Motilal Oswal Wealth Management Research Desk has identified Shriram Finance and Cummins India as the top stock recommendations for the week commencing June 8, 2026. The brokerage has specified target levels and potential upside for both stocks.
Stock Recommendations and Targets
The recommended stocks along with their current market price (CMP), target price, and upside potential are as follows:
- Shriram Finance (SHFL): CMP Rs 923, Target Rs 1,175, Upside 27%
- Cummins India (KKC): CMP Rs 5,794, Target Rs 6,600, Upside 14%
Shriram Finance: A Retail-Focused NBFC
Shriram Finance continues to strengthen its position as a leading retail-focused non-banking financial company (NBFC). The company benefits from a strong presence in rural and semi-urban markets, a diversified product portfolio, and disciplined execution capabilities. A strategic partnership with MUFG, which includes a capital infusion of approximately USD 4.4 billion for a roughly 20% stake, is expected to significantly enhance SHFL's liability profile. The company anticipates a reduction of about 1% in borrowing costs over the next two to three years, supported by rating upgrades, liability repricing, lower deposit rates, and improved access to debt capital markets. Shriram Finance remains focused on its core strengths in vehicle finance, MSME lending, and gold loans, while expanding into underpenetrated northern, central, and eastern markets. With healthy growth visibility, margin stability, and improving operating leverage, the company is well-positioned to deliver a compound annual growth rate (CAGR) of approximately 17% in assets under management (AUM) and 26% in profit after tax (PAT) over FY26-28E.
Cummins India: Data Center Growth Driver
Cummins India delivered a strong performance in FY26, with powergen revenue growing 24% and distribution revenue rising 22%. Data centers have emerged as a key growth driver, contributing 30-35% of powergen revenue, highlighting the company's strong positioning in a rapidly expanding market. Growth is expected to be supported by increasing data center investments, demand from manufacturing and commercial sectors, strong traction for the QSK60 platform, and higher contribution from aftermarket and service offerings within the distribution business. Cummins India is also investing in capacity upgrades and currently operates at approximately 70% utilization, providing room to support future growth. Supported by a favorable mix of high-margin businesses, pricing flexibility, and strong demand momentum, Motilal Oswal has raised its FY27/FY28 estimates by 4% and 7%, respectively. The brokerage expects Cummins India to deliver revenue, EBITDA, and PAT CAGRs of 18%, 20%, and 21%, respectively, over FY26-28.
Disclaimer: Recommendations and views on the stock market, other asset classes, or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India.
