Citi has highlighted five stocks, including Dalmia Bharat, Divi’s Laboratories and other companies, with potential upside of up to 54% based on its latest target prices. The brokerage’s recommendations cover sectors with different growth drivers.
The stock picks reflect Citi’s views on earnings growth, business expansion, sectoral demand, and company-specific catalysts. In this article, we look at the five stocks recommended by the brokerage, along with their target prices and potential upside.
India Shelter Finance Corporation Ltd
India Shelter Finance Corporation Ltd is a housing finance company that provides affordable housing loans to low- and middle-income households, particularly in semi-urban and rural markets. The company primarily finances home purchases, construction, and extensions, with a focus on underserved customers and expanding its presence across India.
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The global brokerage firm Citi has maintained a Buy rating on the company, with a target price of Rs. 1,010, implying an upside potential of 54 percent from the previous day’s closing price of Rs. 655.20.
Citi noted that the disruption from the company’s distribution recognition transition is now behind it, with sourcing remaining aligned with its strategy. Asset quality is expected to plateau temporarily, with a potential recovery in the second half of the year.
The brokerage also highlighted that liability-side defenses remain intact, supported by a higher floating-rate mix and potential benefits from an AA rating upgrade. Meanwhile, the company is taking a calibrated expansion approach by scaling digital sourcing while staggering new branch rollouts to manage growth and costs effectively.
Home First Finance Company India Ltd
Home First Finance Company India Ltd is a technology-driven affordable housing finance company focused on providing home loans to first-time buyers, particularly in low- and middle-income segments. The company offers housing loans, construction finance, and mortgage products, using digital processes and data-driven underwriting to serve underserved customers across India.
The global brokerage firm Citi has maintained a Buy rating on the company, with a target price of Rs. 1,490, implying an upside potential of 32.7 percent from the previous day’s closing price of Rs. 1,122.55.
Citi remains positive on Home First Finance as growth momentum is broad-based, with the weakness in the southern market expected to reverse. Asset quality has remained resilient despite a seasonally softer quarter, while funding costs are stable and management has defended its spread guidance.
The brokerage expects operating expenses to remain disciplined, supporting the company’s competitive positioning. Ticket-size migration is viewed as organic rather than a shift in customer segments, while the proposed insurance commission changes are considered manageable, with further clarity awaited from regulators.
Dalmia Bharat Ltd
Dalmia Bharat Ltd is one of India’s leading cement manufacturers, with a strong presence across the eastern, northeastern, southern and central regions. The company produces cement and related products for infrastructure, housing and commercial construction. It focuses on capacity expansion, operational efficiency, sustainable manufacturing, and strengthening its pan-India market presence.
The global brokerage firm Citi has maintained a Buy rating on the company, with a target price of Rs. 2,150, implying an upside potential of 26.6 percent from the previous day’s closing price of Rs. 1,698.10.
The brokerage remains positive on Dalmia Bharat’s pan-India expansion strategy, with the company having entered Central India and potentially targeting the North in its next phase. It also aims to improve utilisation across existing geographies and narrow the pricing gap with the highest-priced Category A player.
The company is focused on maintaining a disciplined balance sheet, targeting Debt/EBITDA below 2x while pursuing rational capacity additions. However, near-term demand and pricing remain weak in the East and Northeast, while overall cost pressures are higher than previously expected.
Divis Laboratories Ltd
Divi’s Laboratories Ltd is a leading Indian pharmaceutical company engaged in the manufacturing of active pharmaceutical ingredients (APIs), intermediates, and custom synthesis products. The company serves global pharmaceutical and healthcare markets, with a focus on complex molecules, research-driven manufacturing, quality standards, and expanding its presence in high-value pharmaceutical segments.
The global brokerage firm Citi has maintained a Buy rating on the company, with a target price of Rs. 11,700, implying an upside potential of 21.7 percent from the previous day’s closing price of Rs. 9,610.00.
Citi sees potential opportunities for Indian CDMOs from Novo’s oral Wegovy scale-up, particularly for Divi’s, given its integrated and cost-efficient peptide manufacturing platform. The brokerage believes the company is well positioned to participate in the expanding GLP-1 and peptide opportunity.
Lilly’s Tirzepatide continues to remain the largest GLP-1 and peptide opportunity for Divi’s, while participation in oral Wegovy could provide additional optionality. Citi continues to view Divi’s as a preferred stock within the Indian pharmaceutical sector.
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CarTrade Tech Ltd
CarTrade Tech Ltd is a digital automotive marketplace and technology company operating across the vehicle lifecycle. It connects buyers, sellers, dealers, financial institutions, and other automotive stakeholders through online platforms. The company provides solutions spanning new and used vehicles, vehicle auctions, inspections, valuation, and related services, supported by technology and data-driven processes.
The global brokerage firm Citi has maintained a Buy rating on the company, with a target price of Rs. 3,300, implying an upside potential of 10 percent from the previous day’s closing price of Rs. 3,001.30.
