Adani Enterprises, HAL, ONGC and more: Jefferies initiates coverage on 13 Indian stocks; check full list
Hindustan Aeronautics (HAL) revenues are linked to service income to past product sales and recurring. Product business should rise faster as the government is encouraging domestic aircraft manufacturing. GE's tie-up shows the potential of moving up in the OEM status among global defence companies.
Medium-term 22 percent EPS CAGR visibility in FY24E-30E is a key driver, said Jefferies.IDFC First Bank has built a well-rounded platform, arguably among the most improved deposit franchises. Operational efficiencies will play out from 2HFY25, and over FY24-27 strong deposit growth will aid loan growth that should aid 28 percent EPS CAGR even as credit costs rise, forecasted the brokerage. Improving ROA (to 1.5%) and ROE (to 14%) will aid rerating.
A fall in rates should help it more than peers. The ability to raise capital will be key, it added.Indiamart is a dominant B2B classified in India, with a strong value proposition and key moats in place to insulate it from competition. An untapped market, with sub-3 percent paid conversion and rising digital awareness, offers opportunities for growth of 19 percent/25 percent in revenue/EPS over FY24-26E.
A strong balance sheet and investments in SaaS could drive the next leg of growth, said the brokerage.Kaynes stands out among EMS players with the highest Operating Profit Margin (OPM), attributed to its component diversification and optimal mix. As of December 2023, its order book is estimated at ₹3,800 crore. However, the company faces stretched working capital at over 100 days compared to its peers.
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