JM Financial Services has released its latest equity research report, recommending three high-conviction 'Buy' calls with strong fundamentals and attractive valuations. The brokerage sees up to 25% upside potential in the near-to-medium term, based on earnings growth, margin improvement, and sectoral tailwinds.
Here’s a closer look at the top 3 stock picks and why analysts believe they’re worth adding to your portfolio:
📈 1. Larsen & Toubro (L&T)
Target Price: ₹4,050
Current Price: ₹3,250
Upside Potential: ~25%
Rationale:
L&T continues to benefit from the robust infrastructure pipeline under government capex. Order inflows have remained healthy, and execution rates have picked up post-election. Strong balance sheet and exposure to defence and green energy projects make it a solid long-term bet.
“A well-diversified infra play with strong order visibility and financial resilience,” notes JM Financial.
🏦 2. ICICI Bank
Target Price: ₹1,350
Current Price: ₹1,110
Upside Potential: ~22%
Rationale:
ICICI Bank has consistently reported best-in-class asset quality, margin expansion, and loan book growth. Digital innovation and aggressive retail banking expansion have helped it outperform peers.
“Among the most efficient private sector banks with robust return ratios,” says the brokerage.
🏗️ 3. UltraTech Cement
Target Price: ₹11,000
Current Price: ₹9,050
Upside Potential: ~21.5%
Rationale:
India’s largest cement player is expected to benefit from the uptick in housing and infrastructure demand. Capacity expansions, cost efficiencies, and lower fuel costs are expected to improve EBITDA margins going forward.
“Strong cash flows and volume recovery offer compelling upside,” notes JM Financial.
💡 Analyst Outlook
The report emphasizes a “buy-on-dips” strategy amid current market volatility, particularly for sector leaders in banking, capital goods, and infrastructure. With improving macro indicators and election clarity, JM Financial expects continued market strength in H2 2025.
❓ FAQ Section
Q1: What are the top stock picks by JM Financial?
A: JM Financial recommends buying Larsen & Toubro, ICICI Bank, and UltraTech Cement, citing strong fundamentals and sectoral growth.
Q2: What is the average upside potential on these picks?
A: The brokerage estimates an upside of 21–25% over the next 6–12 months.
Q3: Are these long-term or short-term investments?
A: The recommendations are suitable for medium- to long-term investors, focusing on stable returns and strong balance sheets.
Q4: Why is ICICI Bank favored over other banks?
A: Due to its superior asset quality, consistent performance, and technological advancements in retail banking.
Q5: Is this the right time to enter infrastructure and cement stocks?
A: Yes, with increased government capex, housing revival, and improved demand outlook, both sectors are poised for growth.
Q6: Where can I find the full research report?
A: You can access it through JM Financial’s official website or through brokerage platforms offering their equity research.
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Reported by Benny on June 24, 2025.
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