Stocks to Buy: After the December quarter results, brokerage firm JM Financial has reiterated its ‘Buy’ rating on companies in many sectors. The brokerage says that revenues in these companies have been stable, margins have shown improvement, balance sheets have strengthened and better execution on growth plans has been seen.
According to JM Financial, these stocks are showing an upside of more than 45 percent compared to the current share price.
Ujjivan Small Finance Bank
JM Financial has reiterated ‘Buy’ rating on Ujjivan Small Finance Bank and estimates about 15.3 percent upside from current levels.
The December quarter was strong for the bank and profits were better than expected. Net interest margin has improved and cost of funds has come down. Asset quality trends have improved. The bank is now increasing focus on secured loans, especially housing and MSME loans, to reduce risk. Extensive improvement has also been seen in collection efficiency.
JM Financial has maintained ‘Buy’ rating on IT company Mphasis and expects about 20.5 percent upside from current prices.
The company is seeing strong deal momentum with BFSI clients. Total contract value has doubled over the last 12 months, providing strong visibility of future revenues. About 70 percent of new deals are AI based. Margins have been under pressure due to hedging losses in the short term, but the brokerage expects the company to deliver better growth than the industry average.
JM Financial has maintained ‘Buy’ rating on Jindal Stainless and has indicated an upside of about 20.7 percent from the current price.
December quarter results were in line with expectations and volume growth was recorded on a quarterly basis. Realization remained subdued, but impact on margins was limited due to fall in raw material prices. The company’s balance sheet is strong and Net Debt to EBITDA is below one. Overseas expansion projects in Indonesia are expected to commence in FY27, which could support long-term growth.
JM Financial has reiterated ‘Buy’ rating on Baazar Style Retail and expects about 21.1 percent upside from the current market price.
The decision to issue equity warrants to Cupid Ltd is very positive according to the brokerage. This will reduce debt and interest costs and accelerate store expansion. Revenue grew 13 percent year-on-year in the December quarter. 38 new stores have been added in the first nine months of the current financial year. The company is increasing investment in warehouse and regional distribution network.
JM Financial has maintained ‘Buy’ rating on Tata Communications and estimates about 44.6 percent upside from the current price.
Revenue in the December quarter was in line with estimates, with strength in the data business offsetting weakness in the voice segment. EBITDA margin improved to around 20 percent. Net debt has declined on a quarterly basis. Big connectivity deals with global hyperscalers are now beginning to be reflected in revenues. The brokerage expects strong EBITDA growth in the data segment by FY28.
Stocks to Buy: From Suzlon to NMDC… these 10 stocks can give returns up to 63%, brokerage advised to buy
Disclaimer: The advice or opinions expressed on Moneycontrol.com are the personal views of the expert/brokerage firm. The website or management is not responsible for this. Moneycontrol advises users to always seek the advice of a certified expert before taking any investment decision.