The brokerage house JM Financial has given a ‘Buy’ rating to a select group of stocks across various sectors. According to the brokerage, these stocks offer an upside potential ranging from 15% to 39% from their current market prices.
KEC International, Star Cement, AIA Engineering, Suprajit Engineering and Aditya Birla Fashion and Retail are among JM Financial’s latest stock calls.
Among the five, KEC International and Star Cement carried the highest projected upside at 38.8% and 37.1% respectively, while AIA Engineering and Suprajit Engineering saw target upgrades after stronger operating performance and improved earnings expectations.
Aditya Birla Fashion & Retail remained in focus on signs of improving demand momentum and operating execution.
Across the reports, JM Financial’s view remained centred on business visibility, profitability trends and expansion opportunities dicated in recent company commentary.
JM Financial on KEC International: ‘Buy’
JM Financial maintained its ‘Buy’ recommendation on KEC International and retained its 12 month target price at Rs 705, which implies an upside potential of 38.8%.
The brokerage said discussions with management at the RPG Investor Day strengthened its confidence in KEC’s business mix and growth visibility across transmission and distribution, civil construction and cables.
JM Financial said execution in West Asia remained stable despite geopolitical uncertainty, although logistics costs and supply chain constraints continued to weigh on margins. Nearly 27% of KEC’s order backlog is tied to West Asia and is split equally between Saudi Arabia and the UAE. Management indicated that transmission rehabilitation projects are opening up incremental opportunities while discussions are underway with clients to recover part of the higher operating costs.
JM Financial also pointed to improving international opportunities. Africa has begun recovering and KEC secured two orders while emerging as L1 in another project. The brokerage said renewable-linked transmission projects in Uzbekistan and broader CIS markets are gaining momentum while the United States tower supply business is seeing improved traction.
On India opportunities, JM Financial said management remained positive on the upcoming high voltage direct current pipeline with 7 to 8 projects expected over the coming years and each exceeding Rs 25,000 crore. KEC expects an annual revenue contribution of around Rs 1,000 crore to Rs 1,500 crore from this segment.
The report also noted that civil operations are being run with tighter project selection and stronger controls, while the cable business is expected to benefit from capacity expansion and export approvals.
JM Financial said, “We like KEC given its diversified capabilities, huge opportunity potential, industry-leading returns ratios and strong parentage.”
The brokerage added, “Backed by margin recovery, EPS would expand at a robust 39% CAGR over FY26–28E.”
JM Financial on Suprajit Engineering: ‘Buy’
JM Financial retained its ‘Buy’ recommendation on Suprajit Engineering and raised its target price to Rs 565, This translates to an upside potential of 19.2%.
The brokerage said stronger operating performance and improved earnings assumptions supported the target revision.
JM Financial noted that consolidated EBITDA margin expanded to 11.6% in Q4FY26 as restructuring gains at the Juarez facility, relocation to Matamoros, manpower rationalisation and recovery at SCS improved profitability.
The brokerage said management expects momentum to continue across business segments. Global Cables and Mechatronics is expected to deliver double-digit revenue growth in FY27 backed by programme launches and a healthy order pipeline. India Cables and Mechatronics continues to benefit from aftermarket demand and increasing contribution from beyond cable projects.
JM Financial also pointed to capacity expansion in Sensors, Electronics and Displays to support future business wins. While Phoenix Lighting and Electricals remained affected by the Middle East conflict, management indicated new enquiries and automation initiatives continued to support momentum.
JM Financial said, “Management highlighted improving traction across core businesses with GCM expected to deliver double-digit revenue growth in FY27 supported by a strong order pipeline and new program ramp-up.”
The brokerage added, “Overall, management guided for double-digit revenue growth and 12–13.5% EBITDA margin for FY27E.”
JM Financial on Aditya Birla Fashion & Retail: ‘Buy’
JM Financial maintained its ‘Buy’ recommendation on Aditya Birla Fashion & Retail and revised its target price to Rs 75, implying an upside potential of 15.4%.
The brokerage said Q4FY26 showed improving traction led by Pantaloons, with momentum becoming more visible in the second half of FY26.
JM Financial attributed the improvement to sharper consumer targeting, merchandise changes and stronger in store experience, which translated into sustained volume growth and higher basket sizes.
The brokerage said profitability in ethnic wear improved because of better performance in designer labels and lower losses at TCNS and Tasva. TMRW also reported lower losses supported by scale efficiencies and operating leverage.
Management expects demand momentum to continue and indicated store additions could accelerate if current operating trends sustain. According to the report, inflation currently remains at 3% to 4% and management may consider price increases of 5% to 8% depending on demand conditions in the second half of FY27.
JM Financial said, “Momentum revived due to strategic interventions over the past 18 months around sharper consumer targeting, merchandise reset, and superior in-store experience, translating into sustained volume growth, improving basket sizes.”
The brokerage added, “Management expects demand momentum to sustain, and store expansion could accelerate if brands maintain the improvement in trajectory.”
JM Financial on Star Cement: ‘Buy’
JM Financial retained its ‘Buy’ recommendation on Star Cement and increased its target price to Rs 295, which implies an upside potential of 37.1%.
The brokerage said stronger than expected profitability in Q4FY26 led to revisions in estimates.
JM Financial noted that EBITDA rose around 20% year on year and exceeded expectations largely because costs per tonne came in lower than anticipated. Blended EBITDA per tonne improved to Rs 1,818 while cement volume reached around 1.7 million tonnes during the quarter.
Management guided for cement volume growth of 10% to 12% in FY27 while clinker volume is expected to remain flat. The brokerage also noted that cement prices improved by Rs 6 to Rs 7 per bag in Northeast India and around Rs 10 per bag in Bihar and West Bengal in early FY27.
The report said the company continues to pursue capacity additions across multiple regions while maintaining profitability objectives.
JM Financial said, “The company continues to target EBITDA/t of Rs1,500–1,700/t over the next three years and sustainable blended EBITDA/t of Rs 1,300–1,400/t over longer term.”
The brokerage added, “Modelling in the Q4FY26 performance, we are tweaking FY27–28E EBITDA estimates and value the stock on 11x Mar’28E EV/EBITDA.”
JM Financial on AIA Engineering: ‘Buy’
JM Financial maintained its ‘Buy’ recommendation on AIA Engineering and raised its target price to Rs 4,915, implying an upside potential of 18.6%.
The brokerage said Q4FY26 performance exceeded estimates across revenue and profitability as improved product mix and rupee depreciation supported earnings.
JM Financial noted that stronger castings and liner mix lifted realisations and more than offset operational weakness.
A key development in the report was progress in Latin America, where AIA Engineering secured a large mine supply order after a two year engagement process. The brokerage said another conversion opportunity with the same customer could emerge in the coming months and strengthen volume visibility.
Management also indicated that AIA Engineering offers integrated mill optimisation solutions combining discharge systems, mill lining and downstream process optimisation and is pursuing patent protection around the process.
JM Financial said, “The acceptance of the mill optimisation solution after years of efforts is a key development and can lead to strong volume growth over FY26–30.”
The brokerage added, “Near-term INR depreciation provides a near-term competitive advantage.”
Conclusion
JM Financial kept all five stocks at ‘Buy’ while adjusting target prices where operating trends or earnings assumptions warranted changes. KEC International and Star Cement carried the highest projected upside in the latest set of reports, while Suprajit Engineering and AIA Engineering received support from stronger execution and profitability. Aditya Birla Fashion & Retail remained linked to sustaining momentum across formats and maintaining operating discipline.
Disclaimer: The investment ratings, target prices, and earnings projections discussed in this report are based on institutional research analysis and do not constitute direct buy, sell, or hold recommendations for retail investors. Equity investments across diverse sectors—such as engineering and infrastructure, cement, automotive components, consumer retail, and specialized metallurgy—are subject to distinct operational variables, corporate spending cycles, commodity price fluctuations, and global supply chain disruptions. Individual portfolio performance and risk thresholds vary; therefore, readers are strongly advised to consult a SEBI-registered investment advisor or a qualified financial professional before making specific equity or sector-specific capital allocations.
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