MTAR Tech, HAL, Niva Bupa, DBEIL among 8 stock saw brokerage initiations with up to 340% upside

Select stocks including Aadhar Housing Finance, Shaily Engineering Plastics, Ajax Engineering, Hitachi Energy India, MTAR Technologies, Hindustan Aeronautics, Deepak Builders & Engineers, SRM Contractors and Niva Bupa Health 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 ICICI Direct, Dalal & Broacha, Nuvama Institutional Equities, ICICI Securities, Phillip Capital, Motilal Oswal Financial Services and Khandwala Securities have launched their maiden reports on these stocks. All stocks have 'buy' ratings on them with an upside potential of 340 per cent. Here's what brokerage said on these stocks:

ICICI Securities on Niva Bupa Health Insurance Company
Rating: Buy | Target Price: Rs 90 | Upside: 19%
Niva Bupa has been able to deliver standout growth in health insurance premiums while its improved scale and assets under management should help improve margins and earnings growth ahead. The relatively high growth could continue driven by diversified channels, especially when players across industry including Niva have taken multiple price hikes, said ICICI Securities.

"We have detailed the key tenets of earnings trajectory under accounting methods of IGAAP (without and with 1/n) and IFRS which should help appreciate the impact of long-term business mix and deferment of acquisition costs in the quest of realising the normalised annualised earnings," it added with a 'buy' target price of Rs 90.

Khandwala Securities on SRM Contractors
Rating: Buy | Target Price: Rs 694 | Upside: 89%
SRM Contractors is a Jammu-based infrastructure development company specializing in challenging terrains and EPC/HAM mode projects. SRM is poised for growth in India's infrastructure sector, driven by its expertise in construction and infrastructure projects. Its robust order book and LoA are totaling Rs 1,663.69 crore, said Khandwala Securities.

"Khandwala Securities has initiated coverage on SRM with a 'strong buy' rating, driven by its attractive valuation and growth prospects. The company's stock price currently trades at a forward P/E level of 13.07 times FY26E EPS, representing a significant discount to the Indian construction industry average. We derive a price target of Rs 694," it said.

Motilal Oswal Financial Services on Hindustan Aeronautics
Rating: Buy | Target Price: Rs 5,100 | Upside: 21%
Hindustan Aeronautics (HAL) is a leader in aerospace defense, with a strong order book of Rs 1.8 trillion as of March 31, 2025, along with a promising prospect pipeline of Rs 6 trillion, which is likely to be awarded over the next few years. It is transitioning from a traditional licensed model to an indigenized model and is currently working on marquee projects, said Motilal Oswal.

"We expect HAL to benefit from a strong pipeline of projects, execution scale-up aided by large platform orders, a stable stream of RoH revenues, backward integration, and a healthy 29 per cent/33 per cent/29 per cent revenue/EBITDA/PAT CAGR over FY25-27. We initiate coverage on the stock with a 'buy' rating with a target price of Rs 5,100," it added.

Dalal & Braocha on Shaily Engineering Plastics
Rating: Buy | Target Price: Rs 2,015 | Upside: 10%
"We initiate coverage on Shaily Engineering Plastics, a company entering a new phase of growth, primarily driven by its healthcare segment where it is positioned as the only Indian company currently involved in manufacturing of complex drug delivery devices for the blockbuster GLP-1 drug having an opportunity size of $100 billion by FY30," said Dalal & Broacha.

It is seeing increased traction from customers for shifting supply chains away from China, supporting its long- standing expertise in complex design and engineering. It is strategically shifting its focus from a moderate- margin, moderate ROCE portfolio in the consumer and industrial sectors to a high-margin, high-ROCE business model, it added with a 'buy' rating and a target price of Rs 2,015.

ICICI Direct on Aadhar Housing Finance
Rating: Buy | Target Price: Rs 550 | Upside: 13%
Aadhar remains an attractive play in the affordable housing finance segment with a robust business model combining efficiency, stability and prudent underwriting practice, leading to healthy and sustainable performance across cycles. Given its strong RoA of 4 per cent and RoE of 18 per cent, while delivering credit growth of above 20 per cent, valuations remain attractive at current level, said ICICI Direct.

"We expect AUM growth to sustain at 19 per cent, while steady asset quality and gradual improvement in margins and efficiency is expected to result in earnings CAGR of 23 per cent in FY25-27E. We value Aadhar at 2.7 times FY27E BV and assign a target price of Rs 550. We recommend a 'buy' rating," it added.

Phillip Capital on MTAR Technologies
Rating: Buy | Target Price: Rs 2,190 | Upside: 56%
MTAR is likely to register 30 per cent topline growth over FY 25-27, with margins improving by 500bps due to operating leverage kicking in. Its cash flow from operations is already positive; this, coupled with improvement in net working capital (NWC) days in FY26 and FY27, will ensure that it becomes FCF positive too, said Phillip Capital.

"MTAR caters to important clients such as Thales, Rafale, IAI, and GKN Aerospace, all of which have significant exposure to European defence spending. SSegments such as space and defence should contribute to its topline ahead. We expect MTAR’s PAT CAGR at 50 per cent over FY24-27 and value the stock at 35 times FY27 EPS of Rs 63 to arrive at a target of Rs 2,190," it said.

Nuvama Institutional Equities on Ajax Engineering
Rating: Buy | Target Price: Rs 800 | Upside: 15%
Founded in 1992, Ajax is a reinforced play on the fast-growing mechanised concreting equipment industry—likely to expand at a 12 per cent CAGR over FY25–29E. A formidable 75 per cent share in self-loading concrete mixers along with a healthy presence in non-SLCMs form its foundation. Better cost economics/quality and increasing mechanisation shall build up its growth edifice, said Nuvama.

"Ajax churned out a robust 20 per cent top-line CAGR over FY15–25E. FY26E growth can be a little moderate at 9 per cent due to emission norm changes, but we reckon medium-term uptrend remains solid with a revenue/ EPS CAGR of 13 per cent/14 per cent over FY25–29E at RoIC of 80 per cent. We initiate with ‘buy’ and a target price of Rs 800, on 30 times FY27E core EPS," it said.

ICICI Securities on Hitachi Energy India
Rating: Buy | Target Price: Rs 16,617 | Upside: 27%
Hitachi Energy, a global market leader, is in the catbird seat to benefit from this rising investment. It has already begun reaping benefits – we estimate the order book (OB) as of FY25E at Rs 29,000 crore (book to bill of 4.5 times). In our view, the order outlook remains strong for the next 4-5 years, said ICICI Securities.

"Its margins are set to improve on the back of operating leverage and better pricing environment. We expect its revenues, ebitda  and profit to grow at 38 per cent, 72 per cent and 96 per cent, respectively, CAGRs over FY24–27E. We initiate coverage with a 'buy' and a target price of Rs 16,617," it said.

Khandwala Securities on Deepak Builders & Engineers
Rating: Buy | Target Price: Rs 627 | Upside: 340%
Deepak Builders & Engineers India (DBEIL) is an integrated engineering and construction company specializing in EPC projects, including hospitals, administrative buildings, and infrastructure development, with operation and maintenance activities. DBEIL is poised for growth in the Indian construction industry, projected to reach $1.4 trillion by 2025, said Khandwala Securities.

Khandwala Securities has initiated coverage on Deepak Builders & Engineers with a 'strong buy' rating, driven by its attractive valuation and growth prospects. Its stock price currently trades at a forward P/E level of 6.25 times FY26E EPS, representing a significant discount to industry average. We derive a price target of Rs.627," it said.