and D2C model, with significant expansion potential beyond its current presence in 180 cities, said Motilal Oswal. "We model a 16 per cent revenue CAGR over FY25–28E, led by an 18 per cent growth in EBO/online channels," it said with a 'buy' rating and a target price of Rs 1,127.
While its gross margin may contract 130 bps due to RM benefit pass-through, its operating leverage is likely to drive 135 bps Ebitda margin expansion to 18.2 per cent. EBITDA and PAT are projected to clock 19 per cent and 20 per cent CAGR, over FY25-28E. Strong operational cash flows are expected to result in cumulative OCF/ FCFF of Rs 370 crore and 250 crore, it added.