The markets are seeing some strength after last week’s sharp losses. JM Financial Institutional Securities, a leading brokerage house and institutional stock broker, has identified some companies across industries with strong growth opportunities despite near-term corrections.
The calls span cables and wires, internet platforms and alcoholic beverages, with upside ranging from about 25% to over 85%. JM Financial has retained ‘Buy’ on all these stocks and sees as much as 85% upside potential in select names.
JM Financial on Polycab India: ‘Buy’
JM Financial has a ‘Buy’ on Polycab India. It has set a target price of Rs 9,000, implying an upside of 25.1%. The brokerage’s interaction with the company suggests the March quarter could come in softer than expected, largely due to geopolitical tensions and a high base. Volumes may stay flat year on year, with growth driven more by higher input costs passed on through pricing. Even so, the company expects to continue gaining market share.
Margins could see some pressure in the short term due to lower operating leverage and disruption in exports, especially given that freight rates have surged sharply and shipments to the Middle East have been affected. Exports account for around 6% of revenue, and logistics issues, rather than order cancellations, are behind the weakness.
Despite these near-term factors, JM Financial has largely kept its earnings estimates steady and maintained its positive stance. The brokerage continues to value the company at 42 times December 2027 earnings.
“Q4 an anomaly in a rather phenomenal year,” JM Financial said in its report.
It added that the company remains confident of delivering margins within its guided range and continues to see strong demand visibility over the next three to four years, supported by infrastructure spending, electrification and industrial capex.
JM Financial on Eternal: ‘Buy’
JM Financial has maintained a ‘Buy’ on Eternal with a target price of Rs 400, which suggests an upside of 85.2%.
The stock has corrected sharply, falling about 40% from its recent highs. According to the brokerage, the fall has been driven by concerns around leadership changes, competition in quick commerce and broader global developments. However, JM Financial believes the reaction has been excessive.
The report points to steady growth in both food delivery and quick commerce. Blinkit is expected to continue expanding order volumes and improve profitability, with adjusted EBITDA margins turning positive. Even in food delivery, the brokerage expects growth to remain strong despite concerns around supply disruptions.
Competition remains intense, with new entrants expanding aggressively, but JM Financial argues that scale advantages and an established network give Eternal a strong footing. The company’s supply chain, customer base and order frequency continue to hold up well.
“Eternal – particularly its Blinkit business – shall emerge stronger once macro normalise,” JM Financial said.
The brokerage also notes that the recent correction has made valuations more reasonable, with the stock now trading at around 35 times March 2028 earnings, which in its view does not fully capture the growth potential.
JM Financial on Tilaknagar Industries: ‘Buy’
JM Financial has initiated coverage on Tilaknagar Industries with a ‘Buy’ rating and a target price of Rs 550, indicating an upside of 24.7%.
The investment case rests heavily on a transformation underway at the company. The acquisition of Imperial Blue from Pernod Ricard gives Tilaknagar a meaningful entry into the whisky segment, expanding both its product mix and geographic reach.
The company already holds a strong position in brandy, and the addition of a large whisky brand increases its presence in key segments of the Indian Made Foreign Liquor market. JM Financial expects both volume growth and margin expansion as synergies from the acquisition start to play out.
The brokerage estimates steady growth in the legacy business along with a recovery in Imperial Blue volumes, supported by higher brand spending and a stronger distribution push in underpenetrated markets.
It added that the combined entity could deliver improving profitability over the next few years, aided by cost efficiencies, operating leverage and a broader product portfolio. The company is also expected to generate healthy free cash flows given limited capital expenditure needs.
Conclusion
JM Financial’s latest recommendations lean on the idea that current headwinds are temporary while underlying demand trends remain intact. Polycab faces a soft quarter but continues to ride structural demand in cables and wires. Eternal has seen a sharp correction, yet its core businesses continue to grow with improving profitability. Tilaknagar is in the middle of a business expansion that could play out over the next few years.
But the brokerage house is clear in its stance that the long-term story for all three remains firmly on track.
Disclaimer: This article provides factual analysis only and is not, and should not be construed as, an offer, solicitation, or recommendation to ‘Buy’ or sell securities. Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor.
