M&M, Hero Moto, Welspun Corp among 6 stock saw brokerage initiations with up to 30% upside

Select stocks including Mahindra & Mahindra Ltd (M&M), Transformers & Rectifiers India (TARIL), Hexaware Technologies Ltd, Hero MotoCorp Ltd, Jindal Stainless and Welspun Corp Ltd seen fresh interest from the various brokerage firms, who have recently initiated their coverage on these companies.

The host of brokerages including Anand Rathi Shares & Stock Brokers, JM Financial, Motilal Oswal Financial Services, Kotak Institutional Equities and Systematix Institutional Equities  have launched their maiden reports on these stocks. All stocks have ‘buy’ ratings on them with an upside potential of 30 per cent. Here’s what brokerage said on these stocks:

Anand Rathi Shares & Stock Brokers on Mahindra & Mahindra
Rating: Buy | Target Price: Rs 3,600 | Upside Potential: 17%
Anand Rathi is positive regarding Mahindra & Mahindra (M&M) due to its domestic market share gains across PVs, CVs and tractors. It expects volumes to grow at a 9 per cent CAGR over FY25-27, driven by 12 per cent in PVs, 6 per cent in tractors (on the favourable regional trend and launches), 6 per cent in CVs (rising share of pick-ups) and 15 per cent in exports.

“Realization growth would be notable at 8 per cent, owing to a higher share of EV models (FY26e/27e mix at 8 per cent/12 per cent; value 2x higher than the average). We expect standalone + MEAL’s revenue to grow by a strong 18 per cent CAGR over FY25-27. We, thus, initiate coverage on the stock with a ‘buy’ rating, and a SOTP target of Rs 3,600,” it said.

Motilal Oswal Financial Services on Jindal Stainless
Rating: Buy | Target Price: Rs 770 | Upside Potential: 18%
Jindal Stainless (JSL) is India’s leading stainless steel manufacturer with a 3mt capacity. It operates a wide network of 16 stainless steel manufacturing and processing facilities in India and internationally. Its product portfolio includes stainless steel slabs, blooms, coils, plates, sheets, precision strips, wire rods, rebar, blade steel, and coin blanks, said Motilal Oswal.

“JSL is aggressively expanding its capacity and enhancing backward integration to drive sustainable and profitable growth. The company focused on enhancing its value-added portfolio, further supporting margins. JSL has deleveraged its balance sheet from the peak of Rs 10,300 crore during FY16 to Rs 4,000 crore as of FY25. We initiate coverage on the stock with a ‘buy’ rating and a target of Rs 770,” it added.
 

Systematix Institutional Equities on Welspun Corp
Rating: Buy | Target Price: Rs 770 | Upside Potential: 30%
Welspun Corp is a prominent player in large-diameter pipes across India, the US, and Saudi Arabia. With a manufacturing capacity of 2.3mt, the company commands significant market share in steel pipes business across regions. It has evolved from a specialized line pipe manufacturer to a diversified conglomerate by expanding its product portfolio, said Systematix.

“Welspun’s strategic foray into building materials is on track for a prolonged expansion phase and targets increasing Sintex’s market share in water storage tanks to over 15 per cent over the next 3-4years; leveraging the Sintex brand and Welspun’s established B2B presence to rebuild its solid dealer/distributor network; and capitalising on rising TMT demand in India. We initiate with ‘buy’ with an SOTP-based target price of Rs 1,006 per share,” it added.

Anand Rathi Shares & Stock Brokers on Transformers & Rectifiers India
Rating: Buy | Target Price: Rs 670 | Upside Potential: 29%
Transformers and Rectifiers (TARIL) has consolidated its position in the Indian Transformer Industry as a manufacturer of a wide range of transformers, which conform to the quality expectations of both the domestic and the international market. TARIL is a prominent player in the manufacturing of transformers and reactors in India, said Anand Rathi.

“TARIL remains committed to driving margin expansion by prioritizing operational excellence, improving key financial ratios, and further strengthening its backward integration. As part of its strategic roadmap, it aims to become entirely debt free within the next 1-2 years. With strong fundamentals, industry-leading capabilities and high-quality order pipelines, the company is well positioned to navigate the opportunities and challenges of the coming year,” it said with a ‘buy’ rating and a target price of Rs 670.

JM Financial on Hero MotoCorp
Rating: Buy | Target Price: Rs 4,700 | Upside Potential: 10%
Near-term domestic demand is expected to be driven by the marriage season (May and June). Hero MotoCorp expects the domestic 2W industry to grow by 6-7 per cent in FY26, led by rural recovery, healthy monsoon prediction, reduction in income tax, and increased government spending. However, ramp-up of EV volumes will be a drag on margins to some extent, said JM Financial.

“The management believes Hero to outperform the underlying industry in both the domestic and exports segments, led by its recent / upcoming product launches and entry into new geographies. We are factoring in a moderate volume growth of 5 per cent/ 6 per cent for FY26E / FY27E. On the margins front, management has maintained its long-term guidance of 14-16 per cent. We re-initiate coverage with a ‘buy’ rating and a target price of 4,700,” it added.

Kotak Institutional Equities on Hexaware Technologies
Rating: Buy | Target Price: Rs 940 | Upside Potential: 22%
“We initiate coverage on Hexaware with a BUY rating and a 12-month Fair Value of Rs 940, based on 30 times March 2027E EPS. Our positive view on Hexaware is based on a well-rounded and consistent performance with equal emphasis on revenue growth, margins and FCF generation,” said Kotak Institutional Equities.

The business model has strengthened across all dimensions, from quality of accounts to depth of relationships and expansion of capabilities, and is well equipped to outperform peers on growth consistently over the next few years, Kotak added.