A host of global and domestic brokerages have released fresh views on PNB Housing Finance Ltd., Bharti Airtel Ltd., Arvind Fashion Ltd., ICICI Bank Ltd., Cello World Ltd., and more ahead of Tuesday's session.
They have also shared their outlook on other heavyweight banking stocks.
Morgan Stanley On Bharti Airtel
Upgrade to 'overweight' from 'equal-weight'; hike target price to Rs 2,435 from Rs 2,035
Premium multiples to be sustained
Expect the industry repair phase to continue in the near term
For the medium term, see multiple levers for organic growth in ARPU to reach mid-single digits
This should drive India business growth by double digits
See sustainable return ratio profile improvement to over 20%
Motilal Oswal On Arvind Fashion
Initiate 'buy' with a target price of Rs 725
Fashioning a new cycle of profitable growth
D2C pivot driving capital efficiency
Arrow and USPA to anchor next phase of margin expansion
Capital efficiency and profitability gains to double RoIC by FY27E
See 13% revenue CAGR and 190 bps margin expansion over FY26-28
ICICI Securities On PNB Housing Finance
Upgrade to 'add' from 'hold', target price at Rs 970
Onboarded new MD & CEO with strong domain expertise
CEO uncertainty ends; valuations attractive
Affordable, emerging verticals may remain focus areas
Citi On ICICI Bank
Maintain 'buy' with target price of Rs 1,700
Q2 corporate growth was tempered by accelerated PSU loan repayments/prepayments
Traction in mortgages, unsecured lending, and business banking
Untapped opportunities gives confidence to capture mkt share in profitable growth pools
NIMs to be rangebound – deposit repricing benefit to be offset by gradual moderation in invt yields
MSME/business banking continues to exhibit stable asset quality
Clarity on MD & CEO’s term renewal (due in Oct’26) being keenly watched
Citi On Axis Bank
Maintain 'neutral' with target price of Rs 1,285
Corporate segment exhibits gained traction
Retail segment is also witnessing a recovery, fueled by pent-up demand
Stress in cards improving; no visible stress in export-oriented MSMEs
Technical gross slippages to have seasonal fluctuations in Q3
Revised expectation for NIMs to now bottom out in either Q4 or Q1
Endeavour is to deliver positive operating leverage and cost/assets should trend downwards
Optimisation of the fee-to-asset ratio is presently constrained
Citi On HDFC Bank
Maintain 'buy' with target price of Rs 1,180
Efficiently manages cost of funds through borrowing refinancing, term deposit repricing
CRR cut expected to channelise excess liquidity into lending
Over the medium term, deposit growth is expected to outpace credit growth
Growth engines are optimally calibrated to continue to grow in line with industry-average in FY26
Sounded more sanguine with established momentum, opportunities across segments, and judicious pricing strategy
Banking industry making representations to RBI on ECL framework
Investec On Cello World
Initiate 'sell' call with target price of Rs 530
Sizeable 30% portfolio is exposed to adverse near-term macro headwinds
This puts both growth and EBITDA margins at risk
Scaling the glassware segment also could prove challenging given competitive intensity
This would cap EBITDA margin at 25% versus 30-35% management guidance
This will stretch payback periods and leaving RoCE broadly in line with cost of capital
See room for further consensus downgrades
Valuation doesn’t look attractive either
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