..... . VALI disclosures . .....: 24/10/26, The 10 stocks covered here have potential upside estimates ranging from 22% to 91%, based on the target prices cited in the reports.

Saturday, October 24, 2026

24/10/26, The 10 stocks covered here have potential upside estimates ranging from 22% to 91%, based on the target prices cited in the reports.

The Indian stock market ended the week of October 19-23, 2026, with sharp losses. The Sensex fell 2.15%, while the Nifty 50 declined 2.36%, as rising crude oil prices, foreign investor selling and mixed September-quarter earnings weighed on sentiment.

However, brokerage reports identified potential opportunities in 10 stocks, with indicated upside ranging from 22% to 91% based on their target prices.

The 10 stocks covered here have potential upside estimates ranging from 22% to 91%, based on the target prices cited in the reports.

1. Swiggy: Nuvama sees 91% upside potential

Nuvama has retained its ‘Buy’ rating on Swiggy, although it has lowered its target price from Rs 444 to Rs 403. The revised target still implies an upside of around 91% from the reference market price used in its report.

According to the brokerage report, Swiggy’s revenue increased 11.1% quarter-on-quarter to Rs 7,570 crore in the September quarter. However, losses widened, with earnings before interest, tax, depreciation and amortisation (EBITDA) loss reaching Rs 770 crore and net loss standing at Rs 920 crore.

Food delivery contribution margin improved to 7.7%, while Instamart’s contribution margin declined to minus 1%.

2. KEI Industries: Jefferies sees 59% upside potential

Jefferies has a ‘Buy’ rating on KEI Industries and a target price of Rs 6,150, implying an upside of nearly 59% from the reference market price.

According to the global investment bank report, demand for cables and power transmission infrastructure could support growth over the next two years. KEI’s capacity expansion at Sanand, Gujarat, has started commissioning in phases and is expected to contribute to future growth.

“This is a premium to the last 5- year avg of 36x P/E, as visibility on exports and power transmission is improving. Our EPS factors in 20% CAGR over FY26-29E,” it said.

3. Vishal Mega Mart: JM Financial sees 49% upside potential

JM Financial has maintained its ‘Buy’ rating on Vishal Mega Mart, with an unchanged target price of Rs 134. This indicates an upside potential of around 49% from the reference price used in its report.

The retailer’s September-quarter performance fell short of expectations. According to JM Financial, EBITDA was 8% below its estimate, while profit after tax missed expectations by 12%. Net profit rose 3.7% year-on-year to Rs 160 crore.

The timing of festivals affected demand during the quarter, with Navratri, Durga Puja and Dussehra shifting into the December quarter. Apparel sales grew 9.5%, compared with 18.2% growth in fast-moving consumer goods (FMCG).

4. Sobha: Motilal Oswal sees 45% upside potential

Motilal Oswal has retained its ‘Buy’ rating on Sobha and set a target price of Rs 1,710 per share. This represents an upside of around 45% from the reference market price.

According to the brokerage report, Sobha recorded pre-sales of Rs 2,210 crore in the September quarter, up 16% year-on-year. Bengaluru accounted for 60% of bookings, followed by the National Capital Region at 27%.

However, the company also reported lower revenue and profit. Motilal Oswal has highlighted a pipeline of 18 projects covering 20.4 million square feet, with a combined gross development value of Rs 31,400 crore.

5. Eternal: JM Financial sees 44.2% upside potential

JM Financial has a ‘Buy’ rating on Eternal and a 12-month target price of Rs 450, implying an upside potential of 44.2% from the reference market price.

The brokerage highlighted growth in both Blinkit’s quick-commerce business and Zomato’s food delivery operations. Blinkit’s net order value increased 79.3% year-on-year in the September quarter, while Zomato’s net order value grew 21.5%.

Blinkit’s adjusted EBITDA improved to Rs 1.84 billion, with its margin rising to 0.9% from 0.6% in the previous quarter. The company has also raised its store expansion targets.

6. Crompton Greaves Consumer Electricals: Jefferies sees 41% upside

Jefferies has retained its ‘Buy’ rating on Crompton Greaves Consumer Electricals, with a target price of Rs 305. The target implies an upside of around 41% from the reference market price.

According to the report, Crompton Greaves September-quarter profit after tax was in line with expectations, while sales grew 18% year-on-year and adjusted profit after tax rose 30%.

The company has increased prices in its electrical consumer durables segment to manage higher input costs.

7. Bajaj Finance: Nomura sees 32.7% upside potential

Nomura has maintained its ‘Buy’ rating on Bajaj Finance and set a target price of Rs 1,270, implying an upside potential of 32.7% from the reference market price.

Bajaj Finance September-quarter profit growth was in line with the brokerage’s estimate, and it raised its full-year loan growth guidance. Nomura expects lending growth to remain healthy, with newer businesses such as gold loans adding to the portfolio.

However, higher interest rates could put pressure on net interest margins, which measure the difference between interest earned and interest paid.

8. Oberoi Realty: JM Financial sees 32.1% upside potential

JM Financial has a ‘Buy’ recommendation on Oberoi Realty, with a target price of Rs 2,250. This implies a potential upside of 32.1% from the reference market price.

According to the brokerage report, the Oberoi Realty recorded quarterly pre-sales of Rs 9,150 crore, supported by the launch of Three Sixty North in Gurugram. The project contributed Rs 7,890 crore, with 97% of the launched area booked.

JM Financial expects new projects to support the sales pipeline.

9. ACME Solar Holdings: Nomura sees 26% upside potential

Nomura has initiated coverage on ACME Solar Holdings with a ‘Buy’ rating and a target price of Rs 505, indicating an upside of 26% from the reference market price.

According to the brokerage report, the company is expected to add 4.3 gigawatts of contracted capacity over FY27-FY29. Nomura expects this expansion to support revenue and EBITDA growth over the period.

ACME Solar is also increasing its focus on firm and dispatchable renewable energy, which combines power generation with storage to meet specified delivery schedules.

10. CEAT: Nomura sees nearly 22% upside potential

Nomura has retained its ‘Buy’ rating on CEAT, although it reduced its target price by 6% to Rs 4,009 per share. The revised target implies an upside of nearly 22% from the reference market price.

The tyre maker’s September-quarter revenue was in line with Nomura’s projections, while its EBITDA margin exceeded expectations. However, the brokerage expects raw material prices to rise sequentially in the December quarter, putting pressure on costs.

“It has taken 12-13% price hikes so far in replacement and 14-15% in OE, and more hikes are planned in 3Q. Price hikes by competitors also have been similar with a lag,” Nomura said.

Overall, Swiggy, KEI Industries and Vishal Mega Mart feature among the stocks with the highest indicated upside, while the remaining picks span sectors such as real estate, consumer durables, financial services and renewable energy.

Article written by Olivia Kunjumon

Source: FinancialExpress

Disclaimer: This article is based on research reports from one or more brokerage firms and is for informational purposes only. The views, target prices, and recommendations expressed are those of the respective brokerage firms

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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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Saturday, October 24, 2026

24/10/26, The 10 stocks covered here have potential upside estimates ranging from 22% to 91%, based on the target prices cited in the reports.

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24/10/26, Report on Aerospace Metal Stocks

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