Brokerages Radar: Axis Bank, HDFC Life And L&T In Focus — Check Price Target

Axis Bank and L&T are the two major counters under brokerages' lens on Thursday, one on the back of second quarter earnings while the other has been marked as a 'quiet outperformer'.

While analysts have maintained a neutral stance on Axis Bank with an unchanged target price, L&T's target price was hiked by Jefferies as the stock has outperformed Nifty over a period one to five year.

In addition to Axis Bank, some of the other BFSI counters are also in focus on the back of recent brokerage updates.

JPMorgan

• Retains 'Neutral' with a target price of Rs 1,260.

• The brokerage notes the Q2 earnings missed estimates, led by higher-than-expected provisions on crop loans.

• Asset quality is improving, with both Gross Non-Performing Assets (GNPA) and slippages showing a decline.

• Net Interest Margins (NIMs) are stable, and corporate loans are the primary driver for overall loan growth.

• CASA (Current Account Savings Account) growth was weak, which the brokerage attributes to lower government balances.

• Valuations are considered reasonable at 1.4x its estimated FY27 price-to-book, with Book Value Per Share (BVPS) up 15% year-on-year.

Jefferies

• Maintains 'Buy' and raises the target price to Rs 4,345.

• Notes the stock has significantly outperformed the Nifty over 6-month, 1-year, and 5-year periods by a wide margin, anywhere between 1% to 201%.

• The brokerage is confident the company is on track to meet or exceed its FY26 guidance.

• Anticipates core Engineering & Construction (E&C) EBITDA will rise by 20%, outpacing the 16% growth seen between FY15-19.

• Believes the combination of strong order visibility and conservative guidance should continue to drive the stock's performance.

Morgan Stanley on AU Small Finance Bank

• Maintains 'Overweight' with a target price of Rs 1,000.

• The key focus for the upcoming Q2 results will be on loan growth, Net Interest Margins (NIMs), and asset quality.

• Believes that an improving macroeconomic environment and better asset quality could drive faster loan growth in FY27 compared to FY26.

• Expects a potential 30% re-rating for the stock over the next 9–12 months if the earnings trajectory shows improvement.

Motilal Oswal on HDB Financial Services

• Reiterates 'Neutral' with a target price of Rs 820.

• Notes the second quarter (Q2FY26) was weak, characterized by muted AUM growth and elevated credit costs.

• A key positive was the expansion in Net Interest Margins (NIMs), which was aided by a lower cost of funds.

• The rise in credit costs was primarily driven by stress in the Commercial Vehicle/Construction Equipment loan segments due to monsoon disruptions.

• Expects a strong rebound in the second half of the year, driven by festive demand and a recovery in retail lending.

Motilal Oswal on HDFC Life Insurance

• Maintains 'Buy' with a target price of Rs 910.

• The Q2FY26 performance was in line with expectations, with only a modest, GST-related hit to margins.

• The Protection and ULIP segments are showing strong traction following recent GST rate cuts.

• Management has retained its guidance for mid-teens growth, expecting to outperform the broader industry.

• Valuations are considered attractive at 2.4x the estimated September 2027 Embedded Value, with a healthy solvency ratio of 175%.