Brokerages including Nuvama, JM Financial and Jefferies are turning increasingly bullish on a select group of Indian stocks, citing strong execution, rising market share gains and robust earnings visibility despite global uncertainties.
The latest round of recommendations spans sectors from cables and automobiles to IT services, infrastructure, real estate and digital payments.
The stocks attracting the strongest consensus include Polycab India, Mahindra & Mahindra, Coforge, Larsen & Toubro, Firstsource Solutions, Brigade Enterprises, Hero MotoCorp and Paytm.
Analysts see potential upside ranging from nearly 15% to as high as 88%, with brokerages highlighting factors such as healthy order books, premium product launches, infrastructure-led demand and improving margins as key growth drivers.
Polycab India
Nuvama
Nuvama maintains a ‘Buy’ rating on Polycab India with a target price of Rs 9,740, implying an upside of approximately 16% from current levels.
The brokerage house notes that the company reported revenue and adjusted profit figures for the fourth quarter that were ahead of their internal estimates by 10% and 11% respectively. Volume growth in the cables and wires segment reached 18% for the full fiscal year, which is the highest among its industry peers.
The brokerage points to a significant expansion in the company’s footprint within the organized market, which grew to a share of 30% to 31% from roughly 27% in the previous year.
JM Financial
JM Financial has set a target price of Rs 9,700 for the company, indicating an upside potential of around 15% from current levels.
Their analysis focuses on the company’s ability to benefit from input cost inflation while maintaining steady growth in volume.
They state that Polycab’s share of the organized market has strengthened considerably, moving from 18% just a few years ago to its current dominant position.
Jefferies
Jefferies identifies Polycab as a top pick in the electrical sector, issuing a target price of Rs 9,770, which implies a potential upside of around 17% from current levels.
The brokerage views the firm as a primary beneficiary of the ongoing upcycle in Indian housing and infrastructure development.
They expect the cables and wires segment to see a revenue growth rate of 19% annually through 2029.
Mahindra & Mahindra
Nuvama
Nuvama reiterates its ‘Buy’ call on Mahindra & Mahindra with a target price of Rs 3,800, representing an upside of approximately 18% from current levels.
The firm increased its earnings estimates after the company reported quarterly revenue that was 26% higher than the previous year, surpassing market expectations. They expect the automotive segment to grow at a 15% annual rate due to healthy demand and a series of planned product launches.
JM Financial
JM Financial shares the ‘Buy’ rating and the target price of Rs 3,800, indicating an upside potential of around 18% from current levels.
They observe that the company has maintained its guidance for the tractor industry while showing particular strength in its light commercial vehicle segment.
The company currently holds a 52.3% share of the light commercial vehicle market, which grew by 14% in the last quarter.
Jefferies
Jefferies maintains a ‘Buy’ rating with a higher target price of Rs 4,000, implying an upside potential of nearly 25% from current levels.
They point out that the company has delivered its sixteenth consecutive quarter of double-digit growth in operating profits.
While they acknowledge risks in the tractor cycle, they believe the automotive segment is more than compensating through strong volumes and improving margins in the electric vehicle division.
Coforge
Nuvama
Nuvama maintains a ‘Buy’ rating on Coforge with a target price of Rs 2,200, which offers a massive upside potential of nearly 88% from current levels.
The firm points to a robust executable order book of Rs 1.7 billion as a sign of future revenue visibility.
They also note that the company’s profit margins significantly beat estimates in the most recent quarter after expanding by 230 basis points.
Jefferies
Jefferies reiterates its ‘Buy’ call with a revised target price of Rs 1,860, indicating an upside potential of approximately 61% from current levels.
They state that the most recent financial results were characterized by higher than expected margins and a positive surprise in free cash flow conversion.
The firm expects the company to deliver a 23% annual growth in recurring earnings through 2029.
Larsen & Toubro
JM Financial
JM Financial maintains a ‘Buy’ rating on Larsen & Toubro with a target price of Rs 4,700, suggesting an upside of around 16% from current levels.
They observe that the company’s international order inflow momentum remains strong despite disruptions in West Asia.
The brokerage believes the long-term outlook is underpinned by the company’s Project Lakshya, which targets a 10% to 12% growth in orders through 2031.
Jefferies
Jefferies rates the stock as a ‘Buy’ with a target price of Rs 4,885, projecting an upside of around 19% from current levels.
They state that the company should be a primary beneficiary of the revival in the capital expenditure cycle within India. The brokerage anticipates that operating profits in the core engineering and construction segments will rise at a rate of 19% to 20% annually through 2028.
Firstsource Solutions
Nuvama
Nuvama has upgraded Firstsource Solutions to a ‘Buy’ rating with a target price of Rs 320, implying an upside potential of nearly 32% from current levels.
The brokerage places its faith in the company’s reported numbers rather than the negative narrative surrounding the impact of automation on the business process outsourcing sector.
They expect the company to achieve earnings growth of 25% in the next fiscal year.
JM Financial
JM Financial maintains a ‘Buy’ rating with a target price of Rs 290, offering an upside of around 19% from current levels. They note that while recent revenue was slightly below expectations due to regulatory delays in certain international deals, those headwinds are now in the past.
The company signed four large deals in the most recent quarter and has a total pipeline exceeding Rs 1 billion.
Brigade Enterprises
Nuvama
Nuvama maintains a ‘Buy’ rating on Brigade Enterprises with a target price of Rs 1,024, indicating an upside potential of around 33% from current levels.
The firm notes that while sales were muted in the last year due to launch delays, the company has a bright outlook for the coming year with plans to launch over 11 million square feet of new projects.
They expect this pipeline to drive a 20% growth in pre-sales.
JM Financial
JM Financial reiterates its ‘Buy’ call with a target price of Rs 1,040, projecting an upside of nearly 35% from current levels.
They observe that while approval challenges impacted performance in the previous year, the company’s healthy launch pipeline is now spread throughout the year. The brokerage expects growth to resume strongly, building in a 19% annual growth in bookings through 2028.
Hero MotoCorp
Nuvama
Nuvama maintains its ‘Buy’ recommendation for Hero MotoCorp with a target price of Rs 6,000, implying an upside of around 17% from current levels.
The firm notes that the company reported strong fourth-quarter revenue and operating profits that were slightly above estimates.
They point to a wide distribution network and strong brand equity as key strengths that will support a 6% annual revenue growth.
JM Financial
JM Financial rates the stock as a ‘Buy’ with a target price of Rs 6,180, suggesting an upside of nearly 20% from current levels.
They observe that the company has reduced its channel inventory to five weeks, which indicates strong demand momentum.
The firm expects the domestic two-wheeler industry to grow at a high single-digit rate in the coming year, with Hero targeting 10% volume growth.
Paytm (One 97 Communications)
Jefferies
Jefferies maintains a ‘Buy’ rating on Paytm with a target price of Rs 1,350, representing an upside of around 24% from current levels.
They point out that the company’s revenue momentum has been sufficient to cover for certain missing incentives in the payment processing market.
Key business metrics show a 27% increase in gross merchandise value and a significant rise in merchant counts.
JM Financial
JM Financial reiterates its ‘Buy’ call with a target price of Rs 1,490, offering an upside potential of approximately 34% from current levels.
They observe that the company delivered a steady quarter where strong underlying growth offset the discontinuation of certain payment industry incentives.
The brokerage expects payment processing margins to remain structurally improved as the company scales its operations.
Conclusion
Brokerage firms are clearly signaling a preference for companies that combine market dominance with strong executable order books. While specific target prices vary, the shared confidence in these companies suggests that their underlying business models are well-equipped to move through current economic uncertainties.
Shareholders should continue to monitor regional geopolitical conflicts and raw material price volatility, as these remain the primary risks noted across these various sectors.
Disclaimer: The stock recommendations and target prices mentioned in this report are based on analysis by independent brokerages and do not constitute an offer or solicitation by this publication. Investing in equities involves substantial risk; readers are strongly advised to consult a SEBI-registered investment advisor before making any financial decisions based on these projections.
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