Tata Steel, SOIL, IDFC First Bank, MMFSL: Share price targets hint at 20-24% upside
MOFSL said IDFC First bank has made significant progress in strengthening its deposit franchise while sustaining robust loan growth and steadily de-risking the balance sheet.
- Sep 23, 2026,
- Updated Sep 23, 2026 8:20 AM IST
MOFSL on Wednesday suggested at least four stocks with over 20 per cent upside potential. They included Solar Industries India Ltd (SOIL), where the domestic brokerage initiated coverage with a 'Buy' rating. The brokerage also recommended 'Buy' on three other stocks namely Tata Steel Ltd, IDFC First Bank Ltd and Mahindra & Mahindra Financial Services Ltd (MMFSL).
IDFC First Bank | Buy| Target price: Rs 105 | Upside potential: 23% MOFSL said IDFC First bank has made significant progress in strengthening its deposit franchise while sustaining robust loan growth and steadily de-risking the balance sheet. The bank is well positioned for a sustainable recovery in profitability, supported by healthy business growth, improvement in operating leverage and controlled credit cost, MOFSL said.
"The bank has strengthened internal controls and governance processes and has lowered its credit cost guidance, underscoring strong asset quality trends. We estimate GNPA/NNPA to moderate to 1.4 per cent/0.4per cent by FY28E," MOFSL said.
The brokerage estimated IDFC First Bank to deliver 42 per cent PPoP CAGR over FY26-28E and C/I ratio to improve to 69 per cent/65 per cent in FY27/28, translating into RoA/RoE of 1.2 per cent/11.9 per cent by FY28E.
Tata Steel | Buy | Target price: Rs 220 | Upside potential: 20%
MOFSL said domestic steel prices across the board have surged sharply despite being a seasonally soft quarter, driven by maintenance shutdown-led lean channel inventory, improved consumption, and input cost inflation.
Considering this, it expects Tata Steel’s Indian business to deliver strong earnings in Q2.
Going forward, industry pricing discipline will remain vital for margin sustenance, as the impact of the current cost inflation is likely to become evident with a lag in 2HFY27, it said.
"We remain constructive on Tata Steel, given the ongoing capacity expansions, favorable steel pricing, and resilient demand, which should position the company to capitalise on the long-term domestic opportunity. Tata Steel Europe’s earnings remain contingent on regulatory decisions and spread movement, given the volatility in pricing and energy costs," Tata Steel
MOFSL said a gradual stabilisation and turnaround in Tata Steel Europe can lead to a potential earnings and re-rating opportunity. At the prevailing price, Tata Steel is trading at 6.8 times FY28 EV/Ebitda and 1.8 times FY28 its book value.
Solar Industries | Buy | Target price: Rs 23,000 | Upside potential: 24% MOFSL initiated coverage on SOIL with a 'Buy', saying the company has transitioned from being a supplier of explosive materials to becoming an integrated defense manufacturer. The progression from high-melting explosives (HMX) to ammunition, rockets, and counter-drone systems reflects its deliberate strategy of moving up the defence value chain, MOFSL said.
"Successful trials and commissioning of Nagastra, Rudrastra and Bhargavastra would further diversify the company's revenue stream beyond Pinaka and HMX," it said.
Mahindra & Mahindra Financial Ltd | Buy | Target price: Rs 430 | Upside potential: 21% MOFSL said Udaan is emerging as a meaningful competitive lever for MMFSL, with faster TAT, data-led underwriting and CPC automation supporting growth, productivity and dealer conversion.
"Rising Samur.AI adoption and higher branch-led cross-selling should provide further operating leverage and fee-income opportunities. MMFS currently trades at 1.8x FY27E P/BV and 14x FY27E P/E. With a projected PAT CAGR of 23 per cent over FY26-FY28E and RoA/RoE of 2.4 per cent/14.5 per cent in FY28E, we reiterate our BUY rating with a target price of Rs 430 (based on 2x Mar’28E BV)," MOFSL said.
MOFSL on Wednesday suggested at least four stocks with over 20 per cent upside potential. They included Solar Industries India Ltd (SOIL), where the domestic brokerage initiated coverage with a 'Buy' rating. The brokerage also recommended 'Buy' on three other stocks namely Tata Steel Ltd, IDFC First Bank Ltd and Mahindra & Mahindra Financial Services Ltd (MMFSL).
IDFC First Bank | Buy| Target price: Rs 105 | Upside potential: 23% MOFSL said IDFC First bank has made significant progress in strengthening its deposit franchise while sustaining robust loan growth and steadily de-risking the balance sheet. The bank is well positioned for a sustainable recovery in profitability, supported by healthy business growth, improvement in operating leverage and controlled credit cost, MOFSL said.
"The bank has strengthened internal controls and governance processes and has lowered its credit cost guidance, underscoring strong asset quality trends. We estimate GNPA/NNPA to moderate to 1.4 per cent/0.4per cent by FY28E," MOFSL said.
The brokerage estimated IDFC First Bank to deliver 42 per cent PPoP CAGR over FY26-28E and C/I ratio to improve to 69 per cent/65 per cent in FY27/28, translating into RoA/RoE of 1.2 per cent/11.9 per cent by FY28E.
Tata Steel | Buy | Target price: Rs 220 | Upside potential: 20%
MOFSL said domestic steel prices across the board have surged sharply despite being a seasonally soft quarter, driven by maintenance shutdown-led lean channel inventory, improved consumption, and input cost inflation.
Considering this, it expects Tata Steel’s Indian business to deliver strong earnings in Q2.
Going forward, industry pricing discipline will remain vital for margin sustenance, as the impact of the current cost inflation is likely to become evident with a lag in 2HFY27, it said.
"We remain constructive on Tata Steel, given the ongoing capacity expansions, favorable steel pricing, and resilient demand, which should position the company to capitalise on the long-term domestic opportunity. Tata Steel Europe’s earnings remain contingent on regulatory decisions and spread movement, given the volatility in pricing and energy costs," Tata Steel
MOFSL said a gradual stabilisation and turnaround in Tata Steel Europe can lead to a potential earnings and re-rating opportunity. At the prevailing price, Tata Steel is trading at 6.8 times FY28 EV/Ebitda and 1.8 times FY28 its book value.
Solar Industries | Buy | Target price: Rs 23,000 | Upside potential: 24% MOFSL initiated coverage on SOIL with a 'Buy', saying the company has transitioned from being a supplier of explosive materials to becoming an integrated defense manufacturer. The progression from high-melting explosives (HMX) to ammunition, rockets, and counter-drone systems reflects its deliberate strategy of moving up the defence value chain, MOFSL said.
"Successful trials and commissioning of Nagastra, Rudrastra and Bhargavastra would further diversify the company's revenue stream beyond Pinaka and HMX," it said.
Mahindra & Mahindra Financial Ltd | Buy | Target price: Rs 430 | Upside potential: 21% MOFSL said Udaan is emerging as a meaningful competitive lever for MMFSL, with faster TAT, data-led underwriting and CPC automation supporting growth, productivity and dealer conversion.
"Rising Samur.AI adoption and higher branch-led cross-selling should provide further operating leverage and fee-income opportunities. MMFS currently trades at 1.8x FY27E P/BV and 14x FY27E P/E. With a projected PAT CAGR of 23 per cent over FY26-FY28E and RoA/RoE of 2.4 per cent/14.5 per cent in FY28E, we reiterate our BUY rating with a target price of Rs 430 (based on 2x Mar’28E BV)," MOFSL said.