As the December-quarter earnings season draws to a close, a small group of stocks emerged with ‘Buy’ ratings from more than one brokerage houses , based on independent assessments of earnings performance, balance sheet trends, and medium-term growth visibility.
Research reports from JM Financial, Elara Securities, Nomura, and Nuvama show that despite sector-specific challenges, these companies have potential upside estimatesof as much as 90% in some cases.
A quick look at the key stocks in focus –
Dr Reddy’s Laboratories
JM Financial has reiterated a ‘Buy’ rating on Dr Reddy Laboratories with a target price of Rs 1,545, implying an upside of 24.8% from the 23 January close of Rs 1,238.40. The brokerage said the December quarter was impacted by pricing pressure in the US, but noted that strong growth in India and emerging markets helped cushion the impact.
JM Financial said, “Ex-US markets cushion gRevlimid erosion, drivers remain intact.”
Elara Securities also maintained a ‘Buy’, assigning a higher target of Rs 1,588, which implies an upside of 28.2%. Elara pointed to steady execution in the domestic business and improving visibility from new launches, while acknowledging ongoing pressure in the US generics market.
Elara Securities noted, “India and emerging markets continue to provide stability amid US pricing pressure.”
Nomura retained its ‘Buy’ call with a target price of Rs 1,600, translating into an upside of 29.2%. The brokerage said pipeline strength and product launches outside the US remain the core support for earnings.
Nomura said, “We continue to see medium-term growth visibility driven by ex-US markets.”
Nuvama also has a ‘Buy’ rating with a target of Rs 1,600, implying 29.2% upside. The brokerage highlighted resilience in the domestic franchise and stated that current valuations already factor in most near-term headwinds.
Nuvama stated, “India business momentum remains healthy, supporting overall earnings stability.”
Zee Entertainment Enterprises
JM Financial has maintained a ‘Buy’ on Zee Entertainment Enterprises with a target price of Rs 110, implying an upside of 34.5% from the 23 January close of Rs 81.80. The brokerage acknowledged pressure from higher content costs but pointed to improvement in digital profitability.
JM Financial said, “Zee5’s ARR has exceeded ~Rs 1,000 crore and is expected to remain the company’s fastest-growing vertical.”
Elara Securities has also retained a ‘Buy’, with a higher target price of Rs 140, implying an upside of 71.1%. Elara said cost control measures and a gradual recovery in advertising revenue support its view, even as near-term conditions remain challenging.
Elara Securities noted, “Digital scale-up and tighter cost control remain key positives.”
Nuvama has a ‘Buy’ rating with a target price of Rs 155, translating into an upside of 89.5%.
The brokerage flagged Zee5 achieving EBITDA positivity as a key milestone, while also cutting earnings estimates to reflect ongoing cost pressure.
Nuvama said, “Zee5 turned EBITDA positive for the first time, marking a structural milestone.”
Restaurant Brands Asia
JM Financial upgraded Restaurant Brands Asia to ‘Buy’ with a target price of Rs 80, implying an upside of 25.0% from the 23 January close of Rs 64.01. The brokerage said the promoter change and capital infusion have reduced balance sheet risk.
JM Financial said, “Promoter change, fund infusion; new leash of life.”
Elara Securities also carries a ‘Buy’ with a target of Rs 100, which implies an upside of 56.2%. Elara pointed to the scale benefits expected from faster store additions and improved funding visibility.
Elara Securities stated, “Capital support significantly improves the company’s expansion ability.”
Nuvama has retained a ‘Buy’ with a target of Rs 81, implying 26.6% upside. The brokerage highlighted the Rs 1,500-crore capital infusion and exit of Everstone as overhang removal.
Nuvama said, “The ownership reset removes a key overhang and improves financial flexibility.”
Mphasis
JM Financial has reiterated a ‘Buy’ on Mphasis with a target price of Rs 3,330, implying an upside of 21.3% from the 23 January close of Rs 2,745. The brokerage cited strong traction in BFSI and AI-led deal wins.
JM Financial said, “LTM TCV has grown 2x and outlook for revenue conversion is strong.”
Elara Securities also has a ‘Buy’, with a target price of Rs 3,440, translating into 25.3% upside. Elara pointed to robust deal momentum despite near-term margin pressure.
Elara Securities noted, “Deal wins provide visibility even as margins remain under watch.”
Nuvama retained its ‘Buy’ with a target of Rs 3,400, implying 23.9% upside. The brokerage said client spending on digital and AI programmes continues to support growth.
Nuvama stated, “AI-led programmes are increasingly forming the core of new deal wins.”
KEI Industries
JM Financial has maintained a ‘Buy’ on KEI Industries with a target price of Rs 5,200, implying an upside of 36.1% from the 23 January close of Rs 3,820. The brokerage said margin expansion drove an earnings beat in the December quarter.
JM Financial said, “Management reckoned revenue would compound >20% over the next three–four years.”
Nuvama has also retained a ‘Buy’, with target prices in the Rs 5,050–5,070 range, implying upside of 32.2–32.7%. The brokerage highlighted strong margins and capacity ramp-up at Sanand.
Nuvama said, “Cables and wires margins remain among the strongest in the sector.”
Tata Communications
JM Financial reiterated a ‘Buy’ on Tata Communications with a target price of Rs 2,250, implying an upside of 45.2% from the 23 January close of Rs 1,550. The brokerage pointed to steady data growth and improving profitability.
JM Financial said, “Revenue growth in line; profitability improves.”
Nuvama also has a ‘Buy’ with a target price of Rs 2,100, which implies 35.5% upside. The brokerage highlighted margin expansion and sequential net debt reduction.
Nuvama noted, “EBITDA margins continue to improve alongside balance sheet strengthening.”
Waaree Energies
Nomura has a ‘Buy’ on Waaree Energies with a target price of Rs 3,890, implying an upside of 49.6% from the 23 January close of Rs 2,600. The brokerage cited order book strength and capacity expansion.
Nomura said, “Execution visibility remains strong supported by a large order book.”
Nuvama also carries a ‘Buy’ with a target price of Rs 3,867, implying 48.7% upside. The brokerage highlighted strong earnings growth despite one-offs.
Nuvama stated, “Core profitability remains robust despite near-term adjustments.”
United Spirits
Nomura has maintained a ‘Buy’ on United Spirits with a target price of Rs 1,650, implying an upside of 23.0% from the 23 January close of Rs 1,342. The brokerage acknowledged near-term volume pressure but remained positive on premiumisation.
Nomura said, “Long-term premiumisation remains intact despite near-term disruptions.”
Nuvama also has a ‘Buy’ with a target price of Rs 1,660, translating into 23.7% upside. The brokerage pointed to margin stability and brand strength.
Nuvama said, “Margin resilience and brand strength support our positive stance.”
Conclusion
Across these eight stocks, multiple brokerages have rated ‘Buy’ based on their earnings, margins, balance sheets, and execution trends. While target prices vary widely the overlap in ratings suggests shared confidence in the underlying businesses.
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.