ICICI Securities has initiated coverage on four companies across fintech, housing finance, automobiles and IT services. The brokerage has assigned Buy ratings to Pine Labs Ltd, Aadhar Housing Finance Ltd, Hyundai Motor India Ltd and Coforge Ltd, with upside potential ranging from 15% to 38% from their previous closing prices.
The brokerage cited earnings visibility and sector-specific growth drivers while initiating coverage.
Pine Labs
ICICI Securities has started coverage on Pine Labs with a target price of Rs. 210, implying an upside of up to 38%.
The brokerage expects the fintech company’s diversified business model to support long-term growth. Pine Labs has operations across in-store payments, online payments, issuing and overseas markets.
ICICI Securities highlighted:
- Better visibility on long-term free cash flow.
- Improving operating leverage.
- Lower concentration risk due to multiple business segments.
- Growth in value-added GTV mix.
- Expansion in contribution margins.
- Benefits from AI-led efficiencies.
- Scope for further international expansion.
The brokerage expects higher profitability and better cash flow conversion over the medium term.
Aadhar Housing Finance
For Aadhar Housing Finance, ICICI Securities has set a target price of Rs. 625, indicating upside potential of up to 21%.
The brokerage said the company is well placed to benefit from the affordable housing market, which it estimates has financing potential of around Rs. 45 trillion.
Its investment thesis is based on:
- Disbursement growth of 18-20%.
- AUM growth of around 20-22%.
- A branch network of more than 620 locations.
- Geographic diversification.
- Stable spreads above 5.5%.
- Gross NPA of about 1%.
- Management’s target of around 18% RoE.
- RoA guidance of 4.2-4.4%.
- Support from PMAY 2.0.
ICICI Securities said improving housing finance penetration in lower-income segments should support growth toward an AUM of Rs. 500 billion.
Hyundai Motor India
ICICI Securities has initiated coverage on Hyundai Motor India Ltd (HMIL) with a Buy rating and a target price of Rs. 2,475. The target implies upside of up to 25%.
The brokerage pointed to the company’s upcoming product cycle between FY27 and FY30.
Planned initiatives include:
- Twenty-two product interventions.
- Seven new nameplates.
- Multiple full model changes.
- Expansion in SUVs.
- A stronger presence in EVs.
- Entry into hybrid vehicles.
ICICI Securities expects these launches to help Hyundai increase market share by about 180 basis points to nearly 14.4% by FY29E.
Margin pressure during the first half of FY27 is expected to be temporary. The brokerage expects:
- Higher operating leverage.
- Increased localisation.
- Lower discounting levels.
- EBITDA margin expansion of about 80 basis points during FY26-FY29E.
Coforge
For Coforge Ltd, ICICI Securities has assigned a target price of Rs. 1,690, implying upside potential of up to 15%.
The brokerage’s positive view is linked to the company’s target of reaching USD 5 billion in revenue by FY30. That would imply a compound annual growth rate of around 19%.
ICICI Securities highlighted:
- Strong deal momentum.
- Better win ratios.
- A growing large-deal pipeline.
- AI-led transformation across operations.
- A record of integrating acquisitions.
- Scope for margin improvement.
The brokerage expects EBITDA margins of about 20.5-21% in FY27E.
It said improving efficiency and rising demand from enterprises could support mid-to-high-teen earnings growth over the medium term.
Summary of Target Prices
| Company | Target Price | Upside Potential |
|---|---|---|
| Pine Labs | Rs. 210 | Up to 38% |
| Aadhar Housing Finance | Rs. 625 | Up to 21% |
| Hyundai Motor India | Rs. 2,475 | Up to 25% |
| Coforge | Rs. 1,690 | Up to 15% |
TL;DR:
ICICI Securities has initiated Buy ratings on Pine Labs, Aadhar Housing Finance, Hyundai Motor India and Coforge. The brokerage sees upside potential of 15-38%, supported by growth prospects in digital payments, affordable housing, automobiles and IT services.
AI summary:
- ICICI Securities initiated coverage on four stocks with Buy ratings.
- Pine Labs offers the highest upside potential at 38%.
- Aadhar Housing Finance has a target price of Rs. 625.
- Hyundai Motor India could gain up to 25%, aided by new launches.
- Coforge’s target price of Rs. 1,690 implies 15% upside.
