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HomeMarket NewsStocks To Buy: JPMorgan bets on this new listing currently below IPO price for 21% upside
JPMorgan expects Orkla India's revenue and Earnings Per Share (EPS) to grow at a Compounded Annual Growth Rate (CAGR) of 9% and 13% respectively over financial year 2026-2028.
Shares of Orkla India Ltd. are in focus on Wednesday, December 17, after brokerage firm JPMorgan initiated coverage on the stock, projecting a 21% potential upside from its previous close.
JPMorgan has initiated coverage with an "overweight" rating on the stock with a price target of ₹745 apiece.
The analyst said the leading packaged spice and convenience food firm enjoys strong brand equity and leading market shares in the core South Indian states (over 70% of revenue) and the overseas market.
Ever since its listing in November 2025, the stock has corrected 18% amidst a soft September quarter earnings print, which was weighed down by lower margins.
JPMorgan added that it expects earnings growth to gather momentum from the second half of the financial year 2026, driven by:
Improving revenue growth outlook.
Earnings before interest taxes, depreciation and amortisation (EBITDA) margin expansion, led by operation efficiencies (particularly for the Eastern portfolio) and operating leverage benefits.
Inexpensive valuations -- among the lowest price-to-earnings growth ratio (PEG) when compared to staple peers.
JPMorgan expects Orkla India's revenue and Earnings Per Share (EPS) to grow at a Compounded Annual Growth Rate (CAGR) of 9% and 13% respectively over financial year 2026-2028.
The key risks include slower-than-expected revenue ramp-up, volatile raw material prices and earnings-/returns-dilutive merger and acquisition (M&A).
Shares of Orkla India ended the previous session 0.6% up at ₹615 apiece. The stock trades below its IPO price of ₹648 apiece.
