Mitessh Thakkar Suggests Buying Chola Finance, GAIL, Jio Financial; Exit LIC Housing
Key Points
Mitessh Thakkar recommended buying Chola Finance, GAIL, and Jio Financial Services.
Chola Finance Q1 profit jumped 45.56% YoY to ₹1,656.22 crore in June 2026.
GAIL's Q1 FY27 profit surged to ₹4,292 crore on strong gas marketing pricing.
LIC Housing Finance posted just 9.4% profit growth, prompting an exit call.
Market expert Mitessh Thakkar flagged four stocks in his latest technical picks on CNBC-TV18: buy calls on Cholamandalam Investment and Finance, GAIL India, and Jio Financial Services, alongside an exit call on LIC Housing Finance. The picks come amid a mixed Q1 FY27 earnings season, where each of these four names posted sharply different results.
Chola Finance and GAIL reported strong profit growth, while LIC Housing Finance’s numbers looked comparatively softer against peers.
Cholamandalam Finance: Earnings Momentum Backs the Buy Call
Cholamandalam Investment and Finance (CHOLAFIN.NS) closed at ₹1,849.90 on July 31, 2026, near its 52-week high of ₹1,875. The stock trades at a P/E of 29.51, reflecting continued investor confidence in the NBFC’s growth trajectory.
Q1 FY27 Numbers Support the Bullish View
- Net profit rose 45.56% year-on-year to ₹1,656.22 crore for the June 2026 quarter.
- Revenue came in at ₹8,958.17 crore, extending five straight quarters of profit growth.
- The stock has gained 19.55% in the past month on strong earnings momentum.
Chola Finance’s consistent profit trajectory across vehicle finance, home loans, and its newer gold loans business gives the buy call solid fundamental backing.
GAIL India: Pricing Gains Drive a Sharp Profit Turnaround
GAIL India (GAIL.NS) shares traded near ₹181 on August 1, 2026, well within its 52-week range of ₹134.40 to ₹186.90. The stock’s P/E stands at a relatively modest 12.1, keeping valuation reasonable despite the rally.
Q1 FY27 Profit Surges on Gas Marketing Strength
- Net profit surged to ₹4,292 crore, up sharply from ₹1,262 crore in Q4 FY26.
- Revenue rose 12% to ₹38,982 crore, with EBITDA margin expanding to 16.4% from 3.3% QoQ.
- GAIL maintained its full-year FY27 gas marketing PBT guidance at roughly ₹4,500 crore.
Management flagged that this pricing arbitrage may not fully repeat in coming quarters, a nuance worth watching even as the stock trades near its 52-week high.
Jio Financial Services: Q1 Results Trigger a 5% Rally
Jio Financial Services (JIOFIN.NS) jumped 5.27% to ₹248.06 on the day it announced Q1 FY27 results, before closing near ₹256.50 by August 2, 2026. The stock remains well below its 52-week high of ₹338.60.
Revenue and Profit Both More Than Double
- Consolidated revenue surged 227.28% year-on-year to ₹2,004.47 crore.
- Profit after tax jumped 155.8% to ₹830.25 crore, from ₹324.66 crore a year earlier.
- Gross AUM grew 2.6 times year-on-year to ₹30,667 crore, reflecting rapid lending book expansion.
Jio Financial’s aggressive growth across payments, asset management, and insurance explains why Thakkar’s buy call aligns with the Street’s post-earnings enthusiasm.
LIC Housing Finance: Why the Exit Call Makes Sense
LIC Housing Finance (LICHSGFIN.NS) closed at ₹524.40 on July 31, 2026, down 10.44% over the past year and well off its 52-week high of ₹600.30. The stock trades at a P/E of just 5.32, signaling persistent Street caution.
Q1 FY27 Growth Trails Sector Peers
- Net profit rose a modest 9.4% year-on-year to ₹1,488.32 crore.
- Loan disbursements grew 14.5%, slower than the growth seen at Chola Finance and Jio Financial.
- JPMorgan maintains a Neutral rating with a ₹590 target, citing yield pressure from prime mortgage competition.
Compared to the sharper profit growth at Chola Finance and Jio Financial, LIC Housing Finance’s single-digit earnings growth explains the relative caution behind the exit call.
How These Four Stocks Compare
Chola Finance and GAIL both delivered profit growth north of 40% this quarter, while Jio Financial more than doubled its earnings. LIC Housing Finance, by contrast, grew profit in single digits and faces ongoing margin pressure from competition in prime home loans.
Other NBFC peers like Bajaj Finance and Shriram Finance have posted stronger loan growth in the same period, adding to the relative underperformance narrative around LIC Housing Finance.
Final Thoughts
The technical picks reported align closely with each company’s underlying earnings momentum this quarter. Chola Finance, GAIL, and Jio Financial all posted standout profit growth, giving fundamental support to bullish calls on the stocks. LIC Housing Finance’s slower 9.4% profit growth, against a backdrop of intensifying mortgage competition, offers a reasonable case for booking out.
Disclaimer:
The content shared by Meyka AI PTY LTD is for research and informational purposes only. Meyka is not a financial advisory service, and the information provided should not be treated as investment or trading advice.
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