IGI Logo

Revival in automotive, engineering and industrial activities would be key for the growth of the company. Changing product mix and high margin new initiatives of the company in performance plastics should aid in margin expansion. Going forward, GNL with its strong parentage and leadership in the domestic market with a proven track record and superior balance sheet provides comfort.

Investors can buy the stock on dips to Rs 905-910 (37.5x FY23E EPS) and add further in Rs 820-825 (34x FY23E EPS) band for a base case fair value of Rs 993 (41x FY23E EPS) and bull case fair value is Rs 1054 (43.5x FY23E EPS) in the next two quarters.

LT Foods -- Buy



LT Foods earnings grew at a CAGR 18.7 per cent over FY13-20. Going forward, we are positive on the future growth prospects of LT Foods which is mainly on the back of its robust distribution network, strong brand equity and constant endeavour to enrich their product portfolio by expanding into newer categories.

We feel the base case fair value of the stock is Rs 78 (7.5x FY23E) and bull case fair value is Rs 88 (8.5x FY23E). Investors willing to take risk can buy the stock at current levels of Rs 68 and add on dips in the price range of Rs 58.

Zensar Technologies -- Buy



Zensar has a diversified mix of services and multiple long-term contracts spread across verticals, along with healthy cash on the balance sheet. We expect it to pursue inorganic acquisitions (in cloud or software engineering side).

We believe the base case fair value of the stock is Rs 300 (14.75x FY23E EPS) and the bull case fair value of the stock is Rs 315 (15.5x FY23E EPS) over the next two quarters. Investors can buy at LTP and add further on dips in the Rs 242-246 band (12.0x FY23E EPS). At the LTP of Rs 274, the stock is trading at 13.5x FY23E EPS.

Titan Company -- Buy

Recommendation by Emkay Global Financial Services

Jewelry growth has exceeded expectations and the momentum is likely to remain strong, driven by the wedding season ahead. While Maharashtra, a key market (15-20 per cent of jewellery revenues), may see a short-term impact due to the lockdown, strong momentum in jewelry and pent-up demand would drive further upgrades to our forecasts. The stock trades at 47x FY23E EPS. TTAN remains the preferred pick in the discretionary space. Maintain Buy on TTAN with a TP of Rs1,650.

Britannia -- Buy

Recommendation by Motilal Oswal Institutional Equities

Higher in-home consumption may return amid the on-going second wave of COVID presenting a strong case for growth in FY22.

The high base effect for BRIT would only come into play in 1QFY22, with the base in subsequent quarters becoming far less challenging. The stock trades at 40.7x FY23E - a substantial discount to its historical three- and five-year averages of 46-48x.

Maintain BUY, with revised TP of INR 4,575 (INR4120 earlier), targeting 50x FY23 EPS.

AkzoNobel India Ltd. -- Buy

Recommendation b' HDFC Securities

Akzo Nobel NV, the world's third largest paint company with leading market positions and brands in countries around the globe, operates in India through its subsidiary Akzo Nobel India (Akzo).

Akzo is trading at lowest valuation amongst its peers. We feel investors could look to buy at CMP and add on dips to the Rs 1990-2010 band for base case fair value of Rs 2,515 (37X FY23E EPS) and bull case fair value of Rs 2,720 (40XFY23E EPS) in the next two quarters.

Star Cement Ltd-Buy



We expect that the company will benefit from the strong regional presence, improving utilization, and cost efficiencies, apart from industry triggers of higher realization. We like Star Cement due to its strong, experienced management, healthy margins on the back of substantial ongoing cost reduction, net cash positive balance sheet with superior return ratios, and future growth visibility on the back of expansion plan. However, in the short to medium term, demand recovery in core markets continues to be the key monitorable.

Vardhman Textiles Ltd. -- Buy



We are positive on the future earnings growth trajectory of VTL. We expect its revenue and PAT to record a growth of 4 per cent and 17 per cent CAGR over FY20-23E. Its superior market positioning, prudent expansion strategy along with ability to consistently generate strong cash flows with constant debt reduction provides comfort.

The stock is currently trading at valuation of 6x FY23E EV/EBITDA. We feel the base case fair value of the stock is Rs 1245 (6x FY23E EV/EBITDA) and bull case fair value is Rs 1350 (6.8x FY23E EV/EBITDA). Investors can buy on dips at the price of Rs 1130 (5.6xFY23E EV/EBITDA) and add more on dips to Rs.1045 (5.2xFY23E EV/EBITDA).

JSW Steel -- Buy

Recommendation by Motilal Oswal Institutional Equities

We are raising our FY22-23E EPS for JSW Steel (JSTL) by 42-48 per cent to factor in improved Steel price outlook and accretion from the acquired assets of Bhushan Power and Steel (BPSL). We reiterate a Buy on JSTL as the best play on volume growth in the Indian Steel sector.

We value JSTL at 6.5x FY22E EV/EBITDA and its investment in BPSL at 1x P/B to arrive at our TP of INR610. Reiterate Buy.

SAIL -- Buy

Recommendation by Motilal Oswal Institutional Equities

We expect SAIL's volumes to post a 9% CAGR to 17.5mt over FY21 -- 23E, driven by improved demand and rising capacity utilization.

At CMP, the stock is trading at 4.5x FY22E EV/EBITDA and 0.5x P/B. We value the stock at 5x FY22E EV/EBITDA at INR104/share, implying target P/B of 0.8x (historical average of 0.7x). Reiterate Buy.