Hot Stocks: 3 stocks that may give returns between 19-39%

Brokerages recently initiated coverage on Delhivery, Quess Corp, and Piramal Pharma. These stocks are expected to return between 19% and 39% as per analyst price targets.

Quess Corp
BROKERAGE: ANTIQUE Price Target: Rs 1,000 CMP: Rs 719 Upside: 39%

• Stock outperforming the broader index, with demand and margin outlook starting to improve
• PLI (Performance Linked Incentives) and China-Plus-One strategy will keep the growth momentum strong
• Revenue expected to grow 12-14% on a compounded basis over FY24-27

Piramal Pharma
BROKERAGE: JM FINANCIAL Price Target: Rs 340 CMP: Rs 260 Upside: 30.5%

• Stock trades at a 38% discount to the average of listed peers
• CDMO (Contract Development and Manufacturing Organization) focus should drive earnings and could bridge stock valuation gap to listed peers
• Steady cash generation led by 23% compounded growth in EBITDA (earnings before interest tax depreciation and amortization) will improve net debt

Delhivery
BROKERAGE: EQUIRUS SECURITIES Price Target: Rs 459 CMP: Rs 384 Upside: 19.5%

• After posting losses since inception till FY24, company achieved quarterly profitability recently; profit growth to pick up further
• Premiums stock valuations to sustain given company’s rapid growth, market share gains and transition to profitability
• Company outperformed its B2B express/PTL (Partial Truckload) peers across parameters over last six quarters