Leading global and domestic brokerage firms have initiated coverage on several prominent Indian companies, issuing a flurry of recommendations and target prices that highlight key investment opportunities across sectors. The moves spotlight firms in financial services, business process outsourcing, eyewear retail, healthcare, and consumer durables.
Brokerage Bullishness on Financial and Tech-Enabled Plays
Jefferies has commenced its coverage of the fintech platform Groww with a 'buy' recommendation and a target price of Rs 180. Analysts noted that Groww, despite starting its broking business only in FY21, has risen to become the largest broker in India by active client count. They project the company has multiple levers to drive a robust 35% compounded annual growth rate (CAGR) in its earnings per share (EPS) over the FY26-FY28 period.
This growth is expected to be fueled by a 19% rise in the core broking business, powered by client maturation and market share gains. Additionally, new initiatives like margin trading facilities and wealth management are anticipated to grow fivefold, coupled with a significant 700 basis points expansion in margins.
In the outsourcing space, IIFL Finance has initiated coverage on Firstsource Solutions with a 'buy' rating and a Rs 420 target price. Analysts highlighted the company's position as India's largest and most diversified pure-play BPO provider, with annualised revenue exceeding $1 billion. They believe its 'UnBPO' strategy is leading an industry paradigm shift from labour arbitrage to technology-driven solutions.
This strategy is built on a focused 'inch-wide mile-deep' approach, domain-specific technology, and an outcome-oriented model where over 50% of revenue is tied to outcome-based pricing. A credible turnaround under a new CEO and the 'One Firstsource Strategy' has resulted in a sharp increase in large deal wins, from about one per quarter in FY24 to an expected 4-5 per quarter in FY26.
Retail and Healthcare in Focus
Macquarie has started coverage on eyewear retailer Lenskart with an 'outperform' rating and a Rs 530 target. The report emphasises Lenskart's competitive edge derived from its integrated supply chain, which benefits cost, design, and efficiency. With a history of industry-leading growth, the company is expected to significantly increase its market share from the current 5% closer to 40%+, a level seen in other markets.
Improved supply chain utilisation is projected to push its store-level EBITDA margin near 33% and potentially triple its return on invested capital (ROIC) to over 20% during FY26-FY28.
In healthcare, Goldman Sachs has reiterated a 'buy' on Max Healthcare with a target price of Rs 1,325. This follows the company's announcement of entering the Pune market via the acquisition of Yerawada Properties (YPPL). Max Healthcare intends to acquire the stake in a step-up manner. The first tranche involves buying 100% of Class A equity shares, giving it full voting rights and a 50.22% economic interest. The board has also approved setting up a 450-bed super speciality hospital on YPPL's land.
Cautious Stance on Consumer Durables
CLSA maintains a more cautious 'hold' rating on Voltas with a target price of Rs 1,170. Analysts relayed that the company's management indicated room air-conditioner (RAC) demand improved sequentially in Q3FY26, though it may still show a year-on-year decline. Dealer inventory, while lower sequentially, remains elevated at 40–45 days compared to 20–25 days last year.
Some pre-buying was noted ahead of energy efficiency rating changes. The company's pricing strategy regarding cost pass-through to consumers is still under evaluation. A demand recovery in the RAC segment and clarity on price hikes are identified as key near-term triggers for the stock.
Disclaimer: The recommendations and views expressed by various brokerages are their own and do not represent the views of this publication. Investors are advised to consult certified experts before making investment decisions.
