Relaxo, NLC India, GPIL, SW Solar among 10 shares that saw brokerage initiations with up to 80% upside

Select stocks including Somany Ceramics, Godawari Power & Ispat, Archean Chemical Industries, Indegene, NLC India, HG Infra Engineering, Sterling & Wilson Solar, Relaxo Footwears, EFC (I) and Krystal Integrated Services have seen fresh interest from various brokerages that recently initiated their coverage on these companies.

The host of domestic brokerages including JP Morgan, Equirus Securities, Elara Capital, YES Securities, Anand Rathi Shares & Stock Brokers, SMIFS, Monarch Networth Capital and Khambatta Securities. Majority stocks have 'buy' ratings or positive ratings) on them with an upside potential of up to 80 per cent, while Indegene has 'neutral' tag and Relaxo Footwears has got a 'sell' rating. Here's what brokerage said on these stocks:

Equirus Securities on Somany Ceramics

Rating: Long | Target Price: Rs 984 | Upside: 37%

Somany Ceramics is a key player in the Indian ceramic tiles industry. It offers a diverse range of products, including wall and floor tiles, polished and glazed vitrified tiles, sanitaryware, and bath fittings. With 11 manufacturing units across India and a production capacity of 80 msm of tiles. It has a robust distribution network of over 3,000 dealers and 450 showrooms, said Equirus Securities.

"It operates under several brands and serves various sectors while exporting to over 70 countries. It is well-positioned for growth by focusing on GVT & expanding bathware to enhance realizations and premiumization. It benefits from stable gas costs, product mix, export growth, and operational leverage, which will improve margins," it added to 'long' to stock with a target price of Rs 984.

Anand Rathi Share & Stock Brokers on Sterling & Wilson Solar

Rating: Buy | Target Price: Rs 870 | Upside: 30%

Sterling & Wilson is a pure-play global solar EPC and O&M service provider. Globally, renewable energy capacity added in CY23 was a record 507GW, up 50 per cent YoY. The International Energy Agency estimates 3,178GW are likely to be added over CY24-28. In India, capacity is likely to be 500GW by 2030, benefiting EPC companies, said Anand Rathi Shares & Stock Brokers.

"We model solar EPC orders of Rs 49,600 crore over FY25-27 across markets. RIL’s plan to set up 100GW renewable energy capacity (predominantly solar and battery storage) by 2030 to meet its net-zero goal, could offer EPC opportunities of Rs 1.1 lakh crore over

FY26-31, Rs 30,000 crore for S&W, and O&M services of Rs 2,400 crore," it said with a 'buy' and a target price of Rs 870.

Monarch Networth Capital on Godawari Power & Ispat

Rating: Buy | Target Price: Rs 1,240 | Upside: 31%

Godawari Power & Ispat (GPIL) is expanding its pellet capacity to utilize its high-grade iron ore which is expected to drive robust growth in revenues and profitability over FY24-FY27E. This is also a result of strong margin expansion due to the high premium earned for its pellets, no premium on royalty paid by GPIL for its captive ore and captive solar power plant limiting its costs, said Monarch Networth.

"In the longer term, GPIL has plans to commission a 2mnt steel plant all through its internal accruals, driving the next phase of Ebitda growth. Over and above this, what enhances our conviction is that even after accounting for weakness in commodity prices, GPIL is very attractively placed at 5 times June 2026 EV/Ebitda," it said with a 'buy' rating with a target price of Rs 1,240.

SMIFS on Archean Chemical Industries

Rating: Buy | Target Price: Rs 1,158 | Upside: 56%

Archean Chemical Industries (ACIL) is the leading player in marine speciality chemicals manufacturing & exporting bromine, industrial Salts & SOP to its global customers. The company’s competitive edge in the global market is because of its low cost & high efficiency processes, making it a unique & standout player amongst its competitors, said SMIFS in its IC report.

"Its recent expansion into bromine derivatives will propel earnings growth going ahead. It aims to capture a larger part of bromine end user pie. The company has strong moats around its business which translates into superior return & margin profile for the company" it said, initiating coverage with a 'buy' rating and a target price of Rs 1,158 citing future growth visibility.

JP Morgan on Indegene

Rating: Neutral | Target Price: Rs 570 | Upside: -3%

Indegene is a leading niche tech operations (TechOps) vendor focused on the global life sciences industry that has scaled rapidly during Covid-19. Overall growth slowed down post Covid from client-specific factors and weakening macro from lightning drug launch cycle of its Big Pharma clients, said JP Morgan, expecting growth to bounce back to early teens from FY26.

"It enjoys low-teens secular growth thanks to low tech penetration in the life sciences ops industry, strong track record and differentiated service offerings. It trades at a premium to most TechOps firms and at the upper end of Indian midcap tech services peers," it added with a 'neutral' rating a target price of Rs 570, with a 'neutral' rating citing fair valuations.

Elara Capital on NLC India

Rating: Buy | Target Price: Rs 373 | Upside: 36%

NLC India is a Navratna central public sector enterprise (CPSE), enjoys an extensive presence across varied energy multiverses – viz., lignite and coal mining, power generation, power trading, and consultancy for mining and power sectors. As the designated nodal agency for lignite mining in India, NLC controls over 50% per cent of the country's lignite reserves, said Elara Capital.

"It has a regulated equity of Rs 9,500 crore, with Rs 5,900 crore allocated to its power generation business and Rs 3,600 crore to mining. The management plans to increase regulated equity to Rs 18,900 crore by 2030. Expansion of regulated equity on the back of buoyant project pipeline should drive revenue and PAT CAGR to 15 per cent and 20 per cent through FY24-27E," it said with a 'buy' rating and a target price of Rs 373.

YES Securities on Relaxo Footwears

Rating: Sell | Target Price: Rs 718 | Upside: -10%

Relaxo Footwears has built a robust position in the mass open footwear segment with a vast presence covering both trade & D2C channels. Notably, Relaxo is the only company among its peers to manufacture 100 per cent of its products in-house, said YES Securities in its maiden report on the stock.

"We reckon RLXF should benefit from the premiumization trend with increasing penetration of the 'Sparx' and 'Flite' brands. We initiate coverage on Relaxo Footwears however, owing to premium valuations we assign a 'sell' rating to the stock," with a target price of Rs 718 on the stock.

SMIFS on HG Infra Engineering

Rating: Buy | Target Price: Rs 1,827 | Upside: 18%

HG Infra is an infrastructure-focused company, has experienced a seamless journey in the roads and highways sector, benefited from healthy awarding by NHAI, augmented inflows through expanding pre-qualification, well-established relationships with fellow developers, and increasing presence in multiple states, said SMIFS, with a buy rating.

"It has successfully ventured into the prominent allied-infrastructure sectors, unveiling significant opportunities for growth. With the prospect of higher inflows and a comfortable current order backlog, it is poised for healthy growth in the near-to-medium term. Balance sheet is skilfully managed by implementation of an asset-light model efficient working capital cycle," it said with a target price of Rs 1,827.

Monarch Networth Capital on Krystal Integrated Services

Rating: Buy | Target Price: Rs 1,240 | Upside: 60%

"We initiate coverage on Krystal Integrated Services, a rising leader in the integrated facilities management services (IFMS) sector, with a target price of Rs 1,230. Krystal is the fastest-growing player in the IFMS industry, offering a diverse range of services, including IFMS, private security, staffing, and catering. Krystal’s strategic focus on key sectors through government contracts, exceptional service portfolio and robust leadership, cementing its role as a dominant market player," said Monarch Networth.

With a revenue CAGR of 30 per cent from FY 21-24, Krystal surpasses its peers, driven by its ability to deliver bundled and customized solutions, supported by strong management. This impressive growth is further highlighted by a 50 per cent Ebitda CAGR, reflecting the company’s operational strength. It could explore opportunities in the B2C segment, Monarch added.

Khambatta Securities on EFC (I)

Rating: Buy | Target Price: Rs 863 | Upside: 80%

Incorporated in 1984, EFC (I) is a real estate management company headquartered in Pune. The company provides managed office spaces for startups, small and medium-sized businesses, and large corporations. India's flex workspace market, valued at $9 bn, expanded from 29.3 million sqft in 2019 to 61 MSF in 2023, as it is projected to reach 126 MSF by 2028, said Khambatta Securities.

"The demand is primarily fuelled by IT, BFSI, consulting, e-commerce, manufacturing, startups, and global captive centres. EFC's business model is scalable, allowing for the replication of its core flexible workspace and managed office solutions across multiple geographic locations. The EFC stock currently trades at an attractive PE ratio of 11.2 times," it said with a 'buy' tag and a target price of Rs 863.