RIL, Lenskart & more: Top stocks to watch on June 3, 2026

JP Morgan has an overweight rating on Reliance Industries with the target price at Rs 1,660. Analysts said RIL should benefit from continued strength in its refining, petchem spreads and the weaker rupee. The stock’s valuations continue to look reasonable - with commissioning of New Energy businesses a likely catalyst through FY27. According to analysts there are at least two important takeaways from RIL’s annual report. For one, headline capex of Rs 1.4 lakh crore increased 10% on the year (YoY), but capex in cash flow of Rs 1.2 lakh crore fell 11% YoY. This could be on account of timing differences in payments and due to capitalized foreign exchange translation losses. Secondly, headline O2C (oil to chemicals) capex increased to Rs 32,400 crore in FY26 while that for retail fell meaningfully to Rs 21,100 crore. However, the largest component of capex was the unallocated segment at Rs 55,900 crore (up from Rs 31,200 crore in FY25). CLSA has initiated its coverage of Lenskart with an outperform rating and the target price at Rs 604. Analysts said that the company is a leading eyewear brand in India that they believe is well positioned to cater to India’s affluent urban and emerging cohorts while also having affordable products for masses. Analysts believe it is well placed to expand its 2,609 India store network while maintaining store economics, driving profitability through operating leverage and mix improvement. Product margins and operating leverage to drive India profitability, while the international business profitability is improving, they said. The key risks are affordability constraints in lower cohorts, step-change in technology and slower-than-expected new store additions. Elara Capital maintained its buy rating on BEML with the target price maintained at Rs 2,700. Analysts said the company’s Jan-March quarter (Q4FY26) revenue grew 9% YoY to Rs 1,790 crore led by rail, metro and defence segments. Its earnings before interest, taxes, depreciation, and amortisation (EBITDA) declined 36% YoY due to one-off provisions of around Rs 150 crore related to Mumbai metro project. Excluding one-offs, EBITDA margin contracted 210 basis points (100 basis points or bps = 1 percentage point) YoY to 23.5%. Order inflows grew 20% YoY to Rs 1,250 crore in Q4FY26 while its order book at Rs 15,900 crore provides strong revenue visibility. FY27 and FY28 earnings estimates cut 8% and 6% respectively on mining segment slowdown. Earnings growth of 83% expected over FY26–FY29 with average return on equity of 20%.Motilal Oswal Financial Services has a neutral rating on ITC with the target price at Rs 300. Analysts said effective Feb 2026, the cigarette industry is witnessing one of its most disruptive regulatory resets after the implementation of GST 2.0. The revised taxation framework has resulted in an estimated 60-65% surge in cigarette taxes for ITC, implying the need for around 35% hike in retail prices. This was the steepest hike seen historically and a sharp departure from the largely stable tax regime maintained during 2018-25. The transition has also been unusual due to the one-month gap between the announcement (Jan ‘26) and the implementation (Feb ’26), compared to the typical immediate or near-immediate execution seen historically. In response, ITC has adopted a calibrated and phased price hike strategy instead of taking an upfront full tax pass-through, with the objective of limiting the shift toward illicit cigarette markets and retaining market share among legal players. Analysts expect a 10% volume decline in FY27E and flat volume in FY28E in ITC’s cigarette segment. Earnings pressure on cigarettes would take away near-term catalysts (improving FMCG and paper). Valuations remain comfortable, however, they do not see any near-term positive catalyst.(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)