A look at some of the latest stock recommendations by analysts. These stocks are expected to return between 27% and 72% as per analysts’ price targets.
TATA MOTORS
BROKERAGE: HSBC Price Target: Rs 840 CMP: Rs 661 Upside: 27%
- Upgrade to buy; valuation looks reasonable after de-rating in the past three quarters
- Subsidiary JLR achieving fourth- quarter guidance—a re-rating trigger for stock
- Reduction in discounts, warrants cost in JLR and recovery in small commercial vehicle business key triggers for margin expansion
VARUN BEVERAGES
BROKERAGE: JM FINANCIAL Price Target: Rs 675 CMP: Rs 507 Upside: 33%
- Recent stock price decline overdone, and recent pessimism an entry point for long-term investors
- Superior execution, large opportunity size and net debt-free status provide confidence on earnings growth
- Current Price to Earnings (PE) ratio of 42 times estimated CY26 earnings still attractive considering the company’s growth profile; better than FMCG peers
KIRLOSKAR OIL ENGINES
BROKERAGE: MOTILAL OSWAL Price Target: Rs 1,150 CMP: Rs 668 Upside: 72%
- Current stock price factoring in extreme pessimism related to growth and margins
- Stock price factoring in a bear case scenario of low growth and low valuation multiples of 20 times for the core business
- Demand slowdown, competitive intensity, higher costs for the B2C division, risk of further fund infusion into group firm Arka Fincap are the key risks
