10/01/26, Financial Express Report on 10 stocks

This week, several top research houses, including Morgan Stanley, Nomura, Nuvama Wealth Management, Motilal Oswal, and CLSA, shared their latest recommendations, and we shortlisted 10 stocks across the banking, finance, auto, and consumer sectors.

Nomura on Dixon Technologies

Nomura recommends 'Buy' on Dixon Technologies and sees as much as 36% upside potential. Nomura noted that Dixon is navigating a difficult phase, especially in its mobile phone business. However, they also point to potential recovery drivers that could shape the company's performance beyond the current financial year. According to Nomura, "global memory prices (DRAM and storage) have increased by 30-40% quarter-on-quarter in Q3FY26," driven by strong demand from artificial intelligence-related infrastructure. As per the brokerage report, mobile companies in India have already raised prices, and further hikes are possible.

Motilal Oswal on Titan

Titan is rated Buy with a target price of Rs 5,000, offering a 17% upside. The analysis centres on Titan's disruptive entry into the lab-grown diamond (LGD) market via its new brand, 'beYon'. By pricing LGDs at Rs 23k-25k per carat, significantly lower than current market rates, Titan is targeting fashion-forward consumers without impacting its luxury heritage brands like Tanishq and Zoya. Leveraging an ecosystem of 40 million customers under the "House of Titan," the company is capturing a new lifestyle segment.

Nomura on IDFC First Bank

Nomura initiated coverage on IDFC First Bank with a 'Buy' rating, pointing to an upside potential of around 23.5% from current levels. According to the brokerage report, the bank is moving out of a long investment-heavy phase and entering a period where earnings and profitability could stabilise and improve. The brokerage has set a target price of Rs 105 for the stock. As per the brokerage report, IDFC First Bank has spent several years reshaping its business model and balance sheet. The brokerage firm noted that this transition phase is largely behind the bank.

Motilal Oswal on Mahanagar Gas

Motilal Oswal on Mahanagar Gas has issued a price target of Rs 1,700. This represents an upside of nearly 49% from the current market price. Analysts at the brokerage expect Mahanagar Gas to see an 11% annual growth in volume through 2028, largely because of more CNG vehicles hitting the road in its core markets. While high global gas prices are putting pressure on margins right now, Motilal Oswal argues that the stock price already accounts for these difficulties. The firm values the company at 15 times its estimated earnings for late 2027, noting that the current trading price is quite low compared to future earnings projections.

Nuvama on Marico

Marico is slated for a massive consolidated revenue expansion of approximately 27% YoY, spearheaded by its Parachute business, where sales are likely to surge 45% due to strategic pricing adjustments, as per a report by Nuvama Institutional Equities. While copra prices have corrected 30% from their peak, they remain at levels that allow Marico to leverage its pricing power. The company's Value Added Hair Oil and international segments are both forecasted to grow by 22%, further solidified by the strong performance of its digital-first brands. Nuvama sets the target price on Marico at Rs 820, indicating a 24% upside.

CLSA on Dmart

According to CLSA's latest India Strategy report, the focus for the year is no longer on broad-based momentum but on structural "coiled springs" sectors and stocks that have consolidated long enough to lead the next leg of growth. According to CLSA, "we boost our consumption exposure by adding Eternal and DMart to our India focus portfolio and exit from Reliance Industries and Nestle India." Their recent pullback has improved risk-reward, and discretionary names give us a more leveraged exposure to growth in consumption."

Morgan Stanley on Aditya Birla Capital

Morgan Stanley has issued a high-conviction "Research Tactical Idea" for Aditya Birla Capital, predicting a significant share price surge. "We believe the share price will rise relative to the country index over the next 60 days," the report stated. Morgan Stanley maintained an 'Overweight' rating with a price target of Rs 427. This target represents a potential upside of approximately 18.4%. The brokerage estimated that "there is about an 80%+ (or 'highly likely') probability for the scenario." The core lending arm of Aditya Birla Capital is seeing a notable pick-up in speed. Morgan Stanley expects NBFC loan growth to hit 23% year-on-year, a step up from the 21.7% growth recorded in the second quarter.

Nuvama on Devyani International

Nuvama Institutional Equities on Devyani International has set a target price of Rs 211, which indicates a possible upside of 51.8% from the current price of Rs 139. The firm notes that the long-awaited merger between Devyani International and Sapphire Foods is a major positive step. This move is expected to help the company save money on raw materials and improve daily operations by combining two of the biggest food and beverage platforms in the country.

Morgan Stanley on Varun Beverages

Varun Beverages got an 'Overweight' recommendation from Morgan Stanley. One of the largest bottling partners of PepsiCo outside the US, Morgan Stanley has set a target price of Rs 600 for the stock. This implies an upside of 21.5% for the next 12 months. Morgan Stanley stated that "we believe the share price will rise in absolute terms over the next 45 days." The brokerage is confident that Varun Beverages' management will provide strong commentary in the upcoming quarterly earnings. "We think management commentary during Q4CY25 earnings could suggest an optimistic 2026 outlook for the India business," read the report.

Motilal Oswal on Groww

Motilal Oswal initiated coverage on Billionbrains Garage Ventures (Groww) with a 'Buy' rating, projecting a target price of Rs 185 for the next 12 months. This implied an upside potential of 19% from the current market price. Groww has emerged as the largest retail broking platform in India based on NSE active clients in just four years of its launch. The company commanded 26.8% market share as of November 2025, which is approximately 9% higher than its closest competitor. This rapid scaling is highlighted by a 3-fold revenue surge between FY23 and FY25, with expectations that revenue will double again over the FY25-28 period.

Disclaimer: This article provides factual analysis only and is not, and should not be construed as, an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor.