The Indian Stock Market has been infused with positive momentum after Budget 2025 (read our article on Budget takeaways here). With a conscious approach towards strengthening the Public Sector and incentivising the middle class to increase the cash flow. Based on the incentives opened for the banking sector, ship-building cooperation, and the growth trajectory of the pharma industry, our analysis suggests a positive growth in these stocks.
1. Bandhan Bank (Target Price: ₹220)
Brokerage Firm: CLSA, Jefferies
CLSA has given Bandhan Bank the “Outperform” rating, assigning a target price of ₹220. This suggests a growth potential of 48% from the current closing price of the share. Although the profits have taken a small hit in Q3, the management is positive about further growth because of improved collection efficiency, AUM growth, and higher slippages and technical write offs. The bank’s emphasis on microfinance and better cost structures should enable it to recover in the subsequent quarters.
Meanwhile, Jefferies sets a more conservative target of ₹185 due to further slippages expected in Q4 followed by improvement by FY26.
2. Biocon (Target Price: ₹430)
Brokerage Firm: HSBC
HSBC has given Biocon an “Outperform” rating with a target price of ₹430, suggesting a potential upside of 20.4%. The company’s Q3 performance showed a decline, but revenue growth across all segments is a positive sign. Biocon is expected to see strong growth from its biosimilars portfolio, with the launch of Insulin Aspart from Malaysia seen as a major catalyst for future growth. If the company can capitalize on these opportunities, it could see significant upside.
3. Vedanta (Target Price: ₹530)
Brokerage Firm: CLSA
CLSA has rated Vedanta as “Outperform” with a target price of ₹530, forecasting an upside of 22.5%. Vedanta’s Q3 EBITDA performance exceeded expectations, driven by strong aluminum production. However, rising production costs in aluminum and declining zinc production costs are areas to watch. Despite these concerns, the company’s debt repayment strategy is supported by brand fees and dividends, and it remains bullish on the stock’s long-term prospects.
4. Sun Pharma (Target Price: ₹2,280)
Brokerage Firms: HSBC, Jefferies
Sun Pharma is one of the most well-loved stocks in the pharmaceutical sector. HSBC has a target price of ₹2,280, predicting a 31.1% upside. The company’s improved EBITDA margins, driven by reduced R&D spending, are noteworthy. Furthermore, Sun Pharma’s specialty products segment is expected to drive growth. The upcoming April 2025 update on Leqselvi (a drug for alopecia) is expected to be a major trigger for the stock.
Jefferies is also optimistic, with a target price of ₹2,265. Despite a slight decline in the U.S. generics market, the strong growth in the Indian market and a good Q3 performance bolster the stock’s outlook.
5. IndusInd Bank (Target Price: ₹1,300)
Brokerage Firms: CLSA, Bernstein, HSBC
Both CLSA and Bernstein have given IndusInd Bank an “Outperform” rating with a target price of ₹1,300, suggesting a potential upside of 35.8%. While the bank’s performance has been impacted by challenges in the MFI (Micro Finance Institutions) segment, there have been positive signs of recovery in December. Bernstein noted a decline in return on assets (RoA) and a significant drop in earnings per share (EPS), but remains optimistic about the bank’s recovery.
HSBC, however, has lowered its target to ₹1,150, indicating that the pressure on the bank’s performance could persist in the short term, though long-term improvement is expected.
6. ONGC (Target Price: ₹375)
Brokerage Firm: Jefferies
As per Jefferies there is a recommendation for ONGC with a target price of ₹375 which is approximately 46% more than the current market price. The company’s Q3 standalone EBITDA was stronger than expected, while domestic production was better than expected. However, the higher tax rates and depreciation has affected the profits of the firm. Even with ONGC’S decline in performance, Jefferies believes that the company’s fundamentals are decent and that there is better performance in the future.
7. Chola Investment (Target Price: ₹1,510)
Brokerage Firm: HSBC
HSBC’s investment thesis on Chola Investment is positive, given that the target price is ₹1510, which suggests an upside of ₹18%. The company is managed well. Assets under management (AUM) and EPS growth are strong, and there are some worrying trends regarding asset quality. The brokerage observes Chola Investment with a strong long position as it states disbursement of EPS over the next 2 years CAGR to be around 25%.
8. Marico (Target Price: ₹800)
Brokerage Firm: Nomura
Marico, an FMCG giant, has obtained a buy rating from Nomura, with a target price of ₹800, which implies an upside of around 19%. The company’s Q3 sales exceeded sales expectations, while EBITDA was as predicted. Besides, Nomura is of the opinion that the price increase of Parachute products could assist Marico in boosting both growth and margins.
Summary of Target Prices and Potential Upsides
| Stock | Target Price (₹) | Potential Upside |
|---|---|---|
| Bandhan Bank | ₹220 | 48% |
| Biocon | ₹430 | 20.4% |
| Vedanta | ₹530 | 22.5% |
| Sun Pharma | ₹2,280 | 31.1% |
| IndusInd Bank | ₹1,300 | 35.8% |
| ONGC | ₹375 | 46% |
| Chola Investment | ₹1,510 | 18% |
| Marico | ₹800 | 19% |
