Hot Stocks: Brokerages see 20-30% upside in Hero MotoCorp, CG Consumer and Grasim

Synopsis

Global brokerage firms have shared optimistic outlooks on key stocks. Nomura remains bullish on Hero MotoCorp, citing rural growth, while Citi maintains a positive view on Grasim Industries despite a weak Q2. CLSA continues to favor Crompton Greaves Consumer Electricals for its sustained growth and margin improvement, with all three stocks showing significant upside potential.

Global brokerage firms have shared their outlook on key stocks, highlighting growth prospects, potential upsides, and critical drivers.

Nomura remains optimistic about Hero MotoCorp, citing rural market improvement and robust industry growth, while Citi sees long-term potential in Grasim Industries, despite a dip in Q2 performance, with its paints and VSF segments showing promise.

Meanwhile, CLSA emphasizes Crompton Greaves Consumer Electricals' sustained growth and margin improvement, positioning the company well for a potential re-rating, supported by strong medium-term visibility.

We have collated a list of recommendations from top brokerage firms (ETNow and other sources):

Nomura on Hero MotoCorp: Buy | Target Rs 5,805 | CMP Rs 4,604 | Upside 26%

Hero MotoCorp’s Q2 results met expectations, showing healthy earnings growth and attractive valuations, with room for margin improvement. Nomura expects the two-wheeler (2W) industry to grow by 10% over FY25-26, supported by favorable monsoon conditions and a rural market recovery.

Citi on Grasim Industries: Buy | Target Rs 3,100 | CMP Rs 2,528 | Upside 22%

Despite Q2 performance falling short of expectations, Citi remains positive on the company’s paints business, which is on track to achieve a high single-digit market share by FY25. The VSF segment showed improvement, while the chemicals segment faced sequential weakness.

CLSA on Crompton Greaves Consumer Electricals: Outperform | Target Rs 500 | CMP Rs 371 | Upside 34%

The company’s results were in line with expectations, and CLSA highlights the strong medium-term growth visibility as crucial for a potential re-rating. CG Consumer's growth momentum remains strong, with notable margin improvements, and the brokerage notes several growth levers in place for continued expansion.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of The Economic Times)

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