Stock Picks Today: Coforge, Titan, Stylam Industries And More On Brokerages’ Radar

A host of global and domestic brokerages have released fresh views on Coforge Ltd., Titan Ltd., Stylam Industries Ltd., Welspun Living, and more ahead of Monday's session.

They have also shared their outlook on the textile, automobile and auto component sectors, alongside broader cross-sector trends.

• Morgan Stanley maintains an Overweight rating with a target price of Rs 4,062.

• Titan announced the launch of “beYon – from the House of Titan”.

• beYon is the company’s first exclusive lab-grown diamond (LGD) jewellery brand.

• The first exclusive retail store will go live in Mumbai on December 29, 2025.

• The brand will offer LGD jewellery targeted primarily at female consumers.

• Management plans to add a few more stores across Mumbai and Delhi in the near term.

• The brokerage views this as a step in the right direction.

• Citi maintains a Neutral rating with a target price of Rs 4,125.

• The brokerage highlights low entry barriers, limited product differentiation, and falling LGD prices as key negatives.

• It does not expect beYon to drive any meaningful growth or earnings for Titan.

• The foray could pose risks to Titan’s core business and valuation.

• Citi views this move as an admission that LGDs are a growing threat to the natural diamond business.

• The LGD retail space is expected to remain highly competitive.

• Investec maintains a Buy rating with a target price of Rs 4,248.

• The brokerage views the LGD foray as a positive strategic move, subject to effective execution.

• The new brand allows Titan to participate in the growing demand for LGDs.

• beYon could benefit from Titan’s strong brand equity and execution capabilities.

• The jewellery industry is seeing growth across categories and price points.

• Overall, Investec views the move as positive for Titan.

• Investec reiterates a Buy rating with a target price of Rs 2,300.

• The promoter group’s stake sale resolves a long-standing governance gridlock.

• AICA Kogyo brings deep industry expertise, strong brand equity, and operational synergies.

• The transaction could strengthen Stylam’s domestic leadership and accelerate export growth.

• Improved governance and strategic clarity could lead to a valuation re-rating.

• The brokerage awaits clarity on the company’s future growth plans.

• Investec sees upside risk to current estimates and valuations and reiterates Buy.

• Kotak maintains a cautious stance on the Automobiles & Components sector.

• The brokerage retains a Reduce rating on Ashok Leyland with a revised target price of Rs 165, up from Rs 140.

• It retains an Add rating on Tata Motors Commercial Vehicles (TMCV) with a target price of Rs 425, up from Rs 350.

• Momentum in the M&HCV truck segment remains strong, led by e-commerce and infrastructure spending.

• M&HCV industry volumes are expected to grow 8% in FY26E.

• M&HCV buses and LCV segments are likely to benefit from post-GST affordability gains.

• M&HCV bus volumes are expected to grow at a 6.5% CAGR over FY25–28E.

• The LCV segment is expected to outpace M&HCV growth over FY25–28E.

• Dolat Capital maintains an Accumulate rating with a target price of Rs 1,990.

• The Encora acquisition is expected to scale Coforge into a US$2.5 billion IT services platform.

• The deal strengthens Coforge’s AI-led engineering, cloud, and data capabilities.

• Encora brings a strong presence in the HiTech and Healthcare verticals.

• The acquisition significantly enhances Coforge’s US West/Midwest footprint and LATAM nearshore delivery.

• The number of US$10 million-plus clients is expected to rise to 45 post-acquisition.

• The deal is expected to be EPS accretive over the medium term.

• FY27 and FY28 earnings have been tweaked down due to dilution and interest costs.

• The brokerage views the acquisition as strategically accretive despite near-term challenges.

• DAM Capital maintains a Buy rating with a target price of Rs 1,880.

• Coforge has acquired Encora for an enterprise value of US$2.35 billion in an all-stock deal.

• The acquisition enhances AI-led engineering, cloud, and data capabilities.

• The transaction implies equity dilution of around 21% at a swap price of Rs 1,815.

• FY27–28 EPS is likely to be diluted by 5–6% post-integration.

• Near-term risks include integration challenges, dilution, and funding structure.

• Valuation comfort is emerging at 26.7x FY28E earnings.

• Kotak Securities maintains a Buy rating with a target price of Rs 2,250.

• The brokerage describes the Encora deal as a “big bang” acquisition.

• While the asset quality is strong, the acquisition price is viewed as expensive.

• There are strong revenue synergies and some cost synergies available.

• Execution risks remain high given the current demand environment.

• Sharp and immediate execution will be critical to achieving EPS accretion in FY27.

• Morgan Stanley maintains an Overweight rating with a target price of Rs 2,030.

• The brokerage views the Encora acquisition as a significant step compared to Coforge’s recent M&A activity.

• It is seen as a selective, niche, and bold move to expand the addressable market.

• The deal is expected to help establish more sustainable growth drivers.

• Near-term earnings are likely to be diluted on an as-is basis.

• Any material weakness in the stock could offer a long-term accumulation opportunity.

• Jefferies maintains a Buy rating with a target price of Rs 2,180.

• The Encora acquisition is expected to bolster Coforge’s strategic positioning.

• The stock’s recent 10% correction reflects concerns around EPS dilution.

• Jefferies believes successful execution could lead to a valuation re-rating.

• EPS accretion remains contingent on revenue and cost synergies being realised.

• Avendus Spark initiates coverage with a Buy rating and a target price of Rs 348.

• Indo Count is a pure-play home textiles exporter with 100% exposure to bed linen.

• The company operates largely as a B2B supplier with high linkage to the US market.

• The investment thesis is driven by company-led, trade-driven market share gains.

• Diversification across channels and geographies, along with adjacency expansion, supports growth.

• Near-term volatility could persist due to tariffs, US demand trends, and inflation.

• Revenue, EBITDA, and PAT are expected to grow at a CAGR of around 13%, 20%, and 31% respectively over FY25–28.

• Avendus Spark initiates coverage with a Reduce rating and a target price of Rs 135.

• Welspun Living is a market leader in Indian home textiles with a diversified product portfolio.

• The core B2B segment accounts for around 65% of revenues.

• B2B revenues are expected to grow at a CAGR of about 5% over FY25–28.

• Near-term earnings face uncertainty from tariffs and pricing pressure, limiting margin expansion.

• Earnings recovery is expected to hinge on a mix shift toward faster-growing segments.

• These faster-growing segments account for around 30% of revenues and are expected to grow at a CAGR of roughly 12%.

• CLSA maintains an Outperform rating with a target price of Rs 2,275.

• The brokerage highlights Coforge’s bigger and bolder growth ambitions.

• An eight-year track record of consistent execution boosts confidence and management self-belief.

• CLSA sees significant cross-sell and up-sell synergies from the acquisition.

• The acquisition is viewed as slightly expensive.

• The asset has largely been acquired at multiples similar to Coforge, despite offering only mid-to-high single-digit organic growth.