Top picks! Lupin, Chalet Hotels among 9 small & midcap stocks that can rally up to 41%

Axis Securities has set a target price of Rs 1,500 on Aurobindo Pharma, indicating an upside potential of nearly 16% from the current market prices.

"Aurobindo has allocated Rs 7,000 cr in capex over the past two years, focusing on areas such as Biosimilars and Pen-G (API). The company’s future valuations will largely hinge on the return on invested capital (ROIC) generated from this significant investment," Axis Securities said.

Axis Securities has set a target price of Rs 2,600 on Lupin, showing an upside potential of around 14% from the current market prices.

"New launches in the US market like Darunavir and Spiriva have gained market shares of up to 30% and 25% respectively. The recent launch approval of gMegabran has the potential to add yearly incremental sales of $50 mn. Recent approvals for Tolvaptan (market size $287 mn) and Xyway (market size $958 mn with 180 days exclusivity, could add business in the second half. Double-digit growth in the India business is expected as the company has already increased MR (Medical Representative) numbers to 1,000," it said.

Axis Securities has set a target price of Rs 2,040 on Dalmia Bharat, implying an upside potential of 13% from the current market prices.

"Given the company's superior positioning in key markets in the East and South, exposure to the West region, the government's focus on infrastructure and affordable housing, increasing real estate demand, new capacity ramp-up, and ongoing cost optimization measures, DBL is expected to deliver stable performance. The company is projected to grow its Volume/Revenue/EBITD," it said.

Axis Securities maintained a 'Buy' rating on Prestige Estates Projects with a target price of Rs 2,195, showing an upside potential of 41% from the current market prices.

"The management has guided a pre-sale of Rs 24,000 cr for the financial year. In H1FY25, the company has achieved the pre-sales of~ Rs 8,000 cr. The management is confident in achieving their guidance and launching major projects during the remaining quarters," it said.

Axis Securities has set a target price of Rs 1,075 on Chalet Hotels, showing an upside potential of around 17% from the current market prices.

"The hospitality Industry upcycle is expected to be a long and sustained one. Upcoming events such as the World Cup hockey or Kabaddi championships

could enhance occupancies in the upcoming quarters. The leisure segment is already driving business in the hotel industry, leading us to believe that the aforementioned factors will benefit the Indian hotel sector in the coming quarters," it said.

Axis Securities has set a target price of Rs 1,780 on Sansera Engineering, showing an upside potential of around 28% from the current market prices.

"In light of attributes such as a) Higher sales mix in Non-Auto ICE components, b) Higher International business (exports), c) Focused approach on improving margin trends, d) The company’s capability to generate strong operating cash flows, and e) Capacity expansion plans, we expect Revenue, EBITDA, and PAT to grow at CAGRs of 15%, 18% and 26% respectively over FY24-26E," it said.

Axis Securities has set a target price of Rs 575 on Healthcare Global Enterprises, showing an upside potential of around 17% from the current market prices.

"We anticipate a 1000bps improvement in RoIC for HCG over the next three years, driven by increased operating profitability. Currently, the stock trades at 13x and 11x EV/EBITDA for FY26 and FY27, respectively," said the brokerage firm.

Axis Securities has set a target price of Rs 950 on J Kumar Infraprojects, showing an upside potential of over 26% from the current market prices.

"The company reported good operating performance in Q2FY25 with Revenue/EBITDA/PAT growth of 17%/18%/23% which were above estimates. Considering the strong and diversified order book position, healthy bidding pipeline, new order inflows, emerging opportunities in the construction space, the company’s efficient and timely execution and strong financial credence, we expect JKIL to report Revenue/EBITDA/APAT CAGR of 17%/19%/23% respectively over FY24-FY26E," it said.

Axis Securities has set a target price of Rs 3,000 on Gravita India, showing an upside potential of around 33% from the current market prices.

"Gravita is well positioned to capitalize on the industry growth and continues to focus on increasing the share of value-added products, which generate higher margins. The company has consistently increased its recycling capacity and plans to expand it further including in new areas of recycling," it said.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)