Indian benchmark indices ended lower on September 23, with the Nifty hovering near 25,100. The Sensex fell 57.87 points or 0.07 percent to close at 82,102.10, while the Nifty slipped 32.85 points or 0.13 percent to 25,169.50.
Two fundamentally strong stocks are emerging as attractive investment opportunities with significant upside potential of up to 55 percent. A leading luxury hospitality player is set to benefit from robust demand, premium pricing, and strategic expansion, while a well-established consumer care company backed by experienced leadership is poised for growth through brand strength, distribution reach, and new product launches.
1. Schloss Bangalore Ltd
The Leela Palaces, Hotels and Resorts is India’s leading luxury hospitality brand, owned and managed institutionally with backing from the Brookfield Group. Operating 13 award-winning properties across key leisure and business destinations, The Leela is globally recognized for architectural excellence and bespoke services. It was ranked the #1 hospitality brand worldwide in 2020–21 and among the top three in 2023–24. The brand continues to deliver world-class Indian hospitality experiences.
The company has a market capitalization of Rs. 14,644.05 crore, with its stock closing at Rs. 438.50 on Tuesday, September 23. JM Financial has assigned a target price of Rs. 605, implying a potential upside of 37.97 percent from the current levels.
Schloss Bangalore’s strong rating is backed by its recognized brand, superior architecture, and luxury service, enabling higher average room rates. The Indian luxury hotel market is favorable, with demand expected to grow at 10.6 percent CAGR over FY24–28E against supply growth of 5.9 percent.
Expansion plans aim to increase rooms from 1,224 to 1,978 by FY30E. Analysts project 17 percent revenue and 18 percent EBITDA CAGR over FY25–28E, supported by ARR growth and improved occupancy, with Rs. 18 billion cumulative FCFE to fund BKC expansion.
Coverage is initiated with a BUY recommendation and a target price of INR 605, implying a valuation of 22 times June 2027 EBITDA, which represents a 24 percent discount to IHCL’s target multiple.
Also Read: Fundamentally strong stocks trading at a discount of up to 40% to keep an eye on
2. Bajaj Consumer Care Ltd
Bajaj Consumer Care manufactures and markets hair care, cosmetics, toiletries, and personal care products in India and abroad. Its portfolio includes Bajaj Almond Drops hair oils and shampoos, Bajaj 100% Pure oils, Bajaj Nomarks face care products, and Natyv Soul hair and skin care items.
The company also offers products under Bajaj Jasmine, Bajaj Zero Grey, and other consumer care brands, reaching customers through a wide distribution network across retail outlets, regional offices, and distributors.
The company has a market capitalization of Rs. 3,493.44 crore, with its stock closing at Rs. 253.95 on Tuesday, September 23. ICICI Securities has set a target price of Rs. 400, indicating a potential upside of 57.5 percent from the current price.
The BUY recommendation is driven by the strong leadership of MD & CEO Naveen Pandey, who brings extensive experience in scaling businesses, driving profitable growth, and successfully launching new product categories.
His track record includes delivering structural cost improvements, enhancing distribution efficiency, and strengthening margins across various markets. Analysts maintain a positive outlook with a revised DCF-based target of Rs. 400, factoring in higher long-term growth assumptions. Key risks include over-reliance on Bajaj Almond Drops, commodity inflation, and potential new product failures.
Written By Manan Gangwar
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