Godrej Consumer, ONGC to Polycab, NTPC: BofA names 22 stocks with up to 41% upside

Across the list, BofA’s reasoning ranges from stronger loan growth at private banks and higher electricity demand from data centres to infrastructure spending, improving auto volumes, consumer-business growth and recovery in technology services. The individual calls, however, depend on different factors, including commodity prices, interest rates, execution and demand conditions.

ICICI Bank: Loan growth is picking up

BofA has a ‘Buy’ rating on ICICI Bank Ltd. and a price objective of Rs 1,600. Based on the report’s stated price of Rs 1,385, the target implies around 15.5% upside.

The brokerage noted that loan growth has recovered after a temporary slowdown in early FY26, with ICICI Bank again emerging as one of the fastest-growing large private banks. Its focus on business banking and retail segments is expected to help it sustainably outgrow the industry by around 2% to 3%.

BofA also sees broadly stable net interest margins, with potential upside from rate movements and a recovery in unsecured lending. It expects sustainable return on assets of around 2.3%, supported by the bank’s execution across growth, profitability and asset quality.

Kotak Mahindra Bank: Recovery in lending could support growth

Kotak Mahindra Bank Ltd. has a ‘Buy’ rating and a Rs 460 price objective from BofA. Against the report’s price of Rs 417, this represents around 10.3% upside.

BofA expects the loan book to grow 15% to 16% year on year between FY26 and FY28, helped by healthy system credit growth and a recovery in unsecured retail lending.

The brokerage believes net interest margins have bottomed and could benefit from a rate hike, an improved unsecured-loan mix and better funding conditions. It expects return on assets to increase from 1.9% in FY26 to 2.2% by FY28. BofA also identified clarity on the CEO transition as a potential near-term catalyst.

Shriram Finance: Multiple lending engines in play

Shriram Finance Ltd. carries a ‘Buy’ rating and a Rs 1,210 price objective. Based on the report’s price of Rs 1,038, the target implies around 16.6% upside.

BofA sees several avenues for growth, including the scaling up of new-vehicle financing, faster MSME lending, continued traction in gold loans and expansion plans in personal loans.

The brokerage also highlighted the potential benefit from capital infusion by MUFG and credit-rating upgrades, which could support margins. It expects credit costs to remain resilient, although near-term volatility could arise from monsoon and El Niño trends.

Larsen & Toubro: Power capex and Middle East rebuilding

Larsen & Toubro has a ‘Buy’ rating and Rs 4,430 price objective. Against the report’s price of Rs 3,955, that works out to around 12% upside.

BofA identified three factors that could support the stock: limited incremental downside from the Iran conflict, a potential US$200 billion step-up in India’s power capital expenditure and an opportunity for L&T to participate in Middle East infrastructure rebuilding and gas-pipeline projects.

Over the medium term, the brokerage also sees optionality from L&T’s expansion into defence, shipbuilding, nuclear power, data centres and semiconductors.

Titan: Jewellery market share remains the focus

Titan Company Ltd. has a ‘Buy’ rating with a Rs 5,535 price objective. Against the report’s price of Rs 5,021, BofA’s target implies around 10.2% upside.

The brokerage expects Titan to continue gaining share in India’s jewellery market, supported by store expansion across brands, jewellery exchange, lower-carat jewellery, new collections and a stronger focus on the wedding segment.

BofA expects revenue and earnings to grow at mid-to-high teen rates over the longer term, while noting that near-term growth will need to be watched amid gold-price volatility.

Eternal: Blinkit’s scale is the key attraction

Eternal Ltd. has a ‘Buy’ rating and a Rs 375 price objective. Based on the report’s price of Rs 322, the target indicates around 16.5% upside.

BofA sees Blinkit as well positioned in India’s quick-commerce market, citing strong execution, category leadership and improving unit economics. The brokerage believes scale and network effects can reinforce Blinkit’s competitive position, while the core food-delivery business continues to generate steady cash flow.

Competition remains a concern, but BofA believes Blinkit’s scale provides an important advantage.

NTPC: Data centres could add to power demand

NTPC Ltd. has a ‘Buy’ rating and Rs 432 price objective. Against the report’s price of Rs 335, the target implies around 29% upside.

BofA believes India’s planned 10 GW of data-centre capacity by 2030 could create additional electricity demand and improve long-term visibility on thermal capital expenditure and capacity additions at NTPC.

More broadly, the brokerage expects data centres and rising consumer-durables penetration to add around 180 basis points to peak power-demand growth between FY25 and FY30.

Power Grid: Transmission spending could get a longer runway

Power Grid has a ‘Buy’ rating and Rs 320 price objective. Based on the report’s price of Rs 272, this represents around 17.6% upside.

BofA sees three factors supporting the stock: improved long-term visibility on transmission capital expenditure because of India’s data-centre expansion, faster commissioning following changes to right-of-way rules and potential upside surprises in capital-expenditure guidance because of cost escalation.

The brokerage’s broader power thesis also includes an expected increase in investment across India’s generation and transmission infrastructure.

ONGC: Crude exposure and valuation support the case

Oil And Natural Gas Corporation Ltd. has a ‘Buy’ rating and Rs 330 price objective. Against the report’s price of Rs 237, BofA’s target implies around 39.2% upside.

BofA’s view is closely tied to crude prices and the absence of a windfall cess. It expects higher crude prices to improve oil and gas realisations for ONGC, while administered-price-mechanism gas realisations will remain capped at a crude price of US$70 a barrel in FY27.

The brokerage also noted that rupee depreciation benefits upstream companies because of dollar-linked pricing. Alongside this exposure, BofA sees ONGC’s healthy dividend yield and relatively undemanding valuation as important parts of the investment case.

Coal India: Higher gas prices could support coal demand

Coal India Ltd. has a ‘Buy’ rating and Rs 490 price objective. Against the report’s price of Rs 432, this implies around 13.4% upside.

BofA expects elevated gas prices to encourage gas-to-coal switching. It also noted that spot Newcastle thermal coal prices have increased meaningfully since the escalation of the Middle East conflict.

The brokerage highlighted a strong historical correlation between Coal India’s e-auction realisations and Newcastle thermal coal prices, which could create upside to its e-auction premium forecasts.

Hindalco: Energy costs, Novelis and aluminium prices

Hindalco Industries Ltd. has a ‘Buy’ rating and Rs 1,215 price objective. Based on the report’s price of Rs 1,014, the target implies around 19.8% upside.

BofA’s positive view rests on three factors: lower energy costs as captive coal mines ramp up, a turnaround at Novelis following recent incidents at its Oswego facility and a bullish medium-term outlook for aluminium prices.

Bajaj Auto: Exports and electric vehicles broaden the story

Bajaj Auto has a ‘Buy’ rating and Rs 13,700 price objective. Against the report’s price of Rs 11,768, BofA’s target represents around 16.4% upside.

The brokerage noted that exports account for around 45% of revenue and that this growth is increasingly diversified beyond Nigeria. Its electric business contributes around 13% to 15% of revenue, with exposure to both three-wheelers and two-wheelers.

BofA also sees scope for domestic market-share recovery following new Pulsar launches and two new 125cc bikes expected in early calendar year 2027.

Tata Motors CV: India and Europe offer two growth levers

Tata Motors’ commercial-vehicle business has a ‘Buy’ rating and Rs 515 price objective. Against the report’s price of Rs 439, this implies around 17.3% upside.

BofA sees the business as a play on both the Indian and European commercial-vehicle cycles through Iveco. The brokerage noted that volumes have continued to surprise positively despite crude-related concerns and expects the growth outlook to improve.

It also sees scope for re-rating on stronger FY28 earnings, a better industry structure and sector-leading return on equity.

Ashok Leyland: Volume strength remains important

Ashok Leyland has a ‘Buy’ rating and Rs 205 price objective. Based on the report’s price of Rs 166, the target implies around 23.5% upside.

BofA noted that the stock has corrected on crude concerns even as volume numbers have remained stronger than expected. The brokerage expects the growth outlook to improve and sees scope for re-rating, supported by stronger FY28 earnings, a better industry structure and sector-leading return on equity.

Apollo Hospitals: Hospital expansion and HealthCo could unlock value

Apollo Hospitals has a ‘Buy’ rating and Rs 10,600 price objective. Against the report’s price of Rs 8,900, BofA’s target indicates around 19.1% upside.

BofA believes the company’s current hospital expansion cycle is more calibrated than the previous one, with greater focus on core metropolitan markets and acquisitions that can reduce execution delays.

The brokerage expects better execution during the capex cycle to narrow the valuation gap with peers. It also sees potential value unlocking from HealthCo as the demerger approaches, with scope to value the combined business more like an integrated retail company rather than purely through a sum-of-the-parts approach.

GAIL: Pipeline completion could improve visibility

GAIL has a ‘Buy’ rating and Rs 205 price objective. Against the report’s price of Rs 174, this implies around 17.8% upside.

BofA expects completion of pipelines, together with strong domestic gas demand, to boost throughput in the transmission business.

The brokerage also noted that volatility in GAIL’s natural-gas trading business has reduced following cost-optimisation measures, supporting the possibility of an upward re-rating.

Godrej Consumer Products: Portfolio changes add to the growth story

Godrej Consumer Products has a ‘Buy’ rating and Rs 1,230 price objective. Based on the report’s price of Rs 870, BofA’s target implies around 41.4% upside, the highest among its 22 key picks.

The brokerage expects steady business performance from the company’s core segments, while strategic portfolio transformation could provide an additional source of growth. It forecasts revenue and EPS CAGRs of 11% and 13%, respectively, between FY26 and FY28.

BofA also believes commodity inflation is already reflected in its expectations, with calibrated pricing and savings/productivity measures helping offset some of the pressure. It sees no major change in strategy following the CEO exit, with market development, innovation and efficiency remaining important areas of focus.

Tata Consumer: Growth portfolio adds another leg

Tata Consumer has a ‘Buy’ rating and Rs 1,270 price objective. Against the report’s price of Rs 1,000, the target implies around 27% upside.

BofA forecasts revenue and EPS CAGRs of 10% and 17%, respectively, between FY26 and FY28. The brokerage expects the company’s growth portfolio to expand at more than 30% annually, while rising scale, price-mix and cost control could support gradual margin improvement.

BofA also believes the stock’s recent pullback has brought it below historical valuation levels, improving the balance between growth prospects and valuation.

Godrej Properties: Bookings point to a stronger FY28

Godrej Properties has a ‘Buy’ rating and Rs 2,600 price objective. Against the report’s price of Rs 1,872, BofA’s target implies around 38.9% upside.

The brokerage expects a sharp improvement in reported profit and operating cash flow in FY28, alongside a potential move to 20% return on equity and positive free cash flow.

BofA highlighted first-quarter bookings of Rs 8,700 crore, up 22% year on year, which represented 22% of the company’s FY27 booking guidance. It also pointed to a Rs 37,500 crore launch pipeline for the rest of FY27, providing visibility on future bookings.

Polycab: Wires and cables fit into India’s capex cycle

Polycab has a ‘Buy’ rating and Rs 11,000 price objective. Based on the report’s price of Rs 8,358, BofA’s target indicates around 31.6% upside.

The brokerage expects EPS to grow at an 18% CAGR between FY26 and FY28. Polycab sits within BofA’s preferred wires-and-cables segment, which is expected to benefit from India’s broader power, infrastructure and capital-expenditure requirements.

The brokerage’s wider power thesis points to higher electricity demand from data centres and consumer-durables penetration, alongside additional investment required across generation and transmission.

KEI Industries: Another play on wires and cables

KEI Industries has a ‘Buy’ rating and Rs 6,300 price objective. Against the report’s price of Rs 4,640, this implies around 35.8% upside.

BofA expects EPS to grow at a 23% CAGR between FY26 and FY28. The company sits within the brokerage’s preferred wires-and-cables segment, alongside other capex-linked areas such as EPC, regulated power utilities and data centres.

The brokerage’s broader investment thesis is that India’s energy-security requirements and rising power demand should sustain spending across the electricity value chain, supporting companies exposed to transmission and electrical infrastructure.

L&T Technology Services: Growth recovery meets margin improvement

L&T Technology Services has a ‘Buy’ rating and Rs 4,050 price objective. Based on the report’s price of Rs 3,378, the target implies around 19.9% upside.

BofA said the first quarter marked a gradual recovery in growth, with the mobility vertical returning to growth after four quarters. The company expects the recovery to continue over the following quarters, while some large deals announced in the current quarter could help deal wins catch up.

The brokerage also highlighted a 50-basis-point sequential expansion in EBIT margin to 15.7%, helped by business mix and selling, general and administrative expense optimisation. Management retained its target of around 16.5% EBIT margin by the end of FY27 or the start of FY28.

BofA’s 22 ‘Buy’ stock suggestions

Stock	BofA rating	Target price	Upside
Godrej Consumer Products	‘Buy’	Rs 1,230	41.4%
ONGC	‘Buy’	Rs 330	39.2%
Godrej Properties	‘Buy’	Rs 2,600	38.9%
KEI Industries	‘Buy’	Rs 6,300	35.8%
Polycab India	‘Buy’	Rs 11,000	31.6%
NTPC	‘Buy’	Rs 432	29.0%
Tata Consumer Products	‘Buy’	Rs 1,270	27.0%
Ashok Leyland	‘Buy’	Rs 205	23.5%
L&T Technology Services	‘Buy’	Rs 4,050	19.9%
Hindalco	‘Buy’	Rs 1,215	19.8%
Apollo Hospitals	‘Buy’	Rs 10,600	19.1%
GAIL	‘Buy’	Rs 205	17.8%
Power Grid	‘Buy’	Rs 320	17.6%
Tata Motors CV	‘Buy’	Rs 515	17.3%
Shriram Finance	‘Buy’	Rs 1,210	16.6%
Eternal	‘Buy’	Rs 375	16.5%
Bajaj Auto	‘Buy’	Rs 13,700	16.4%
ICICI Bank	‘Buy’	Rs 1,600	15.5%
Coal India	‘Buy’	Rs 490	13.4%
Larsen & Toubro	‘Buy’	Rs 4,430	12.0%
Kotak Mahindra Bank	‘Buy’	Rs 460	10.3%
Titan Company	‘Buy’	Rs 5,535	10.2%

The report identifies all 22 companies as key picks based on its fundamental analysts’ views.

Conclusion

BofA’s 22 picks cover a wide range of businesses, with its strongest price-target gaps concentrated in consumer goods, energy, real estate and electrical infrastructure. Godrej Consumer Products, ONGC and Godrej Properties sit at the top of the list on the report’s stated upside calculations, while several other companies have targets implying gains of between 15% and 30%. Whether those targets are reached will depend on the company-specific factors cited by the brokerage, from loan growth and power demand to commodity prices, project execution and earnings recovery.