Stocks to buy: Q1 results led to Asia’s biggest downgrades but 5 brokerages have over 90 stocks in buying list

Even as India Inc saw Asia’s biggest earnings downgrades after a modest Q1 and amid risks from steep US tariffs, brokerages say weak earnings cycle may have bottomed out. Not only will the consumption theme play out in Q2, but the earnings growth could once again return to double-digits after 5 quarters on a low base.

Brokerages smell opportunities in domestic-facing stocks related to sectors like financials, consumer, telecom, etc while exporters like IT have few takers.

“Early monsoon, coupled with external trade and geopolitical headwinds, weighed on June 2025 quarter earnings as well as key high-frequency economic indicators. However, we anticipate a strong rebound in the September 2025 quarter, owing to a low base of activity due to elections in last year, which led to weak govt spending. Also, this year, Diwali is earlier as compared to the previous year by 12 days. This implies that the September 2025 quarter will likely capture a share of Diwali demand. The latter factor will revert in the December 2025 quarter but will provide a sentiment boost in the September 25 quarter,” said Mahesh Nandurkar of Jefferies.

Also Read | Q1 earnings shocker: 51 profitable companies just turned loss-makers. Is your portfolio at risk?

Emkay even raised its Nifty target for September 2026 to 28,000 with the headline index giving less than 2% return in the last one year.

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As the earnings of midcaps stood out during the quarter, Motilal Oswal said they have turned more constructive towards midcaps with 22% weight vs 16% earlier owing to better earnings delivery and improving prospects.

Here’s the list of stocks across largecaps, midcaps and smallcaps where top brokerages are bullish on:

Motilal Oswal

Largecaps – Bharti Airtel, ICICI Bank, L&T, M&M, Sun Pharma, UltraTech Cement, Titan, Eicher Motors, Bharat Electronics, Tech Mahindra, TVS Motor, Lodha Developers, Indian Hotels.

Mid and smallcap stocks – Dixon, SRF, Suzlon Energy, Jindal Stainless, Coforge, Supreme Industries, Page Industries, Kaynes Tech, Radico Khaitan, UTI AMC, Niva Bupa Health.

Also Read | Sell India, buy China, Korea! Dalal Street now largest underweight for EM investors

PhillipCapital

Upgraded to BUY – HUL, Bharat Dynamics, RateGain, Heidelberg Cement

Nuvama

InterGlobe, Pidilite, Britannia, Godrej Consumer, Dabur, United Breweries, Jubilant Foodworks, HUL, ITC, Asian Paints, Sun Pharma, Lupin, Torrent Pharma, Dr Reddy’s Labs, UltraTech Cement, Grasim, Shree Cement, Bharti Airtel, Eicher Motors, SRF, UPL, Kotak Mahindra Bank, HDFC Life, Muthoot Finance, Shriram Finance, SBI Life Insurance, ICICI Lombard, ICICI Bank, Bajaj FinServ, Axis Bank, SBI, HDFC Bank, Eicher Motors, TVS Motors, Maruti Suzuki, M&M, TCS, Infosys, RIL, Jindal Steel and Power, L&T.

Kotak Institutional Equities

M&M, Axis Bank, Canara Bank, HDFC Bank, ICICI Bank, IndusInd Bank, SBI, ABB, Cummins India, L&T, Bajaj FinServ, Shriram Finance, Apollo Hospitals, Dr Lal PathLabs, HDFC Life, ICICI Prudential Life, Eicher Motors, Infosys, Tech Mahindra, Hindalco, RIL, Cipla, Lupin, Mankind Pharma, Sun Pharma, Torrent Pharma, Pidilite, Embassy Office, Lodha, Bharti Airtel, Adani Ports, InterGlobe.

Yes Securities

Hyundai, Motherson, SBI, Greenply, Carysil, Birla Corp, Amber, Stovekraft, Orient Electric, Tata Consumer, Dabur, Campus, Metro, Muthoot, Vijaya Diagnostic, Chalet, Lemon Tree, Aptus, Repco, Max Financial, PVR Inox, Hindustan Zinc, GPIL, CreditAccess Grameen, Mahanagar Gas, ONGC, BPCL, JB Chemicals, Ajanta Pharma.

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

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