Anand Rathi is a leading Indian financial services company, offering a range of services including wealth management, investment advisory, and broking providing research-driven insights and investment solutions to individual and institutional investors.
The leading Indian Broker Anand Rathi has picked up a list of stocks and given a “Buy” rating with a good upside potential.
Here is the List of stocks to keep on your Radar
Stylam Industries Limited
Stylam Industries Limited is a leading manufacturer of high-pressure laminates (HPL) in India that specializes in producing decorative laminates. The broker has given the Target of Rs. 2,582 per share with an upside potential of 44 percent.
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Stylam Industries reported a strong 18.6 percent YoY revenue growth to Rs 2.5bn in Q3, driven by higher offtake and better realizations. Its margins were under pressure due to raw material costs and product mix changes, leading to a 3.8 percent YoY drop in EBITDA and a 4.8 percent drop in PAT.
Exports played a key role in driving overall demand, with a 17.9 percent YoY increase in export volumes. Despite margin pressures, the company remains net cash surplus and is expanding capacity with a new plant set to start in June 2025. They expect around 19 to 20 percent revenue/earnings CAGRs over FY24-27. Given the stock’s recent decline, the risk-reward outlook is favorable, prompting an upgrade to a Buy rating with a target price of Rs 2,582.
Dhanuka Agritek Limited
Dhanuka Agritek Limited is a leading agrochemical company specializing in the manufacturing and marketing of pesticides, herbicides, fungicides, and plant growth regulators. The broker has revised a target to Rs. 1,850 per share, with an upside potential of 28 percent.
Rational
Dhanuka Agritech reported a solid Q3 performance with 10 percent revenue growth, 22 percent EBITDA growth, and 21 percent PAT growth. The company plans to introduce eight new molecules in the next two years, they also acquired international rights for Iprovalicarb and Triadimenol from Bayer AG, aiming for global expansion.
The company successfully launched new products like Roxa for wheat crops and saw strong sales of Lanevo and Mycore Super. Management lowered its revenue growth guidance to 14 percent from 16 percent but kept its margin target. The company maintains a “Buy” rating with a revised target price of Rs. 1,850 from Rs.1,900, citing potential risks such as adverse weather and delays in plant expansion.
Nilkamal Limited
Nilkamal Limited is a leading manufacturer of molded furniture, home furnishings, and material handling products in India. They specialize in providing innovative, high-quality solutions for residential and commercial spaces. The broker has revised the target to Rs. 2,694 per share, with an upside potential of 63 percent.
The company’s Q3 revenue grew 6.3 percent YoY to Rs. 8.5bn, with improved gross margins due to favorable input costs. However their EBITDA dropped 12.9 percent YoY to Rs. 634m, and PAT fell 26.4 percent.
The B2B segment saw a 7.6 percent revenue increase, while retail & e-commerce revenue declined 2.7 percent and Losses in the retail segment significantly impacted overall profitability. The ad spend is up by 58 percent and 8 percent/14 percent revenue/earnings CAGR forecast for FY24-27, the stock’s 12-month target price is revised to Rs. 2,694 from Rs. 2,759 due to risks including economic slowdown and competition.
Written by Sridhar J
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