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Brokerages Eye Strong Gains in Select Stocks
Major research houses have pinpointed ten stocks across key sectors, forecasting substantial upside potential following recent quarterly updates. Firms like Motilal Oswal, Nomura, Nuvama Wealth Management, UBS, and Jefferies have issued 'Buy' recommendations, signaling investor opportunities in banking, finance, auto, and consumer segments.
HDFC AMC: Growth and Efficiency
Motilal Oswal maintains a 'Buy' call on HDFC Asset Management Company (HDFC AMC) with a target price of ₹3,200, suggesting a 25% potential increase. The brokerage anticipates a 16% CAGR in revenue, earnings, and PAT, alongside an 18% CAGR in assets under management from FY25 to FY28. Cost efficiency is noted, with EBITDA margins holding steady at 81.5% despite rising employee expenses.
Emmvee Photovoltaic Power: Solar Sector Surge
Jefferies reiterates its 'Buy' rating for Emmvee Photovoltaic Power, setting a target of ₹320. This implies an expected return exceeding 70% in 12 months, as the stock trades at a 50% discount to peers. India's solar installations are projected to grow at a 24% CAGR through FY28. Emmvee's early adoption of TOPCon technology, strong profitability, and solid balance sheet provide a competitive edge, with Jefferies forecasting a 56% EBITDA CAGR and valuing the company at 9x forward EV/EBITDA.
Infosys: AI and Large Deals Drive Growth
Nomura keeps a 'Buy' rating on Infosys, with a target price of ₹1,810, indicating a 13% upside. The IT giant's guidance upgrade reflects improving growth visibility amidst market uncertainties. Large deal wins totaling approximately $4.85 billion and an increasing share of net new deals bolster medium-term prospects. Management highlighted six AI-related opportunities, including AI engineering and data platforms.
L&T Technology Services: Target Price Cut
Nomura downgraded L&T Technology Services (LTTS) by cutting its target price to ₹3,900 from ₹4,100, while maintaining a 'Reduce' rating. This new target implies an 8.1% potential downside. The brokerage has lowered revenue growth forecasts for FY26-FY28, expecting only 5-5.5% growth in FY26-27. Recent quarterly results showed a sequential revenue decline of 2.8%, attributed to restructuring and exiting low-margin businesses.
Indian Hotels (IHCL): Hospitality Strength
Initiating coverage with a 'Buy' rating, Nomura set a target price of ₹830 for Indian Hotels (IHCL), expecting a 22.4% return in 12 months. The company's strong average daily rate (ADR) growth and high-quality earnings are expected to support its FY30 goals. Nomura forecasts IHCL's ADR to grow at a CAGR of less than 5-7% through FY30, with constrained room supply limiting new additions.
HDB Financial Services: Robust Profit Growth
Jefferies maintained a 'Buy' rating on HDB Financial Services with a ₹920 target price, a 20% upside potential. The company reported a 36% year-on-year profit increase to ₹640 crore in the December quarter, driven by lower provisions and higher fee income. Assets under management grew 12% year-on-year, with net interest margins improving by 14 basis points to 8.1%.
Max Healthcare Institute: Capacity Expansion Boost
UBS sees significant upside for Max Healthcare Institute, targeting ₹1,475, a 45% increase. The brokerage cites improved growth visibility following substantial capacity additions over the past two years. These expansions are expected to drive near- to medium-term performance.
ICICI Lombard General Insurance: Premium Growth Focus
Jefferies maintained its 'Buy' rating on ICICI Lombard General Insurance, setting a target price of ₹2,400, implying a 27% upside. While December quarter earnings were largely in line, higher loss ratios, particularly in motor insurance, impacted profitability. Jefferies views the company's valuation as closely linked to its premium growth trajectory.
ITC Hotels: Hospitality Outlook
Nomura initiated coverage on ITC Hotels with a 'Buy' rating and a ₹230 target price, forecasting a 20% rise in 12 months. High single-digit revenue per available room (RevPAR) growth, resilient average room rate (ARR) increases, and improved occupancy at new assets are key drivers. Constraints in hotel room supply over the next five years are expected to support growth.
Just Dial: Profitability Gains
Nuvama Wealth Management retains a 'Buy' rating on Just Dial with a ₹1,100 target price, indicating nearly 52% upside from current levels. The brokerage notes moderate revenue growth but highlights short-term profitability improvements, with EBITDA margins exceeding estimates at 31.2%.