Diwali stock picks: Urban Company among 5 stock ideas from Ambareesh Baliga for up to 38% upside

Fundamental analyst Ambareesh Baliga has identified five stocks that he expects to deliver strong returns by Diwali. His picks include Endurance Technologies, Himadri Speciality Chemicals, Borosil Renewables, Archean Chemicals and Urban Company.

Baliga has set a target price of Rs 3,420 for Endurance Technologies, against its current market price of Rs 2,688, implying an upside of nearly 27%. The company’s strong position in aluminium die-casting, growing portfolio of EV-specific products and diversification into four-wheelers and non-auto segments are expected to support its long-term growth.

Baliga has set a target price of Rs 840 for Himadri Speciality Chemicals, against its current market price of Rs 675, implying an upside of nearly 25%. The company’s expansion into lithium-ion battery materials, lithium iron phosphate (LFP) and carbon nanotubes, coupled with strong Q1 growth, are key positives. Its expansion plans are also expected to generate an additional Rs 30,000 crore in revenue.

Baliga has set a target price of Rs 580 for Borosil Renewables, against its current market price of Rs 471, implying an upside of more than 23%. The company’s capacity expansion to 1,600 tonnes per day (TPD), strong demand for solar glass and protection from Chinese and Malaysian imports through duties are expected to support growth.

Baliga has set a target price of Rs 660 for Archean Chemicals, against its current market price of Rs 479, implying an upside of nearly 38%. High entry barriers, improving EBITDA margins and the company’s entry into the semiconductor space through SicSem are among the key growth drivers. Revenue and EBITDA are projected to grow at a CAGR of 20% and 42%, respectively.

Baliga has set a target price of Rs 210 for Urban Company, against its current market price of Rs 173, implying an upside of more than 21%. Strong growth in online home services, the shift from unorganised to organised service providers and the long-term opportunity presented by InstaHelp are expected to support the company’s growth outlook.
(Ambareesh Baliga is a SEBI-registered market analyst (Regn. No. INH000001139). Neither he nor his family members hold any positions in the stocks mentioned above or have any financial interest in the companies discussed.)
Disclosure: This article was written by Kumar Gaurav, who is not a SEBI-registered Research Analyst or an Investment Adviser. Gaurav and their ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here