HAL To Sun Pharma: PL Capital Adds THESE Stocks in Conviction Picks; Removes BEL, Cipla, Maruti Suzuki, 2 More

In a major rejig in its conviction picks, brokerage firm Prabhudas Lilladher (PL Capital) has removed Bharat Electronics Limited, Cipla, Maruti Suzuki, Aster DM Healthcare and Kaynes Technology stocks from its long term recommendation list. Meanwhile, the brokerage has added three new stocks in the basket citing their strong long-term growth potential.

PL Capital's high conviction picks is a list of stocks in which the brokerage has a strong conviction of long-term growth and better performance. After the recent reshuffle, PL Capital's conviction picks basket includes names like ABB India, Bharti Airtel, Britannia Industries, Mahindra and Mahindra, Titan, KEI Industries, etc.

HAL, Sun Pharma, Rainbow Children's Medicare in PL Capital's Conviction List

PL Capital has added Sun Pharmaceuticals in its list and has estimated that the pharma company stock is likely to see an upside of 31.4%. The brokerage has fixed a target price of Rs 2275 per share.
Hindustan Aeronautics Limited (HAL) share price value, according to PL capital, may see an upside of 10% in long-term. Its target price has been fixed at Rs 5500 per share. Midcap stock, Rainbow Children's Medicare share price value may see an upside of 33.5%. Its target price has been fixed at Rs 1785 per share.

PL Capital Conviction Picks | Full List Here

Company Name	CMP (Rs.)	TP (Rs.)	Upside
ABB India	5,887	6,851	16.4%
Bharti Airtel	1,823	1,988	9.1%
Britannia Industries	5,494	5,941	8.1%
Hindustan Aeronautics	5,001	5,500	10.0%
ICICI Bank	1,445	1,575	9.0%
InterGlobe Aviation	5,462	5,875	7.6%
ITC	433	524	21.0%
Kotak Mahindra Bank	2,071	2,490	20.2%
Mahindra & Mahindra	3,091	3,539	14.5%
Max Healthcare Institute	1,142	1,300	13.8%
Sun Pharmaceutical Indus.	1,732	2,275	31.4%
Titan Company	3,581	3,752	4.8%

Company Name (Mid/Small caps)	CMP (Rs.)	TP (Rs.)	Upside
Astral Ltd.	1,378	1,532	11.2%
Chalet Hotels	889	1,130	27.1%
Crompton Greaves Consumer Electricals	349	423	21.2%
Eris Lifesciences	1,506	1,740	15.5%
Indian Railway Catering and Tourism	790	850	7.6%
Ingersoll-Rand (India)	4,030	4,540	12.6%
KEI Industries	3,431	4,278	24.7%
Rainbow Children's Medicare	1,337	1,785	33.5%
Triveni Turbine	575	772	34.3%

PL Capital Conviction Picks: HAL

The defence manufacturer is likely to benefit from the Indian government's consistent focus on strengthening of defence capabilities. The recent India-Pakistan tensions post Pahalgam terror attack and Operation Sindoor are likely to give an impetus to government spending in the sector.

HAl is well-positioned in long-term due to its existing contracts, like commencement of Tejas Mk1A deliveries, noted PL Capital in its report, released on Friday, May 23.

"HAL's prospects remain robust with a strong order book of Rs1.9trn and prospects exceeding Rs1.0trn over the next two years . Additionally, its progress in next-generation platforms such as Tejas Mk2, AMCA, GE-414, and IMRH underscores its expanding technological edge and reinforces its growth outlook," noted PL Capital.

Sun Pharmaceuticals Industries

The Mumbai-headquartered pharmaceutical company is likely to get the benefit of its specialty portfolio in long run, including its six under-trial products. The company is on a trajectory of strong growth across both the ROW and domestic markets. Key factors contributing in Sun Pharma's growth would be timely launch of Leqselvi and other projects under pipeline.

Rainbow Children's Medicare

The only integrated multi-specialty pediatric hospital chain in India is benefitng from its higher margins, strong FCF generation and helthy return ratios. The company provides comprehensive services and full-time doctor engagement model.
"We expect revenue to clock 19% CAGR over FY25-27E aided by new bed additions, scale up in occupancies and ramp-up of new units. Overall, we expect EBITDA/PAT CAGR of 21%/ 26% over FY25-27E with healthy RoE/RoCE of ~21%/25% adjusted for lease liabilities. We value RAINBOW at 28x EV/EBITDA on FY27E and recommend 'BUY' rating with TP of Rs1,785/share," noted PL Capital.

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