Bajaj Housing, Ideaforge, Saksoft among shares that saw brokerage initiations with up to 54% upside potential

Select buzzing stocks including Stovekraft, Saksoft, Shilpa Medicare, Patel Engineering, Bajaj Housing Finance and Ideaforge Technologies have seen fresh interest from the various brokerage firms, who have recently initiated their coverage on these companies.
 

The host of domestic brokerages including Emkay Global Financial Serivces, Monarch Networth Capital, Antique Stock Broking, Shares India Securities, Philip Capital and JM Financial. All of these stocks have ‘buy’ ratings with an upside potential of up to 45 per cent. Here’s what brokerage said on these stocks:
 

Emkay Global Financial Services on Stovekraft
Rating: Buy | Target Price: Rs 1,350 | Upside Potential: 47%
Stovekraft (SKL) is growing significantly ahead of peers on massive cost-leadership, led by deeply-entrenched manufacturing; strong new product innovation capabilities and strategic ‘value for money’ positioning; and improving branding/distribution expansion, including new-age channels It has emerged as the leader in several high-growth categories, said Emkay Global.
 

“Potential mass-consumer demand cycle recovering after 2 tough years and SKL’s sharply enhanced manufacturing edge drove 15 per cent and 35 per cent revenue and EPS CAGR over FY24-27E, with strong FCF yield and balance sheet by FY27E. Valuations are attractive. We initiate coverage on Stovekraft with a ‘buy’ and target price of Rs 1,350,” it added.
 

Monarch Networth Capital on Saksoft
Rating: Buy | Target Price: Rs 435 | Upside Potential: 20%
With a history spanning over two decades in IT solutions, Saksoft has distinguished itself as a top player in digital engineering, with its deep expertise in product engineering, testing, digital commerce, cloud services, and DevOps. The company caters to marquee names in the niche sectors of Fintech, Hi-tech, transport & logistics, and retail, said Monarch Networth.
 

“We regard Saksoft as a compelling investment opportunity, benefitting from sustained IT expenditure in the niche sectors its services and improving discretionary spends driven by interest rate cuts. Saksoft has an ability to deliver growth in excess of 20 per cent CAGR. We initiate coverage on Saksoft with a ‘buy’ rating and a target price of Rs 435,” it added.
 

Antique Stock Broking on Shilpa Medicare
Rating: Buy | Target Price: Rs 1,300 | Upside Potential: 46%
Shilpa Medicare is a leading API and formulation manufacturer with strong capabilities in Oncology, backed by R&D driven differentiated product offerings. Over the years, SLPA has committed a large capex to its current and future growth drivers- novel drug delivery system (NDDS) for formulations, biosimilar, and recombinant human albumin (rHA) segment, said Antique Stock Broking.
 

“With aggressive capex investments behind, we believe its pipeline monetization can lead to a revenue growth CAGR of 34 per cent over a two-year period, with an Ebita margin of 35 per cent by FY27 and EPS CAGR of over 100 per cent. We initiate coverage on Shilpa Medicare with a ‘buy’ rating and a target price of Rs 1,300.” it said.
 

JM Financial on Ideaforge Technologies
Rating: Buy | Target Price: Rs 845 | Upside Potential: 19%
IdeaForge Technology (ideaForge) is an early entrant into the drone industry in India and the first company in India to locally develop vertical take-off and landing drones. Its core strength is in new technology & product development, which has resulted in launch of improved drone versions. Global drone market is likely to report a 20 per cent CAGR from CY22-30E, said JM Financial.
 

“It is also focusing on expanding its footprint globally in the global market and initially targeted the US market, where it aims to market its products in segments such as public safety, law enforcement agencies and other use cases around enterprises. We believe the company is well placed to be a key beneficiary of positive government policy, increasing usage of drones,” it said with a ‘buy’ and target price of Rs 845.
 

Shares India Securities on Patel Engineering
Rating: Buy | Target Price: Rs 94 | Upside Potential: 57%
Patel Engineering (Patel) is specialized in the construction of complex civil infra work like hydro power plants, tunneling and irrigation. It has over the years contributed to almost 25 per cent of the country’s total operating hydropower capacity. On the back of above factors, we expect the company to deliver strong adj earnings CAGR of 41 per cent over FY24-27E, said Share India.
 

“With a strong order booked of Rs 17,900 and technological edge and skills exhibited in executing critical hydro projects, they would be a big beneficiary in the upcoming infra boom. It has implemented various steps such as debt restructuring, resolving disputes, and monetizing non-core assets thereby strengthening its balance sheet. We initiate with a ‘buy’ rating and target price of Rs 94,” it said.
 

Philip Capital on Bajaj Housing Finance
Rating: Buy | Target Price: Rs 210 | Upside Potential: 17%
We believe Bajaj Housing is in a league of its own, with its focus on the ‘desirable’ sweet spot for many home loan aspirants – a ticket size of Rs 50 lakh. This way, it addresses 65 per cent of home-loan originations in India. It is increasingly focusing on Lease Rental Discounting (LRD), a high-yield segment that provides operating leverage with scale, said Phillip Capital’s IC report.
 

“The CF book will be range-bound at 8-10% of its total book. In three years, BHFL is likely to have a balance sheet of Rs 2 lakh crore. Near-term, credit costs will remain benign; this, along with its focus on building a low-risk balance sheet. With scale, BHFL has scope to improve its expense ratios, implying an improvement in return ratios,” it added with a ‘buy’ tag and target price of Rs 210.