..... . VALI disclosures . .....: 06/06/26, Stocks to Buy

Saturday, June 6, 2026

06/06/26, Stocks to Buy

The domestic equity markets saw a significant fall this week. The Nifty 50 and Sensex fell over 0.96% and 0.83%, respectively, for the week.

However, several top research houses, including Nomura, Jefferies, Nuvama, Citi, Motilal Oswal, and JM Financial, shared their latest recommendations for key stocks amid a falling market, and we shortlisted 10 stocks across sectors.

Motilal Oswal on Titan

Motilal Oswal Maintained a Buy rating on Titan with a target price of Rs 5,250, implying 23.8% upside. The brokerage pointed to Titan's plans to significantly expand its jewellery business, gain market share in a still-fragmented industry and scale emerging businesses over the next four years.

The brokerage said Titan’s strategy remains centred on strengthening its position in organised jewellery retail while using premiumisation, store expansion and brand-led growth to drive earnings over the medium term.

Jefferies on Poonawalla Fincorp

The brokerage house believes that the non-banking financial company (NBFC) may be entering a new growth phase after a major strategic overhaul. The brokerage has initiated coverage on Poonawalla Fincorp with a target price of Rs 490. This implies an upside potential of nearly 23% from the current market price.

According to the Jefferies report, a combination of new leadership, product expansion, stronger underwriting standards and network growth could help the company deliver one of the fastest growth rates among large NBFCs over the next few years.

JM Financial on Emmvee Photovoltaic Power

JM Financial has maintained Buy rating on Emmvee Photovoltaic Powdr. The brokerage firm has revised its target price of Rs 377 on the stock, implying an upside of 24%.

Emmvee is seen as the most experienced TOPCon cell manufacturer, commanding an EBITDA/Wp of Rs 5.8, driven by a 51% integration level in FY26, approximately rising to 59% by FY28,” JM Financial noted. TOPCon stands for Tunnel Oxide Passivated Contact – a more energy-efficient solar cell manufacturing architecture.

Motilal Oswal on ICICI Bank

Retained its Buy rating and set a target price of Rs 1,750. Based on the current market price, the target implies an upside potential of about 41%.

The brokerage house believes ICICI Bank is entering its next phase of growth with several factors working in its favour. While the stock has delivered a relatively subdued performance over the last year amid foreign investors’ selling across the banking sector, Motilal Oswal expects the bank’s operational strength to eventually reflect in its valuation.

Citi on Hitachi Energy

Maintained Buy rating and a target price of Rs 46,700, indicating an upside of around 29%.

The brokerage said the company remains the market leader in high-voltage and high-voltage direct current equipment. Citi expects Hitachi Energy India to be among the biggest beneficiaries of upcoming HVDC projects because of its established market position and higher probability of securing near-term project wins.

Nomura on CG Power and Industrial Solutions

Maintained a Buy rating with a target price of Rs 1,050, implying upside of 19.4%.

The brokerage said India’s upcoming data centre buildout is expected to create substantial demand for electrical infrastructure. According to Nomura, electrical systems account for about 42% of total data centre capital expenditure, making them the largest spending category within a project.

The brokerage said data centre projects require higher reliability standards and more specialised engineering than conventional commercial developments. According to Nomura, this is helping suppliers like CG Power secure premium pricing and longer-term demand visibility.

Jefferies on Patanjali Foods

Retained its Buy rating with a target price of Rs 560, implying a potential upside of 23%. The brokerage said the company’s March quarter performance was impacted by weaker-than-expected profitability in the Foods and Fast-Moving Consumer Goods business and a high base in edible oils margins, though it sees improving conditions ahead.

Patanjali Foods reported revenue growth of 15% year-on-year during the March quarter, driven by volume growth and higher realisations in edible oils. Earnings before interest, tax, depreciation and amortisation (EBITDA) declined 14% year-on-year to Rs 445.4 crore, coming in below Jefferies’ estimates.

Nuvama on Titagarh Rail Systems

Maintaining Buy rating and revised its target price to Rs 1,089. This indicates an upside potential of nearly 36% from the current market price.

According to the brokerage report, near-term challenges in wagon ordering may continue, but several large railway and metro projects could support the company’s long-term growth trajectory. Titagarh Rail Systems reported a 14% year-on-year decline in revenue and a 53% drop in profit after tax during the March quarter.

Motilal Oswal on Shriram Finance Reiterated its Buy rating. and assigned a target price of Rs 1,175 per share. Based on the current market price, the target implies a potential upside of around 29%.

Motilal Oswal, in its report, noted that Shriram Finance is entering a new phase of growth supported by a stronger capital base, improving funding profile and a diversified lending business. A major factor behind the brokerage’s positive view is the strategic partnership with Japan-based financial giant Mitsubishi UFJ Financial Group (MUFG)

Nomura on Gujarat Gas

Nomura retained its Buy rating on Gujarat Gas while raising the price target to Rs 511 from Rs 390. This translates to an upside potential of 20% from the current market price.

Gujarat Gas near-term earnings are expected to be driven by a robust recovery in industrial volumes in the key Morbi cluster (reaching 8 million metric standard cubic metres per day by May 2026), primarily due to the non-availability of propane.

Margins for the City Gas Distribution (CGD) entity are expected to increase because the amalgamation allows for the consolidation of trading margins that were previously accrued by the unlisted Gujarat State Petroleum Corporation (GSPC).

Report by FinancialExpress

Disclaimer: The views and investment tips expressed by experts are their own and not of us. We advise readers and investors to check with certified experts before taking any investment decisions.

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Trade Cycles

The four important features of Trade Cycle are (i) Recovery, (ii) Boom, (iii) Recession, and (iv) Depression!

The trades cycle or business cycle are cyclical fluctuations of an economy. A full trade cycle has got four phases: (i) Recovery, (ii) Boom, (iii) Recession, and (iv) depression. The upward phase of a trade cycle or prosperity is divided into two stages—recovery and boom, and the downward phase of a trade cycle is also divided into two stages—recession and depression.

Phases of Trade Cycle:

The phases of trade cycle are explained with a diagram:

(1) Recovery:

In the early period of recovery, entrepreneurs increase the level of investment which in turn increases employment and income. Employment increases purchasing power and this leads to an increase in demand for consumer goods.

As a result, demand for goods will press upon their supply and it shall, thereby, lead to a rise in prices. The demand for consumer’s goods shall encourage the demand for producer’s goods.

The rise in prices shall depend upon the gestation period of investment. The longer the period of investment, the higher shall be the price rise. The rise of prices shall bring about a change in the distribution of income. Rent, wages, interest do not rise in the same proportion as prices.

Consequently, the margin of profit improves. The wholesale prices rise more than retail prices. The prices of raw materials rise more than the prices of semi-finished goods and the prices of semi-finished goods use more than the prices of finished goods.

(2) Boom:

The rate of investment increases still further. Owing to the spread of a wave of optimism in business, the level of production increases and the boom gathers momentum. More investment is possible only through credit creation. During a period of boom, the economy surpasses the level of full employment and enters a stage of over full employment.

(3) Recession:

The orders for raw materials are reduced on the onset of a recession. The rate of investment in producers’ goods industries and housing construction declines. Liquidity preference rises in society and owing to a contraction of money supply, the prices falls. A wave of pessimism spreads in business and those markets which were sometime before sellers markets become buyer’s markets now.

(4) Depression:

The main feature of a depression is a general fall in economic activity. Production, employment and income decline. The prices fall and the main factor responsible for it is, a fall in the purchasing power.

The distribution of national income changes. As the costs are rigid in nature, the margin of profit declines. Machines are not used to their full capacity in factories, because effective demand is much less. The prices of finished goods fall less than the prices of raw materials.

✳Reality Tips to Traders

1)Trading in the stock market is a marathon. 2)Protecting your capital is key. (Learn to protect first) 3)Making 0 on the day is better than losing 50k 4)Losses happen; they are part of this business. 5)It’s not you vs. the market. It’s you VS you. 6)You are your biggest enemy; learn to be mentally disciplined. 7)Don’t follow the majority; follow the correct path. 8)Traders without a stop loss end up not being traders for long. 9)There is always another trade. 10)The big money is made waiting for the right set-ups. 11)Waiting for the right trade is the most powerful strategy. 12)It is better to cut a loss than to wait to be proven right. 13)Position sizing can make or break you. 14)Worry about the downside before you even think about the upside. 15)Don’t listen to headlines

..BANKING TERMINOLOGY

There are various types of Banks: PSU Banks, Private Banks, Co-operative/Regional Banks, Small Finance Banks and Foreign Banks. When you deposit money in a bank, let's say the bank gives you an interest rate of 4%. But when the bank lends out this money, they lend it out at say, 12%. The difference of 8% in the above scenario is effectively the profit of the bank! The loans that do not pay interest for 90 days are known as Non-performing Assets. Banks have to provide for such bad loans. Structure of a Bank Asset for a Bank: The asset portion of a bank's capital includes cash, government securities, and interest-earning loans (e.g., mortgages, letters of credit, and inter-bank loans). Liabilities for a Bank: The bank's main liabilities are its capital (including cash reserves and, often, subordinated debt) and deposits. The latter may be from domestic or foreign sources (corporations and firms, private individuals, other banks, and even governments). Banks are required to maintain Liquidity with the Reserve Bank of India: SLR (Statutory Liquidity Ratio): It is the money a bank needs to preserve in the form of cash, gold or government Bonds before providing credit customers. This limitation is added by RBI on banks to make funds available to customers on-demand at your earliest convenience. Banks are required to maintain SLR at 18%. CRR (Cash Reserve Ratio): Banks are required to hold a certain proportion of their deposits in the form of cash. Banks don’t hold these as cash with themselves, but deposit such amounts with RBI / currency chests. CRR rate is at 4.5% currently. Repo Rate: The rate at which the RBI lends short-term money to the banks. The RBI through its Monetary Policy committee changes the repo rate to balance growth and Inflation. Reverse Repo rate: The rate at which banks park their short-term excess liquidity with the RBI. Now let us understand various terminologies for Banks Net Interest Income (NII): This is the spread the bank makes on its lending. It is calculated as Interest Income – Interest Expended Net Interest Margin (NIM): This is the spread the bank makes on its lending. It is the earning which is left after deducting the cost paid to depositors from its yields on Loans. This is denoted in % terms. The formula is Yield on Loans – Cost of funds Capital Adequacy Ratio (CAR): The capital adequacy ratio (CAR) is a measure of a bank's available capital expressed as a percentage of a bank's risk-weighted credit exposures. Essentially, it is the Capital that is available to lend. Tier I Capital – In simple words this capital is freely available with the bank to lend out. Tier II Capital- This is the capital tied up somewhere and is less freely available to lend. In case of an adverse event, the bank can use this capital to lend. Under Basel III norms, a bank’s tier 1+tier 2 capital must be a minimum of 8% of its risk-weighted holdings. The minimum capital adequacy ratio, also including the capital conservation buffer, is 10.5%. Current Account Saving Account (CASA)- There is no interest paid on the Current Account and a small interest rate is paid on a savings account. The combination of both is called CASA which shows the liabilities of the bank on which it pays relatively less interest. Deposits: Bank deposits are a savings product that customers can use to hold an amount of money at a bank for a specified length of time. In return, the financial institution will pay the customer the relevant amount of interest, based on how much they choose to deposit and for how long. Now let us come to NPA. Gross NPA (GNPA): It is the total loans on which no payment has been paid for 90 days or more. GNPA % is usually shown in each Bank’s quarterly results. The percentage is basically the GNPA amount as a % of the total advances. Slippages: Slippages denote the fresh amount of loans that have turned bad in a year. The slippage ratio of a bank is calculated as Fresh accretion of NPAs during the year /Total standard assets at the beginning of the year multiplied by 100. Provisioning Coverage Ratio (PCR): This is the ratio of provisioning to GNPA and indicates the extent of funds a bank has kept aside to cover loan losses. For Instance, a company has GNPAs of Rs 100 and they have set aside 50 Rs, then the PCR is 50%. Net NPA (NNPA): The total figure left after deducting provisions made for bad loans from GNPA. (GNPA – Provisions+upgrades/writeoffs = NNPA) Special Mention Account (SMA) SMA-0 is a category in which stress with respect to the principal and interest has remained overdue for a period of 0 to 30 days. SMA-1 is a category in which stress with respect to the principal and interest has remained overdue for a period of 30-60 days. SMA-2 is a category in which stress with respect to the principal and interest has remained overdue for a period of 60-90 days

..... . VALI disclosures . .....

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