1. Power Finance Corp (PFC):
ICICI Direct initiates coverage on this financial company with a ‘Buy’ rating, with a target price of Rs 520 per share, an upside of 19.9%. Analysts Vishal Narnolia and Parth Chintkindi see PFC as about to capitalise on India’s expanding power and infrastructure financing cycle. They expect the company’s consistent margins, stable asset quality, and long-term growth prospects to drive strong returns on equity (RoE).
India's power sector is entering a massive spending cycle, with capacity expected to jump to 900 gigawatt (GW) from 520 GW by FY32. This creates a Rs 12-13 lakh crore lending opportunity for financiers like PFC across all power projects. The proposed merger of PFC and REC is a major upgrade. It will create a leaner, dominant lender with a massive Rs 11.5 lakh crore loan book.
Vishal and Chintkindi highlight that the merger will unlock significant opportunities for integrated technology and improved efficiency. With its expertise and strong relationships, PFC and REC should capture a large share of new financing opportunities. The firm is expected to grow its net interest income by 9.9% and net profit by 7.7% annually through FY28.
2. Avenue SuperMarts (DMart):
Motilal Oswal retains its ‘Buy’ rating on this department store operator, with a higher target price of Rs 5,000 per share, a 12.4% upside. Analysts Aditya Bansal and Avinash Karumanchi believe DMart’s value-centric model and superior store economics will ensure its long-term customer appeal despite the rise of digital platforms, especially in Tier 2+ towns.
Accelerated store additions are a key revenue growth driver. Analysts increased their store addition estimates to 85-90 openings during FY27-28, up from 70-80 previously. They see ample "white space" in populous states like Uttar Pradesh, Bihar, and West Bengal. In Tier-1 markets. Management focus is on operational efficiency: reducing queues, boosting billing capacity, and improving service levels and checkout speed to fuel revenue growth.
Expansion into Tier-2 and smaller cities plays on DMart’s value pricing strength and the weaker presence of quick-commerce players. Bansal and Karumanchi observe that while revenue per store might be lower in newer Tier-2 locations, less competition helps offset the need for higher discounts. They project the firm will achieve revenue and net profit CAGRs of 19% and 16%, respectively, over FY27-28.
Deven Choksey upgrades this software company to a ‘Buy’ call, with a target price of Rs 3,080 per share, an upside of 24.6%. The upgrade follows a performance recovery, with Q4FY26 revenue climbing 5.4% QoQ to Rs 70,698 crore. Growth was broad-based, with improvements in banking, manufacturing, and technology verticals across North America, Europe, and the UK. Analyst Devak Mehta points out that client additions turned positive after nearly two years, signalling recovering demand. The stock is down 24.3% over the past three months.
Management sees a structural shift to AI-led growth. The company is building large-scale AI infrastructure through its HyperVault data centres, partnering with OpenAI and AMD. AI revenue now exceeds $2.3 billion annually, making up about 7.6% of total revenue. While AI will drive future growth, management warns it could temporarily hurt traditional revenue due to pricing pressures from increased productivity.
Mehta expects revenue, EBITDA and net profit to grow at a CAGR of 10–12% through FY27–28. He believes the company’s early entry into AI infrastructure and strong client relationships position it well to capitalise on the next wave of technology spending. But execution, the speed of AI monetisation and competition from AI-first players remain key risks.
4. Sumitomo Chemical India:
ICICI Securities initiates coverage on this agrochemical company with a ‘Buy’ call and a target price of Rs 515 per share, an upside of 22%. The stock is down 25.3% over the past year. Strong domestic agriculture demand and improving industry conditions are driving the positive outlook. However, Middle East tensions pose a near-term risk, potentially increasing input and logistics costs. Agrochemical production relies on crude oil derivatives; disruptions in the Strait of Hormuz could raise oil prices, freight, and insurance. This raises raw material costs and may delay shipments, squeezing margins if the company cannot quickly pass on these expenses.
Sumitomo benefits from its strong bond with its Japanese parent, gaining access to innovative, proprietary products. This keeps its market position premium, unlike generic agrochemical competitors. Management targets 12–13% annual revenue growth over the next few years, driven by new products, capacity expansion, and an improved product mix. The company plans to spend up to Rs 400 crore over the next 2–3 years on new projects in Dahej, Tarapur, and Bhavnagar to support long-term growth.
Analysts Probal Sen and Hardik Solanki expect steady revenue, EBITDA, and net profit growth through FY28, thanks to product innovation, distribution, and parent support. They believe the company is well placed for steady long-term growth, driven by rising use of specialty agrochemicals and the government’s focus on improving farm productivity. Key risks include input cost volatility and unfavourable weather.
5. Shilpa Medicare (SML):
Ventura initiates coverage on this pharma producer with a ‘Buy’ rating and a target price of Rs 511 per share, an upside of 22.9%. Analysts see the biologics and peptide segment as a key growth engine. New biosimilar launches and a growing contract manufacturing (CDMO) business will fuel this expansion as global firms outsource more complex work.
Shilpa Medicare operates across the entire pharma value chain, including active pharmaceutical ingredients (APIs), formulations, biologics, and contract manufacturing. Its API segment, contributing ~60% of revenue, holds a strong position in oncology and complex APIs. The company is shifting towards in-house consumption, which will improve margins and integration benefits. The formulations segment, accounting for ~30% of revenue, focuses on complex products such as injectables, oral dissolving films, and transdermal patches. These products face limited competition and offer higher margins than plain generics.
Analysts expect revenue growth to accelerate from FY27 onward, driven by new product launches, regulatory approvals, and better use of existing facilities. Margins are set to expand as the business mix shifts. The share of high-margin businesses like biologics and contract manufacturing will increase, while the lower-margin API segment shrinks.
Note: These recommendations are from various analysts and are not recommendations by Trendlyne.
(You can find all analyst picks here)
