The brokerage JM Financials remains bullish on infrastructure, healthcare and select retail names. The brokerage is betting big on India’s infrastructure, healthcare and select plays in the consumer retail space.
In its latest report, the brokerage firm has maintained a ‘Buy’ rating on a few key stocks across sectors, highlighting potential upside.
Here is a look at some of the top picks recommended by JM Financial-
JM Financials on PNC Infratech: Growth, order pipeline, and monetisation gains
Among JM Financial’s top stock recommendations, PNC Infratech stands out with a bullish target price of Rs 450 per share, implying an upside of nearly 58% from current levels.
According to the brokerage, the company’s “robust bid pipeline of Rs 1.1 trillion” puts it in a position to secure Rs 15,000 crore worth of inflows in FY26.
PNC’s asset monetisation plans are also progressing well. The company has already received Rs 1,660 crore out of the Rs 2,030 crore from its first phase of asset sales, while the remaining amount is expected in FY26. The second phase will add Rs 630 crore to its books in the first half of FY26.
JM Financial has adjusted its earnings estimates downward slightly, noting, “Given the delay in receipt of appointed dates, we have lowered revenue leading to EPS cut of 4%/3% in FY26/27E.” The brokerage values the EPC business at 13x FY27 earnings and its assets at Rs 59 per share in a sum-of-the-parts (SOTP) calculation to arrive at the revised target.
“We like PNC for its track record of delivering robust growth while preserving balance sheet,” the report noted.
JM Financials on Healthcare: Hospitals and diagnostics shine, KIMS and Aster to lead EBITDA growth
In the healthcare space, JM Financial sees a structural growth particularly in hospitals and diagnostics. Its top picks include Fortis and KIMS in hospitals, Piramal and One Source in CDMO, IPCA and Metropolis in domestic pharma and diagnostics, and Sun Pharma and Aurobindo in generics.
According to the brokerage, companies in its hospital coverage universe reported 17% YoY revenue growth, driven by better occupancy, higher ARPOBs (average revenue per occupied bed), and expansion plans.
“Fortis and Aster are expected to show the strongest ARPOB growth, driven by brownfield expansions and increased metro presence,” the report highlighted. In terms of EBITDA growth, KIMS and the merged Aster DM are forecast to deliver over 30% CAGR during FY25-28E.
In diagnostics, companies saw 9% YoY revenue growth, largely volume-driven, as wellness trends and bundled tests gained popularity. JM Financial continues to prefer hospitals over other healthcare sub-segments, ranking them above CDMOs, domestic pharma, and generics.
JM Financial on consumer retail: Selective optimism
The brokerage remains selective in the consumer retail space, with a cautious yet optimistic view. As per the brokerage report, “Against this backdrop, Metro Brands, Titan, Vedant Fashions and Sapphire Foods remain key picks in our coverage universe.”
Go Fashion and Vedant Fashions saw an increase in net working capital days by 6 and 25 days respectively, owing to muted sales in FY25.
However, Go Fashion showed resilience in margins. “Go Fashion also reported robust YoY EBITDA growth of 16% respectively,” the report points out, indicating cost efficiency even amid tepid demand.