The market sentiment is cautious, but there is significant interest in specific sectors and stocks. As the final countdown to 2026 begins, leading domestic and international brokerage firms, including Jefferies, Motilal Oswal, Religare, and Elara Securities, have released their recommendations for 2026. The collective analysis points toward a concentrated focus on the deepening financialization of domestic savings and the scale-up of inventory-led quick commerce models and key pharma sector plays. These financial institutions have identified a select group of large and mid-cap entities expected to outpace broader market indices over a 12 to 18-month investment horizon, based on specific structural tailwinds and internal margin improvements.
Eternal (Zomato / Blinkit)
Motilal Oswal recommends a Buy on Eternal Ltd. with a target price of Rs 410, indicating a 46% potential increase. The firm attributes this positive outlook to a transition toward an inventory-led business model which is currently driving net revenue and gross margin expansion. Motilal Oswal specifically points to the aggressive scaling of the Blinkit arm through rapid store proliferation. While capital expenditure remains high, the brokerage reports that early operating leverage is now manifesting in improved bottom-line performance.
HCL Technologies
Motilal Oswal has set a Buy target of Rs 2,150 for HCL Technologies, representing a 29% upside. The firm expects growth to be propelled by IT services and Engineering Research & Development (ER&D). Analysis by Motilal Oswal shows that AI-based offerings now account for approximately 3% of total revenue. The brokerage anticipates an INR PAT CAGR of 7.2% through the FY25–27 period, citing the commencement of large-scale deals and successful client mining as the primary drivers of this growth.
ICICI Prudential Life Insurance
Religare recommends a Buy for ICICI Prudential Asset Management Company with a target price of Rs 800, implying a 23.2% upside. The brokerage bases its forecast on a 19% VNB CAGR through FY27. Religare points to a healthy solvency ratio exceeding 200% and a strategic focus on annuity and protection products. The firm believes the company’s bancassurance distribution network and strict cost management will sustain earnings throughout the forecast period.
Groww (Billionbrains Garage Ventures)
Jefferies has initiated a Buy recommendation for Billionbrains Garage Ventures Ltd. with a target price of Rs 180, projecting a 26% upside. The brokerage notes that Groww has secured a 26% market share to become the largest broker in India by active client count. Jefferies indicates a significant monetization path ahead, as roughly 50% of client assets currently reside in mutual funds that do not yet produce revenue. The firm expects a 35% EPS CAGR between FY26 and FY28 as the company cross-sells services to its young demographic.
Zydus Lifesciences
Elara Securities maintains a buy rating on Zydus Lifesciences with a target price of Rs 1,311, suggesting a 43% appreciation from current levels. The brokerage notes that the company’s investment thesis centers on a calculated move to secure a portion of the generic GLP-1 market. Elara Securities reports that Zydus is positioned within a restricted group of Indian manufacturers holding first-to-file exclusivity for Ozempic generics in the United States. This specific regulatory standing is projected to increase long-term earnings significantly once current patent protections expire.
Max Financial Services
Motilal Oswal maintains a buy rating for Max Financial Services Ltd. with a price target of Rs 2,100, implying a 26% rise. The brokerage identifies superior Annualized Premium Equivalent (APE) growth compared to industry averages. Motilal Oswal expects Value of New Business (VNB) margins to reach 26.5% by FY28. This expectation is based on a deliberate product mix revision favoring protection, non-participating, and annuity products, alongside consistent persistency trends in long-term cohorts.
KFin Technologies
Jefferies labels KFIN Technologies a buy with a target price of Rs 1,300, suggesting a 26% increase. The brokerage views the company as a core beneficiary of increasing domestic savings. Jefferies specifically mentions the international business, bolstered by the Ascent acquisition, as a segment poised for a 30% revenue CAGR. The firm argues that the market currently fails to account for the full earnings potential of KFin’s international operations and its 60% share in the issuer RTA folio market.
Kotak Mahindra Bank
Religare recommends a buy on Kotak Mahindra Bank with a price target of Rs 2,487, representing a 15.2% increase. The firm notes that a more conservative loan mix, prioritizing corporate and secured lending, is expected to alleviate pressure on Net Interest Margins (NIM). Religare suggests that the stock offers improved valuation support following a period of market correction, backed by stable asset quality.
Northern Arc Capital
Ambit Capital has issued a buy call for Northern Arc Capital Ltd. with a target price of Rs 326, indicating a 28% upside. The brokerage focuses on the company’s transition toward a Direct-to-Consumer (D2C) retail lending model. Ambit Capital expects this change to increase Return on Equity (ROE) and margins. The firm notes that the stock currently trades at a 50–60% valuation discount relative to its industry peers, despite rising fee income and decreasing credit costs.
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.