Stock Recommendations Today: Adani Energy, KEI Industries, JSW Energy, Suzlon Energy On Brokerages' Radar

Adani Energy Solutions Ltd., KEI Industries Ltd., JSW Energy Ltd., Suzlon Energy Ltd. and Indian Hotels Co. are among the top companies on brokerages' radar on Friday.

Pharmaceuticals, FMCG, hospitals and oil marketing companies are among the sectors analysts have done a deep dive into. KEI Industries and Suzlon Energy received coverage initiation.

NDTV Profit tracks what analysts are saying about various stocks and sectors. Here are the analyst calls to keep an eye out for on Friday.

• Retained a 'buy' rating on the stock with a target price of Rs 930 apiece.

• Set to post robust growth in its transmission, distribution, and smart meters businesses.

• Transmission Ebitda expected to double in the next three years.

• Sees growth potential in Mundra distribution company business.

• Smart meters emerge as a key catalyst.

• Attributes an option value of Rs 196 per share for its upcoming smart meter projects and Rs 156 per share for the new transmission projects.

• Expects an Ebitda compound annual growth rate of 26% and an earnings per share compound annual growth rate of 29% during the fiscals through March 2027.

• Initiated coverage with an 'overweight' rating on the stock and a target price of Rs 4,391 apiece.

• KEI Industries has a strong cables and wires franchise, with an improving business model.

• Multiple domestic growth drivers, with the most significant being the future of energy theme.

• Export markets expected to support earnings growth, driven by the evolving multipolar manufacturing landscape.

• Increased capital expenditure planned to meet rising domestic and export demand.

• Forecasts a 23% earnings compound annual growth rate over the fiscals through March 2028.

• Retained an 'overweight' rating on the stock with a target price of Rs 545 apiece.

• Positioned as a key play on India's future energy landscape.

• Strong track record and among the fastest-growing utilities.

• Operates a well-integrated business model.

• Expanding its green renewable energy business, investing in storage assets, and growing its thermal business through acquisitions.

• Expects an Ebitda compound annual growth rate of 24% over the fiscals through March 2028, with renewable energy Ebitda growing at a 52% compound annual growth rate.

• Initiated a 'buy' rating on the stock with a target price of Rs 70 apiece.

• Favourable macroeconomic conditions supporting wind energy growth.

• Riding the winds of growth with order book rising to 5.5 gigawatts.

• Unlevered balance sheet and strong operations and maintenance portfolio expected to drive healthy return on capital employed.

• Forecasts revenue and profit after tax compound annual growth rates of 55% and 66%, respectively, over the fiscal years through March 2027.

• Retained an 'overweight' rating on the stock with a target price of Rs 856 apiece.

• Mumbai market remains strong.

• January 2025 STR data shows hotel room rates grew by approximately 9% in India, with occupancy rates also expanding by 0.8%.

• Mumbai and Delhi saw average room rate growth of 18% and 14% year-on-year, respectively, while occupancy rates expanded by 2% and 4%.

• Revenue per available room growth in Mumbai and Delhi stood at 21% each, compared to 18% and 11% year-on-year in the previous month.

• Taj Mahal Palace and Taj Lands End Mumbai collectively contributed 26% of standalone revenue and 28% of standalone Ebitda in fiscal 2024.

• Hosted Sudarshan Jain, Secretary General of the Indian Pharmaceutical Alliance, and Archana Jatkar, Associate Secretary General of the Indian Pharmaceutical Alliance.

• Reciprocal tariffs expected to have minimal impact on India's pharmaceutical exports, given India’s export surplus of medicines to the United States.

• While former United States President Donald Trump is expected to make a detailed announcement on April 2, 2025, discussions on a bilateral trade agreement are ongoing.

• Annual price erosion of 10-11% has already contributed to reducing medicine costs for patients in the United States.

• Tariffs, when implemented, would likely increase medicine costs for consumers.

• The Government of India has introduced schemes such as the Production-Linked Incentive program to promote indigenous manufacturing.

• Indian pharmaceutical products account for approximately 44% of the United States pharmaceutical market by volume and 47% of generic prescriptions.

• Replacing Indian pharmaceutical manufacturers purely through tariff increases would be challenging.

• Tariffs on Indian generic medicines and active pharmaceutical ingredient exports to the United States are unlikely at this stage.

• The United States has a high dependence on Indian generics, which operate on thin margins.

• Portfolio rationalisations and potential exits could lead to severe shortages in the United States and higher drug prices.

• However, given the uncertainty, stock prices may remain volatile.

• Price hikes accelerate; strong innovation pipeline ahead of summer.

• Monthly price checks across various fast-moving consumer goods categories indicate an increasing pace of price hikes.

• Price increases driven by sustained inflation in key agricultural commodities such as edible oil, tea, coffee, and cocoa.

• Observed low to mid-single-digit price hikes across home and personal care categories.

• Mid-to-high single-digit price hikes seen in food categories.

• More new product launches recorded in beverages and beer ahead of the summer season.

• Leading players in beauty and personal care categories continue to strengthen their mid-premium portfolios with new product introductions.

• Marginal increase observed in discounting levels on e-grocery platforms, while DMart maintains its price leadership.

• Negative news flows over the last two years regarding price standardisation and increased free bed allocation led to a sharp correction in hospital stocks.

• However, a swift recovery followed as investors realised the impact was minimal.

• Recent news of the Adani Group entering healthcare is unlikely to significantly impact the competitive landscape.

• Stock weakness presents a buying opportunity, given resilient earnings outlook.

• Hospital stocks provide superior earnings visibility in an otherwise uncertain market environment.

• Recommends buying on corrections, with a preference order of Max Healthcare > Fortis Healthcare > Apollo Hospitals > Medanta.

• Liquefied petroleum gas compensation could determine fiscal 2025 earnings.

• Midway through the quarter, reassesses how oil marketing companies’ fourth-quarter earnings are shaping up.

• OMCs could end the fiscal on a weak note, unless compensation for liquefied petroleum gas loss is received.

• The Government of India has reiterated that companies will be compensated, but investor sentiment remains cautious following budgetary disappointments.

• If fully compensated for liquefied petroleum gas, estimates suggest Bharat Petroleum Corp., Hindustan Petroleum Corp., and Indian Oil Corp. are trading at fiscal 2025 estimated price-to-earnings ratios of approximately 6 times, 6 times, and 9 times, respectively, offering dividend yields of around 6%, 6%, and 4%.

• Without liquefied petroleum gas compensation, investor confidence could weaken, leading to a sharp decline in earnings.

• Implied fiscal 2025 estimated dividend yields could drop significantly to approximately 4%, 2%, and 1% for Bharat Petroleum Corporation, Hindustan Petroleum Corporation, and Indian Oil Corporation, respectively.

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