Brokerage Monarch Networth Capital remains constructive on a handful of companies that it believes offer favourable risk-reward amid improving business prospects. Here's a look at the stocks on its radar and what is driving its positive outlook.
Pricol Ltd
The company has a Buy rating and a target price of Rs 724, implying an upside potential of 17.3%. It expects Pricol to deliver a 17% revenue CAGR, 16% EBITDA CAGR and 19% PAT CAGR over FY26–FY28, driven by the compounding of revenue in its DIS business and robust growth in the P3L business. The brokerage also expects the near-term margin pressure to ease from Q2FY27E.
Redington Ltd
With a Buy rating and a target price of Rs 340, Monarch forecasts an upside potential of 24.1% from current market levels. The brokerage expects Redington to deliver a 15.7% revenue CAGR, 16.9% EBITDA CAGR and 7.3% PAT CAGR over FY25–FY28E. The brokerage expects EBITDA margins to improve gradually, supported by a higher contribution from cloud, technology solutions and services.
Sundram Fasteners
The brokerage has a Buy rating and a target price of Rs 1,060 on the stock, suggesting an upside potential of 12.8%. Analysts expect the company to deliver a 12% revenue CAGR, 17% EBITDA CAGR and 19% PAT CAGR over FY26–FY28E, driven by a pickup in exports, strong domestic demand and growth in non-auto orders. The brokerage also expects EBITDA margins to improve to 17% and return ratios to exceed 15%.
Travel Food Services
With a Buy rating and target price of Rs 1,680, the brokerage implies an upside potential of 26.9%. Monarch Network Capital expects Travel Food Services to deliver a 13% revenue CAGR, 10% EBITDA CAGR and 12% PAT CAGR over FY26–FY28E. The brokerage expects EBITDA margins to normalise at around 37% from the peak of 39.4%, owing to elevated input costs and expenses related to the ramp-up of newly commissioned units.
