Leading brokerage JM Financial has reiterated bullish calls on four Indian companies across power transmission, telecom, education and home services, citing strong earnings growth, pricing power and expansion plans.
In its latest reports, the brokerage has assigned ‘Buy’ ratings to Adani Energy Solutions, Bharti Airtel, Physicswallah and Urban Company, with potential upside ranging from about 16% to over 30% based on its target prices.
JM Financial says these companies are positioned to benefit from large infrastructure investments, tariff increases, digital adoption and category expansion.
JM Financial on Adani Energy Solutions: ‘Buy’
JM Financial has maintained a ‘Buy’ rating on Adani Energy Solutions with a target price of Rs 1,199, implying an upside of about 18.5% from current levels.
According to JM Financial’s analysis, the company has a transmission order book of Rs 77,800 crore and is expected to benefit from an opportunity pipeline of Rs 4.86 lakh crore in upcoming government auctions.
The brokerage estimates that transmission revenue could rise to Rs 9,300 crore by March 2028 from Rs 4,700 crore in the previous cycle, with earnings margins in the range of 90% to 92% as scale improves.
JM Financial noted that Adani Energy Solutions holds a 41.5% share of private sector operational transmission capacity, operates in 16 states and manages 27,901 circuit kilometres of lines. It also flagged growth in smart meters, where the company has secured 2.46 crore meter contracts, translating into a revenue potential of Rs 29,500 crore over 10 years.
The Mumbai distribution business, serving over 33 lakh consumers, has a regulated asset base of Rs 9,600 crore and is expected to generate annual profits of up to Rs 800 crore.
JM Financial on Bharti Airtel: ‘Buy’
JM Financial has reiterated its ‘Buy’ rating on Bharti Airtel with a target price of Rs 2,455, indicating a potential upside of about 30.7%.
The brokerage expects earnings to grow at 14- 15% annually over the next two to three years, driven by a 10% to 11% annual increase in average revenue per user as pricing improves.
It said the telecom industry requires higher tariffs to justify the Rs 11.2 lakh crore investment made in networks.
JM Financial stated that a mobile tariff hike is likely within the next six months to support sector sustainability and align with the government’s objective of maintaining a ‘3+1’ market structure. Indian data tariffs, at around Rs 13.5 per GB, are among the lowest globally, leaving room for further increase.
The brokerage also pointed to Airtel’s diversification into financial services, with plans to invest Rs 14,000 crore into its NBFC business, leveraging its 37 crore customer base. Annual capital expenditure is expected to be about Rs 30,000 crore in India and Rs 9,000 crore in Africa to support mobility, broadband and data centre expansion.
“We believe a tariff hike is highly likely in the next 6 months as it aligns with… government’s objective to ensure a ‘3+1’ player market,” JM Financial said.
JM Financial on Physicswallah: ‘Buy’
JM Financial has initiated coverage on Physicswallah with a ‘Buy’ rating and a target price of Rs 110, implying an upside of about 23.6%.
The brokerage expects revenue to grow at 28% annually through 2028 as the company expands in competitive exam preparation.
It values the online segment at a higher multiple, describing it as the main profit driver due to its lean and asset-light model. Online revenue is projected to grow at 30% annually as the company enters categories such as civil services and commerce.
JM Financial said Physicswallah plans to add more than 70 centres each year as part of its offline expansion, with a total planned investment of Rs 460 crore.
The firm uses online data to identify locations and aims to scale centres quickly. It is also entering formal schooling through a management arm to integrate test preparation into daily learning.
JM Financial on Urban Company: ‘Buy’
JM Financial has assigned a ‘Buy’ rating to Urban Company with a target price of Rs 125, suggesting an upside of about 15.7%.
The brokerage estimates revenue growth of 31% annually as the company expands across the top 200 cities in India.
It said Urban Company has over 60% market share in online home services and benefits from strong network effects as it adds more service categories.
JM Financial also expects international revenue to grow at 30% annually, supported by operations in the UAE and Singapore, where profitability is stronger than in India. The brokerage pointed to the launch of InstaHelp for daily housekeeping as a major opportunity, with a total addressable market estimated at over Rs 1.3 lakh crore.
It said this service can drive high-frequency customer engagement and feed demand into higher-value categories.
Urban Company is also expanding its Native product range, including water purifiers and electronic door locks, with JM Financial projecting 45% annual growth in this segment.
“Urban Company has 60%+ market share and is the only multi-category player at scale,” JM Financial said.
Conclusion
JM Financial’s reports suggest that Adani Energy Solutions, Bharti Airtel, Physicswallah and Urban Company are positioned for sustained growth, supported by transmission project wins, potential tariff hikes, digital education expansion and category deepening in home services. While execution and sector risks remain, the brokerage maintains ‘Buy’ ratings on all four stocks.
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.