A powerful brokerage report on these 11 stocks will take off as soon as the market opens.
News Topical, Digital Desk : This powerful brokerage report on these 11 stocks will hit at open. Where are the big players in the market investing their money? Because where big players focus, that’s where the future themes and investment ideas will likely emerge. Something similar is seen currently. Many big brokerage firms from India and the world are churning out one report after the other, with certain names repeatedly showing up-Reliance Industries, BPCL, HPCL, IOC, Dixon Technologies, Delhivery, Aurobindo Pharma, CONCOR, Amber Enterprises, and L&T. But there’s more than one story about each of these companies. Some believe in the AI narrative. Some await a Jio IPO.
Some are anticipating good profits from falling crude oil prices.
Some are eyeing enormous opportunity in electronics manufacturing. First of all, let’s discuss the Oil Marketing Companies or OMCs. Till a few months ago, many investors were wary of companies like BPCL, HPCL, and IOC.
Middle East was on the boil and crude oil prices were sky high, pressuring the margin for these companies on petrol and diesel prices. But now things are taking a U turn. Kotak Institutional Equities mentions that the pressure which was prevailing between March to May is mostly eased out.
On rise of petrol and diesel prices, the breakeven for these companies touched USD 102-105 per barrel.
Oil prices have fallen by more than 30% since then. So what was feared, is now a comfort. Kotak also feels margins for OMCs have become stronger, hence it has upgraded BPCL, HPCL, and IOC to ‘buy’. It is estimated these OMCs won’t post any losses for FY27, and FY28 and FY29 earnings can be significantly strong if crude oil price remains at USD 75/barrel.
However, JPMorgan continues to remain somewhat cautious and states that petrol & diesel margins have normalized to pre-war levels, however losses persist in LPG business.
The impact of inventory losses may persist in Q1FY27, however profit is expected to rise from Q2 onwards. This clearly implies that the environment for OMCs has gotten significantly better than before. But if there’s one company that’s discussed more than others, it has to be Reliance Industries.
Almost all major brokerages seem enthusiastic about Reliance, not just for the Jio story but this time for AI as well. CLSA mentions that Reliance is now embedding AI into every key business and its firstAIcompute capacity may be operational by end of 2026. CLSA is bullish on Reliance with Outperform rating and target price of 1,800.
Intriguingly, CLSA is of the view that the value of Reliance’s newly added businesses in AI, FMCG, Media, New Materials and Exports are not priced in.
Hence Reliance holds some hidden value. Nomura is too bullish on Reliance and expects Jio Platforms to beIPOed by the end of 2026. Nomura values Jio at 117-127 billion dollars. The work on Sovereign AI Hub in Jamnagar is also accelerating, alongside setting up of solar module, solar cells and battery gigafactory.
New energy business could report profitability for the first time in FY27, expects Nomura.J P Morgan remains very bullish on the company and is seeing Retail expanding into manufacturing and exports along with the growing presence of FMCG.
Target of retail business to reach 1 lakh crore by 2030 is impressive. Motilal Oswal considers Reliance as one of the biggest wealth creators of the next 5 years. O2C, AI, New Energy, FMCG, and Exports are expected to drive the growth of Reliance, according to the brokerage.
Next up, let’s talk about the manufacturing theme in India. If there’s a company that personifies the Indian manufacturing dream, it is Dixon Technologies. Nomura estimates the Indian mobile EMS market at roughly 150 million units/annum, and Dixon is seen to scale up its market share from 19% in 2025 to 32% in FY28, aided by OEM partners, local manufacturing, value add and exports.
Meanwhile, Amber Enterprises also seen gainingsomementum and CLSA anticipates it to scale up to producing 14-15 million smartphone units by FY29.
Deal with Oppo could enhance profits significantly going forward. Even in the logistics sector, confidence is growing on Delhivery. Motilal Oswal says the growth story of Delhivery continues to be strong, driven by the booming e-commerce and consumers, with Q4FY26 express volumes up by a sharp 73%. The company is also seen improving margins gradually.
In the Pharma space, HSBC is bullish on Aurobindo Pharma given strong growth prospects for the company’s US business following the Lannett acquisition.
US sales are seen touching $2 billion in FY27. Nomura is also positive on Dr Reddy’s, as it is seen to be shifting more focus towards branded generics and consumer healthcare which can improve quality of earnings. In the infra space, L&T is also back in the limelight.
CLSA notes that L&T has moved beyond its core identity as a road, bridges, and infrastructure company and is aggressively investing in new age domains like AI Data Centers, Semiconductors, EMS, Green Hydrogen and Defense, with investments of around USD 4 billion planned between FY26 to FY31. Hence in coming years L&T will be identified not only as an infra player but also as a tech and manufacturing company. To sum it up, there are essentially 3 key themes that brokerages are betting onCurrently.
One, crude oil decline could prove positive for OMCs.
Second, Reliance with its AI, Jio IPO, and New Energy story looks set for a multi-year run. And third, manufacturing & tech story driven by Dixon, Amber and L&T is here to stay. So the market isn’t just about the present earnings. Big players are betting on the growth story of next 5 to 10 years, and the eye right now is on AI, New Energy, Electronics Manufacturing, and Indian growth Story.
