JM Financial Highlights Top 4 Buy Recommendations: Innova Captab, Fortis Healthcare, Oil India, and Power Grid Corporation
May 22, 2025 — JM Financial, a leading brokerage firm, today revealed its top four stock picks poised for robust gains across diverse sectors. The firm maintained a bullish outlook on Innova Captab, Fortis Healthcare, Oil India, and Power Grid Corporation, signaling strong growth potential backed by recent financial performance and future projections.
Here’s an in-depth look at JM Financial’s favored buys:
Innova Captab: Pharma Sector Growth with Expanding Market Reach
JM Financial has reaffirmed its Buy rating on Innova Captab with a target price of ₹1,152, indicating an upside potential of 26.5% from current price levels. The pharma company posted mixed results in Q4FY25, showing 20% year-on-year revenue growth, albeit 7% below expectations. However, the standout was its EBITDA margin at 15.2%, beating estimates by 102 basis points.
The company’s PAT (Profit After Tax) increased modestly by 3% year-on-year to ₹296 crore. JM Financial notes the recent commercialization of Innova Captab’s Jammu manufacturing plant has broadened its addressable market to include injectables and liquid formulations. The brokerage projects strong compounding annual growth rates (CAGR) of 29% in revenue, 33% in EBITDA, and 34% in PAT from FY25 to FY28, making it a compelling buy in the pharmaceutical space.
Fortis Healthcare: Robust Hospital and Diagnostic Business Expansion
Healthcare giant Fortis Healthcare features prominently in JM Financial’s recommendations with a Buy call and a target price of ₹810. The stock offers an estimated 20.5% upside.
Fortis delivered a solid Q4FY25 performance, with revenue, EBITDA, and adjusted PAT growing by 12%, 14%, and 28% year-on-year, respectively. The hospital segment led with 14.2% revenue growth, while diagnostic services improved by 3%. JM Financial anticipates Fortis to maintain over 15% topline growth over the next three years, coupled with 200 to 300 basis points of margin expansion.
Additionally, the hospital network is projected to generate free cash flows of approximately ₹39.8 billion over three years. Currently trading at a forward EV/EBITDA multiple of 26.2 times, the brokerage expects potential for multiple expansion as fundamentals strengthen.
Oil India: Resilient Public Sector Oil Major with Dividend Appeal
JM Financial continues to rate Oil India as a Buy, assigning a target price of ₹500 which suggests a 17.1% appreciation potential. Despite a dip in standalone Q4FY25 EBITDA to ₹21.3 billion—attributed to higher other expenses and contract costs—the company exceeded crude sales volume expectations by 4%. The Numaligarh Refinery Limited (NRL) refinery posted a notable Gross Refining Margin (GRM) of $9.3 per barrel, bolstering earnings.
Consolidated FY25 earnings per share (EPS) stood at ₹40.3, with JM Financial forecasting earnings growth at approximately 13% CAGR over the next three to five years. The stock also offers a healthy dividend yield of around 4-5%, making it an attractive investment for income-seeking investors. Valued at a modest 6.3 times FY27 estimated EPS, Oil India presents a compelling risk-reward profile.
Power Grid Corporation: Transmission Sector Leader with Next-Gen Projects Driving Growth
The power sector stalwart Power Grid Corporation completes JM Financial’s list with a Buy rating and a price target of ₹341, implying a 19.3% upside.
Q4FY25 revenues largely held steady at ₹123 billion, matching expectations. EBITDA was robust at ₹102 billion with an impressive margin of 83.3%, despite elevated employee and finance costs which weighed down adjusted PAT to ₹41 billion.
JM Financial highlights that nine Transmission Based Capital Works (TBCB) projects are over 90% complete and expected to be commissioned in FY26, fueling capitalisation growth. Capital expenditure for FY26 is projected to exceed ₹250 billion, driven by progress on high-voltage direct current (HVDC) projects.
The brokerage emphasized that although large transmission projects are complex to execute, they offer rewarding returns. Improved visibility on project commissioning and earnings growth underpin the firm’s positive stance, positioning Power Grid as a solid long-term investment.
Investors looking to capitalize on these top sector picks from JM Financial should consider incorporating these stocks into a diversified portfolio. For continuous updates on Nifty 50, BSE Sensex, and expert market insights, visit Financial Express or download their app for timely business news and investment strategies.
This report was first published on May 22, 2025, at 4:54 PM IST.