From Axis Bank to Eternal: Morgan Stanley, Jefferies unveil top stock picks after Q3 earnings

With the December quarter (Q3FY26) earnings season largely behind us, brokerages have begun rolling out their latest stock calls and high conviction ideas.

Morgan Stanley has published its updated bottom-up ideas list, featuring a mix of outperformers and stocks where it advises caution.

Among its 'Overweight' calls are names that have already seen strong momentum. Tata Steel

is up nearly 50% over the past year, while Shriram Finance has surged about 90% in the same period.

Other key positive picks include Polycab India, Grasim Industries, Indian Oil Corporation, and Eternal, which is currently trading around ₹277, compared with a recent high of ₹368.

On the 'Underweight' side, Morgan Stanley has cited Berger Paints India and Shree Cement, due to rising competitive pressures in the industry.

It said that Shree Cement has underperformed peers and has been relatively inactive on the M&A front.

The brokerage is also cautious on SBI Cards and Payment Services, Steel Authority of India, and SRF. On Dixon Technologies (India), it pointed to concerns around smartphone volume growth amid rising memory prices.

Meanwhile, Jefferies has also released its own top ideas list, focusing on companies expected to deliver strong earnings growth in FY27 compared with FY26.

Financials dominate Jefferies' picks, including AU Small Finance Bank, Axis Bank, and Bajaj Finance.

The brokerage also remains constructive on Ambuja Cements and Cholamandalam Investment and Finance Company.

Eternal features on Jefferies' conviction list as well, and was also part of Morgan Stanley's positive picks.

In the real estate space, Godrej Properties stands out, especially with the realty index under pressure and the stock trading about 25% below its 52-week high.

Among metals and energy names, Hindustan Zinc and JSW Energy make the cut.

Auto ancillaries are another key theme, with Bharat Forge, Samvardhana Motherson , and Sona BLW Precision Forgings mentioned as beneficiaries of improving demand trends.

The list also includes pharma and healthcare-linked names such as Mankind Pharma and Star Health and Allied Insurance. Voltas also features, with expectations of a strong summer season supporting growth.

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