Brokerages initiate coverage on Zomato, 6 other stocks; see up to 30% upside potential

Global brokerage firm Jefferies initiated coverage on Muthoot Finance with a 'Buy' rating. It set a target price of Rs 2,200 on the stock, which indicates an upside potential of nearly 17% from the current market prices.


"Muthoot is the largest gold NBFC (AUM Rs758bn) with a strong franchise and healthy operating metrics. With a gold loan mix at 82% of consol AUM, it offers better leverage to improving gold financing fundamentals. We expect stronger loan CAGR of 17% (20% FY25e vs. 13% FY21-24) to drive 19% EPS CAGR & 19%+ ROE over FY24-27E," it said.

Jefferies initiated coverage on Manappuram Finance with a 'buy' rating. It has set a target price of Rs 270 on the stock, which indicates an upside potential of nearly 30% from the current market prices.


"MGFL (AUM Rs421bn) being more diversified (gold 49% of AUM) has growth drivers beyond gold prices due to thrust on diversification, but its leverage to gold prices is lower vs. Muthoot. We expect gold loans to grow at 16% in FY25E (9% FY24). This should drive 18% CAGR in consol. loans & 17% EPS CAGR over FY24-27E. Key concerns: elevated stress in MFI portfolio (26% of AUM) and execution risks in non-gold biz., but at 1.4x FY25E BV (5-yr avg 1.3x) despite 18%+ ROE outlook, this seems priced in," the brokerage firm stated.

Nirmal Bang initiated coverage on Sansera Engineering with a 'Buy' rating. The firm has set a target price of Rs 1,667 on the stock, which implies an upside potential of 16% from the current market prices.


"We are building in revenue CAGR of ~17% over FY24-FY27E and EBITDA margin of 18.2% in FY27E, driving EPS CAGR of ~33%. We are also building in ROE/ROCE of 20%/22% from 15%/16% in FY24. Considering the superior growth and ROE/ROCE expansion we value SEL at 22x Sept’26E EPS ~2 std deviation above 5 year average to arrive at a TP of Rs 1,667. We believe that current valuation at 18x Sept’26E EPS is constrained by the high exposure (77%) to the ICE engine related components," it said.

Axis Securities initiated coverage on Zomato with a 'Buy' rating. It has set a target price of Rs 280 on the stock, which shows an upside potential of 7% from the current market prices.


"We expect Zomato to strengthen its presence in the food-delivery market and gain market share through its continuous adoption of new technology and bringing new innovations in the food-delivery business. This will continue to drive more number of users to the platform," it said.

Axis Securities initiated coverage on NLC India with a 'Buy' rating. It has set a target price of Rs 340 on the stock, which shows an upside potential of 26% from the current market prices.


"We value the conventional thermal business at 1.8x on our consolidated regulated equity projections of FY33 discounted to FY26. We value the regulated mining business at 1.9x FY26 regulated equity and RE business at EV/EBITDA of 9x on FY26 EBITDA. We value the merchant coal business at 7.0x EV/EBITDA on FY26 EBITDA to arrive at our SOTP target price of Rs 340/share," it said.

JM Financial initiated coverage on CE Info Systems (MapMyIndia) with a 'Buy' rating. It set a target price of Rs 2,900 on the stock, which shows an upside potential of 27% from the current market prices.


"Our constructive view on the stock is based on the following top-down rationale: a) Location intelligence as a service (LaaS) is becoming ubiquitous across industries with early stages of adoption currently; b) MMI has well-established moats to not only ride the rising adoption trend but also gain market share; c) Robust financials – 36% Revenue CAGR (FY21-24), superior margins (40% EBITDA), healthy return ratio (100% RoIC) – should translate into premium valuations," it said.

JM Financial initiated coverage on Aurobindo Pharma with a 'Buy' rating. The firm has set a target price of Rs 1,640 on the stock, which implies an upside potential of 14% from the current market prices.


"We value at 20x Jun’26 earnings and assign an NPV of Rs 87 for biologic CDMO business (with MSD). We believe Aurobindo can further re-rate as high-value segments’ (biosimilars, biologics CDMO, Eugia, PLI) contribution increases from 19% in FY24 to 32% by FY28. US tailwinds and API/ARV recovery auger well for the company," it said.


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