Bank of India | Sharekhan says Bank of India's return on asset (RoA) is expected to approach 1%, assuming a positive asset quality outlook. This will be achieved through decreased credit costs and better core pre-provision operating profit (PPOP), which is the amount of income a bank earns in a given time period, before taking into account funds set aside to compensate for future bad debts. The management expects significant cash recoveries estimated at ₹12,000 crore in this fiscal, from the revised ₹7,233 crore in FY23. This will lead to recoveries exceeding new delinquencies in FY24, mainly through resolution of some accounts within the National Company Law Tribunal (NCLT), particularly in the power sector, and through the One-time Settlement Scheme (OTS), the brokerage said. The stock has gained 38.3% in the last year.
Bharat Forge Ltd | The company has a diversified and well-damped business model, an ideal investment in both the global automotive engineering and non-automotive engineering sector. The continued premium valuation is expected to be sustained by their healthy order book and consistently high margin, according to Sharekhan. The stock has gained 23.74% in the last year.
Birlasoft | Birlasoft has a leading position in ERP and infrastructure that will lead to the momentum of the digital and data business. Moreover, the organisation’s new focus to its core industries including financial services and manufacturing will have a positive impact on its overall outlook. The stock has witnessed a jump of 106.04% in the last year.
BSE Limited | Based on Sharekhan's projections, BSE Ltd is expected to record strong earnings growth at a compound annual growth rate (CAGR) of roughly 40% over the next three years. The growth will be facilitated by the expected expansion of the volumes of trading in the equity and index derivatives. Additionally, gradual adjustments on the derivative segment of transaction charges are envisaged as sustainable momentum in the overall equity derivatives volumes are achieved during the medium term. The stock has fallen -14.82% in the past year.
DLF | The company has given a guidance of Rs. 12,000-13,000 crore sales and 50% plus gross margin for FY2024. The company aims a planned sales pipeline launch of 11.2 msf. The H2FY24 will witness major launches, amounting to 19,710 crore for FY2024. The stock has gained 39.37% in the last year.
Garware Hi-Tech Films Ltd | GHFL has continuously increased the share of value-added products in its product mix. The value-added products, which represented 48% of sales in the 2016-17 financial year., have increased to 80% in the last fiscal. There has been a shift in focus that has led to a higher margin, rising from 9% of FY2017 to 18.7% of FY2023. "We also expect future margin improvement as the company plans to expand the production capacity of value-added products and introduce new offerings," Sharekhan said. The stock has gained 105.74% in the last 12 months.
Gokaldas Exports | A capex of approximately ₹370 crore between FY22 and the ongoing fiscal is projected to yield revenues in the range of ₹1,100-1,300 crore for Gokaldas Exports, with a fixed asset turnover rate of around 3.0-3.5x, Sharekhan said. Coupled with an increase in the EBITDA margins, Sharekhan anticipates a 20% Compound Annual Growth Rate (CAGR) in Profit Before Tax (PBT) from FY2023 to FY2025. The stock has gained 131.85% in the past year.
Hindustan Aeronautics Ltd (HAL) | Sharekhan is optimistic about HAL’s future growth prospects driven by its role as a beneficiary in structural reforms within the defence sector. Moreover, HAL’s prospective partnership with GE and trade associations with countries such as Argentina promise to be lucrative sources of future growth avenues, Sharekhan said. The stock has gained 45.9% in the past year.
IndusInd Bank | According to Sharekhan, IndusInd Bank has come out of a tough cycle and focus on sustainable incremental growth along with a robust internal risk framework could be a right strategy. At the moment, the bank’s short-term business indicators are reassuring. The franchise will now be ready for a more consistent and predictable performance. The stock is up 25.37%.
Kirloskar Oil Engines Ltd (KOEL) | There is a strong demand in KOEL for retrofit dual fuel kits and emission control in CPCB–II gensets, especially after the extended period of implementation of CPCB IV+ norms up to July 2024, Sharekhan said. Moreover, there is an expected increase in the demand for CPCB-IV plus gensets during the second half of FY2024, it added. The stock has gained 107.15% in the last 12 months.
Kolte-Patil Developers | Kolte-Patil Developers is now aiming at new business developments worth ₹8,000 crore in FY2024. As of now, they have already added ₹3,450 crore to this target. The Pune-based realty firm aims to achieve the target with an investment of ₹500-600 crore, which would be majorly funded through internal accruals, Sharekhan said. Its stock has gained 32.69% in the past year.
Larsen & Toubro | L&T's orderbook has touched an all-time high of about ₹4.1 lakh crore. The company plans to raise debt of ₹1 lakh crore, which is approximately 2.1 times the trailing twelve months (TTM) revenue. L&T seeks 12-15% revenue and order intake growth for FY24. They are looking forward to about 9% OPM which amounts to an increase of 40-50 basis points from the previous year. Moreover, the working capital is expected to be between 16 and 18% of the sales, Sharekhan said. Its shares have gained 47.3% in the last 12 months.
Sanofi India | Sharekhan's projections about the future of Sanofi are positive, indicating that it has overcome the most difficult period. As such, Sanofi is expected to drive growth and sustain margins at around 25% based on its Diabetes portfolio. Currently the stock is trading at a multiple of 28 times the CY24E earnings. Due to its high ROE and ROA, Sharekhan is considering a PE multiple of 32 times to CY24E EPS of ₹267 to arrive at PT of Rs 8,500. The stock is up 34.42% in the last year.
Tata Motors Ltd | Tata Motors Ltd has significantly increased its market share in the domestic passenger vehicle (PV) sector due to the introduction of new products and customers’ growing preference for SUVs. The domestic PV market has increased Tata Motors’ share from 5% in FY20 to 14% in FY23, Sharekhan said. Secondly, the company expects its production capacity will increase rapidly, especially since the carmaker is working at maximum capacity with the plant acquisition of Ford’s plant. The stock has gained 56.37% in the last year.
Wonderla Holidays | The company is adopting an “asset-light” mode by entering into lease-land agreements with several governments. In addition, Wonderla Holidays is an attractive investment option considering its valuations at 17.8x/15.3 times of its EV/EBITDA of FY24E/FY25E and a strong balance sheet despite considerable capital expenditures and double-digit earnings outlook, the brokerage said, The stock has gained 141.2% in the last year.