JM Financial has picked three stocks to bet on in a falling market. These include Bajaj Finserv, Shriram Finance, and Phoenix Mills. The brokerage sees as much as 19% upside in one of these stocks.
Here’s a detailed analysis of why JM Financial shortlisted these stocks-
JM Financial on Bajaj Finserv: Prefers Bajaj Finserv over its twin
JM Financial has a ‘Buy’ rating on Bajaj Finserv. The brokerage has a target price of Rs 2,300 on the stock, implying an upside of 16%. JM Financial said that it prefers Bajaj Finserv over Bajaj Finance.
“We appreciate the reset in product and cost structures, and expect the company to return to steady growth by 2H of this year,” said JM Financial.
Bajaj Finserv‘s insurance subsidiaries reported strong Q1 results and a steady outlook, even as Bajaj Finance warned of building stress in the MSME segment.
JM Financial on Shriram Finance: NIM came lower than expectations
JM Financial maintained its Buy rating on Shriram Finance, with a revised target price of Rs 730. This implies an upside of 18.5% from the current market price. However, factoring in lower than earlier expected NIMs, the brokerage cut its FY26-28 EPS estimates by 3–5%.
Shriram Finance reported net profit growth of 9% YoY and 1% QoQ, broadly in line with the estimates. Disbursement growth moderated to 11% YoY, leading to AUM growth moderation to 17% YoY and 3% QoQ. However, NII growth was weak at 10% YoY and flat QoQ as NIM was down 35 basis points QoQ due to excess liquidity on the balance sheet.
JM Financial on Phoenix Mills: Recent price correction is good entry point
Phoenix Mills posted a decent 12% YoY consumption growth in Q1 FY26 on the back of ramp-up in new assets (Bengaluru and Pune), which was complemented by consumption growth at the Lucknow, Indore and Ahmedabad malls.
The brokerage house has upgraded the stock to a ‘Buy’ rating, with a target price of Rs 1,630, which implies an upside of 12.5%. Plus, JM Financial said that the recent correction in stock price provides a good entry point.
The consumption at the Market City portfolio was impacted by the strategic repositioning initiatives underway across its legacy portfolio at Bengaluru, Pune, Mumbai and Chennai. This strategic churn led to a lower trading occupancy of 85% (v/s 95% leased occupancy) and had a 5% impact on rental income.