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

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 has maintained a Buy rating on Hero MotoCorp, raising the target price to Rs 5,805 from Rs 5,663, reflecting a potential upside of 26% from the current market price of Rs 4,604. The brokerage highlights rural market improvement as a key catalyst for growth.

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 has maintained a Buy rating on Grasim Industries but reduced the target price to Rs 3,100 from Rs 3,250, indicating a potential upside of 22% from the current market price of Rs 2,528.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 has maintained an Outperform rating on Crompton Greaves Consumer Electricals (CG Consumer) with a target price of Rs 500, indicating a potential upside of 34% from the current market price of Rs 371.

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)