Stock Picks Today: ICICI Bank, Hindalco, Hyundai, HCL Tech On Brokerages' Radar

Akums Drugs & Pharmaceuticals Ltd., Titagarh Rail Systems Ltd., ICICI Bank Ltd., Hindalco Industries Ltd., Hyundai Motor India Ltd., and HCL Tech are among the companies garnering brokerage commentary today.

Analysts have shared their insights and, in several cases, revised their target prices based on their updated fundamental outlooks for these firms, broadly based on the first quarter financials that the players have put out. Here are the key analyst calls to watch out for today:

Citi

• Maintained Buy; target price of Rs 700.

• Subdued Q1 as API pricing continues to impact domestic CDMO growth.

• On the positive side, losses in the APIs, trade Gx came down with portfolio rationalization.

• Company making filings in Europe and along with CDMO contracts.

• Expect the international business to contribute $100m annually in the next five years versus $15m now.

Morgan Stanley

• Maintained Overweight; target price of Rs 1,027.

• 1Q was lower wagon offtake drags earnings.

• Revenue miss of 24% led was by lower freight revenue due to lower wagon dispatch.

Jefferies

• Industry checks indicate this stance is unique.

• Will watch for any intervention.

• Financial impact is limited.

Investec

• Maintained Hold; cut target price to Rs 705 from Rs 730.

• Tariffs headwinds are here.

• Novelis Q1FY26 spreads disappointed, expect more of the same.

• Management highlights Q1 absolute (adjusted) Ebitda to have bottomed out.

• Multiple headwinds like no concessions under MCA as yet, unfavourable mix, price elasticity weighing on demand.

• Trim Novelis spreads by $30/t for the rest of FY26.

Citi

• Maintained Buy; target price of Rs 800.

• Novelis Q1 hurt by tariff impact, mix.

• Mitigation efforts are ongoing.

• Q1 Ebitda could be close to the bottom.

• Management does not expect Q2 to be much worse than Q1.

Jefferies

• Maintained Hold; cut target price to Rs 1,600 from Rs 1,700.

• Concord's numbers significantly below our estimates.

• Injectable facility drags Ebitda margins.

• CDMO business began supplies for the first project.

• API has levers to grow.

• Cut FY26-28 EPS estimates by 6-10% as we lower our margin estimates.

• Maintain Hold on near-term margin pressure.

Goldman Sachs

• Initiated Buy; target price of Rs 2,600.

• Product cycle to offer leverage to industry inflection.

• Capacity catch-up to trigger new product launches and market share pickup.

• Better leveraged to potential domestic car market recovery and ongoing rate cuts.

• Well positioned for income tax stimulus with upcoming civil servant wage revisions.

• White spaces and EM portfolio points to Stargazer opportunity in India.

• Right to win on EVs.

• Hyundai has recently been outperforming KIA in emerging markets.

• Higher FCF generation in outer years as new plants mature.

Jefferies

• Maintained Hold; hiked target price to Rs 1,350 from Rs 1,320.

• Margin miss in Q1, contribution from M&A to slow down further.

• Acquisitions remain a key growth driver; the company has closed four of six recent acquisitions.

• FY26 guidance maintained of 30% sales growth and over 4% Ebitda margins.

• Going ahead, Entero will be more selective in acquisitions.

• Cut FY26-28 EPS by 2-10% as M&A related upside will slow down.

Jefferies

• Maintained Buy; target price of Rs 1,850.

• Hosted Shiv Walia, CFO, and Nitin Mohta, Head IR, for investor meetings.

• HCL pointed to a steady demand environment and remains confident of 3-5% growth in FY26.

• AI-led engagements are becoming more central to transformation agenda.

• HCL expects higher wallet share to offset the AI-led productivity benefits.

• HCL has brought forward its investments in AI sales GTM initiatives.

• This will hit margins in FY26, but margins should normalize in FY27.

• Expect muted returns; be nimble or rotate sectors for alpha.

• Risks skewed to downside.

• Small and midcaps still overvalued but see some pockets of opportunities.

• Moved IT sector from Underweight to Overweight and Utilities from Underweight to Neutral.

• Continue to expect negative returns from small and midcaps.

• See pockets of opportunities now within Building Materials, Auto Components & Travel and Tourism.

• Continue to prefer Large caps over Small and midcaps.

Six factors to drive volatility:

1. Consensus earnings cuts to continue.

2. Trade tariffs: base case is for India to attract 15% tariffs from the US; see downside risk if higher tariffs at 25-50% sustain.

3. US Macro outlook remains uncertain.

4. Populism step-up: subsidy spike could curtail capex; a market risk.

5. Flows: risk-reward for FIIs is still unfavorable; do not see revival of FII flows.

6. Policy response: India may step up legislative reforms, improve policies, and offer fiscal support to boost growth/avert tariff impact.

• Mass consumption revival is underway.

• Seeing the first signs of a mass consumption revival, likely to build-up over financial year 2026-27.

• Rising tide to raise all boats, but we prefer companies with bottom-up drivers.

• A steady recovery in private consumption.

• Peak growth drag from credit tightening is past.

• A sustained rural and lower-income recovery.

• Rural and lower-income urban recovery to have more legs.

• Urban consumption demand mixed; gradual improvement on easier financial conditions.

• Mass consumption revival after a long hiatus to drive revenue growth acceleration for many companies.