The markets are very interestingly poised. They slipped after the recent rally to new highs, and the question is, what are the stocks to bet on at the moment? JM Financial has identified three stocks with as much as 42% upside potential in select counters.
These picks range from Tata Power, Emcure, to Devyani International, and the latest recommendation indicates the expectation after the Q3 earnings and overall growth visibility.
JM Financial on Tata Power
JM Financial revised the target price for Tata Power to Rs 429 from Rs 475. This still implies an upside of 15.5% from the current market price. Delay in signing of PPA for Mundra continues to drag performance. Tata Power reported consolidated revenue of Rs 13,900 crore in Q3 FY26, a fall of 9% YoY, primarily due to the non-operational Mundra plant.
The fully functional 4.9 GW integrated solar cell+module manufacturing, which has a 962MW and 970MW output of cells and modules in Q3 FY26, and acceleration in rooftop solar (1.4GW orders in the first 9 months of FY26. The company continued strong performance at the Odisha discoms, with Q3 net profit rising 3x YoY, and remained a key performance driver.
JM Financial on Emcure Pharmaceuticals
JM Financial raised the target price on Emcure Pharmaceuticals to Rs 1,932 from Rs 1,695. The new price target sees potential of 28.3% upside in the next 12 months. The target price was raised after the company delivered strong Q3FY26 results.
Its Q3 revenue rose 20% YoY while profits jumped 50% YoY. Growth was driven mainly by the international segments. The segment grew 25% YoY, led by strong performance in Europe and emerging markets, while Canada grew at a slower 13%.
Interestingly, the India business grew a healthy 15% YoY, showing steady improvement and easing investor concerns as volume growth picks up and looks sustainable. The launch of Semaglutide, in partnership with Novo Nordisk, positions Emcure among the first to introduce GLP-1 products in India, supporting future growth.
“Still, conservatively we believe India revenues are expected to grow at a 12% CAGR over FY25–28, while international revenues will grow at 16% CAGR driven by complex launches,” said JM Financial.
JM Financial on Devyani International
JM Financial has a target price of Rs 175 on Devyani International, which implies an upside of 42% from the current market price. The brokerage has maintained its ‘Buy’ rating on the stock.
The company is putting a new leadership team in place before the merger gets consummated, after which it will announce the new strategic roadmap. Given that the road to recovery could be a bit longer than expected, the brokerage has cut FY26-FY28 EBITDA estimates by 7-9%.
The brokerage believes management efforts are gradually starting to bear fruit, and benefits could accelerate once overall demand recovery sets in.
Devyani reported 11% revenue growth YoY, led by 12% YoY growth in the India business and own brands growing 2.3x YoY (aided by consolidation of Sky Gate). Growth in core brands KFC and PH was led by store additions, and SSSG (same store sales growth)/ADS (Average Daily Sales) remained negative.
However, in January, the same store sales growth was positive for all brands barring PH. Management highlighted that the initial focus in PH is on closing loss-making stores, and expansion would be considered after the merger with Sapphire is completed.
Overall, the brokerage’s review was based on quarterly earnings. With Devyani International going into a merger, a new leadership taking over the operations is in focus for analysts.