Brokerages Reveal 2026 Stock Stars: Unlock Massive Gains with These High-Conviction Picks!

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AuthorVihaan Mehta|Published at:
Brokerages Reveal 2026 Stock Stars: Unlock Massive Gains with These High-Conviction Picks!
Overview

Leading brokerages like Jefferies, Motilal Oswal, Religare, and Elara Securities have unveiled their top stock recommendations for 2026, targeting a 12-18 month horizon. Their high-conviction picks focus on sectors benefiting from strong domestic savings, scaling quick commerce models, key pharmaceutical plays, and IT services. Stocks like Zomato (Blinkit), HCL Technologies, Groww, and Zydus Lifesciences are highlighted for their potential upside driven by strategic business model transitions and market leadership.

Brokerages Reveal Top Stock Picks for 2026

The investment landscape remains cautiously optimistic, with leading domestic and international brokerage firms pinpointing specific companies poised for significant growth. As 2026 approaches, firms such as Jefferies, Motilal Oswal, Religare, and Elara Securities have released their high-conviction stock recommendations. These analyses collectively highlight key themes like the deepening financialization of Indian savings, the rapid scale-up of inventory-led quick commerce, and strategic plays within the pharmaceutical sector. The selected large and mid-cap entities are expected to outperform broader market indices over the next 12 to 18 months, driven by structural tailwinds and improvements in operational efficiency.

High-Conviction Recommendations Unveiled

Motilal Oswal has initiated coverage on Eternal Ltd. (encompassing Zomato and Blinkit operations) with a Buy rating and a target price of ₹410, suggesting a potential 46% increase. The brokerage cites a transition towards an inventory-led business model, evidenced by the aggressive expansion of Blinkit stores, as a key driver for net revenue and gross margin growth. Early signs of operating leverage are already improving the bottom line.

For HCL Technologies, Motilal Oswal maintains a Buy recommendation with a target of ₹2,150, projecting a 29% upside. Growth is anticipated from both IT services and Engineering Research & Development (ER&D), with AI-based offerings currently contributing around 3% of total revenue. The firm forecasts an INR PAT CAGR of 7.2% through FY25–27, fueled by new large-scale deals and successful client expansion.

Religare recommends a Buy on ICICI Prudential Asset Management Company with a target price of ₹800, implying a 23.2% upside. This forecast is underpinned by a projected VNB CAGR of 19% through FY27. Strong solvency ratios exceeding 200% and a strategic focus on annuity and protection products, coupled with an effective bancassurance network and cost management, are expected to sustain earnings.

Jefferies has initiated coverage on Billionbrains Garage Ventures Ltd. (Groww) with a Buy rating and a target of ₹180, indicating a 26% upside. Groww has become India's largest broker by active clients, securing a 26% market share. Jefferies sees significant monetization potential as a large portion of its client assets are in mutual funds that are not yet revenue-generating. The firm expects a 35% EPS CAGR between FY26 and FY28.

Elara Securities maintains a Buy rating on Zydus Lifesciences, setting a target price of ₹1,311, which represents a 43% appreciation. The investment thesis centers on Zydus's strategic positioning to capture a share of the generic GLP-1 market. The company holds first-to-file exclusivity for Ozempic generics in the United States among a select group of Indian manufacturers, a factor projected to significantly boost long-term earnings post-patent expiry.

Motilal Oswal reiterates its Buy rating on Max Financial Services Ltd. with a price target of ₹2,100, implying a 26% rise. The brokerage highlights superior Annualized Premium Equivalent (APE) growth compared to industry peers. Projected VNB margins are expected to reach 26.5% by FY28, driven by a revised product mix favoring protection and annuity products, alongside consistent customer retention.

KFIN Technologies is rated a Buy by Jefferies, with a target price of ₹1,300, suggesting a 26% increase. The company is seen as a primary beneficiary of increasing domestic savings. Jefferies points to its international business, enhanced by the Ascent acquisition, expecting a 30% revenue CAGR from this segment. The market, according to the firm, may be underestimating the full earnings potential of its international operations and its significant share in the issuer RTA folio market.

Religare recommends a Buy on Kotak Mahindra Bank with a price target of ₹2,487, representing a 15.2% increase. A more conservative loan portfolio, prioritizing corporate and secured lending, is expected to ease pressure on Net Interest Margins (NIM). The stock offers improved valuation support following a market correction, backed by stable asset quality.

Ambit Capital has issued a Buy call for Northern Arc Capital Ltd. with a target price of ₹326, indicating a 28% upside. The focus is on the company's transition to a Direct-to-Consumer (D2C) retail lending model, which is expected to enhance Return on Equity (ROE) and margins. The stock currently trades at a discount to peers despite rising fee income and decreasing credit costs.

Impact

This compilation of brokerage recommendations provides investors with potential opportunities for significant capital appreciation over the next year and a half. By identifying stocks with strong fundamental drivers and favorable market positioning, these insights can help shape investment strategies and potentially lead to outperformance relative to broader market indices.

Impact Rating: 7/10

Difficult Terms Explained

  • Financialization of savings: The process where financial markets play an increasing role in the economy, and individuals increasingly save and invest through financial instruments rather than holding physical assets.
  • Inventory-led quick commerce: A business model where companies stock their own products in local warehouses to enable very fast delivery times, typically within minutes.
  • ER&D (Engineering Research & Development): Services related to the design, development, and testing of engineering products and systems.
  • AI (Artificial Intelligence): Technology that enables machines to perform tasks that typically require human intelligence, such as learning, problem-solving, and decision-making.
  • INR PAT CAGR: Compound Annual Growth Rate of Profit After Tax in Indian Rupees, representing the average yearly growth rate of profits over a specified period.
  • VNB (Value of New Business): A measure used in the insurance industry to assess the profitability of new policies written during a period.
  • Solvency Ratio: A financial metric indicating a company's ability to meet its long-term debt obligations. For insurance companies, it relates to their ability to pay claims.
  • Bancassurance: A distribution channel where banks sell insurance products on behalf of insurance companies.
  • EPS CAGR: Compound Annual Growth Rate of Earnings Per Share, indicating the average annual growth in a company's profit allocated to each outstanding share.
  • GLP-1 (Glucagon-like peptide-1): A hormone that stimulates insulin secretion and has other metabolic effects, often used in diabetes and weight-loss drugs.
  • Ozempic: A brand name for semaglutide, a GLP-1 receptor agonist medication used for type 2 diabetes and chronic weight management.
  • First-to-file exclusivity: A regulatory advantage granting a limited period of market exclusivity to the first company to file a patent for a new drug.
  • Patent Exclusivity: A period during which a drug developer has exclusive rights to market a drug, preventing generic competition.
  • APE (Annualized Premium Equivalent): A measure of sales volume in the life insurance industry, representing the total premiums payable annually on new business.
  • VNB Margins: The profitability of new business for an insurance company, expressed as a percentage of the APE.
  • Persistency Trends: The rate at which customers continue to pay premiums and maintain their insurance policies over time.
  • RTA (Registrar and Transfer Agent): An entity that maintains records of shareholders or bondholders for a corporation or mutual fund.
  • NIM (Net Interest Margin): The difference between the interest income generated by a bank or financial institution and the interest it pays out to its lenders, relative to its interest-earning assets.
  • ROE (Return on Equity): A measure of a company's profitability calculated by dividing net income by shareholders' equity.
  • D2C (Direct-to-Consumer): A business model where companies sell their products or services directly to end customers, bypassing intermediaries.
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