Amid Volatility and Uncertainty, PL Capital Recommends These Buy-Rated Stocks

Mumbai | June 13 –  This week, the Indian stock market got a sharp reminder of how quickly sentiment can turn. A surprise Israeli strike on Iranian targets triggered a global risk-off wave, sending benchmark indices tumbling. The Sensex logged its steepest single-day fall in nearly a decade, shedding over 1,300 points. Defensive assets like gold surged to record highs, while investors retreated from equities amid geopolitical tension and uncertainty over US interest rate timelines.

But for long-term investors, moments like these are less about fear—and more about focus.

PL Capital identifies a basket of buy-rated stocks with strong earnings visibility, sectoral tailwinds, and valuation comfort. These companies are navigating macro headwinds with operational resilience, offering both downside protection and medium-term growth potential.

Fortis Healthcare:
Strong guidance. Diagnostic tailwinds. Margin upside.
CMP: ₹753 | Target: ₹785 | Rating: BUY

• Q4FY25 EBITDA grew 14% YoY to ₹4.36bn, in line with estimates.
• Hospital margins rose 170bps YoY; further gains expected from divestment of low-margin assets and operational scale-up.
• Agilus Diagnostics (89.2% stake consolidated) expected to drive growth from FY26.
• EBITDA expected to grow at 21% CAGR over FY25–27.
• Valuation: 23x EV/EBITDA FY27E.

Kirloskar Pneumatic:
Diversified growth. Deep moats. Product innovation.
CMP: ₹1,329 | Target: ₹1,636 | Rating: BUY

• Air compression business to grow at 21% CAGR; new products like ‘Tezcatlipoca’ and ‘ARiA’ to aid import substitution.
• Market leader in CNG and non-CNG gas compression systems (~40% market share).
• Refrigeration segment aided by new ‘Khione’ line and acquisition of S&C India.
• In-house Nashik facility improves supply chain control and cost efficiency.
• PAT CAGR of 19% projected through FY27.
• Valuation: 35x FY27E PE.

Triveni Turbine:
Robust export pipeline. Aftermarket tailwind. Sector momentum.
CMP: ₹601 | Target: ₹772 | Rating: BUY

• Revenue up 17.5% YoY in Q4; EBITDA margin expanded by 277bps.
• Export inquiry pipeline up 30%; domestic pipeline up 120%.
• High-margin Aftermarket business scaling up on installed base.
• Short-term delay in order finalisation; long-term demand trend intact.
• Valuation: 40x FY27E PE.

Mahindra & Mahindra:
Strong UV pipeline. Execution excellence. Market share gains.
CMP: ₹3,005 | Target: ₹3,539 | Rating: BUY

• Q4 revenue up 24.5% YoY, EBITDA up 42%, PAT up 48.8%.
• UV business continues strong momentum; seven product launches planned by CY26.
• Farm segment stable; SUV volumes and realisation support blended margins.
• PL expects 10–12% CAGR across key financials through FY27.
• Valuation: 27x FY27E EPS for core business + EV/subsidiary value.

Lupin:
US pipeline strength. Margin rebound. Niche launches.
CMP: ₹1,997 | Target: ₹2,400 | Rating: BUY

• Q4FY25 EBITDA at ₹13bn, up 30% YoY—10% ahead of estimates.
• Niche generics (e.g., gTolvaptan) and facility clearances driving US growth.
• India business regaining momentum; cost base optimised.
• FY26 earnings upgraded by 5%; margins seen sustaining.
• Valuation: 25x FY27E EPS.

Samhi Hotels:
Balance sheet cleaned up. Operating leverage visible.
CMP: ₹224 | Target: ₹313 | Rating: BUY

• Fund infusion by GIC reduces net debt to ₹14.2bn; interest cost to fall by 35%.
• 245 new keys to be added over next 24 months.
• EBITDA margin to expand to 39.1% in FY27.
• PAT CAGR of 75% projected over FY25–27, post minority adjustment.
• Valuation: 14x FY27E EBITDA.

ICICI Bank:
Consistent performance. Asset quality intact. Rate cut optionality.
CMP: ₹1,418 | Target: ₹1,700 | Rating: BUY

• Core PAT beat estimates by 3.7%; NIM improved to 4.4%.
• Loan growth modest, but margin resilience maintained.
• RBI stance now seen more accommodative; repo cut forecast revised to 75–100bps.
• Opex expected to remain soft in falling NIM scenario.
• Valuation: 2.9x core ABV FY27E.

Bottomline:
The past week has tested investor patience. But beneath the volatility lies a set of businesses that are executing, expanding, and evolving. Each of PL’s top picks for this cycle is backed by clear earnings visibility, sectoral momentum, or strategic tailwinds. For investors willing to look beyond the immediate noise, these names offer not just value—but vision.

For more details, connect with our Advisory Desk or visit www.plindia.com.