1. Hindustan Aeronautics (HAL):
Motilal Oswal reiterates its ‘Buy’ rating on this defence company with a target price of Rs 5,800, an upside of 22.2%. Analysts Teena Virmani and Prerit Jain note that the company has secured a follow-on order worth Rs 62,400 crore from the Ministry of Defence for 97 Light Combat Aircraft (LCA) Mk1A.This new contract builds upon a previous order for 83 jets.
Production is now back on track. Management confirms that engine supply hurdles with General Electric (GE) are resolved, and deliveries of F404 engines have resumed. This clears the path for HAL to deliver the first two Tejas Mk1A aircraft by October 2025.
Analysts foresee strong long-term growth, fueled by a swelling order book and new homegrown systems, including advanced radar and electronic warfare tech. Key near-term catalysts include a technology transfer pact with GE for F414 engines, a potential collaboration on the Advanced Medium Combat Aircraft, and the expected government green light for a Rs 60,000 crore Sukhoi Su-30 aircraft upgrade.
Virmani and Jain project the company’s revenue will surge at a 24% compound annual growth rate (CAGR) through FY28 as manufacturing scales up. They also forecast net profit will climb at a 17% CAGR, supported by impressive margins of 27-30%.
2. Hindalco Industries:
Emkay upgrades its rating to ‘Buy’ on this aluminium products manufacturer with a target price of Rs 900, an upside of 18.1%. Analysts Amit Lahoti and Akhilesh Kumar believe the company’s US subsidiary, Novelis, has turned a corner on profitability. Operating margins are set to climb from $430 per tonne to over $500 by FY29 as the new Bay Minette project ramps up.
Hindalco boasts a major cost advantage, producing aluminium at just $1,700 per tonne compared to China’s $2,300 average. This efficiency generates immense cash flow, projected to hit Rs 30,000 crore annually from FY26-28. These funds will comfortably cover all planned capital investments.
Lahoti and Kumar see a compelling risk-reward scenario for aluminium. Tight supply and a weaker US dollar make the metal more attractive to global buyers. They have raised their near-term aluminium price target to $2,850 per tonne and expect prices to average $2,650–2,750, a trend that will lift earnings for producers.
3. City Union Bank:
ICICI Securities maintains its ‘Buy’ rating on this bank, with a target price of Rs 250, an upside of 17%. Analysts Jai Prakash Mundhra and Hardik Shah note the bank’s risk from the US textile export segment is minimal, with only Rs 220 crore in exposure, which management deems easily manageable. The bank’s total textile exposure is a modest Rs 1,500 crore.
Management is targeting an impressive 15-16% loan growth in FY26. This growth will be driven by gold loans, a rebound in its core small and medium enterprises (MSMEs) segment, and secure retail lending. The bank aims for a balanced portfolio of 50% MSME and 30% gold loans and expects to maintain a stable net interest margin of 3.5-3.6%.
With controlled risks, stable margins, and steady growth, analysts see City Union Bank as set for a strong run. Mundhra and Shah project compound annual growth of 16.5% in net interest income and 11.8% in net profit through FY27. The primary risk on the horizon is leadership succession, as the current CEO is set to step down in April 2026.
4. Cochin Shipyard:
ICICI Direct reiterates its ‘Buy’ rating on this shipbuilding company with a target price of Rs 2,240, an upside of 25.2%. Analysts Vijay Goel and Kush Bhandari believe its expertise in shipbuilding and repair skills, combined with a hefty order backlog, will power its long-term growth. They also predict healthy revenue growth as the company accelerates project execution.
The company recently supercharged its capabilities by commissioning a new dry dock and an international ship repair facility. This expansion dramatically increases its capacity, allowing it to handle larger and more complex projects and bringing its total capacity to 2.4 lakh deadweight tonnage (DWT).
Further expanding its footprint, Cochin Shipyard has partnered with Tamil Nadu's Guidance Agency on a Rs 15,000 crore plan to develop new shipbuilding clusters. The company is set to capture a wave of new orders in passenger and commercial shipbuilding, thanks to a strong pipeline and the government's push to upgrade maritime infrastructure.
Management confidently guides for 14-15% revenue growth in FY26, signaling steady execution ahead. Following this, Goel and Bhandari forecast the company will achieve a CAGR of 16.4% in revenue and 16.6% in net profit between FY26 and FY28.
5. KEC International:
Axis Direct maintains its ‘Buy’ rating on this infrastructure major, with a target price of Rs 1,030, an upside of 18%. Analysts Uttam Kumar Srimal and Shikha Doshi are bullish, citing the company's diverse, robust order book. Favourable trends in its core transmission and distribution (T&D) business are set to drive long-term growth.
The company's order book stands at Rs 33,398 crore, ensuring clear revenue streams for the next two years. Analysts note its core T&D business is firing on all cylinders, winning significant new orders from both domestic and international clients.
Expansion in the civil, railways, and cables segments is adding to the momentum. Government programs like the Jal Jeevan Mission and increased infrastructure spending are fueling demand in these areas. KEC is positioned to capitalise on these opportunities with its execution skills and global supply chain.
Management's focus on expanding its product range while cutting costs with AI could boost the bottom line. Srimal and Doshi project strong growth through FY27, forecasting a 15% CAGR in revenue, 32.2% in EBITDA, and 55% in net profit.
Note: These recommendations are from various analysts and are not recommendations by Trendlyne.
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