Brokerages remained positive on select stocks across chemicals, electronics manufacturing and refurbished technology segments, with firms such as HSBC, Nomura and Motilal Oswal highlighting strong growth visibility and structural tailwinds. Here are three stocks that analysts believe could deliver meaningful upside from current levels.
HSBC on SRF: Buy | Target price: ₹3,390
HSBC has initiated coverage on SRF with a ‘Buy’ rating and a target price of ₹3,390, implying an upside potential of around 26% from the current market price of ₹2,688.
According to the brokerage, SRF is one of India’s largest chemical manufacturing companies, with nearly 50% of its revenue generated from overseas markets. HSBC expects improving fundamentals in the specialty chemicals and performance films segments to drive a 26% earnings CAGR between FY27 and FY29.
However, the brokerage flagged risks in the refrigerant gas business along with possible headwinds from tariffs, anti-dumping duties, further price declines, geopolitical tensions in the Middle East leading to raw material shortages, and elevated inventories in agro-chemicals.
Nomura on Avalon Technologies: Buy | Target price: ₹1,772
Nomura initiated coverage on Avalon Technologies with a ‘Buy’ rating and a target price of ₹1,772. Based on the current market price of ₹1,473, the brokerage sees an upside potential of around 20%.
The brokerage said Avalon is well positioned to benefit from the global industrial EMS upcycle, supported by rising demand from sectors such as artificial intelligence, high-voltage direct current (HVDC), and semiconductors.
Nomura expects Avalon to deliver a 31% revenue CAGR between FY26 and FY29, while EBITDA margins are projected to improve from 10.8% in FY26 to 13.2% in FY29. The brokerage also forecasts a 41% EPS CAGR during the same period.
Motilal Oswal on GNG Electronics: Buy | Target price: ₹635
Motilal Oswal initiated coverage on GNG Electronics with a ‘Buy’ recommendation and a target price of ₹635.
The brokerage highlighted that GNG Electronics has built a large B2B-focused global refurbishment platform operating across nearly 46 countries, with around 95% of its revenue coming from institutional channels.
According to the brokerage, the refurbished PC market is entering a structural growth phase, driven by steep price discounts compared to new devices, improving enterprise acceptance, and supportive regulations such as right-to-repair policies and extended producer responsibility norms.
Motilal Oswal expects the company’s revenue, EBITDA and profit after tax to grow at CAGR of around 26%, 31% and 36%, respectively, over FY26–FY28, supported by strong volume growth, operating leverage and lower financing costs.
Disclaimer: The views and investment tips expressed by brokerages are their own and not recommendations by the publication. Readers are advised to consult certified financial advisors before making any investment decisions.