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Synopsis: Several brokerage firms have initiated coverage on five companies, highlighting their strong growth prospects. Entero Healthcare Solutions, backed by IIFL Capital, is expected to benefit from consolidation in the pharma distribution market, while B&K Securities sees JK Cement doubling its production capacity by FY30. Bajaj Broking views Zaggle Prepaid Ocean Services as a rising fintech powerhouse, aiming for high revenue growth and strong profitability. LKP Securities believes Muthoot Finance’s gold-backed lending model will continue to deliver high returns, while Geojit Financial Services expects CAMS to maintain its market leadership in mutual fund services.
Several brokerage firms have recently initiated coverage on select stocks, highlighting their growth potential and setting target prices. Companies such as Entero Healthcare Solutions, JK Cement, Zaggle Prepaid Ocean Services, Muthoot Finance, and Computer Age Management Services (CAMS) have gained fresh interest from analysts, who see strong upside potential based on their growth strategies and market positioning.
IIFL Capital has placed a 'Buy' rating on Entero Healthcare Solutions with a target price of Rs1,500, indicating an expected 30% increase in stock value. As one of the largest and fastest-growing pharma distribution platforms in India, Entero is benefiting from the ongoing consolidation in the Rs3.3 lakh crore market, which is growing at a 10-11% CAGR. IIFL expects the company's revenue to grow at a 24% CAGR over FY25-28, driven by both organic expansion and acquisitions. The company's EBITDA and EPS are projected to grow at 45% and 46% CAGR, respectively, supported by procurement efficiencies and increasing contributions from higher-margin medical devices.
JK Cement, one of India's leading cement producers, has received a 'Buy' rating from B&K Securities, with a target price of Rs5,739, suggesting a 17% upside. The company is on an aggressive expansion path, aiming to double its production capacity from 25 million tonnes (mt) to 50 mt by FY30. B&K Securities highlights that JK Cement’s well-balanced regional presence, planned capacity additions, and improved cost structures will support healthy EBITDA growth over FY25-27. The company's operational cash flow is expected to scale up, allowing it to fund expansion projects without putting excessive strain on its balance sheet.
Zaggle Prepaid Ocean Services, operating in the fintech sector, has been rated a 'Buy' by Bajaj Broking, which has set a target price of Rs456, estimating a 30% potential upside. The brokerage firm emphasizes Zaggle’s strong banking partnerships, diversified revenue streams, and strategic expansion plans. The company is targeting a revenue growth rate of 58-63%, driven by increased corporate adoption, and aims to achieve a 15-16% EBITDA margin within four years. Bajaj Broking values the stock based on a projected FY27 price-to-earnings (PE) multiple of 31x and an estimated EPS of Rs14.72.
Muthoot Finance, a key player in the gold-backed lending segment, has been assigned a 'Buy' rating by LKP Securities, with a target price of Rs2,849, reflecting a 22% upside. Muthoot has successfully institutionalized gold-backed loans, leveraging its first-mover advantage, strong customer trust, and extensive distribution network. The company has maintained a disciplined approach to risk management, ensuring a high-quality loan book despite operating at high loan-to-value (LTV) levels. Analysts expect Muthoot to achieve a return on assets (ROA) of 5.4% and a return on equity (ROE) of 21.4% for FY27, supported by its expanding market reach and continued profitability.
Computer Age Management Services (CAMS), India's leading registrar and transfer agent for mutual funds, has been assigned an 'Accumulate' rating by Geojit Financial Services, with a target price of Rs4,425, implying a 17% upside. CAMS commands a dominant market share of 68% based on mutual fund assets under management (AUM) serviced. In Q3FY25, the company handled an AUM of Rs46.3 lakh crore, with equity net inflows reaching Rs97,000 crore, an 89% year-on-year increase. With a strong balance sheet and industry leadership, CAMS is well-positioned to benefit from the continued growth of the mutual fund industry. Geojit values the stock at a PE multiple of 36x, in line with its five-year average.
Disclaimer:This article is for informational purposes only and should not be considered investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.
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