Markets may move up, down or stay flat on any given day, but certain stocks continue to stay on investors’ radar. The brokerage house JM Financial has identified three such stocks across sectors where it sees meaningful upside potential, going as high as 41% from current levels.
Let’s take a look at the investment rationale driving the brokerage’s recommendations-
JM Financial on Lodha Developers: Growth strong, but cash flows in focus
In the real estate sector space, JM Financial has given a ‘Buy’ rating to Lodha Developers. The brokerage sees an upside potential of nearly 41%, with a target price of Rs 1,240.
According to the brokerage report, the company has delivered steady sales growth. “Lodha reported pre-sales of Rs 5,900 crore, a 23% rise compared to last year and a 5% increase from the previous quarter, in line with JM Financial’s expectations.”
For FY26, pre-sales stood at Rs 20,500 crore. It is up 16% compared to the previous year. The report highlighted that key markets like South Central Mumbai and Bengaluru have been major contributors to this growth.
As per the brokerage report, “cash flow performance is tepid with an only 4% YoY growth in collections.”
The company has also been actively investing in new projects. As per the brokerage report, “Lodha invested Rs 6,800 crore in business development (BD) & approvals and added Rs 60,000 crore worth of new projects.”
Still, the brokerage remains positive. According to the brokerage report, “Lodha continues to demonstrate steady execution across key parameters and is well placed to sustain this momentum.”
JM Financial on GMR Airports: Traffic concerns vs long-term opportunity
Another stock on the list is GMR Airports, with a target price of Rs 115. This implies an upside of around 20%.
The key concern around this stock has been the impact of the new Noida airport on traffic at Delhi airport.
However, JM Financial believes these fears may be overdone. According to the brokerage report, “our detailed analysis highlights a domestic traffic shift potential of 10–15% and an insignificant shift (<4%) in international traffic.”
The brokerage also noted that connectivity challenges could limit the immediate impact of the new airport. According to the brokerage report, “the preference is unlikely to change till RRTS connection with NIAL is in place.”
At the same time, there are short-term headwinds. International traffic has been affected by geopolitical factors. According to the brokerage report, “near term international traffic has been impacted…due to the West Asia crisis.”
JM Financial on City Union Bank: Stable growth with improving metrics
The third stock is City Union Bank, where the brokerage has set a target price of Rs 320. This indicates an upside of about 18%.
According to the JM Financial report, the bank has delivered strong growth in both loans and deposits.
“Advances/deposits growing 26%/23% YoY (+8%/+11% QoQ),” the brokerage noted in its report.
Asset quality, a key concern for banks, has also shown improvement. According to the brokerage report, “asset quality trends remained encouraging with GNPA/NNPA moderating.”
The brokerage expects steady growth ahead. According to the brokerage report, “we forecast a loan CAGR of ~18% during FY26-28 estimates.”
What investors need to know
Overall, Lodha Developers is seeing strong demand but needs to improve cash flows. GMR Airports faces near-term traffic concerns but has long-term growth visibility. City Union Bank is delivering steady performance with improving asset quality.
Disclaimer: The investment recommendations and target prices mentioned in this report are based on analysis by JM Financial and are for informational purposes only. Trading in equities involves significant market risk, and the projected upside potentials are not guaranteed. Readers are advised to consult with a SEBI-registered financial advisor before making any investment decisions, as individual financial goals and risk appetites vary. This content does not constitute an offer or solicitation to buy or sell any securities.
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