CDSL among 7 stocks on which brokerages initiated coverage, see up to 65% upside

Street View

A host of brokerage firms have initiated coverage on several stocks. They are bullish on these companies, which include Dabur India, Nexus Select Trust, Phoenix Mills, and CDSL, with a targeted upside of up to 65%. Here is a list of 7 stocks on which brokerages initiated coverage:

Arvind Smartspaces | CMP: Rs 344

Yes Securities initiated coverage on Arvind Smartspaces with a ‘Buy’ rating. The brokerage firm set a target price of Rs 502 on the stock, which indicates an upside potential of nearly 46% from the current market prices.”On the back of strong demand for the residential real estate, we remain positive on the ARVSMART and value the company on SoTP- based valuation, where we value the company using NPV method using 12.7% as the discounting factor (WACC) and assign 35% premium to factor in strong growth potential going ahead,” it said.

Eureka Forbes | CMP: Rs 497

ICICI Securities initiated coverage on Eureka Forbes with a ‘Buy’ rating. The brokerage firm set a target price of Rs 700 on the stock, which shows an upside potential of nearly 41% from the current market prices.

“Eureka scores well on important parameters to be a structural compounder. It has established brands like Eureka Forbes, Aquaguard and Select, multi-channel presence with access to 20,000 GT outlets and 10,000+ pin codes, large product portfolio to cater to consumer needs like storage, hot water, copper/zinc benefits and non-electric water purifier, and strong RoIC,” it said.

Stove Kraft | CMP Rs: 567

Equirus Wealth initiated coverage on Stove Kraft with a ‘Buy’ rating. The brokerage firm set a target price of Rs 930 on the stock, which shows an upside of nearly 65% from the current market prices.

“Given the improving demand outlook, commodity price cooling down and expectations of margin expansion given the reasonable valuations, we believe SKL to continue double digit growth momentum going ahead. We expect SKL’s Revenue/EBITDA/PAT to grow at a 14%/31%/51% CAGR over FY23-FY26E,” the brokerage firm said.

Nexus Select Trust | CMP: Rs 128

JM Financial initiated coverage on Nexus Select Trust with a ‘Buy’ rating. The brokerage firm set a target price of Rs 145 on the stock, which implies an upside potential of 13% from the current market prices.”We believe the return profile for Nexus should track other comparable listed equity peers as it will benefit from the growth in urban consumption and scarcity of Grade-A retail assets in India. Further, Nexus has a strong track record of making value accretive acquisitions and turning around underperforming assets in quick time,” it said.

Phoenix Mills | CMP: Rs 1,773

JM Financial initiated coverage on Phoenix Mills with a ‘Buy’ rating. The brokerage firm set a target price of Rs 2,010 on the stock, which implies an upside potential of 13% from the current market prices.

“We believe PHNX is a well-run company that has stuck to its core skill-set of running malls and is scaling this up well. Rental revenue from the retail portfolio is expected to grow at 29% CAGR over FY23-26E. The office portfolio will increase to 7.1msf by FY27E. The revenue potential after expansion is expected to be Rs 6.8bn (~5.0x FY24E),” it said.

CDSL | CMP: Rs 1320

Nuvama initiated coverage on CDSL with a ‘Buy’ rating. The brokerage firm set a target price of Rs 1,620 on the stock, which shows an upside potential of nearly 23% from the current market prices.

“We expect significant revenue growth driven by new initiatives such as consolidated account statements (CAS, eCAS), eVoting and eAGM. For FY23, these services contributed INR467mn to revenue, i.e. 8.4% of consolidated revenue. We foresee substantial potential for expansion in these areas,” it said.

Dabur India | CMP: Rs 551

Emkay initiated coverage on Dabur India with a ‘Buy’ rating. The brokerage firm set a target price of Rs 650 on the stock, which indicates an upside potential of 18% from the current market prices.

“Dabur generates ~45% of its revenue from Rural and has further strengthened distribution post Covid-19 which, in our view, would help it better leverage Rural demand during recovery. In international markets (entailing 25% of its revenue), Dabur has resolved business issues and is now geared for double-digit growth. Dabur is expected to further hone its healthcare strategy and expand coverage across core categories, going ahead,” it said.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times).