An analyst’s target price is a forecasted based on future value of a stock price, reflecting the analyst’s perception of a fair market value. This projection considers the company’s past performance, as well as its future objectives and strategic plans. Conversely, a lower target price suggests the analyst’s belief that the stock is expected to decrease in value.
Listed below are two stocks with an upside potential of 35%:
The shares of this leading airline firm gained 2.5% on tuesday’s trade after the brokerage assigned the target price for an upside of 23%.
About the Company
InterGlobe Aviation Limited is engaged in aviation management, hotel development, and management services. The company also works in passenger and cargo management and also offers travel distribution services, such as itineraries and domestic. As of FY23, the company has a 55 percent market share in domestic passenger airlines.
Stock Performance:
From FY23 to FY24, the company experienced a significant revenue increase of 26.5%, rising from ₹54,446 crores to ₹68,904 crores. During the same period, net profit improved dramatically from a loss of ₹317 crores to a profit of ₹8,167 crores.
Additionally, InterGlobe Aviation Limited’s shares have risen by 37% over the past six months and 70% over the past year.
Targets:
JP Morgan has assigned overweight call on shares of InterGlobe Aviation Limited for a target price of ₹4,950 per share, which suggests a potential 15% increase from the current price of ₹4,311.
Meanwhile, Emkay Global has reaffirmed its buy rating on InterGlobe Aviation Limited, with a target price of ₹5,300 per share, indicating a potential 23% upside in the stock.
Reasons for the target:
Brokerages have given InterGlobe Aviation positive reviews following the launch of its ‘IndiGo Stretch’ business class. This new offering will be available on 12 routes, including Chennai, Hyderabad, Bangalore, and Mumbai, starting in mid-November, according to CEO Pieter Elbers, who made the announcement on August 5 during the airline’s 18th anniversary celebration.
Global brokerage JP Morgan has expressed optimism about IndiGo’s move towards premiumization. The brokerage anticipates that IndiGo will continue to expand its international business with innovative new routes.
JP Morgan analysts believe that by introducing business class, IndiGo is enhancing customer loyalty and brand strength. These initiatives are expected to help IndiGo maintain its dominant market share and profit leadership.
The shares of this leading real estate construction company gained 3.5% on tuesday’s trade after the brokerage assigned the target price for an upside of 35%.
About the Company:
Suraj Estate Developers Limited is a real estate construction company that develops residential and commercial real estate in the South Central Mumbai region.
Targets:
Nuvama has assigned buy call on shares of Suraj Estate Developers Ltd for a target price of ₹935 per share, which suggests a potential 35% increase from the current price of ₹691.
Reasons for the target:
As of the end of June, the company had an inventory of 93,000 sq. ft. (GDV: ₹500 crore) in ongoing projects, with plans to launch approximately 900,000 sq. ft. by FY27. Of this, launches worth ₹1,150 crore are planned for FY25. Driven by these launches, the brokerage expects presales of ₹850 crore in FY25.
Analysts anticipate a 53% CAGR in presales, reaching ₹ 1,720 crore over FY24–27. They project that inventory and the current project pipeline will generate a gross/net cash flow of ₹7,901 crore/₹ 4,148 crore over FY25–32.
The EBITDA margin is expected to stabilize at 52–53%, with a 49.6% CAGR in EBITDA over FY24–27, reaching ₹ 780 crore. Additionally, a 101% CAGR in PAT is anticipated over FY24–27, amounting to ₹548 crore, driven by falling interest costs.Brokerage added.
The brokerage is optimistic about the growth prospects of Suraj Estate Developers, citing the company’s robust project lineup, healthy launch pipeline, leadership in the redevelopment segment in South Central Mumbai, strong cost advantage, proven track record in redeveloping 33(7) projects, and a substantial addressable market.
Suraj Estate Developers Ltd’s shares have risen by 111% over the past six months and 105% over the past year.
From FY23 to FY24, the company’s revenue surged by 35%, growing from ₹306 crores to ₹412 crores. Concurrently, net profit soared by 109%, increasing from ₹32 crores to ₹67 crores.
Written by Omkar Chitnis
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