As the June quarter earnings season gets underway, with TCS set to report its Q1FY27 results on Thursday, domestic brokerage Motilal Oswal expects Nifty earnings to grow 10% year-on-year, the strongest pace in four quarters. Revenue growth is expected to remain healthy across segments, with large-, mid-, and small-cap companies likely to report sales growth of 17%, 15%, and 16% YoY, respectively. Here are 10 Nifty stocks that the brokerage is bullish on ahead of the Q1 earnings season.
With a target price of Rs 2,270, the brokerage forecasts an upside of 18% from current market levels. Motilal Oswal expects consolidated revenue to grow 4% QoQ, driven by strong performance in the Homes business, which is likely to expand by around 6%, and the Africa business, where revenue is expected to rise by about 5%.
The brokerage has assigned a target price of Rs 1,300, implying an upside of 26% from the last closing price. Motilal Oswal expects net interest margins (NIMs) to remain largely stable at 2.84% after the sharp decline in the March quarter, with the impact of term deposit repricing likely to be offset by an improvement in corporate lending spreads. The brokerage also expects asset quality to improve during the quarter.
The brokerage sees the stock rallying up to 27% from current levels. Motilal Oswal expects NIMs to soften marginally in Q1FY27, although adjusted NIMs are likely to remain broadly stable on a sequential basis, with the impact of deposit repricing offset by interest reversals during the quarter.
With a target price of Rs 3,910, the brokerage forecasts an upside of 23%. Motilal Oswal expects Mahindra & Mahindra's strong volume growth to be offset by margin pressures in Q1FY27. The company reported an 18% year-on-year increase in tractor sales and an 11% rise in passenger vehicle volumes, including Pik-Up models, during the quarter.
Analysts have pegged the target price at Rs 5,250, implying a 14.4% upside. Motilal Oswal expects Titan's standalone revenue, excluding the bullion business, to grow 38% year-on-year in Q1FY27, while Tanishq's like-to-like (LTL) sales are projected to rise 35%. The brokerage expects the standalone jewellery EBIT margin, excluding bullion and inventory gains following the customs duty increase, to decline by 80 basis points year-on-year to 10.7%.
Motilal Oswal, with a target price of Rs 380, expects a 32% upside for the stock. The brokerage expects net order value (NOV) in Eternal's food delivery (FD) and quick commerce (QC) businesses to grow 19.7% and 84.4% year-on-year, respectively. It forecasts the food delivery take rate at 21.5%, while the quick commerce business is expected to report a gross profit margin of 26.9%.
The brokerage has assigned a target price of Rs 1,230, implying a 16% upside. Motilal Oswal estimates disbursements of around Rs 49,800 crore in Q1FY27, taking assets under management (AUM) to approximately Rs 3.14 lakh crore, up 15% year-on-year and around 4% quarter-on-quarter. Key monitorables for the quarter include management's commentary on loan growth in the commercial vehicle (CV) segment and asset quality trends in the two-wheeler (2W) and personal loan (PL) portfolios.
The operator of IndiGo has a target price of Rs 6,590, implying a 22% upside. The brokerage expects fuel costs to account for around 38% of revenue during the quarter, compared with 28.5% in the year-ago period, due to higher aviation turbine fuel (ATF) prices. Motilal Oswal said management remains focused on expanding its international footprint through new routes and code-share partnerships.
The brokerage has pegged the target price at Rs 3,250, implying an upside potential of 17% from current levels. Motilal Oswal expects quarterly average assets under management (QAAUM) and yields to remain largely stable on a sequential basis in Q1FY27. Revenue growth is likely to be muted, reflecting largely flat QAAUM during the quarter. The brokerage expects the EBITDA margin to remain around the 80% mark.
India's oldest bourse has a target price of Rs 4,350, implying an upside of 18%, although the brokerage maintains a Neutral rating on the stock. The brokerage expects strong growth in transaction revenue in Q1FY27, driven by higher cash and derivatives trading volumes. It also expects EBITDA margin to expand on a sequential basis, aided by improved operating efficiency.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
