1. Ujjivan Small Finance Bank:

BoB Capital Markets initiates coverage on this bank with a ‘Buy’ and a target price of Rs 59, an 18.8% upside. The bank is focusing on de-risking its balance sheet with a shift towards secured lending. This is reflected in the rising share of secured loan disbursements, to 40% in FY25 from 24% in FY24. 

Within the unsecured portfolio, the bank has moved towards higher-yielding individual loans (IL), over the past year. Analysts Niraj Jain and Vijaya Rao expect the bank’s advances to grow at a 19% CAGR over FY26–FY27, driven mainly by growth in the secured and IL segments.

Ujjivan’s asset quality remains better than its peers, with a gross NPA ratio of 2.2% as of March 2025, down 50 bps from the previous quarter. While slippages rose sharply during the year, most of them came from the microfinance (MFI) portfolio. This suggests that the asset quality of the secured, non-MFI portfolio has stayed largely healthy.

Jain and Rao expect credit costs to improve as stress in the MFI portfolio appears to have peaked. However, they believe credit costs may remain high in H1FY26, with a gradual normalisation expected in the second half. They expect this moderation in credit costs, once it happens, to be a key driver for improvement in the bank’s return metrics.

2. Gabriel India:

Anand Rathi initiates coverage on this auto parts company with a ‘Buy’ rating and target price of Rs 1,400, a 28% upside. Analysts Mumuksh Mandlesha and Shagun Beria expect Gabriel’s restructuring plans to merge its private automotive companies into Gabriel, increasing its revenue to Rs 8,100 crore from Rs 4,089 crore in FY26.

In FY25, its revenue grew by 8.9% to Rs 3,643.3 crore, supported by higher sales in two-wheelers and utility vehicles (UV). Analysts note that the company holds a dominant 70% share in EV automobile suspensions and expect strong growth from its rising passenger vehicle market share. They estimate revenue and net profit to grow by 22% and 53%, respectively, over FY26–27.

Analysts note that Gabriel has partnered with Inalfa Roof Systems, a supplier of automotive roof systems, to manufacture sunroofs, and expect this partnership to contribute revenue of Rs 10,000 crore by FY29. MD Atul Jaggi notes, “The sunroof business is experiencing strong demand, supported by the higher sales of UVs and new vehicle launches. We plan to double sunroof production capacity in the second half of FY26 and expand the product portfolio.”

3. KEC International:

Axis Direct maintains a ‘Buy’ rating on this heavy electrical equipment firm with a target price of Rs 950, an 8.1% upside. The company has an order book worth over Rs 44,639 crore, with 61% from power transmission and distribution (T&D) and the remaining from other segments. Management expects total order inflows of Rs 30,000 crore during FY26, providing revenue visibility for the next 6 to 8 quarters. The company has guided for 15% revenue growth in FY26.

KEC International’s EBITDA margin stood at 6.9% in FY25 and is expected to improve going forward, supported by the execution of international T&D projects and other high-margin assignments. Management has guided for margins in the range of 8% to 8.5% in FY26. Analysts Uttam Srimal and Shikha Doshi project margins to further rise to 9% by FY27.

The stock has declined by 7.5% over the past six months as it has missed revenue estimates for the last two quarters, raising concerns over execution despite a strong order book. However, analysts are positive on KEC International, noting that the government is steadily increasing spending on infrastructure. They project a 55% net profit CAGR over FY26–FY27.

4. Larsen & Toubro (L&T):

Ventura initiates a ‘Buy’ rating on this construction company with a target price of Rs 4,448, a 27.3% upside. In FY25, revenue increased by 15.3% and profit rose by 15.1%, helped by higher order inflows and strong project execution.

Analysts note that rising government spending on rural and urban development, along with private spending on capacity expansion, is driving strong order inflows for L&T and supporting its expansion in the Middle East and North Africa (MENA) region. L&T’s order book nearly doubled from FY19 to Rs 5.8 lakh crore in FY25, supported by hydrocarbons, green energy, and power projects. Analysts project the order book to grow to Rs 8.9 lakh crore by FY28.

For FY26, management aims to achieve an order pipeline of Rs 19 lakh crore—a 57% growth over FY25—supported by new opportunities in the Middle East, where L&T has seen a steady stream of orders, and the South Asian Association for Regional Cooperation (SAARC) regions. Analysts expect L&T’s revenue and net profit to grow by 13.5% and 20.4%, over FY26–28.

R. Shankar Raman, CFO, notes, “Qatar, Saudi Arabia, the United Arab Emirates, and Kuwait are key international markets for L&T in terms of order inflow. In FY25, we secured 25% of international orders from the Saudi Arabian market, driven by higher capital expenditures from the governments of Saudi Arabia and the United Arab Emirates.” He also mentions that for FY26, they aim to achieve 60% of international revenue, up from 50%.

5. SRF:

Motilal Oswal reiterates a ‘Buy’ rating on this specialty chemical company with a target price of Rs 3,700, a 14.7% upside. Analysts Sumant Kumar and Meet Jain note that the company plans to incur capital expenditure (capex) of Rs 2,200–2,300 crore to expand its chemical production capacity, launch three new fluoropolymers, and increase packaging film capacity at its Indore facility.

Management expects strong performance in FY26, helped by a healthy order book in specialty chemicals, rising exports, and higher polytetrafluoroethylene (PTFE) sales in the fluorochemicals segment. The speciality chemicals business delivered an 18% CAGR in revenue over the past decade, and management projects 20% growth in FY26, driven by the ramp-up of newly commissioned facilities.

Analysts expect SRF's packaging business to benefit from the temporary closure of Jindal Poly’s manufacturing facility in Nashik following a fire outbreak, as well as the increased supply gap in the industry and the ramp-up of its aluminium foil capacity. They estimate SRF’s revenue and net profit to grow by 12% and 16%, respectively, over FY26–27.

Note: These recommendations are from various analysts and are not recommendations by Trendlyne.

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