Polycab , V-Guard, PNC Infratech among top nine conviction picks of Centrum Institutional Broking

Top Nine conviction picks of Centrum Institutional Broking include RBL Bank Ltd, AIA Engineering Ltd Aarti Industries Ltd, Jubilant Foodworks Ltd, Kalyan Jewelers India Ltd, Polycab India Ltd, V-Guard Industries Ltd, PNC Infratech India Ltd, Home First Finance Company India Ltd.

RBL Bank Ltd remains amongst the pick of Centrum in the Banking and Financial Services space. The brokerage sees an upside of about 44% to a target price of ₹339 for the stock that is trading at close to ₹239 level.

Centrum analysts expect RBL to report strong growth in Advances, Net interest Income and net profit, with CAGR (compound annual growth rate) of 23%, 23%, and 36%, respectively over FY23-26 estimates.

AIA Engineering Ltd remains the top buy of Centrum broking in the capital goods space with a target price of Rs4,360, an upside of 23% from current price of ₹3544.

The EBITDA margin in the past 4 quarters for AIA Engineering was in the 25-30% range, much higher than the management guidance of 22-23%, partly owing to improving sales mix with the addition of mill liners. Sustenance of EBITDA margin above 25% is an upside trigger as per analysts at Centrum

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Aarti Industries Ltd is the pick of Centrum in the specialty chemical space. The target price of ₹604 indicates an upside of more than 13% for the tsock trading at close to ₹531 levels.

Expected demand recovery, new projects commissioned in FY23-24, and projects coming up in early-FY25 are expected to contribute significantly to FY25 Ebitda aiding robust year-on-year growth.

Jubilant Foodworks Ltd remains a key pick of Centrum analysts in the Consumer space with a target price of ₹625, indicating an upside of more than 14% for the stock trading at close to ₹545

Jubilant as per Centrum analysts rejuvenated approach to drive growth through portfolio expansion tapping into high growth chicken QSR segment through Popeyes (22 stores) and capturing discerning consumers catering large market opportunity in Indian Chinese and Biryani segment through Hong’s Kitchen.

Kalyan Jewelers India Ltd is the second pick of Centrum in the Consumer space with a target price of ₹364 indicating an upside of more than 10% from current levels of close to Rs329.

Centrum analysts say that Kalyan is now trading at lower discount to Titan (~50%) considering better than expected operating performance

Polycab India Ltd is the pick of Centrum in the Consumer Durables space with a target price of ₹5675 indicating more than 7% upside from current levels of Rs5,280

Centrum analysts say that Cable and wires is a key consumable of strong infra capex from government, industrial capex as well as real estate sector. With all three segments exhibiting strong growth, cable and wires continues to offer robust growth prospects for Polycab

V-Guard Industries Ltd remains the second pick of Centrum in the Consumer durables space with a target price if ₹330 indicating an upside of close to 15% from the current price of close to ₹287 for the stock.

Macro demand has been soft for the past 3-4 quarters amid inflationary pressure on consumer spending. An uptick in demand is the main medium-term trigger as per analysts at Centrum Broking.

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PNC Infratech Ltd remain the top pick of Centrum in the infrastructure space with a target price of ₹400 indicating an upside of more than 22% for the stock that is trading at close to ₹327 Levels

Completion of Asset monetization, Order wins in drinking water and railways should aid in achieving decent order inflow for the company in FY24 are the key near to medium term triggers for PNC

Home first finance Company India Ltd remains top picks of Centrum in the NBFC space. Their target price of ₹1150 indicates an upside of ₹1150 indicates an upside of more than 29% from current levels of ₹886.

Strong Net Interest Margins controlled operating expenses and low credit costs will support RoA’s to remain over 3.5%. RoE will improve with an increase in leverage said analsysta t Centrum

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions