The brokerage house JM Financial Services has picked 4 stocks that you can track amid the current market weakness. The brokerage firm has chosen these stocks on the basis of various factors like business updates, steady growth, in-line expectations, etc.
Here are the top 4 stocks that JM Financial is betting on at this hour
Bajaj Finance
The company engaged in the business of lending and acceptance of deposits reported its pre-quarterly business update, which is in line with the brokerage’s expectations. The asset under management (AUM) grew by 26% year-on-year and 5% sequentially to Rs 4.18 lakh crore in Q4 FY25. The brokerage house maintained its ‘Buy’ rating on the stock with a target price of Rs 9,350. The new loans booked for the quarter rose 36% YoY to Rs 107 crore, compared to Rs 121 crore in Q3 FY25. The management’s guidance for FY26 will be a key monitorable in the upcoming 4Q FY25 results. “We expect an earnings per share (EPS) CAGR of 25% over FY25-27 with an average return on equity of 21.3% over FY26/27,” said JM Financial.
Avenue Supermarts
The famous investor Radhakishman Damani’s DMart reported its pre-quarterly update for Q4 FY25. The brokerage firm has a Hold rating on the stock. The company’s revenue growth was in line with JM Financial’s expectations, which stood at 17% YoY to Rs 14,500 crore in Q4 FY25 against 18% in Q3 FY25. Also, the company added more stores sequentially than expected. Dmart added 28 stores on a QoQ basis, which was higher compared to its initial estimate of 18 stores in Q4. This takes the total store count to 415 in Q4 FY25. However, the impact on revenue will only be seen in Q1 FY26, said JM Financial. “We estimate a 60 basis points YoY dip in EBITDA margin to 7% in Q4 FY25, led by 10 bps lower GM. We note EBITDA margin contraction YoY is likely due to weak operating leverage.”
Marico
JM Financial kept the rating unchanged at Buy on the stock of FMCG after the pre-quarterly business update. Marico highlighted that sector demand trends remained stable. While rural demand is on an improving trajectory, mass and premium urban segments showed mixed trends. The company expects gradual improvement in overall consumption sentiment on the back of moderating retail and food inflation as well as forecasts of a normal monsoon. Marico’s international business witnessed broad-based growth across most markets, growing in mid-teen numbers. The consolidated revenue grew in the high teens (17-19%). The brokerage estimates 17% sales growth aided by price hikes in the domestic business. The management targets to maintain double-digit revenue growth in FY26.
AU Small Finance Bank
The small finance lender reported strong loan growth. The gross advances rose 20% YoY and 6.2% QoQ to Rs 1.15 lakh crore in Q4 FY25. This was excluding the securities loan growth which rose by 25.8% YoY and 7.7% sequentially. Plus, its deposit growth is robust according to JM Financial despite the system-wide challenges. The deposit grew 10.7% QoQ and 27.2% YoY. “Consequently, we expect a modest increase in CoDs. This along with declining CD ratio (deposit growth being higher than loan growth) means that margins should remain under pressure,” said the brokerage firm. Asset quality trends especially in its unsecured portfolio will be the key monitorable in the upcoming Q4 FY25 results. The brokerage has a ‘Buy’ call on the stock with a target price of Rs 650.