The domestic equity markets experienced significant declines this week, with the Nifty 50 falling over 0.96% and the Sensex dropping 0.83% for the week. Despite the broader market weakness, several leading research houses including Nomura, Jefferies, Nuvama, Citi, Motilal Oswal, JM Financial, and HSBC have issued positive recommendations for key stocks across various sectors. According to reports from The Financial Express, these brokerages have identified 10 stocks with target prices implying upside potential of 19% to 68%. The latest developments show continued institutional interest in selective stock opportunities despite market volatility.
HSBC has emerged as the most bullish on real estate stocks, maintaining 'Buy' ratings on Godrej Properties (₹2,900 target, 67.6% upside), DLF (₹920 target, 55.4% upside), Prestige Estates (₹2,000 target, 43.4% upside), Sobha (₹1,800 target, 29.3% upside), and Oberoi Realty (₹2,100 target, 25.4% upside). The brokerage noted that while the 16 developers under its coverage delivered around 20% compound annual growth in pre-sales over the past two years, real estate stocks declined 22% during the same period. HSBC attributes this disconnect to reduced foreign investor participation, concerns over interest rates, and the market's increasing focus on free cash flow generation, but expects FY28 to bring a sweet spot as large project completions are due with strong pre-sales momentum.
ICICI Bank emerged as a standout recommendation with Motilal Oswal maintaining its 'Buy' rating and setting a target price of ₹1,750, implying an upside potential of approximately 41% from current market levels. The brokerage believes ICICI Bank is entering its next phase of growth with several favorable factors. Similarly, Motilal Oswal reiterated its 'Buy' rating on Shriram Finance with a target price of ₹1,175, suggesting a potential upside of around 29%. The positive outlook is supported by the company's stronger capital base, improving funding profile, and diversified lending business, including a strategic partnership with Japan-based Mitsubishi UFJ Financial Group (MUFG).
Patanjali Foods received a 'Buy' rating from Jefferies with a target price of ₹560, indicating a potential upside of 23%. Despite the company's March quarter performance being impacted by weaker profitability in Foods and FMCG business and high edible oils margins base, Jefferies sees improving conditions ahead. The company reported 15% year-on-year revenue growth during the March quarter, driven by volume growth and higher realisations in edible oils, though EBITDA declined 14% year-on-year to ₹445.4 crore.
CG Power and Industrial Solutions received a 'Buy' rating from Nomura with a target price of ₹1,050, implying an upside of 19.4%. The brokerage expects India's upcoming data centre buildout to create substantial demand for electrical infrastructure, with electrical systems accounting for about 42% of total data centre capital expenditure. Nuvama maintained its 'Buy' rating on Titagarh Rail Systems and revised its target price to ₹1,089, indicating an upside potential of nearly 36%. The company reported a 14% year-on-year decline in revenue and a 53% drop in profit after tax during the March quarter, though several large railway and metro projects could support long-term growth.
Hitachi Energy India received a 'Buy' rating from Citi with a target price of ₹46,700, indicating an upside of around 29%. The brokerage noted that the company remains the market leader in high-voltage and high-voltage direct current equipment and expects it to be among the biggest beneficiaries of upcoming HVDC projects. JM Financial maintained its 'Buy' rating on Emmvee Photovoltaic Power with a revised target price of ₹377, implying a 24% upside. The brokerage highlighted that Emmvee is the most experienced TOPCon cell manufacturer, commanding an EBITDA/Wp of ₹5.8, driven by a 51% integration level in FY26, approximately rising to 59% by FY28.
