JM Financial, in its latest report, has retained a ‘Buy’ rating on three companies operating in very different sectors. These include hospitality, pharmaceuticals and diagnostics. 

Here are the key stocks in focus – These include Ventive Hospitality, Neuland Laboratories and Metropolis Healthcare. The brokerage house sees an upside potential ranging from 25% to 35% from current levels in these three stocks.

Let’s take a look at the key factors driving the brokerage’s optimism in these stocks?

Ventive Hospitality: Temporary pressure, but expansion plans remain intact

JM Financial has maintained a ‘Buy’ rating on Ventive Hospitality with a 12-month target price of Rs 840, implying an upside potential of about 35%.

The hospitality company reported a relatively soft June quarter, mainly due to higher operating costs in its Maldives business. Rising diesel prices and additional expenses linked to the West Asia conflict affected profitability.

However, the brokerage does not see this as a long-term concern.

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JM Financial noted, “With crude prices having normalised, we do not view this quarter’s cost overshoot as structural.”

While earnings remained under pressure, the India business continued to perform steadily. Same-store revenue and earnings before interest, taxes, depreciation and amortisation (EBITDA) growth stood at 10% and 15%, respectively.

The brokerage also highlighted the company’s long-term growth plans.

It added, “Ventive intends to double the portfolio over the next five years.”

JM Financial expects the company to deliver revenue and EBITDA compound annual growth rates (CAGR) of around 12% and 14%, respectively, between FY26 and FY29.

Neuland Laboratories: Strong growth and a new opportunity in peptides

JM Financial has retained its ‘Buy’ rating and set a target price of Rs 25,819. The brokerage sees an upside potential of nearly 29% from the current market price.

The company reported sharp growth in revenue, operating profit and net profit. This was driven by strong demand for commercial products and healthy growth in its drug development business.

The report said, “Management remains confident of 20%+ YoY growth for FY27 and FY28.”

A key growth area for Neuland is peptides, a segment used in advanced medicines and therapies.

The brokerage noted, “The first phase of Neuland’s new commercial-scale peptide manufacturing facility is on track for commissioning next month.”

JM Financial expects Neuland to deliver revenue, EBITDA and adjusted profit after tax (PAT) CAGR of 21%, 29% and 33%, respectively, over FY26-FY29.

Metropolis Healthcare: Volumes rise, margins improve

JM Financial is also positive on diagnostic chain Metropolis Healthcare and has maintained a ‘Buy’ rating with a target price of Rs 734. The brokerage projects an upside potential of about 25% from the current market price.

According to the brokerage report, “Management maintained their near-term growth guidance of 14–15%, to be primarily driven by 9-10% volume expansion.”

The company has been focusing on automation, procurement efficiency and standardising laboratory operations to improve productivity.

The brokerage expects Metropolis to deliver revenue, EBITDA and PAT CAGR of 16%, 19% and 32%, respectively, over FY26-FY29.

JM Financial also noted that limited capital expenditure plans could help the company generate healthy free cash flows in the coming years.

What should investors watch?

The three companies belong to completely different sectors. For Ventive Hospitality, the focus remains on portfolio expansion and stable travel demand. For Neuland Laboratories, commercial product launches and peptide manufacturing could be important triggers. For Metropolis Healthcare, volume growth and operational efficiency remain key factors.

Disclaimer: The stock recommendations, target prices, and growth projections mentioned in this article are derived from a report published by JM Financial and are for informational and educational purposes only. They do not constitute an offer, solicitation, or direct advice to buy, sell, or hold any security. Stock investments are subject to market risks, and equity markets can experience high volatility; investors should evaluate their risk appetite and consult a SEBI-registered investment advisor before making any financial decisions. This disclaimer has been generated using AI to support user well-being and responsible content consumption.