Top Stock Brokerage Picks Today: Varun Beverages, Hindustan Zinc, IIFL Finance, and 3 Other Stocks Under the Spotlight

Major global brokerage firms have released their latest equity research reports and investment recommendations on Wednesday, spotlighting six prominent Indian companies. Highlighting fresh targets, strategic diversification moves, and regulatory updates, financial houses including CLSA, JPMorgan, and Jefferies have shared bullish outlooks on most counters, while maintaining selective caution on others.

CLSA Backs Varun Beverages’ Strategic Entry Into Alcobev Market

Global brokerage CLSA has maintained a high-conviction Outperform rating on Varun Beverages with a target price of ₹629. The endorsement follows the company's official entry into the Indian alcoholic beverages market through a newly established subsidiary.

Varun Beverages is strategically expanding beyond its core non-alcoholic portfolio to focus on ready-to-drink (RTD) alcoholic beverages and allied categories. With India's wider alcoholic beverages market estimated at an impressive $50.8 billion and supported by rising premiumization trends, CLSA notes that this diversification significantly broadens the company's addressable market. Furthermore, Varun Beverages is actively laying the groundwork for a global alcobev presence through strategic Scotch whisky initiatives and local partnerships.

JPMorgan Highlights Cyient’s Transition and Upgrades IIFL Finance Outlook

• Cyient: JPMorgan has maintained an Overweight rating on Cyient with a target price of ₹1,050. The brokerage highlighted the company's strategic shift from project-based assignments—which currently comprise about 40% of its operations—toward larger, predictable annuity-based contracts. Cyient's robust pipeline features a record nine qualified large deals with a combined total contract value of roughly $300 million, positioning the firm for strong financial acceleration through FY2027–28.

• IIFL Finance: JPMorgan maintains an Overweight rating on IIFL Finance with a target price of ₹750, despite addressing recent regulatory developments. IIFL Home Finance recently received an unexpected income tax assessment order amounting to ₹963 crore—equivalent to roughly 126% of its FY2026 profit—alongside an existing contested tax demand of ₹480 crore (which holds a recovery stay until December 31, 2026). While management plans to formally appeal both orders, the estimated aggregate per-share impact stands near ₹34, with leadership assuring investors that underlying business operations remain resilient.

Jefferies Eyes Relief for Gujarat Pipavav and Metals Outlook

• Gujarat Pipavav: Jefferies issued a Buy rating on Gujarat Pipavav, driven by potential regulatory tailwinds. Reports indicate that the Gujarat government is considering extending concession periods for key port assets, including Gujarat Pipavav and Adani Ports' Mundra, tied to specific investment commitments. This prospective extension addresses a major long-term overhang for Gujarat Pipavav, whose current concession agreement is scheduled to expire in September 2028.

• Hindustan Zinc & Hindalco: Jefferies maintained a Buy rating on Hindustan Zinc, upgrading its target price to ₹750 after lifting FY2027–29 EPS estimates by 10% to 11% on the back of soaring spot zinc prices (up 15% above Q1 averages) and a 23% recovery in silver from July lows. Conversely, for Hindalco, Jefferies maintained a Hold rating with an upgraded target of ₹1,140, trimming EPS estimates by 2% to 3% due to soft aluminum prices trading 10% below June quarter levels.