JM Financial has picked four stocks across different sectors that it believes are poised for strong gains. The brokerage firm has maintained a bullish stance on Innova Captab, Fortis Healthcare, Oil India, and Power Grid Corporation.
Let’s take a look at the top picks and know why JM Financial remains bullish on these stocks-
Innova Captab
JM Financial has reiterated a Buy rating on Innova Captab, projecting a target price of Rs 1,152, which suggests an upside of 26.5% from current levels.
As per the brokerage report, the pharma sector based company delivered a mixed bag in its Q4FY25 results. While revenue rose by 20% YoY, it was still 7% below expectations. However, the EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin stood out at 15.2%, beating estimates by 102 basis points. The company posted a PAT (Profit After Tax) of Rs 296 crore, a modest 3% rise year-on-year.
“With the commercialisation of the Jammu plant, the company has expanded its addressable market to include injectables and liquid formulations,” the brokerage said, adding that the business is expected to post 29% revenue CAGR, 33% EBITDA CAGR, and 34% PAT CAGR from FY25-28.
Fortis Healthcare
Healthcare based sector major Fortis Healthcare also finds itself on JM Financial’s radar, with the brokerage maintaining a Buy call and a target price of Rs 810, implying a 20.5% potential upside.
According to the brokerage, Fortis Healthcare delivered a strong Q4FY25 performance, with revenue, EBITDA, and adjusted PAT growing 12%, 14%, and 28% YoY, respectively. The hospital business clocked a 14.2% revenue growth, while diagnostic services saw a 3% rise.
“The company is poised to achieve over 15% topline growth over the next three years, along with 200-300 bps margin expansion,” the report stated. JM Financial expects the hospital chain to generate Rs 39.8 billion in free cash flows over three years. At current levels, the stock trades at 26.2x forward EV/EBITDA, which the brokerage believes can re-rate upwards due to improving fundamentals.
Oil India
Public sector oil major Oil India remains a strong bet for JM Financial, which has kept its Buy call intact with a target price of Rs 500, implying a potential upside of 17.1%.
While the company’s standalone Q4FY25 EBITDA came in lower at Rs 21.3 billion versus estimates, this was mainly due to a spike in other expenses and contract costs. However, crude sales volume beat expectations by 4%, and the NRL refinery delivered a GRM of $9.3 per barrel, boosting its earnings.
Consolidated FY25 EPS stood at Rs 40.3 per share, and JM Financial expects earnings to grow at an approx. 13% CAGR over the next 3 to 5 years.
“Oil India is also a robust dividend play (4-5%),” the brokerage noted, adding that the stock trades at an attractive 6.3x FY27E EPS. The target price remains unchanged despite some tweaks to FY26 and FY27 EBITDA estimates, with the upside being supported by a rise in value of listed investments.
Power Grid Corporation
Last on the list is the power sector giant Power Grid Corporation, with JM Financial assigning a Buy rating and a target price of Rs 341, a 19.3% upside from current levels.
Revenue for Q4FY25 was largely flat at Rs 123 billion, as expected. However, EBITDA came in at Rs 102 billion with a margin of 83.3%, despite higher employee costs and finance expenses. Adjusted PAT came in lower at Rs 41 billion due to these elevated costs.
As per JM Financial, nine TBCB projects are over 90% complete and should be commissioned in FY26, which will lift capitalisation. Moreover, Capital Expenditure is expected to exceed Rs 250 billion in FY26, especially with progress on HVDC projects.
“Execution of large transmission projects is inherently challenging but perpetually rewarding,” the brokerage observed. It sees better visibility in capitalisation and earnings growth going forward, which makes Power Grid an attractive long term investment.