1. IDFC First Bank:
ICICI Direct upgrades this bank to a ‘Buy’ rating, with a target price of Rs 100, an upside of 18%. This upgrade reflects the bank's steady loan growth and increasing deposits. IDFC First Bank was formed in 2018 through the merger of IDFC and Capital First. Since then, the bank has steadily shifted its focus towards retail lending, which now accounts for 59% of its total loan book.
Loans jumped 19.7% in the first half of FY26, driven by home, vehicle, and business loans. Deposits grew even faster at 23.4%. Over half of these deposits are low-cost savings accounts. Analysts Vishal Narnolia and Parth Chintkindi expect loan growth to continue at 20% annually through FY28, backed by strong deposits and capital.
The bank recently raised Rs 7,500 crore, boosting its capital reserves. This financial cushion gives it the freedom to expand its retail loans, credit cards, and wealth management services without needing more cash soon.
Narnolia and Chintkindi note that profit margins may be tight for now due to changing loan rates and some stress in the microfinance sector. However, they expect a recovery in the second half of FY26.
2. Bank of Baroda:
Emkay retains its ‘Buy’ call on this PSU bank with a higher target price of Rs 350 per share, an upside of 14.7%. Analysts Anand Dama and Nikhil Vaishnav are optimistic, citing the bank’s healthy returns, strong capital buffer, and attractive valuations.
Management expects loan growth of 11–15%, fueled by its retail, MSME, and corporate divisions. Analysts highlight that growth in agriculture and a favourable exchange rate for its overseas business will also help. While growth was slow in Q2FY26, analysts predict a second-half rebound, driven by demand from renewable energy, data centres, and infrastructure projects.
The bank aims to keep its net interest margin stable at 2.8%. Dama and Vaishnav believe this is achievable through updated deposit rates, better loan recoveries, a higher share of the marginal cost of funds-based lending rate portfolio, and tax refunds. They project the bank's net interest income to grow 9.7% and net profit to grow 5.9% annually through FY28.
3. Ajanta Pharma:
Motilal Oswal reiterates its ‘Buy’ rating on this pharma company with a target price of Rs 3,145, an upside of 10.6%. Analysts Tushar Manudhane and Eshita Jain note that the company consistently outperforms competitors with its branded generic drugs in India, Asia, and Africa. It is expanding into new regions and adding treatments for chronic conditions, while also strengthening its product range.
In India, the company’s sales team helps it grow 1–2% faster than the overall pharmaceutical market. It focuses on key areas like dermatology, pain management, and gynaecology, making smart acquisitions to bolster its offerings. With 120–150 new products approved each year, its pipeline for future growth remains full.
A new partnership with Biocon to supply the popular weight loss drug semaglutide in 23 countries opens up a major growth opportunity. With few competitors, Ajanta can capture a significant market share. This could add $25–30 million in annual sales by late FY28, with high profit margins of 50–55% driven by low costs.
With Rs 1,000 crore set aside for acquisitions, the company looks ready to buy its way to further growth. Manudhane and Jain project strong annual growth through FY28, forecasting revenue to climb by 11%, and net profit by 16%.
4. Ambuja Cements:
Axis Direct maintains its ‘Buy’ call on this cement manufacturer with a target price of Rs 630 per share, an upside of 11.8%. The stock has dropped 5.4% over the past six months and 2.2% over the quarter. Ambuja Cements’ board approved the merger of its subsidiaries, ACC and Orient Cement, with itself on December 22, 2025.
Analysts Uttam K Srimal and Shikha Doshi believe this merger will make operations more transparent, allow the company to use its factories more effectively, and create a stronger base for future expansion.
Management says the merger will streamline manufacturing and logistics, simplify the corporate structure, and strengthen its finances. This will help the company to improve capital allocation for growth. Analysts note that the move could boost profit margins by over Rs 100 per tonne by cutting costs in sales, branding, and distribution.
Srimal and Doshi highlight that Ambuja Cements’ nationwide presence, cost-cutting, and integration within the Adani group position it well for growth. Strong demand from government infrastructure projects, housing, and private investment have created a favourable market. They forecast annual revenue growth of 15.5% over FY26-27.
5. Shyam Metalics and Energy:
ICICI Securities maintains its ‘Buy’ call on this iron & steel manufacturer, with a target price of Rs 1,000, an upside of 20%. Its share price has fallen 14.2% over the past three months and 5.2% over the last six months. The company plans to more than double its revenue by FY31 by expanding capacity and focusing on higher-value products.
Shyam Metalics and Energy recently completed a Rs 9,500 crore capex cycle, tripling its revenue in five years. Now, it is focusing on downstream steel, stainless steel, and aluminium. These products offer much higher profit margins than basic steel, creating more predictable earnings and reducing its reliance on fluctuating commodity prices.
Management projects 16–18% annual revenue growth for the next five years, with profits growing even faster thanks to a better product mix. They expect stainless steel revenue to nearly quadruple. Both aluminium and downstream steel could become Rs 10,000 crore businesses. The company plans to fund these expansions using its own cash.
Analysts Vikash Singh and Mohit Lohia forecast annual revenue growth of 18% and net profit growth of 24% over FY26-28. They believe the company's focus on diverse, high-value metals and smart spending will secure its market position and drive long-term earnings.
Note: These recommendations are from various analysts and are not recommendations by Trendlyne.
(You can find all analyst picks here)
