Brokerage consensus stocks: The Indian stock market is currently moving through a period of uncertainty, yet a handful of companies are still managing to earn positive recommendations from top analyst teams. Reports from HSBC, Axis Securities, Motilal Oswal, Nomura, Anand Rathi and JM Financial collectively cover companies such as Dalmia Bharat, Tata Steel, Dixon Technologies, TVS Motor, CarTrade Tech, Infosys and EPL, where analysts have outlined varying upside scenarios based on their assumptions around earnings, demand trends and sector dynamics.
Across these stocks, the projected upside spans from roughly 18% at the lower end to about 78% at the higher end, indicating a broad range of expectations within the analyst community despite agreement on the overall rating.
Dalmia Bharat
HSBC
HSBC has initiated coverage on this building materials company with a ‘Buy’ rating and a target price of Rs 2,490, which indicates a potential gain of 38.9%. Their team believes the company will benefit greatly from the changing supply and demand trends in East India over the coming years. They see the firm as a primary beneficiary as the rapid expansion of capacity in the region finally starts to slow down.
The analysis also suggests that the current valuation of the stock is very inexpensive when compared to its historical averages. They believe the company’s focus on cost reduction and its strong presence in high-growth regions will lead to a significant expansion of its trading multiples.
Axis Securities
Axis Securities also supports a ‘Buy’ call with a target price of Rs 2,520, which is roughly a 42% upside from the current market price. Their reasoning centers on the company’s aggressive expansion plans and its ability to maintain strong profits despite the competition in the building materials trade. They expect better operational performance to keep the growth on a steady track through the next fiscal period.
The firm expects that the company’s newest manufacturing facilities will start to contribute more to the bottom line as they reach full production levels.
Motilal Oswal
Motilal Oswal completes this strong agreement by reiterating a ‘Buy’ recommendation and a target price of Rs 2,570, which offers an upside of 42%. Their research is betting on a double-digit increase in sales volume and a very healthy balance sheet to drive the stock much higher. They consider the current market valuation to be quite attractive when compared to the largest companies in the building materials sector.
The firm points out that the company has a strong project pipeline that will help it stay ahead of the competition in its core markets. They expect the company to deliver consistent returns as the domestic infrastructure demand continues to grow.
Tata Steel
Motilal Oswal
Motilal Oswal is in complete agreement with this positive view, maintaining their ‘Buy’ rating and an identical target price of Rs 240. This price point offers a 23% upside as the firm expects the company’s overall volumes and realization rates to move in a better direction. They point out that the steel industry is entering a more supportive phase where domestic demand will likely absorb most of the production.
Anand Rathi
Anand Rathi see a bright future for the steel giant and have set a target price of Rs 240, which implies an upside of 24%. They have upgraded the stock to a ‘Buy’ because they see several positive factors coming together in both the Indian and European markets simultaneously. The brokerage thinks the reduction in energy costs and stronger demand will help the company’s profits in a meaningful way.
The brokerage believes that the company’s domestic steel volumes will remain strong due to the government’s continued focus on infrastructure development. They also point to the potential for a recovery in international operations as global supply constraints start to ease. This combination of internal and external factors is expected to push the stock toward its new target over the next twelve months.
Dixon Technologies
Nomura
Nomura has maintained its ‘Buy’ rating on this manufacturing leader with a target price of Rs 14,678. This target provides a 51.7% upside for the stock as the company starts making more profitable items like display screens and camera parts. The analysts are very satisfied with the recent government approvals for their new factory projects which should improve the profit margins by 2028.
Motilal Oswal
Motilal Oswal is even more optimistic about the long-term growth trajectory, setting a target price of Rs 16,700, which implies a 63% upside. Their team is closely watching the company’s ability to onboard new global customers in the mobile and information technology hardware space. They believe the firm’s focus on the latest government incentive programs will generate very robust cash flows for years to come.
The firm indicates that the company’s shift toward high-margin segments like electric vehicles and medical electronics will provide additional growth engines. They expect the company to maintain its dominant position in the domestic manufacturing market through its flexible and frugal production base. This strong competitive position is expected to drive a significant increase in the stock price over the next year.
TVS Motors
Nomura
Nomura suggests buying the vehicle manufacturer with a target price of Rs 4,159, which represents a potential upside of 21%. Their research indicates that the sales of premium motorcycles are staying very strong even as the wider market faces some challenges. They also believe the company’s focus on electric models will pay off in the coming years as the market transitions away from traditional fuels.
Motilal Oswal
Motilal Oswal also carries a ‘Buy’ rating with a slightly higher target price of Rs 4,300, which offers a 23% upside. The analysts there are impressed by the company’s consistent market share gains and the successful rollout of new high-performance models. They expect the earnings to grow at a healthy rate as the product mix continues to tilt toward more expensive and profitable bikes.
The brokerage believes that the company’s strong distribution network in rural India will help it capture the expected recovery in low-end demand. They also point to the company’s efficient cost management as a reason for their high confidence in the stock. Their research suggests that the company is well-positioned to deliver superior returns compared to its peers in the automotive sector.
CarTrade Tech
Nomura
Nomura has a ‘Buy’ recommendation with a target price of Rs 3,026, which would mean a gain of over 78% from the current price level. Their analysis focuses on how the company is using artificial intelligence across its car listing platforms to improve the overall user interaction. They think this technological edge will allow the firm to charge more for its services and create new ways to make money in the longer term.
The analysts also note that the company holds a significant scale advantage with more than 85 million unique visitors every month. They believe that cross-leveraging its massive database across different segments will improve user stickiness and speed up transaction turnarounds. This focus on digital initiatives is seen as a way to strengthen the company’s competitive advantage in a crowded market.
JM Financial
JM Financial is also calling the stock a ‘Buy’ with a target price of Rs 2,380, which implies an upside of 44.2% from current levels. While they have adjusted their valuation multiples to account for a higher market risk premium, they still see the company as a very strong platform for transactions. They believe the stock price has dropped too significantly because of unfounded fears about new technology and currently offers a very favorable entry point.
Infosys
Nomura
Nomura maintains its ‘Buy’ rating for the technology firm with a target price of Rs 1,810, which indicates a potential upside of about 41.5%. They view the company as their favorite choice in the large-cap software space because of its recent purchases of two specialized technology providers. These moves are expected to bring in many new clients and improve the company’s specialized expertise in the healthcare field.
Motilal Oswal
Motilal Oswal is also keeping its ‘Buy’ call active with a target price of Rs 1,500, offering an 18% unmistakable upside to the current price. Their analysts expect the company to maintain its industry-leading profit levels through better execution of its large projects. They are confident that the steady pipeline of new deals will help the company outperform its rivals even in a difficult global economic environment.
The brokerage expects the company to maintain its industry-leading profit levels through better execution of its large projects.
EPL
Nomura
Nomura keeps a ‘Buy’ rating on the specialized packaging company with a target price of Rs 350, suggesting a massive 60.6% upside potential. Their analysts believe the company’s position as a global leader in manufacturing tubes will allow it to capture more demand from the consumer goods sector. They are looking at the firm’s presence in many different countries as a primary engine for its future earnings growth.
Motilal Oswal
Motilal Oswal is also bullish with a ‘Buy’ rating and a target price of Rs 270, indicating an upside of 32%. Their research points toward the merger with Indovida as a move that will transform the company into a multi-format packaging platform. They expect this expansion into rigid packaging to help the firm grow twice as fast as the developed economies in emerging markets.
Conclusion
While the volatility in the main indices continues to create some worry, these specific stocks appear to have the firm backing of multiple research teams.
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.
