International brokerage firm, Jefferies has initiated coverage on three stocks. They have a Buy rating on Patanjali Foods while the rating on Waaree Energies and Sai Life Sciences. Here is a quick look at the target price of these three stocks.
Jefferies on Patanjali Foods
Jefferies initiated coverage with a Buy rating and a target price of Rs 2,050 per share. This implies 19% upside from current levels. They expect the share price to move up as Patanjali Foods is well-placed to expand its Foods & home and personal care (HPC) franchise.
According to Jefferies, the company’s most recent acquisition in the home and personal care segment “adds a sizeable high-margin business. Patanjali Foods aims to further scale-up in home,
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The big growth drivers include, “management focus on distribution expansion, new launches and premiumisation. PFL’s aspiration is to grow higher-margin foods & HPC with a target to reach 50:50 salience in coming years (65:35 currently),” stated Jefferies.
However, Jefferies outlined the key risks are “commodity volatility, weak consumer demand, integration risks in HPC.”
Jefferies on Waaree Energies
Jefferies initiated coverage with a Hold rating on Waaree Energies and a price target of Rs 2,030 per share. This implies almost 4% discount from current levels. According to Jefferies, they have valued the renewable power play at “15x FY30 EBITDA, wherein we build sustainable margins (16%) and discount it back to 1-year forward earnings.”
They expect profitability to normalize starting FY28E. However, according to Jefferies, “demand, policy changes are key risks on upside/downside: Significantly stronger domestic solar installations is key upside trigger. Relaxation of DCR rules in India, removal of IRA benefits in the US and/or reduction in duties on Chinese modules are key downside risks.”
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India’s solar installations are set to grow at 24% CAG over FY24-30, as per Jefferies. According to them, “Govt policy favouring domestic modules and US policy shunning Chinese modules have created attractive economics for Waaree Energies.”
Jefferies on Sai Life Sciences
Sai Life Sciences is an innovator-focused integrated CDMO Player. Jefferies has initiate coverage with Hold rating on the back of its “integrated model and healthy track record” that helps differentiate the stock from its peers.
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