Infy, Adani Ports, Axis Bank, PI Industries, Eternal: Top stock picks for upto 103% rally

Equirus Securities said its coverage universe posted a fourth straight quarter of double-digit earnings growth in 4QFY26, with revenue, EBITDA and PAT rising 11 per cent, 9 per cent and 19 per cent year-on-year, respectively.. Excluding OMCs, revenue and Ebitda were in line with estimates, while PAT was ahead of expectations, with growth of 13 per cent, 8 per cent and 19 per cent respectively.

According to Equirus, the quarter also saw a strong sequential recovery, with PAT for the universe rising 14 per cent quarter-on-quarter. Autos, metals, NBFCs, building materials and cement, internet services and retail delivered earnings growth of more than 20 per cent, while oil and gas, consumer durables, airlines, infrastructure, EMS and healthcare had a softer quarter or reported an earnings decline.

Equirus said mid-caps were the standout performers in 4QFY26, with 63 companies posting Ebitda and PAT growth of 23 per cent and 45 per cent year-on-year. Smallcaps followed with 14 per cent and 27 per cent growth across 150 companies, while 58 large-caps reported 6 per cent and 15 per cent growth.

The brokerage said 25 per cent of its universe saw EPS upgrades, led mainly by metals and mining, banks and NBFCs, and select names in building materials, healthcare and retail. At the same time, 54% saw earnings downgrades, concentrated in auto and ancillaries, oil and gas, cement, chemicals, EMS, FMCG, construction, IT, capital markets and logistics.

In sectoral trends, Equirus said auto OEMs reported a strong quarter, helped by GST rate cuts, healthy retail demand and robust exports, with EBITDA margins staying resilient despite commodity inflation. NBFCs also posted healthy disbursement growth across retail lending segments, with broad-based asset quality improvement, while gold financiers benefited from a near 20 per cent QoQ rise in gold prices.

In banking, NIMs appeared to have bottomed out in the fourth quarter as the full pass-through of deposit rate actions came through, while credit and deposit growth improved sequentially, GNPA ratios declined and slippages moderated in MFI and unsecured retail. 

Building materials and cement remained strong. Wood panels were slightly ahead on revenue, though margins were lower because of foreign exchange and chemical costs, while ceramics benefited from cost optimisation and price hikes. Plastic pipes saw strong volume growth on the PVC resin upcycle, and paints gained from channel restocking, with Berger and JSW Dulux reporting double-digit volume growth.

In cement, coverage reported around 6.3 per cent year-on-year volume growth, with Ultratech, Shree and JK Cement outperforming, while sequential profitability improved by about Rs 140 per tonne on better realisations and operating leverage.

Equirus said IT had a mixed quarter, with constant currency revenue growth among top-tier companies ranging from a 1.2 per cent rise at TCS and 0.6 per cent at TechM to declines of 1.3 per cent at Infosys and 3.3 per cent at HCL Technologies. BFSI remained resilient, while consumer, hi-tech and manufacturing faced pressure.

Internet companies were among the strongest performers, with Eternal reporting 19 per cent YoY NOV growth and record EBITDA margins of 5.5 per cent, Swiggy posting 22.6 per cent GOV growth with lifetime-high EBITDA margins of 3.3 per cent, Blinkit delivering 95 per cent NOV growth. Nykaa Fashion turning Ebitda positive for the first time.

On the weaker side, healthcare and pharma were weak but in line, with the US business declining sharply because of the absence of gRevlimid and price erosion, though domestic and international ex-US markets grew strongly. Airlines had a weaker-than-expected quarter as forex losses, disruption-related costs and lower international deployment hurt profitability, even as operating performance stayed resilient.

In oil and gas, refining and marketing benefited from inventory gains and lower-cost crude lag effects, but Equirus said this could mark a peak in the earnings cycle, while LPG under-recoveries and supply disruptions continued to pressure margins.

Equirus Securities said 4QFY26 was marked by broad earnings recovery led by mid-caps and strength in autos, metals, NBFCs, cement and internet businesses, even as downgrades remained widespread and sectors such as oil and gas, aviation, EMS and healthcare stayed under pressure.

Equirus has ‘long’ rating on Infosys (Target Price: Rs 1,460), Adani Ports & Special Economic Zone (Target Price: Rs 1,848), Axis Bank (Target Price: Rs 1,620), UltraTech Cement (Target Price: Rs 14,600), Eternal (Target Price: Rs 370), Eicher Motors (Target Price: Rs 8,790), ICICI Prudential Asset Management Company (Target Price: Rs 3,640) and Torrent Pharmaceuticals (Target Price: Rs 5,286) 

It has also suggested the same view on Cholamandalam Investment (Target Price: Rs 1,871), Tata Consumer Products (Target Price: Rs 1,345), Cipla (Target Price: Rs 1,555), Astral (Target Price: Rs 1,980), Marico (Target Price: Rs 901), Mphasis (Target Price: Rs 2,900), PI Industries (Target Price: Rs 5,500), Welspun Corp (Target Price: Rs 1,562), Blue Star (Target Price: Rs 2,069).

Aditya Birla Sun Life AMC (Target Price: Rs 1,100), Nuvama Wealth Management (Target Price: Rs 1,765), Acutaas Chemicals (Target Price: Rs 2,900), R R Kabel (Target Price: Rs 2,053) Syrma SGS Technology (Target Price: Rs 1,315), Grindwell Norton (Target Price: Rs 2,270), Elgi Equipments (Target Price: Rs 665), Cemindia Projects (Target Price: Rs 1,212), JSW Cement (Target Price: Rs 175), Zydus Wellness (Target Price: Rs 550) ahve also got the same view the brokerage firm.

TBO TEK (Target Price: Rs 1,960), Arvind (Target Price: Rs 555), Ujjivan Small Finance Bank (Target Price: Rs 75), Jubilant Ingrevia (Target Price: Rs 1,150), Varroc Engineering (Target Price: Rs 686), Arvind Fashions (Target Price: Rs 782), MAS Financial Services (Target Price: Rs 450), DCB Bank (Target Price: Rs 240), Gokaldas Exports (Target Price: Rs 856), Carysil (Target Price: Rs 1,231), Arvind SmartSpaces (Target Price: Rs 743) are also among its top picks from the sector.