Discounted stocks to BUY: Brokerage recommendations often serve as an important indicator of a stock’s near-term potential, offering investors insights into valuation, earnings outlook, and sector trends. According to leading global and domestic brokerage firms, several stocks, including Bajaj Auto One 97 Communications and others, are currently trading at attractive valuations and could deliver substantial upside from current levels.
Some of these stocks are estimated to have upside potential of up to 35 per cent based on brokerage target prices.
For investors seeking long-term wealth creation through fundamentally strong businesses available at relatively discounted prices, here are the top five brokerage-backed stock ideas that could potentially generate strong returns in the coming months.
The brokerage highlighted the company’s strong operational performance during the quarter, supported by sustained EBITDA margins and resilient export demand.
Emkay noted that export momentum remains robust, particularly across Latin America and Nigeria, which continue to drive volume growth. While management expects domestic motorcycle industry growth to moderate to 7–9 per cent, the brokerage remains optimistic on earnings visibility and has raised FY27 and FY28 EPS estimates by 2.5-4 per cent.
Paytm
Bernstein Believes Stock to Outperform
Bernstein has reiterated its ‘Outperform’ call on One 97 Communications with a target price of Rs 1,500, indicating a potential upside of 28 per cent from the current price of Rs 1,173.95.
The brokerage said Paytm delivered a steady Q4FY26 performance with EBITDA broadly in line with expectations at Rs 1.3 billion. It highlighted resilient profitability despite the absence of UPI incentive accruals and the discontinuation of PIDF incentives.
Bernstein also praised disciplined cost management and expects strong EBITDA expansion through FY30, driven by sustained revenue growth.
Morgan Stanley Sees 28 per cent Upside
Morgan Stanley has maintained its ‘Overweight’ rating on Home First Finance Company India with a target price of Rs 1,560, suggesting an upside of 27.6 per cent from the current market price of Rs 1,222.80.
The brokerage highlighted a better-than-expected earnings performance in Q4FY26, supported by healthy loan growth and improving asset quality metrics.
The brokerage also noted that stressed asset formation fell to its lowest level since Q4FY22, with both 1+ DPD and 30+ DPD metrics improving sequentially. Despite some pressure on net interest margins, Morgan Stanley believes valuations remain attractive given the company’s strong growth trajectory and return profile.
Zomato’s Parent to Deilver 35 per cent Return
Morgan Stanley has retained its ‘Overweight’ recommendation on Eternal and marginally raised the target price to Rs 347 from Rs 345. With the stock currently trading at Rs 257.25, the revised target implies an upside potential of around 35 per cent.
The brokerage said the company’s quick commerce business delivered impressive profitability and customer growth during the quarter. Blinkit’s order-per-day growth rose 15 per cent quarter-on-quarter, while management projected more than 60 per cent CAGR in net order value over the next three years.
The company is also targeting an adjusted EBITDA of USD 1 billion by FY29. Morgan Stanley believes the risk-reward remains favourable despite a mixed headline performance.
Brokerage Maintains BUY call
Goldman Sachs has maintained its ‘Buy’ recommendation on Mahindra & Mahindra with an unchanged target price of Rs 4,000, implying an upside of nearly 18 per cent from the current market price of Rs 3,391.95.
The brokerage said the company’s Q4 results exceeded expectations, supported by continued strength in the SUV segment.
Goldman Sachs noted that concerns around the sustainability of SUV demand appear to be easing. It also believes revised CAFÉ emission norms could improve the profitability outlook for the company’s electric vehicle transition.
| Stock Name | Brokerage | Recommendation | Target and Upside |
| Bajaj Auto | Emkay | BUY | 12,600 (19 per cent) |
| Paytm | Bernstein | Outperform | 1,500 (28 per cent) |
| Home First Finance | Morgan Stanley | Overweight | 1,560 (27.6 per cent) |
| Eternal | Morgan Stanley | Overweight | 347 (35 per cent) |
| M&M | Goldman Sachs | BUY | 4,000 (18 per cent) |
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
