JM Financial Services, a domestic brokerage house, has recommended Buy on three key stocks. These include NTPC, Metro Brands and Delhivery. The brokerage firm expects these stocks to rise as much as 25% in the next 12 months. Here’s an analysis of why JM Financial picked these stocks-
JM Financial on NTPC: Capacity addition
JM Financial maintained its buy rating on NTPC, with a target price of Rs 390, which is an upside of 16%. The brokerage firm said that FY26 will be momentous for NTPC. All-time high organic capacity addition, commissioning of its pumped hydro storage plant, and foundation of its first nuclear power plant will lead to and support the national priority of energy security.
Plus, the company is on its way to award a new stream of projects (13.6GW thermal and 4.6GW PSP) during FY26-28. With multiple growth drivers at work (thermal, hydro, nuclear), NTPC is poised for significant growth in future. The company will play an important role in India’s energy transition journey.
JM Financial on Metro Brands: Partnership push
The brokerage house has a ‘Buy’ rating on Metro Brands, with a target price of Rs 1,400. This is an upside of 22% from the current market price. Metro Brands has entered into a long-term distribution agreement with Clarks, under which it will be the exclusive retail and digital partner in India and neighbouring countries.
The brokerage house expects this partnership to be a step in the right direction as Clarks’ premium positioning perfectly complements Metro Brand’s existing premium portfolio, where it generates 88% of its revenue from premium products. Clarks registered Rs 200 crore consumer-level sales in FY24 with an EBITDA margin of 6%.
“We believe that Clarks’ access to 900+ stores of Metro Brands coupled with datadriven merchandising, and proven capabilities in brand building will not only help Clarks reach its historical sales over the next 2-3 years, but will also help it realise its full potential through curated product selections, premium store formats and a seamless omni-channel experience,,” said JM Financial.
JM Financial on Delhivery: Headwinds receding
Delhivery has outperformed the market since announcing the acquisition of Ecom Express. JM Financial thinks that the uptick only reflects the benefits of consolidation.
“We expect significant re-rating considering the subdued headwinds over the coming year, first, plateauing of Meesho’s insourcing at 65%, and secondly, a rise in e-commerce shipments,” said JM Financial.
Furthermore, JM Financial expects that FY26 to see the peak impact of channel shift towards Quick Commerce, and the impact will start tapering in FY27 onwards. The brokerage house has a ‘Buy’ rating on Delhivery with a target price of Rs 450, with an upside of 25%.