Brokerages Are Bullish on M&M and Biocon — But the Numbers Tell a More Complicated Story

Retail investors spend the next 48 hours determining whether to believe a brokerage note that lists a few Indian stocks with double-digit upside potential every few weeks. In the most recent round, which took place on April 21, Sharekhan and Nomura gave buy ratings to seven companies, including Biocon and Mahindra & Mahindra. These two names come from completely different industries and have completely different risk profiles, but they are presented together as though their proximity on a list indicates something significant about them. Actually, it doesn’t. However, it’s worth paying close attention to both stories.

The numbers demand attention before the optimism does, so let’s start with Biocon. The Bengaluru-based biopharmaceutical company reported a net profit of ₹89 crore in the first quarter of FY26, compared to ₹862 crore in the same period last year. That represents a 90% decrease. At ₹4,022 crore, total income decreased by 12%. Even though Sharekhan has set a target price of ₹462 against a current market price that is hovering around ₹358–363, which implies about 27 percent upside, those aren’t the kinds of numbers that usually accompany a buy rating. The stock has lost roughly 7% so far this year and has been trading well below its 52-week high of ₹424.95 for the majority of the previous year. It’s still unclear if the recent pressure on profits is a result of a brief period of transition or something more structural. Brokerages, however, appear ready to handle it as the former.

IMPORTANT INFORMATION — BIOCON LTD & MAHINDRA & MAHINDRA

The quarterly headline is not as interesting as what’s really going on inside Biocon. The US market approvals for the company’s biosimilars business, which essentially produces less expensive versions of complex biological drugs that have been taken off patent, continue to come in. Two denosumab biosimilars, Bosaya and Vevzuo, which are substitutes for the bone-loss medications Prolia and Xgeva, were approved by Health Canada in April 2026. The company introduced commercial denosumab biosimilars in the US earlier this month. On April 1, Shreehas Tambe became the new CEO. The business seems to be in the midst of a purposeful transition, absorbing short-term expenses while setting the stage for future revenue. It is genuinely unclear if the timing will turn out as management had hoped.
The story of Mahindra & Mahindra is quite different. Nomura’s buy rating is based on medium-term conviction rather than immediate results, with a target of ₹4,662 against the current price of about ₹3,247.

The brokerage recognizes that rising input costs will put pressure on margins in the near future, but it anticipates price increases will help the recovery in FY27. Alongside its expansion into electric vehicles, Mahindra’s push into new vehicle categories, such as intercity buses, AC coaches, ambulances, and a wider commercial vehicle portfolio, is attracting attention. The rollout of e-bus is scheduled for FY27. Over the medium term, Nomura anticipates that the company will gain a 10 to 12 percent share in these newer segments. This is an ambitious goal that likely represents the company’s best-case trajectory rather than a baseline.

It’s difficult to ignore the fact that both stocks are being suggested in part due to unforeseen circumstances. Biosimilar revenue growth at a rate that supports a PE ratio currently above 73 is essential to Biocon’s valuation. Mahindra’s relies on new segment penetration and EV adoption occurring within a favorable window. The gap between analyst targets and current prices is a measure of faith as much as analysis, even though those are reasonable bets because both companies have real capabilities and execution track records.

The Indian market as a whole has been doing fairly well. On April 21, the Sensex gained more than 750 points and the Nifty 50 closed above 24,500, up almost a percent. Being optimistic about individual stocks is made simpler by that context. However, market momentum tends to make the simple cases appear simpler than they actually are, and at the moment, neither Biocon nor Mahindra are simple cases. Nonetheless, they are two of the more genuinely intriguing brands on the Indian market; one is redefining itself through international pharmaceutical distribution, while the other is wagering on the electrification of everything that moves. Any buy rating given this week will be far less instructive than observing how that develops over the next eighteen months.