3 Stocks to buy now for an upside potential of up to 58%; Do you own any?

Emkay Global Financial Services Ltd is a leading provider of capital market services. The company has 5 major products including investment banking, asset and wealth management, investments, estate and succession planning, and financial education.

Listed below are the 3 stocks recommended by Emkay Global Financial Services Ltd:

1. REC Ltd

REC, a Central Public Sector Undertaking under the Ministry of Power, finances projects across the entire power sector value chain, from generation to distribution.

With a market capitalization of 1,07,922.69 crore, the shares of REC Ltd were trading at Rs 409.80 in Friday’s trading session which is 0.07 percent higher compared to the previous closing price.

Emkay Global Financial Services initiated a “Buy” call on the stock with a target price of Rs 600 indicating an upside potential of 46.5 percent compared to its previous closing price.

Rationale: REC reported stable margins, low credit costs, and enhanced asset quality. Although growth fell slightly short of expectations due to increased repayments, disbursements remain robust. Management anticipates recoveries of Rs 2200 crore in the coming year and has adjusted growth guidance to 15-17 percent, driven by strong disbursement led by the Revamped Distribution Sector Scheme  (RDSS), and demand for loan renewable energy, thermal, and non-power sectors.

2. Gulf Oil Lubricants Ltd

Gulf Oil Lubricants Ltd, among the top three private lubricant companies in the country, manufactures, markets, and trades automotive and non-automotive lubricants.

With a market capitalization of 5,528.01 crore, the shares of Gulf Oil Lubricants Ltd were trading at Rs 1,121.25 in Friday’s trading session which is 1.3 percent lower compared to the previous closing price.

Emkay Global Financial Services reiterated their “Buy” call on the stock with a target price of  Rs 1800 indicating an upside potential of 58.5 percent compared to its previous closing price.

Rationale: The company’s Q3FY25 core lube volumes grew 7 percent YoY, while AdBlue rose 16 percent, exceeding estimates. EBITDA margin remained stable at 13.5 percent within management’s guidance, and a 40bps QoQ gross margin improvement to 42.4 percent. Management maintained its volume growth target at 2-3x the industry, along with a focus on premiumization that saw a 13-14 percent YoY growth. Further, Tirex’s 9MFY25 revenue was Rs 40 crore (up 3x YoY) with breakeven EBITDA, which adds weightage to the buy rating.

Also read: Semiconductor Stocks: Why Lower Tariffs Could Be a Game Changer for India’s Semiconductor Industry?

3. Delhivery Ltd

Delhivery provides end-to-end logistics solutions, including warehousing, PTL freight, supply chain software and cross-border services, along with value-added services like returns, payment processing, and fraud detection.

With a market capitalization of 20,660.36 crore, the shares of Delhivery Ltd were trading at Rs 277.85 in Friday’s trading session which is 1.4 percent lower compared to the previous closing price.

Emkay Global Financial Services initiated a “Buy” call on the stock with a target price of Rs 425 indicating an upside potential of 51.7 percent compared to its previous closing price.

Rationale: Delhivery’s revenue for Q3FY25 aligned with expectations; however, EBITDA fell short due to increased truck rental expenses during the festive season, which have stabilized since January 2025. The management intends to address this issue by implementing fixed-cost contracts.

Partial-Truckload (PTL) Services (PTL) segment is expected to remain robust, with January volumes reaching 147,000 tons, while the B2C sector is encountering challenges from industry pressures and Meesho’s insourcing. The D2C and SME segments are continuing to outpace marketplace growth, showing a growth of 30 percent. Due to rising costs, EBITDA estimates for FY 26/27 have been lowered to 9 percent and 4 percent respectively. The target has been reduced by 10.5 percent to Rs 425. 

Written by Shwetha Sairam

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