Brokerages Bullish on 7 Indian Stocks

Brokerages bullish on 7 stocks

Several global and domestic brokerage firms have begun coverage on various stocks, showing optimistic views on companies like Trent, Tata Power, Power Grid, and JSW Energy, with potential gains of up to 27%. Here’s a list of seven stocks that brokerages have recently started covering:

Brokerages Bullish on 7 Indian Stocks: Potential Gains Up to 27% Global brokerage firm Citi has started coverage on Trent, assigning it a “Buy” rating and setting a target price of Rs 9,250 for the stock, suggesting a potential upside of 22% from current market levels.

Citi highlighted that Trent is outperforming its competitors and driving market upgrades. The company is developing organic growth strategies and is expected to achieve compound annual growth rates (CAGRs) of 41% in revenue, 44% in EBITDA, and 56% in PAT for FY24-27. Trent is effectively utilizing its supply chain and leveraging insights from its Westside and Zudio brands. Moreover, the company is successfully revitalizing its Star business and has significant potential to scale up other pilot projects. Consequently, Citi has placed Trent on its Pan-Asia high-conviction focus list.

Brokerages Bullish on 7 Indian Stocks: Potential Gains Up to 27%  Axis Securities has commenced coverage on Gravita India, giving it a “Buy” rating and establishing a target price of Rs 3,000 for the stock, suggesting a potential upside of 19% from current market levels.

“We initiate our coverage on Gravita India Ltd. (Gravita) with a BUY recommendation, backed by its leading market position in a growing sector, consistent enhancements in profitability, favorable regulatory environment, and an expanding range of products. The stock is currently valued at 31 times the estimated EPS for FY27,” the brokerage noted.

Brokerages Bullish on 7 Indian Stocks: Potential Gains Up to 27%  Axis Securities has begun coverage on Arvind Smartspaces, assigning it a “Buy” rating and setting a target price of Rs 1,085 for the stock, which implies a potential upside of 27% from current market prices.

“Our recommendation is backed by robust visibility for upcoming launches, an asset-light business model that ensures quick turnaround times, geographical expansion, product innovation, and low leverage, all complemented by strong cash flows and strategic partnerships. By valuing the company at 8x FY26 EV/EBITDA, we arrive at a target price of Rs 1,085 per share,” said Axis Securities.

Brokerages Bullish on 7 Indian Stocks: Potential Gains Up to 27%  Motilal Oswal has commenced coverage on Power Grid, giving it a “Buy” rating and setting a target price of Rs 425 for the stock, suggesting a potential upside of 17% from current market levels.

Motilal Oswal views Power Grid as a leading player in the Rs 2 lakh crore transmission sector, highlighting the limited competition in the more complex HVDC segment, where the company has a proven track record. With a valuation of 17x FY27 PE and 9x EV/EBITDA, the implied dividend yield of 3.5% is considered appealing.

Brokerages Bullish on 7 Indian Stocks: Potential Gains Up to 27%  Motilal Oswal has started coverage on JSW Energy, assigning it a “Buy” rating and establishing a target price of Rs 917 for the stock, which suggests a potential upside of 17% from current market levels.

JSW Energy’s capacity is projected to increase 2.4 times over the next 2.5 years, with a strong possibility of reaching the targeted 20 GW in installed capacity before 2030. The company’s effective execution, ability to revitalize challenging assets (such as Mytrah and Ind-Barath), strong balance sheet, and careful capital allocation for growth set it apart from its competitors.

Brokerages Bullish on 7 Indian Stocks: Potential Gains Up to 27%  Motilal Oswal has begun coverage on Tata Power, giving it a “Buy” rating and setting a target price of Rs 530 for the stock, suggesting a potential upside of 13% from current market levels.

Tata Power is undergoing a multi-year transformation, with 45% of its capital expenditure for FY23-27 directed toward renewable energy projects. This transition is expected to boost the share of core earnings from 40% to 90% during the same timeframe. With a valuation of 13x EV/EBITDA (compared to a long-term average of 10x), Motilal Oswal sees room for further re-rating, bolstered by reduced earnings volatility and a robust projected 14% PAT CAGR for FY24-27.

Brokerages Bullish on 7 Indian Stocks: Potential Gains Up to 27%  YES Securities has started coverage on Karur Vysya Bank, assigning it a “Buy” rating and setting a target price of Rs 260 for the stock, which suggests a potential upside of 18% from current market levels.

The brokerage firm points out several key factors supporting its recommendation:

(1) KVB boasts a healthy and sustainable margin profile backed by a strong liability franchise, featuring industry-low savings account rates;

(2) the bank has successfully turned around its growth through digital underwriting.

(3) the outlook for credit costs is optimistic, with previous asset quality volatility now behind the bank.