1. Britannia Industries:

Axis Direct upgrades its rating to ‘Buy’ on this packaged foods company with a target price of Rs 6,750, an upside of 9.9%. Analyst Suhanee Shome cites the recent Goods and Services Tax (GST) reduction as the primary reason for the upgrade.

The GST on biscuits, packaged foods, chocolates, dairy products, and beverages has been lowered to 5%. Shome notes this will make products cheaper, boost demand, and narrow the price gap with unorganised competitors who previously benefited from tax evasion. This change should help Britannia compete more effectively on price and increase its market share. Additionally, she expects this could encourage premiumisation, where consumers shift to higher-value products within Britannia’s portfolio at more affordable prices.

In Q1FY26, the company reported revenue growth of 8.8% YoY, supported by higher sales volume and price hikes. Rural markets delivered double-digit growth, while urban growth was supported by e-commerce. Market share gains were seen in most regions, although East India was impacted by distribution restructuring.

2. ICICI Bank:

Emkay retains its 'Buy' rating on this bank, with a target price of Rs 1,700, an upside of 21.1%. In Q1FY26, ICICI Bank’s credit growth slowed to 12% YoY due to weaker demand in retail and corporate loans. However, growth in the small and medium enterprise (SME) segment remained strong at 30% and now constitutes about a fifth of the loan book. Management noted that home loan growth was affected by higher interest rates, but the recent rate cut could help improve demand. 

Analysts Anand Dama and Nikhil Vaishnav highlight that ICICI Bank is strengthening its position through digital banking and cross-selling products. Its SME loans are mostly large-ticket, which reduces risk. Investments in technology and better banking processes are helping the bank to manage costs, improve efficiency and maintain a strong portfolio.

Despite near-term challenges, Dama and Vaishnav expect ICICI Bank to deliver a return on assets of 2.1-2.3% over FY26-28, supported by cost control and stable asset quality. They also mention that the upcoming listing of ICICI Prudential Asset Management Company could unlock more value for shareholders.

3. Zydus Lifesciences:

Geojit BNP Paribas reiterates its 'Buy' rating on this pharma company, with a target price of Rs 1,121, an upside of 8.3%. In Q1FY26, the company’s revenue grew 5.9% YoY to Rs 6,574 crore, led by pharmaceuticals and consumer products. Domestic formulation sales rose 8%, driven by chronic therapies in oncology (cancer treatment) and cardiology (heart treatment).

Management noted that the impact of US pharmaceutical tariffs remains uncertain, but they will continue to supply generics, which constitute about 90% of the US market. They also guided growth in the high-teen to mid-20% range in international markets. The company plans to invest Rs 300 crore in medical devices and healthcare technology (MedTech) over the next 12-18 months.

Analyst Gopika Gopan expects key priorities to include the launch of the blockbuster drug Semaglutide, a treatment for type 2 diabetes and obesity. Other priorities are likely to be the commercialisation of Desidustat (an anaemia treatment) in China and the rollout of robotic surgery systems in Europe. She adds that Zydus is well placed to sustain growth across India, the US, and emerging markets, driven by specialty launches and MedTech expansion.

4. Premier Explosives:

ICICI Direct initiates a 'Buy' rating on this small-cap explosives manufacturer, with a target price of Rs 680, an upside of 26.9%. Analysts Vijay Goel and Kush Bhandari note that the company’s order book stood at Rs 989 crore in Q1FY26, which is 2.1 times its annual revenue, providing clear visibility for the next 2-3 years.

The company is undergoing a capacity expansion at its Katepally facility to integrate advanced explosives and rockets. At the same time, a new greenfield plant in Odisha is set to add ammunition and raw material production in phases. The company also plans to raise Rs 300 crore to fund expansion and repay debt. Management expects revenue to grow around 44% to Rs 600 crore in FY26.

Goel and Bhandari highlight that the company is benefiting from strong industry tailwinds, including higher defence spending and increased government procurement. Order inflows for FY26 year-to-date have already exceeded Rs 700 crore, more than the total for FY20-23 combined. They project revenue to grow at 27% CAGR over FY26-28, with EBITDA and net profit growing 40% and 54% respectively, supported by a shift towards higher-margin defence products.

5. SRF:

Sharekhan maintains its 'Buy' rating on this chemicals company, with a target price of Rs 3,540, an upside of 20.7%. Management anticipates a 20% growth in the chemical business in FY26. The specialty chemicals segment is likely to perform strongly, supported by new product launches and active ingredients.

Analysts note that India is now implementing the Kigali agreement, which requires countries to reduce their use of hydrofluorocarbons (HFCs). As India’s reliance on HFCs decreases, demand is shifting toward newer, cleaner alternatives like hydrofluoroolefins (HFOs). The company is well-positioned to benefit from this transition and is also expanding its production capacity for HFO refrigerant gas.

The brokerage highlights that Asia, including India, will remain the largest market for refrigerant gases. SRF’s backward integration, brand strength, and strong distribution network provide a competitive edge. Sharekhan expects the business to grow at a 20% CAGR, with EBITDA and net profit rising 32% and 51% over FY26-27.

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

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