IRCON, SIS, Medanta among 10 stocks seeing initiations with up to 95% upside targets

Select stocks including SIS, Global Health (Medanta), Rainbow Children's Medicare (RCML), Aditya Birla Capital (AB Capital), Concord Biotech, IRCON International, Kirloskar Pneumatic, Kajaria Ceramics, Hindware Home Innovation (HHIL) and Senco Gold have seen fresh interest from the various domestic and global brokerage firms, who have recently initiated their coverage on these companies.

The host of brokerages including Jefferies, Ambit Capital, Sharekhan, Antique Stock Broking, Motilal Oswal Financial Services, Keynote Capital, Bonanza Portfolio and Monarch Networth Capital have launched their maiden reports on these stocks. Majority of these stocks have 'buy' ratings on them with an upside potential of up to 52 per cent. Here's why these analysts are positive on them:

Keynote Capitals on SIS
Rating: Buy | Target Price: Rs 837 | Upside: 95%
SIS, formerly called Security and Intelligence Services (India), has transformed into an Indian multinational company. The company has expanded its customer base by 27 per cent from 6,000 in FY19 to 21,000 in FY23 across the 3 segments. SIS has demonstrated steady revenue growth at 12 per cent between FY19 and FY23, said Keynote Capital in its maiden report on the stock.

"We believe that the leadership position of the company, supported with subtle and evident areas of strength, makes a major potential benefactor of the rising prospects in the industry for the following 3 years. Consequently, we initiate coverage on SIS with a high-conviction BUY rating at 5-year median PE of 22 times on FY26E EPS, giving a target price of Rs. 837," it added.

Ambit Capital on Kirloskar Pneumatic
Rating: Buy | Target Price: Rs 912 | Upside: 46%
Kirloskar Pneumatic is a play on refrigeration and gas compressors/packages benefitting from tailwinds in these core segments as build-out of CNG infrastructure gains pace. KKPC is also adding new products to address gaps and benefits from cost leadership owing to in-house foundry, manufacturing, engineering and design as compared to assembled products by MNC peers, said Ambit.

KKPC is among the cheapest in the industrial universe despite a better growth outlook. In longer term, we see it replicating the success of Elgi Equipment as it adds 6-8 new products, gains market share in air compressors led by cost leadership and reaches export mix of 15-20 per cent by FY30E, it added with a 'buy' rating and target price of Rs 912.

Bonanza Portfolio on Kajaria Ceramics
Rating: Buy | Target Price: Rs 1,803 | Upside: 36%
Owing to focus on premium tiles launches and expanding distribution has helped the company to gain its market share to 18 per cent in the last 10 years. The company’s pricing power is also improving leading to an industry-leading margin improvement. The company is also looking to expand its market-share in other segments like Bathware, plywood and tiles adhesives, said Bonanza.

"Owing to huge CAPEX plans, expansion towards non-core businesses, export opportunities, and increasing distribution network, we are Initiating Coverage with a BUY rating. We forecast the company’s Revenue, EBITDA, PAT CAGR at 16 per cent, 27 per cent and 36 per cent, respectively during FY23-25E. We see a target price of Rs 1,803 apeice," it said.

Antique Stock Broking on Concord Biotech
Rating: Buy | Target Price: Rs 1,340 | Upside: 29%
Concord Biotech is an India-based bio-pharma company that manufactures APIs via fermentation route. The company has a rich basket of products in the immunosuppressant and anti-Infective segments.  The company commands over 20 per cent market share by volume across fermentation-based key API products, said Antique Stock Broking.

The API business constitutes over 90 per cent of revenue, with the remainder of the business coming from formulations. Over the past few years, the formulations business has scaled up driven by forward integration of its APIs and opening of newer markets. On a three-year CAGR basis, the company has recorded robust revenue growth, with an EBITDA margin profile, it said with a target price of Rs Rs 1,340 and a buy tag.

Monarch Networth Capital on Rainbow Children's Medicare
Rating: Buy | Target Price: Rs 1,296 | Upside: 25%
Starting in 1999 with a 50-bed capacity at Banjara Hills, Rainbow Children's Medicare has grown multi-fold to become one of the leaders in the burgeoning paediatrics, obstetrics, and gynaecology space with a network of 1655 beds, 16 hospitals and three clinics spread across six cities in Hyderabad, Bangalore, Chennai, Delhi and Andhra Pradesh, with a total capacity of 1,655 beds, said Monarch.

"Having created a vast talent and asset pool, RCML has carved a niche in the fast growing and underserved segment of Children care. It also has ten NABH-accredited hospitals, three EDGEcertified hospitals, and India's first Joint Commission International (JCI) recognised reproductive. It offers comprehensive healthcare services across its core specialties," it added with a buy and a target price oF Rs 1,296.

Jefferies on Aditya Birla Capital
Rating: Buy | Target Price: Rs 215 | Upside: 22%
We believe AB Capital is poised to double profits in the next 3 years, capitalizing on wider network & higher cross-sells. NBFC can gain from MSME lending opportunities as it expands branches, leverages low cost of funds and shifts to lower ticket loans. P. ABFL, being an upper layer NBFC, has to list by Sept 2025 per current norms, said Jefferies while initiating coverage on AB Capital.

"Over FY23-26, this should drive 29 per cent EPS CAGR & lift ROE to 16 per cent at NBFC; in Life insurance, strong APE growth, better VNB margins due to scale gains. Valuations seem reasonable," added the global brokerage firm with a buy rating and a target price of Rs 215.  It sees slower growth, asset quality issues and changes in holdco structure as key risks.

Antique Stock Broking on IRCON International
Rating: Buy | Target Price: Rs 176 | Upside: 25%
IRCON International is engaged in railway EPC works. Moreover, the railways garner the lion’s share of its order book. In other segments like metros, roads, and other spheres of infrastructure, IRCON has weighed its presence. Note, that the bulk of its revenue is dependent on EPC services, qualifying for the term asset-light, implying high RoE, said Antique Stock Broking.

"However, IRCON’s seemingly low RoE is due to non-core elements ranging from wwn cash of Rs 900 crore; investments of Rs 2,200 crore; and additional investment plan of Rs 1,200 crore. We initiate coverage on IRCON with a 'buy' rating and a target price of Rs 176," it added in its maiden report on the stock.

Ambit Capital on Senco Gold
Rating: Buy | Target Price: Rs 730 | Upside: 17%
Senco’s store count leadership in the east won’t limit its growth runway as its market share is just 5 per cent. East India is a 40 per cent RoCE business, and 72 per cent of store addition (FY23-26) will still be in that geography. Expansion into north is apt and may be RoCE-dilutive, said Ambit Capital in its IC report with a buy rating and a target price of Rs 730.

"But prudence in incremental capital deployed, gradual rise in studded share and asset-light scaled franchisee business would restrict RoIC decline to 50bps over FY23-26. Management’s pedigree in jewellery, financial discipline with no PAT loss in the last decade despite disruptions, industry leading RoCE and 90 per cent hedging warrant P/E re-rating," it added.

Motilal Oswal on Global Health (Medanta)
Rating: Buy | Target Price: Rs 840 | Upside: 17%
Global Health is a leading tertiary care service provider with established presence in North and East India. With an aim to provide specialized care in underserved densely populated areas. Medanta has built its hospital network in Gurugram, Indore, Ranchi, Lucknow, Patna, and Noida. In 15 years, it has scaled up its bed capacity to nearly 2,700 and intends to add more, said Motilal Oswal.

"We expect the momentum to sustain led by higher volume of patients being treated at new hospitals; scale-up in international patient flow; improvement in ARPOB backed by superior payor mix. Strong demand in cities where Medanta is present makes it imperative for the company to add beds" it added with a buy rating and a target price of Rs 840 considering its business and surplus cash.

Sharekhan on Hindware Home Innovation
Rating: Positive | Target Price: Rs 697 | Upside: 30%
"We initiate viewpoint coverage on Hindware Home Innovation with a positive view and expect a 30 per cent upside, led by favourable valuations and high earnings growth trajectory over the next three years. It has scaled up its market-size opportunities by 10 times to Rs. 50,000 crore over the decade, adding consumer-facing businesses," said ShareKhan.
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The plastic piping business is slated to report a 17 per cent CAGR over FY 23-26E, led by strong demand, brownfield and greenfield capacity expansions. It plans to position itself among the top-five players in the CPVC segment over three years. Strategic partnerships with global conglomerates such as in heating appliances would help in gaining a strong foothold, it added.


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