JM Financial has released a detailed equity strategy report identifying ten listed Indian companies that, in its view, offer strong return potential over the FY26–FY28 period.
The brokerage says its selections are based on earnings visibility, balance sheet improvement, order book strength, and capacity expansion plans. According to JM Financial these stocks span retail, healthcare, manufacturing, cement, digital platforms, and quick service restaurants.
JM Financial on Eternal: ‘Buy’
JM Financial has given a ‘Buy’ rating on Eternal with a target price of Rs 400, implying an upside of about 38%.
According to JM Financial, Eternal stands out among new-age companies due to improving margins and disciplined cost control.
JM Financial said, “Eternal stands out among internet companies due to its potential to compound earnings at a rapid pace.”
JM Financial on Kalyan Jewellers: ‘Buy’
JM Financial has maintained a ‘Buy’ rating on Kalyan Jewellers with a 12-month target price of Rs 750, which translates into an upside of about 97%, recalculated from the target price and the stock’s prevailing market level at the time of the report.
JM Financial says the company delivered strong operating performance, supported by robust demand and rising operating leverage.
According to JM Financial, standalone revenue grew 42% year-on-year to Rs 9,000 crore in the third quarter of FY26, driven by 27% same-store sales growth.
The brokerage notes that demand remained strong during the wedding season, even as gold prices stayed volatile, and customer traction was sustained across regions.
JM Financial adds that balance sheet improvement is now becoming visible. The brokerage points out that Kalyan Jewellers is targeting a net-debt-free position by the end of FY27 through internal cash flows and monetisation of non-core land assets. It also notes that the company has started piloting a new regional brand in one state with four to five stores.
JM Financial further states that profitability has improved due to a higher share of studded jewellery, now at 32%, along with better margin sharing with franchise partners. Based on this momentum, JM Financial has raised its FY26–28 earnings estimates by 4–5%.
JM Financial on Vedant Fashions: ‘Buy’
JM Financial has assigned a ‘Buy’ rating on Vedant Fashions with a target price of Rs 930, implying an upside of around 89% based on its valuation framework. JM Financial says Vedant remains one of its preferred retail picks due to predictable demand and steady earnings growth.
According to JM Financial, the company’s focus on high-margin categories allows for strong cash generation and supports premium valuations. The brokerage adds that earnings growth for Vedant is expected to outpace several mid-sized retail peers over the medium term.
JM Financial said, “Vedant Fashions warrants a premium as it offers materially higher growth visibility and significantly faster earnings compounding.”
JM Financial on Sai Life Sciences: ‘Buy’
JM Financial has reiterated a ‘Buy’ rating on Sai Life Science with a target price of Rs 1,318, which works out to an upside of about 55% based on its calculations. JM Financial highlights strong execution in the company’s CDMO business.
According to JM Financial, the company is accelerating its Rs 450 crore capacity expansion, split across two production blocks expected to be commissioned by FY27.
JM Financial notes that the CRO segment grew 19% year-on-year, supported by higher business from large pharmaceutical clients, and that seven new products were added during the quarter.
JM Financial on Neuland Laboratories: ‘Buy’
JM Financial has maintained a ‘Buy’ rating on Neuland Laboratories with a target price of Rs 20,836, implying an upside of around 50%. JM Financial says recent weakness does not alter the longer-term outlook.
JM Financial points out that while the generic API business saw pressure in the recent quarter, the CMS segment grew 73% year-on-year. The brokerage says this segment is expected to drive growth as more commercial products are added.
JM Financial adds that Neuland Laboratories is positioned to benefit from demand for complex molecules, where competition is limited and margins are higher.
JM Financial said, “Overall, Neuland appears to be at a sweet spot to benefit from the growing CDMO opportunity, and we maintain our stance on the stock.”
JM Financial on Sapphire Foods India: ‘Buy’
JM Financial has a ‘Buy’ rating on Sapphire Foods India with a target price of Rs 310, indicating an upside of about 44%. JM Financial says recovery trends are uneven across brands.
JM Financial notes that consolidated revenue rose 8% year-on-year to Rs 810 crore, with KFC same-store sales turning positive after 11 quarters. However, Pizza Hut continues to face pressure.
According to JM Financial, Sri Lanka operations delivered 11% same-store sales growth, while delivery sales in India grew 19%. Margin pressure remains due to wage inflation and overhead costs.
JM Financial said, “For Sapphire, sustaining transaction growth and turning around Pizza Hut over the next two to three years remains critical.”
JM Financial on Krishna Institute of Medical Sciences: ‘Buy’
JM Financial has retained a ‘Buy’ rating on Krishna Institute of Medical Sciences with a target price of Rs 931, translating into an upside of around 44%.
JM Financial says recent performance was impacted by renovation-led bed shutdowns and regional disruptions, but it expects a sharp recovery as new units stabilise.
JM Financial highlights expansion plans across Telangana, Andhra Pradesh, Maharashtra, and Tamil Nadu, with a focus on cost-efficient additions.
JM Financial on Kaynes Technology India: ‘Buy’
JM Financial has maintained a ‘Buy’ rating on Kaynes Technology with a target price of Rs 5,100, implying an upside of around 38%. JM Financial notes that while execution delays affected recent results, the order book rose 50% year-on-year to Rs 9,100 crore.
According to JM Financial, new verticals such as OSAT and PCBs are scaling, supported by incentives under the India Semiconductor Mission. The firml adds that capital expenditure is being funded largely through internal accruals and subsidies.
JM Financial on Vishal Mega Mart: ‘Buy’
JM Financial has a ‘Buy’ rating on Vishal Mega Mart with a target price of Rs 165, implying an upside of about 35%.
JM Financial says the company benefits from a low-cost supply chain and high private-label penetration.
According to JM Financial, revenue is expected to grow at 19% annually through FY28, supported by store additions.
JM Financial adds that the value retail focus provides demand stability.
JM Financial said, “Vishal Mega Mart is well positioned due to its large total addressable market and store expansion potential.”
JM Financial on Star Cement: ‘Buy’
JM Financial has reiterated a ‘Buy’ rating on Star Cement with a target price of Rs 300, implying an upside of around 35%.
JM Financial highlights a 94% year-on-year jump in EBITDA to Rs 200 crore, driven by strong realisations.
According to JM Financial, volume growth remained healthy at 21%, and expansion projects are progressing as planned with total capex of Rs 4,800 crore.
Conclusion
JM Financial says its stock ideas for FY26–28 are backed by visible earnings growth, balance sheet improvement, and expansion-led revenue drivers.
The brokerage notes that while near-term execution risks remain in some segments, its target prices point to significant upside potential.
Disclaimer: This article provides factual analysis only and is not, and should not be construed as, an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor.