A set of fresh research notes from JM Financial has identified five companies where the brokerage believes earnings growth and operational gains could support higher stock prices over the coming year.
The firm has issued ‘Buy’ ratings on companies across cement, pharmaceuticals, recycling, industrial engineering and healthcare after conducting plant visits, management interactions and industry analysis.
Ambuja Cements, Corona Remedies, Gravita India, INOX India and Jupiter Life Line Hospitals are among the companies that received favourable ratings from the brokerage.
Below is a closer look at the five stocks where JM Financial has recommended Buying, along with the firm’s detailed reasoning.
JM Financial on Ambuja Cements ‘Buy’
Ambuja Cements has received a ‘Buy’ rating from JM Financial with a target price of Rs 635, indicating a potential upside of about 36% from current levels.
The brokerage arrived at this view after visiting the company’s Sanghipuram facility in Gujarat, where analysts observed a major focus on improving operational efficiency and reducing production costs.
JM Financial said the management is working toward reducing clinker production costs to around Rs 1,500 per tonne over the next few years. At present, the cost remains below Rs 2,000 per tonne.
A large part of the improvement is expected to come from increasing the share of green power in operations and improving rail connectivity to transport cement more efficiently. The brokerage also noted that the company is currently focusing more on extracting higher output from existing capacity rather than undertaking aggressive new expansions.
According to the research note, this strategy may help maintain supply discipline across the cement sector while improving profitability.
The company also holds large limestone reserves estimated at around 100 crore tonnes, which management believes could support production for more than a century.
“Management reaffirmed the cost optimisation goal and near term focus on sweating existing assets rather than expanding capacity aggressively,” JM Financial said in its report.
JM Financial on Corona Remedies ‘Buy’
JM Financial has initiated coverage on Corona Remedies with a ‘Buy’ rating and a target price of Rs 1,866, suggesting a potential gain of about 18%.
The brokerage described the company as one of the fastest growing players in the domestic pharmaceutical market in recent years. JM Financial noted that the company has gradually moved away from treatments for short term illnesses and built a portfolio focused on chronic and sub chronic therapies.
This strategy has allowed the company to build stable prescription demand, particularly in areas such as diabetes, cardiac care and other long duration treatments. The brokerage said this positioning gives Corona Remedies a more balanced therapy mix compared with companies that depend heavily on a single segment.
JM Financial said the next phase of growth could come from new product launches in diabetes and cardiac therapy areas. The brokerage also pointed to the company’s planned entry into weight management and diabetes medication segments, which are witnessing rising demand in India.
“Corona has built one of the most diversified portfolios in its cohort and growth is structurally more secular and sustainable compared to peers operating with more concentrated portfolios and therapy exposure,” JM Financial said in its report.
JM Financial on Gravita India: ‘Buy’
JM Financial has also assigned a ‘Buy’ rating to Gravita India with a target price of Rs 2,010, implying a potential upside of about 30.8%.
The brokerage noted that the company stands to benefit from tightening environmental regulations related to battery recycling and waste management in India. These rules require manufacturers to take responsibility for collecting and recycling used batteries, which is gradually moving scrap material away from informal recyclers toward organised companies.
Gravita India is currently the largest organised recycling player in the country and operates a network of manufacturing facilities across several geographies.
JM Financial also pointed out that Gravita operates a largely price neutral business model by hedging inventory through the London Metal Exchange.
Another development noted in the research report is the company’s acquisition of Rashtriya Metal Industries, which marks its entry into the copper recycling segment. According to the brokerage, this move expands the company’s product mix and adds a new growth segment.
“Regulatory formalisation drives structural volume shifts and OEM led collection systems increasingly prefer certified partners, improving traceability and scrap visibility for Gravita while excluding informal players,” JM Financial said in its report.
JM Financial on INOX India ‘Buy’
JM Financial has maintained a ‘Buy’ rating on Inox India with a target price of Rs 1,470, which implies a potential upside of around 24.5%.
The brokerage’s positive view followed visits to the company’s manufacturing facilities in Kalol and Savli. Analysts said the company is well positioned to capture demand from sectors such as semiconductors, space technology and industrial gases.
Although shipping costs have increased by about 10% in recent months, the brokerage believes the company’s strong order book should help maintain steady revenue visibility. The research note also pointed to new product development efforts that could support future growth.
One of the emerging segments for the company is the supply of beverage kegs for global brewing companies. INOX India has received approvals from international beer producers such as Molson Coors and Heineken. JM Financial estimates that this segment could eventually contribute around 10% of total revenue.
While the margins in beverage kegs are lower compared with industrial gas equipment, the brokerage expects overall profitability to remain healthy.
INOX India is also developing a nitrogen based cooling system designed for data centres, which could reduce both energy consumption and water use.
“Management is confident of achieving 18 to 20% growth in financial year 2026 estimates and expects to deliver strong growth in the fourth quarter, citing limited adverse impact of the ongoing Middle East tensions,” JM Financial said in its report.
JM Financial on Jupiter Life Line Hospitals ‘Buy’
JM Financial has reiterated its ‘Buy’ rating on Jupiter Life Line Hospitals with a target price of Rs 1,734, suggesting a potential upside of about 34.6%.
The brokerage expects the newly opwned Dombivli hospital to reach earnings before interest, taxes, depreciation and amortisation breakeven by the end of its second year of operations. The staffing process has already been largely completed and the hospital will operate with an independent base of doctors.
JM Financial also pointed out that the company’s existing hospitals in Pune and Indore are entering a more mature stage of operations, which could support stronger profitability over time.
Another factor supporting the recommendation is the recent correction in the stock price. According to the brokerage, the shares have declined by about 20%, which has improved valuation comfort compared with other hospital chains.
“The new additions along with maturing of the Pune and Indore units provides a long runway for growth and value creation,” JM Financial said in its report.
Conclusion
The research from JM Financial presents a set of companies across different sectors where operational improvements, regulatory support and capacity utilisation may support earnings growth over the next few years.
According to the brokerage, disciplined capital allocation, improving operational metrics and favourable demand trends across these sectors could support earnings growth and stock price appreciation if the companies execute their plans as expected.