The week brought new beginnings for the equity markets. Will investors find value in 2026? With quarterly updates for Q3, brokerages have been quick to fine-tune their outlook on key stocks. This week, several top research houses, including JP Morgan, Morgan Stanley, Jefferies, Nomura, Nuvama Wealth Management, Axis Securities, Emkay Global, and Motilal Oswal, shared their latest recommendations, and we shortlisted 10 stocks across the banking, finance, auto, and consumer sectors.
Morgan Stanley on JSW Steel
Morgan Stanley maintains an Overweight rating on JSW-Steel, identifying it as a top-tier contender to benefit from the new 12% duty barrier. The firm’s valuation relies on a probability-weighted residual income model that assigns a 30% weight to a Bull case, 60% to a Base case, and 10% to a Bear case. This sophisticated financial assessment assumes a 12.0% Cost of Equity, a 15% terminal Return on Equity (RoE), and a 3% terminal growth rate. Morgan Stanley notes that the Bull case on JSW Steel is heavily driven by the potential for duty extensions and a healthier global macro environment that supports higher volumes.
Motilal Oswal on ITC
Motilal Oswal has downgraded ITC to ‘Neutral’ after the government, in its recent notification, increased taxes on cigarettes, effective from February 1. The brokerage has a target price of Rs 400 per share on ITC. That implies about 10% upside from current levels. According to the leading domestic brokerage house, “such a sharp tax increase is unprecedented and has surprised us, given the backdrop of stable taxes over the last few years.” They highlighted that the tax stability had led to a 150 bps volume share contraction of the illicit cigarette market over the last 4-5 years.
Axis Securities on Inox Wind
Axis Securities has picked Inox Wind as one of its Top Picks for 2026. The brokerage notes that there is a significant turnaround in Inox Wind’s operations, supported by a massive order book and a leaner balance sheet. Axis Securities believes Inox Wind is well-positioned to capture the rising demand in the wind energy sector. The report sets a target price of Rs 190, indicating a massive 54% upside.
Emkay Global on Vodafone Idea
Vodafone Idea disclosed a Rs 5,836 crore settlement-linked inflow from Vodafone Group, and reports of Cabinet relief on AGR dues lifted sentiment. Brokerage firm Emkay Global Financial Services, however, maintained a ‘Sell’ rating with a target price of Rs 6, saying the move in the stock follows payment relief and promoter support, while the company’s financial strain remains, according to its January 1 company update.
Motilal Oswal on VA Tech Wabag
VA Tech Wabag is a preferred pick for Motilal Oswal due to its consistent order inflows and strong execution outlook. The company currently has an order book of over Rs 16,000 crore, translating into a book-to-bill ratio of around 4.6 times. This provides clear revenue visibility for the next three to four years. The brokerage notes that the company is increasingly focusing on large and higher-margin projects, particularly in operations and maintenance and industrial water segments. Motilal Oswal has set a target price of Rs 1,900 for VA Tech Wabag, implying an upside of about 49% from current levels.
JP Morgan on Grasim Industries
Global brokerage firm JP Morgan has a ‘Buy’ on Grasim with an Overweight rating. The international brokerage house set a price target of Rs 3,300 per share. This implies over 16% upside from current levels. According to the report, the market currently prices this Aditya Birla Group flagship stock as if its non-cement businesses do not exist. JP Morgan believes that at today’s prices, one is “essentially paying for the cement business and getting a multi-billion dollar empire of paints, chemicals, and e-commerce for free.”
Motilal Oswal Ajanta Pharma
Motilal Oswal maintained iBuy on Ajanta Pharma, and kept the target price unchanged at Rs 3,145, implying an upside of 17% from the current market price. The brokerage house recently met with the management of the company and highlighted that the focus is on adding new geographies and enhancing product offerings. Ajanta Pharma is scaling its execution bandwidth via 5-6% annual MR addition on its strong base of 2,000, while also entering newer and structurally larger geographies to support the next phase of growth.
Emkay Global on Lenskart Solutions
Emkay Global initiated coverage Lenskart with a ‘Buy’ rating and a target price of Rs 525. This implies over 16% upside for the stock from current levels. Market leadership, better unit economics and technological moats are the top triggers driving the brokerage’s recommendation. Currently, Lenskart is India’s largest eyewear retailer, commanding a 5% market share. The company operates at a scale more than three times larger than Titan Eyewear, which is its next closest competitor.
Jefferies on Coforge
Jefferiesmaintained ‘Buy’ on Coforge, with a base target of Rs 2,180, which implies nearly 30% upside. Jefferies added that if execution remains strong and revenue growth improves, the stock could move to Rs 2,470, translating into an upside of nearly 48%. The recent fall is linked to near-term dilution concerns rather than fundamentals. Jefferies said the $2.35 billion Encora acquisition is the largest deal ever completed by an Indian IT services firm. Encora is expected to add about $600 million in revenue, which could lift Coforge’s FY27 revenue by around 28%.
ICICI Securities on Bank of Baroda
ICICI Securities said Bank of Baroda is set to gain from a seasonal rise in loan disbursements and a strong corporate sanction pipeline of about Rs 40,000 crore. The brokerage expects the Bank of Baroda’s credit growth to stay in line with the system at 11–12% through 2028, led by steady retail growth and an improved liabilities mix. With gross NPAs likely to stay below 2%, ICICI Securities sees better earnings comfort and balance sheet strength. It has a target price of Rs 340, which implies an upside of 17%.
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.