The markets have been under pressure, and if you are keen about understanding what the right stocks to bet on are, JM Financial has reiterated several ‘Buy’ ratings on a host of stocks across the internet platforms, housing finance, manufacturing, healthcare, restaurants, and media. The brokerage pointed to operating performance, margin movement, balance sheet actions, and management commentary as the key reasons for its stance.
Based on JM Financial’s target prices and current market levels, the stocks in this group offer upside ranging from the mid-teens to over 50%, led by companies where recent execution has moved ahead of expectations.
JM Financial on Eternal: ‘Buy’
JM Financial has reiterated a ‘Buy’ rating on Eternal with a target price of Rs 400, implying an upside of 54.1% from the current price. The brokerage said the December quarter marked a key milestone, with Blinkit achieving adjusted EBITDA breakeven, which it said came at least two quarters ahead of its expectations.
The report stated that Blinkit’s net order value rose 121% year on year, driven by higher order volumes and a growing transacting user base. JM Financial noted that close to 90% of net order value is now fulfilled through owned inventory and that more than half of the targeted margin improvement from the inventory-led model has already been realised. It also pointed out that food delivery growth and profitability exceeded its estimates during the quarter.
JM Financial said, “Blinkit breakeven sets the stage for group leadership shift.”
JM Financial on PNB Housing Finance: ‘Buy’
JM Financial has reiterated a ‘Buy’ rating on PNB Housing Finance with a target price of Rs 1,125, implying an upside of 37.4% from the current market price. The brokerage described the December quarter as mixed due to lower-than-expected disbursements in the affordable housing segment.
JM Financial said asset quality trends remained stable, with credit costs staying negative due to continued recoveries. The report noted that the slowdown in disbursements was the result of a deliberate decision to reduce ticket sizes in select southern markets, and that management expects growth to normalise going ahead. The brokerage also flagged the company’s plans to enter construction and emerging developer finance as a support for yields.
JM Financial added, “Asset quality trends were positive, with GS3/NS3 stable at 1.04%/0.68%.”
JM Financial on KEI Industries: ‘Buy’
JM Financial has maintained its ‘Buy’ rating on KEI Industries with a target price of Rs 5,200, implying an upside of 35.7% from the current market price. The brokerage said the company delivered a December-quarter performance that exceeded both its estimates and broader market expectations, led by EBITDA margin expansion.
The report noted that gross margins improved meaningfully during the quarter, while volume growth remained modest due to capacity constraints. JM Financial said these constraints are expected to ease as the Sanand facility ramps up, with trial production already underway. It also highlighted that price hikes helped offset higher copper and aluminium costs.
According to JM Financial, “Management reckoned revenue would compound >20% over the next three–four years, with an aspiration to exceed this.”
JM Financial on Zee Entertainment Enterprises: ‘Buy’
JM Financial has maintained a ‘Buy’ rating on Zee Entertainment Enterprises with a target price of Rs 110, implying an upside of 35.4% from the current market price. The brokerage said the December-quarter operating performance was weaker than expected due to higher content acquisition and programming costs.
However, JM Financial highlighted that Zee5 achieved EBITDA breakeven during the quarter, marking an important milestone for the digital business. The report also noted lower employee costs following rationalisation and improved discipline in content inventory management, even as advertising recovery remained gradual.
JM Financial said, “Zee5’s ARR has exceeded ~Rs 1,000 crore and is expected to remain the company’s fastest-growing vertical.”
JM Financial on Restaurant Brands Asia: ‘Buy’
JM Financial has upgraded Restaurant Brands Asia to ‘Buy’ from ADD, setting a target price of Rs 80, implying an upside of 24.9% from the current market price. The brokerage said the entry of Inspira Global as the controlling shareholder and the associated capital infusion have strengthened the balance sheet.
The report stated that the Rs 1,500 crore capital infusion addresses earlier concerns around funding store expansion. JM Financial said the company is now positioned to support a long-term store count of around 800 outlets, with annual additions of 60–80 stores, while the existing management team continues to run the business.
JM Financial noted, “Promoter change, fund infusion; new leash of life.”
JM Financial on Dr Reddy’s Laboratories: ‘Buy’
JM Financial has maintained a ‘Buy’ rating on Dr. Reddy’s Laboratories with a target price of Rs 1,545, implying an upside of 24.7% from the current market price. The brokerage said the December quarter was mixed, with North America impacted by price erosion and lower gRevlimid sales.
JM Financial noted that strong growth in India, Europe, and emerging markets cushioned the impact from the US. The report highlighted 19% year-on-year growth in the domestic business and pointed to upcoming semaglutide launches and a strong filing pipeline as key medium-term drivers.
JM Financial said, “Ex-US markets cushion gRevlimid erosion, drivers remain intact.”
JM Financial on Home First Finance Company: ‘Buy’
JM Financial has maintained a ‘Buy’ rating on Home First Finance Company India with a target price of Rs 1,360, implying an upside of 22.9% from the current market price. The brokerage described the December quarter as steady, with strong growth in net interest income driven by margin and spread expansion.
The report noted that while operating profit missed estimates due to lower non-interest income, overall profitability remained healthy. JM Financial also pointed out that assets under management grew around 25% year on year, while early delinquency indicators improved during the quarter.
JM Financial said, “Mgmt. remains confident of achieving ~25% AUM growth in FY27.”
Conclusion
Across these seven stocks, JM Financial’s analysis points to early operating gains, margin improvement, balance sheet support, and management-led actions that strengthen earnings visibility. Based on its target prices and current market levels, the brokerage sees upside potential ranging from the low 20% range to over 50%, with execution trends in the December quarter reinforcing its ‘Buy’ stance on this set of companies.