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Stocks to buy today: Antique sees over 40% upside in Arvind Fashions; Motilal recommends buy on Amber Enterprises

Business News - May 20, 2025 - 10:54am
Brokerage houses remain upbeat on select mid-cap names following their Q4FY25 earnings, highlighting strong business fundamentals and growth visibility for the next 12 months.Antique, Nuvama, and Motilal Oswal have reiterated their Buy ratings on Arvind Fashions, Galaxy Surfactants, and Amber Enterprises, respectively, citing factors such as resilient performance, strategic expansion, and margin stability.While some target prices have seen marginal revisions to reflect near-term headwinds, all three stocks offer notable upside potential ranging from 19% to 46% from their current levels.We have collated a list of recommendations from top brokerage firms from ETNow and other sources:Antique on Arvind Fashions: Buy| Target Rs 672 vs Rs 661| LTP Rs 458| Upside 46%Antique has maintained a Buy rating on Arvind Fashions (AFL) with a revised target price of Rs 672 (up from Rs 661), indicating a 46% upside from the current market price of Rs 458.The company's Q4FY25 performance came in slightly better than Antique’s estimates, with revenue growth supported by strong momentum in both the retail and online channels.A more favourable channel mix and lower levels of discounting contributed to margin expansion during the quarter.Looking ahead, AFL’s performance is expected to strengthen further, driven by the scaling up of power brands. This will be supported by a focus on product innovation, premiumization, retail footprint expansion, and increased marketing investments.Additionally, the company is expected to see continued profitability improvements as it benefits from efficient inventory management, premium product offerings, and an asset-light franchise expansion model.Reflecting these positive trends, Antique has marginally increased its EBITDA estimates for FY26 and FY27 by 1%.Nuvama on Galaxy Surfactants: Buy| Target Rs 2693 (earlier 2866)| LTP Rs 2248| Upside 19%Nuvama has maintained a Buy rating on Galaxy Surfactants with a revised target price of Rs 2,693 (down from Rs 2,866), indicating a potential upside of 19% from the current market price of Rs 2,248.The company delivered an in-line performance in Q4FY25, reporting a 23.2% year-on-year sales growth driven primarily by robust volume growth in the Rest of the World (RoW) markets, while sales in India and AMET (Africa, Middle East, Turkey) regions remained flat.EBITDA per ton increased to Rs 21,715 despite raw material cost pressures, but PAT declined by 2.1% YoY due to higher tax outgo and lower other income.Looking ahead, Nuvama has moderated its outlook for FY26, now expecting volume growth of around 5% (earlier 8%) and range-bound EBITDA per ton, owing to a sluggish recovery in the India and AMET markets.As a result, it has revised down its FY26 and FY27 EPS estimates by 6.7% and 9%, respectively. Despite these cuts, the Buy rating is retained, with a rolled-forward valuation at 27x Q4FY27E EPS.Motilal Oswal on Amber Enterprises: Buy| Target Rs 7600| LTP Rs 6253| Upside 21%Motilal Oswal has reiterated a Buy rating on Amber Enterprises with a revised target price of Rs 7,600 (down from Rs 7,800), indicating an upside potential of 21% from the current market price of Rs 6,253.The company delivered better-than-expected revenue and EBITDA in Q4FY25, although PAT fell short of expectations due to higher losses from joint ventures and a higher-than-anticipated tax rate.The revenue beat was primarily driven by strong growth in the consumer durables segment, especially within the room air conditioners (RAC) and electronics divisions.However, the performance of the railway segment is expected to remain subdued in the near term. Factoring in the continued JV losses and elevated tax rate, Motilal Oswal has revised its FY26 and FY27 estimates downward by 8% each.Despite the estimated cuts, the brokerage retains a positive view on the stock, supported by the company’s strong core business momentum.(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
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