Nirmal Bang Institutional Equities (NBIE) has actually brought out a shed of 10 supplies consisting of ICICI Bank Ltd, LTIMindtree Ltd, Ambuja Cements Ltd, United Spirits Ltd, Dixon Technologies (India) Ltd and PNB Housing Finance that it thinks can provide up to 48 percent returns by followingDiwali Other supplies consisted of Chalet Hotels Ltd, Mahanagar Gas Ltd, Galaxy Surfactants andSuprajit Engineering Here’s what the brokerage firm stated on each of these supplies:
ICICI Bank|Target rate|Upside 20%
NBIE continued to be favorable on ICICI Bank, provided its healthy and balanced development expectation and incomes trajectory with return proportions anticipated to continue to be healthy and balanced. While the energy in annual report development is anticipated to continue to be solid, the financial institution has actually assisted that the NIM will certainly continue to be under stress in the close to term. NBIE has actually prepared for ICICI Bank’s incomes to expand at a CAGR of 12.8 percent over FY24-FY27E on the back of 15.1 percent CAGR in the lending publication, 4.2 percent typical NIM, 39.1 percent typical C/I proportion and 58 bps typical credit history price throughout the very same duration. This, the brokerage firm stated, must result right into a RoA/RoE of 2.2 per cent/17.3 percent in FY27E. It recommended a ‘Buy’ ranking on ICICI Bank with a target rate of Rs 1,545.
LTIMindtree|target Rs 7,542|Upside: 28%
Nirmal Bang stated LTIMindtree incorporates the staminas of both Tier -1 (capacity) and Tier -2 (dexterity) IT business. It uses a wide variety of abilities, a scalable profile of 65 international Fortune 500 customers, and systems and IP as essential differentiators. NBIE suches as the firm’s staminas in ERP modernisation, information analytics and solid UI/UX abilities, which is most likely to record invested in the direction of application modernisation, information analytics and UI/UX upgrades. Normal furloughs in Q3, the durable huge offer pipe ($ 5 billion-plus) and concentrate on functional performances must make it possible for LTIM to proceed its development trajectory in H2FY25, it stated.
“We anticipate US$ revenue/ Margin/ EPS CAGR over FY24-27E at 12.8 per cent/15.8 per cent/16.3 per cent, respectively. We assign a target multiple of 33.2x, 3-year mean on Sep’26E EPS of Rs227. We reiterate BUY on LTIM with an increased TP of Rs 7,542 as we roll forward to Sep’26 EPS,” it stated.
Ambuja Cements|Target rate: Rs 683|Upside: 19%
A good profession mix of the obtained properties and top quality requirements at the same level with Ambuja Cements will certainly decrease the rate void in Ambuja Cements’ main markets. Nirmal Bang anticipates a renovation of Rs 85 per tonne in realisation/tonnein FY26.
“We expect revenue/Ebitda CAGR to be 30 per cent/58 per cent during FY25E-FY27E. The stock is trading at 13.8 times FY26E EV/Ebitda, above the 5-year average of 8.5x. We have maintained “Buy” on ACEM and value it at 12 times September 2026E EV/Ebitda with a revised target price of Rs 683,” NBIE stated.
United Spirits|Target rate: Rs 1,735|Upside: 18%
NBIE stated there has actually been a rise in the premiumisation fad recently as customers are uptrading also if regularity of intake has actually not enhanced enormously. With calculated sale of its Popular sectors in 2 stages over the last years, United Spirits has an extensive profile of items laddered throughout rate indicate exploit this fad. In the current past, United Spirits has actually forayed right into brand-new classifications like Tequila, bought their very own regional brand names & & startups and presented items from the Diageo international secure. The firm’s concentrate on advancement, restoration, group development and expedition of brand-new development engines is most likely to reinforce long-term sales, it stated.
“The stock is trading at 79 times/61 times FY25E/FY26E EPS and we value the company at 60 times September 2026E EPS as we are positive about the structural growth potential of United Spirits, underpinned by ongoing premiumization in the Spirits market and the fact that 87-88 per cent of the company’s sales now comes from the P&A category. We have a Buy rating with target price (TP) of Rs 1,735,” it stated.
Dixon Technologies|Target rate: Rs 15,920|Upside: 11.8%
NBIE stated it stays structurally favorable on Dixon Technologies’ long-term organization potential customers and kept a ‘Hold’ on the supply with a modified target rate of Rs 15,920. This suggests a PE of 77 times on September 2026E EPS and it goes to the same level with the 5-year historic typical PE several on 1-year onward basis.
“We believe that the multiple is fair and it adequately captures: (1) 80 per cent EPS CAGR over FY24-FY26E (albeit a low base; mobile assembly ramp-up began sharply from the past 12-18 months), and (2) post-tax RoCE of 35 per cent in FY26E. We believe it is a long-term compounder and should be accumulated at dips,” it stated.
PNB Housing Finance|Target rate: Rs 1,100|Upside: 19%
PNB Housing Finance has actually determined 3 verticals within its retail organization (Prime, Emerging Markets and Affordable Housing/Roshini). The firm stated its approach of concentrating on the Affordable Housing (Roshini) and Emerging Market sectors and anticipates them to add 40-45 percent of step-by-step dispensations by FY25-end (vs 31 percent presently). It prepares to open up 40-50 brand-new branches in FY25 and is targeting a development of 17 percent in retail financings in FY25. NBIE anticipates a development of 17 percent in FY25, driven by Affordable Housing and EM organizations.
“The stock currently trades at 1.3 times FY26E P/ABV. We believe the focus on growth in the affordable/ emerging markets segment is likely to aid growth and support margins. Strong delivery on asset quality provides confidence on execution. We reiterate Buy with a target price of Rs 1,100 (1.5x Sep ’26E ABVPS),” NBIE stated.
Chalet Hotels|Target rate: Rs 954|Upside: 13%
Chalet Hotels, the friendliness arm of K Raheja Group is a proprietor, designer, property supervisor and driver of resorts and hotels (3,052 functional tricks throughout 10 resorts as on FY24) under leading international brand names (Marriott and Accor Group) in MMR, NCR, Hyderabad, Bangalore and Pune in the costs sector. Chalet’s approach of development is using the possession path. NBIE stated this approach augurs well in a market upcycle like the existing one as one can profit of running take advantage of.
“Commercial Real Estate (CRE) leasing and residential projects offer diversification to the base business. We are positive on Chalet with a Buy (target price of Rs 980 based on SoTP; Hospitality 25 times EV/Ebitda on Sep’26E). Our implied blended multiple of 19x EV/EBITDA and last 3-yr adj median of 19x factors in the sector tailwinds and superior financial performance as compared to the previous upcycle,” it stated.
Mahanagar Gas|Target rate: Rs 1,784|Upside: 25%
NBIE has a ‘Buy’ ranking on MGL as the supply uses favorable risk-reward as thge brokerage firm surrendered its approximated to September 2026 incomes. It pointed out a healthy and balanced EPS and quantity CAGR of 19.8 percent and 9.5 percent in FY25E-27. It kept in mind that the firm prepares to include 80-85 CNG terminals in MGL and subsidiaryUnison Enviro Pvt Ltd
“Growth in small trucks/LCV CNG vehicles, MSRTC bus conversion to CNG (MGL scheme to finance 50 per cent of cost for – OEM CNG model) are positives. Raigadh GA switching to online CNG stations will aid higher blended margins,” it stated.
Galaxy Surfactants|Target rate: Rs 3,500|Upside: 21%
Galaxy Surfactants is among the leading gamers in the surfactants and specialized treatment components market and it is concentrated on just Home and Personal Care (HPC) market around the world, unlike peers that are having existence throughout numerous end-user sectors. It focuses on environment-friendly innovation, advancement, and advertising and marketing in its Performance Surfactants and Specialty Care sectors.
“We believe that Galaxy Surfactants would be a key beneficiary of the broader trends like growing urbanization, rising disposable incomes, improving standards of living and premiumisation. It has large headroom for growth in the Developed Markets (DM), led by premiumisation . We believe GALSURF acts as perfect proxy to the Global HPC market considering its diversified geographical presence, sharp focus on premiumisation and green chemistry. Green shoots in Developed markets is encouraging and the management also expects demand volume growth in AMET portfolio,” NBIE stated.
The broking company stated India profile remains to outshine with 11 percent quantity development in FY24. It thinks FY25 might be the only year article IPO where all areas must add to development.
Suprajit Engineering|Target rate: Rs 711|Upside: 48%
NBIE declares on Suprajit Engineering because of the recuperation in the underlying market. It stated harmonies with procurement might aid include brand-new customers and items to its profile. New items might aid drive web content per automobile. NBIE stated the benefits of range and affordable manufacturing assists SEL preserve price management vis-a-vis its peers on the international system.
“SEL maintains a strong free cash flow generating model with nominal capex requirements. We are building in revenue/Ebitda CAGR of 16 per cent/ 29 per cent over FY24–26E along with RoE/ RoCE of 20 per cent/ 23 per cent for FY27E. We value SEL at 27 times Sept’26E EPS to arrive at a target price of Rs 711. In line with the 5-year mean multiple,” it stated.
Disclaimer: Business Today gives stock exchange information for educational functions just and must not be interpreted as financial investment recommendations. Readers are motivated to seek advice from a certified economic consultant prior to making any kind of financial investment choices.
