Lupin, Federal Bank among 7 small & midcap stocks can rally up to 21%: Axis Securities
, ETMarkets.com|
Here's a list of 7 small & midcap stocks that can rally up to 21%, according to Axis Securities:
Agencies
"Given the company's superior positioning in key markets in the East and South, exposure to the West region, the government's focus on infrastructure and affordable housing, increasing real estate demand, new capacity ramp-up, and ongoing cost optimization measures, DBL is expected to deliver stable performance. The company is projected to grow its Volume/Revenue/EBITDA/APAT at a CAGR of 9%/8%/11%/21% over FY24-FY26E," it said.
ETMarkets.com
"Aurobindo has already invested Rs 7,000 cr in Capex over the last two years, primarily in segments like Biosimilars and Pen-G (API). Aurobindo’s valuations in the coming years will be influenced by the return on invested capital (ROIC) generated from this Capex," Axis Securities said.
ETMarkets.com
"New launches in the US market like Darunavir and Spiriva have gained market shares of up to 30% and 25%, respectively. The recent launch approval of gMegabran has the potential to add yearly incremental sales of $50 million. Recent approvals for Tolvaptan (market size $287 Mn) and Xyway (market size $958 million with 180 days exclusivity, could add business in the second half. Double-digit growth in the India business is expected as the company has already increased MR (Medical Representative) numbers to 1,000," it said.
ETMarkets.com
"While we believe FB remains well positioned to deliver a sustainable RoA of 1.3%, improving NIMs backed by shifting portfolio mix towards higher-yielding products would be a key enabler for the bank to deliver RoA of 1.4% and would drive the next leg of stock re-rating. We expect FB to deliver RoA/RoE of 1.3-1.4%/14-16% over FY25-27E supported by steady NIMs, gradually improving the Opex ratio and stable credit costs (~30-35bps)," it said.
Agencies
"Our Buy recommendation is based on long-term growth outperformance in Indian and Mexican operations, driven by increased capacities, headroom for operational efficiencies, and a healthy balance sheet. However, due to near-term headwinds in the European/US business and a slower-than-expected ramp-up in EV operations, we remain conservative on our earnings estimate for CY25/26E. We like CIEAUTO for its strong execution capabilities and maintain our BUY rating on the company. ," it said.
ETMarkets.com
"We maintain our positive outlook on WFL despite near-term challenges. Our confidence in the company’s bright future prospects is supported by its strong execution track record of Revenue/EBITDA growth of 17%/51% over FY16-20, which was driven by new product launches and cost rationalization programs (100-200 bps cost reduction every year). We expect the company to deliver healthy Revenue/EBITDA growth of 12%/13%CAGR over FY23-26E," it said.
ETMarkets.com
"The company reported good operating performance in Q4FY24 with Revenue/EBITDA/PAT growth of 26%/27%/35% which were above estimates. Considering a strong and diversified order book position, healthy bidding pipeline, new order inflows, emerging opportunities in the construction space, the company’s efficient and timely execution, and strong financial credence, we expect JKIL to report Revenue/EBITDA/APAT CAGR of 17%/19%/22% respectively over FY24-FY26E," it said.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Reuters
