Suzlon Energy and 5 Other Top Stocks to Buy for an Upside of Up to 55%
Brokerage houses have been busy this week, digging into companies ranging from a fast-growing retail chain to a wind-energy player facing demand worries. Some of these calls come with fresh price targets, while others reaffirm existing ones after checking the latest numbers. What ties them together is the scale of upside on offer, some of it fairly aggressive. Here's a look at what each brokerage is saying and why.
Vishal Mega Mart
Vishal Mega Mart has the highest upside on this list. The stock at Rs 103.50, giving the company a market cap of around Rs 48,488 crore. Jefferies has kept its 'Buy' rating, with a target price of Rs 160, which works out to roughly 55% upside from the current price. The brokerage's confidence comes from the retailer's plan to keep growing well beyond its current store count, with management aiming for double-digit same-store sales growth, meaning sales growth from existing stores alone, in FY27.
The company runs 833 stores right now and wants to get to around 2,000 over time. It's also testing smaller store formats in towns with 40,000-50,000 people, in Uttar Pradesh and Haryana, which Jefferies thinks could eventually push the total opportunity to about 4,000 stores. Refurbished stores are already seeing sales jump 10-15%, with some locations up as much as 40%. Private labels are a big part of the story too, making up over 60% of FMCG volumes and about 74% of general merchandise sales.
Suzlon Energy
Suzlon Energy closed today at Rs 40.78, giving it a market cap of about Rs 56,055 crore. Ambit Capital has kept its 'Buy' call on the stock, with a target price of Rs 59, which comes to close to 45% upside from here. Ambit has used the DCF method to arrive at this number, and the target price basically works out to 31 times the company's expected earnings for FY28.
That said, the brokerage isn't as upbeat here as it is on solar makers, mainly because Suzlon's fortunes are tied closely to the wind-power cycle. Its main worry is that power demand growth could slow down, and if that happens, wind capacity additions may slow too. That would eventually hit Suzlon's order book. So while the rating stays positive, Ambit is flagging this as something to watch going forward.
Axis Bank
Axis Bank closed at Rs 1,220, up sharply, with a market cap of around Rs 3,79,856 crore. Jefferies has a 'Buy' rating on the stock, with a target price of Rs 1,700, which is close to 39% upside from the current price. The brokerage expects the bank's return on equity, basically how much profit it makes on shareholder money, to stay around 14% in both FY27 and FY28. At the target price, the stock would be valued at close to 1.5 times its estimated book value for FY28.
The call comes at a time when IRDAI, the insurance regulator, has proposed changes to how insurance is distributed. If these go through, commissions across several insurance categories could come down, and that would hit banks' income from selling insurance products, called bancassurance. Axis has a fairly high exposure here, with its FY26 bancassurance income equal to about 9% of its FY27 expected profit. Jefferies still likes the stock, but says this is one thing worth tracking.
Billionbrains Garage Ventures (Groww)
Billionbrains Garage Ventures closed today at Rs 187.45, taking its market cap to around Rs 1,17,599 crore. The company, which owns Groww, is Macquarie's top pick among capital market stocks, with an 'Outperform' rating and a target price of Rs 260, close to 39% upside from here. Macquarie likes Groww for its ability to bring in new customers, cross-sell other products to them, and keep expanding margins over time.
The brokerage expects revenue to grow at a compound annual rate of 25% between FY26 and FY30, with EBITDA margin, which shows how much of revenue turns into operating profit, rising from 59.1% in FY26 to nearly 69.8% by FY30. It also expects return on equity of around 25% in FY27. Among the five stocks in its coverage, Groww scores highest at 24 points on Macquarie's own stock-picking framework, helped by strong scores across market share, position and margins.
Niva Bupa Health Insurance
Niva Bupa closed today at Rs 77.38, with a market cap of about Rs 14,313 crore. Motilal Oswal has maintained its 'Buy' rating on the stock, setting a one-year target of Rs 100, close to 29% upside from the current price. This comes right as the health insurance industry is dealing with a regulatory shake-up, with IRDAI proposing changes to how insurance products get distributed.
The brokerage thinks Niva Bupa could see some pressure in the near term as insurers adjust their business models, but it expects things to work out better over the medium term. One number worth noting: the company's expense of management, basically its operating cost as a share of premium collected, is currently around 25%. Motilal Oswal expects this to come down within two years, and settle at around 20% over the next five years.
SPR Auto Technologies
SPR Auto Technologies closed at Rs 4,760, taking its market cap to around Rs 22,080 crore. Motilal Oswal has started coverage on the stock with a 'Buy' rating and a target price of Rs 6,150, close to 29% upside from here. SPR has traditionally been known as a piston maker, but it's now trying to move beyond that and build a wider auto-components business.
The brokerage says this shift is being driven mainly through acquisitions, including Antolin, Takahata, TGPEL and EMFi. It expects all this to help the company's profit grow at a compound annual rate of 21% between FY26 and FY29. There's also a Rs 1,000 crore fundraise, called a qualified institutional placement, that could give the company more money to fund this expansion further.