JM Financial Highlights Top 4 Buy Recommendations for Investors: Innova Captab, Fortis Healthcare, Oil India, and Power Grid Corporation
Mumbai, May 22, 2025 — In the current market landscape, JM Financial has identified four promising stocks across diverse sectors, signaling strong potential gains for investors. The brokerage firm has maintained a bullish outlook on Innova Captab, Fortis Healthcare, Oil India, and Power Grid Corporation, each demonstrating solid fundamentals and growth prospects in their respective industries.
Here is a detailed overview of JM Financial’s top four Buy recommendations, including the rationale behind their positive stance:
- Innova Captab (Pharmaceutical Sector)
JM Financial has reaffirmed a Buy rating on Innova Captab, setting a target price of Rs 1,152, which represents an upside potential of approximately 26.5% from current market levels. Despite a mixed performance in Q4FY25, the pharmaceutical company’s revenue increased by 20% year-on-year (YoY), although slightly missing estimates by 7%. The highlight was the EBITDA margin, which stood at 15.2%, beating expectations by 102 basis points. Profit after tax (PAT) rose modestly by 3% YoY to Rs 296 crore.
The brokerage emphasized the strategic expansion of Innova Captab’s addressable market, citing the commercialisation of its Jammu manufacturing plant, which now supports injectables and liquid formulations. JM Financial forecasts a robust compound annual growth rate (CAGR) from FY25 to FY28, with revenue expected to grow at 29%, EBITDA at 33%, and PAT at 34%, underscoring the company’s strong growth trajectory.
- Fortis Healthcare (Healthcare Sector)
Fortis Healthcare has also secured a Buy recommendation, with JM Financial setting a target price of Rs 810, suggesting an upside of 20.5%. The healthcare major delivered strong Q4FY25 results, posting revenue growth of 12%, EBITDA up 14%, and adjusted PAT increasing by 28% YoY. The hospital business experienced a healthy revenue growth of 14.2%, while diagnostic services showed a modest 3% rise.
JM Financial expects Fortis Healthcare to achieve over 15% topline growth annually over the next three years, coupled with a margin expansion of 200-300 basis points. The brokerage anticipates that the company will generate free cash flows of Rs 39.8 billion during this period. Currently trading at a forward EV/EBITDA multiple of 26.2x, Fortis Healthcare is viewed as likely to experience multiple expansion as fundamentals improve.
- Oil India (Oil and Gas Sector)
Public sector oil major Oil India remains a favored stock for JM Financial, which holds a Buy rating with a target price of Rs 500, implying an upside of 17.1%. Although the company’s standalone Q4FY25 EBITDA was impacted by higher other expenses and contract costs, totaling Rs 21.3 billion, it still demonstrated operational strength. Crude sales volumes exceeded estimates by 4%, and the Numaligarh Refinery Limited (NRL) refinery reported a gross refining margin (GRM) of $9.3 per barrel, enhancing overall earnings.
For FY25, consolidated earnings per share (EPS) stood at Rs 40.3, with JM Financial projecting a healthy earnings growth CAGR of approximately 13% over the next three to five years. Additionally, Oil India is regarded as a robust dividend-paying stock, offering yields in the range of 4-5%. Trading at an attractive valuation of 6.3x FY27 estimated EPS, the stock’s target price remains stable despite recent adjustments in EBITDA forecasts, supported by increased value from listed investments.
- Power Grid Corporation (Power Sector)
Power Grid Corporation, a dominant player in the power infrastructure sector, garners a Buy rating from JM Financial with a target price of Rs 341, indicating nearly 19.3% upside potential. For Q4FY25, the company reported largely stable revenue of Rs 123 billion as projected. Earnings before interest, taxes, depreciation, and amortization (EBITDA) reached Rs 102 billion with an 83.3% margin, despite higher employee and finance costs. However, adjusted PAT fell to Rs 41 billion due to elevated expenses.
JM Financial highlighted that nine Transmission Based Competitive Bidding (TBCB) projects are more than 90% complete and are expected to be commissioned by FY26, which would boost capitalisation. Capital expenditure is anticipated to exceed Rs 250 billion in FY26, reflecting significant progress on high-voltage direct current (HVDC) projects. The brokerage noted, “Execution of large transmission projects is inherently challenging but perpetually rewarding,” and foresees improved visibility in earnings growth and capitalisation, affirming Power Grid’s appeal as a long-term investment.
Investor Takeaway
JM Financial’s selection of stocks spans key sectors—pharmaceuticals, healthcare, oil and gas, and power infrastructure—each demonstrating unique growth catalysts and promising financial metrics. Investors eyeing these sectors may find these recommendations insightful for portfolio diversification and capital appreciation potential.
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This article was initially published on May 22, 2025, at 4:54 PM IST.