The brokerage firm JM Financial has a Buy recommendation on these three stocks. It picked the stocks after they reported robust quarterly earnings for the fourth quarter of FY25. The guidance and outlook for FY26 also impacted the final price targets.
State Bank of India
JM Financial Services maintained the ‘Buy’ rating on the stock of State Bank of India, with a target price of Rs 960. In Q4FY25, the country’s biggest lender by assets reported a net profit of Rs 18,600 crore, which fell 10% YoY. However, the net profit beat was driven by higher-than-expected treasury gains (partly led by NPA transfer) and strong recoveries from the WO pool. Also, the company’s loan growth was healthy at 12% YoY, which, along with stable NIMS sequentially, led to NII growth of 3% YoY. Plus, one of the biggest positives was that its asset quality was stable as gross/net slippage ratio stood at 43 bps/26 bps and remained flat QoQ. However, the brokerage house expects margins to remain under pressure in the near term as repo-linked book (29%) reprises faster than deposits. “In our view, profitability will remain under pressure in FY26 given pressure on margins, normalisation of credit costs and higher cost-to-income ratio,” said JM Financial.
Coforge
The brokerage house retained a ‘Buy’ call on Coforge after the company reported a strong set of quarterly numbers. It raised the target price to Rs 10,000 from Rs 9,610. Management expects that FY26 exit EBIT margins can expand to 14% from 13.2% currently, which means growth is not coming at the expense of profitability, especially from the Sabre deal. Also, the broker believes that revenue might grow at 30% in constant currency terms in FY26. Unabated large deal momentum (Sabre and otherwise) suggests growth can accelerate further. Coforge reported a record $2.1 billion TCV (total contract value). Even excluding the $1.56 billion Sabre deal, TCV was healthy at $566 million (book-to-bill: 1.4x).
RR Kabel
The brokerage firm has maintained its ‘Buy’ call on RR Kabel and trimmed the target price slightly to Rs 1,400 per equity share from Rs 1,450. The company’s revenue in Q4FY25 grew 26% YoY on the back of solid volume traction in domestic and export markets. Its growth was broad-based, aided by continued strength in the wires and cables segment, which was up 28% YoY, and steady momentum in the FMEG portfolio, which was up 13% YoY. The positive is that the company’s strategic focus remains on scaling up the cables business, brand visibility, and investing in manufacturing capabilities. However, there is a risk to the business as competitive intensity has risen.