Stock Picks Today: JSW Steel, Tata Consumer, Kotak Mahindra Bank And More On Brokerages' Radar

A host of global and domestic brokerages have released fresh views on Power Grid, Tata Consumer, JSW Steel, Kotak Mahindra Bank ahead of Thursday's session. Analysts have also tweaked share price targets for some of these companies.

• Maintain Buy with target price of Rs 325

• Analysed CEA’s report that tracks progress on competitively bid transmission projects

• Rs 1500 cr of Power Grid’s Rs14900 cr planned commissioning for the remainder of FY26E is likely to spill over to FY27E-28

• This is based on tower, equipment and stringing progress

• Lower FY26E capitalisation estimates to Rs 18500 cr vs Rs 20000 cr earlier

• Raise FY28E from Rs 26900 cr to Rs 27500 cr factoring spillover

• This has a negligible impact on our FY26E-28E EPS

• Amazon is accelerating the rollout of its quick commerce (QC) service, Amazon Now

• Amazon Now charges no handling fees, free delivery above Rs99 order value

• Offers cashback of Rs 50/100/200 on order values above Rs 399/749/1,399

• Amazon Now's cashback scheme (versus discounts) is attractive

• We are constructive on Quick Commerce growth, but see material persistent losses

• CY26: See Nifty at 29000, +11.4%; continue Large over small and mid caps

• No scope of valuation expansion; upside to be earnings led

• Nifty earnings: cuts to moderate; growth to accelerate

• Risks seem skewed to the upside

• Overweight rate-sensitive/well-off consumption; Underweight capex plays

• Prefer Financials, Real Estate, Passenger/Commercial vehicle & regulated Power utilities

• Expect well-off consumption basket to outperform mass consumption basket

• Expect Capex growth to meaningfully slow for Central govt. as well as for the State govts. given limited fiscal room

• Stay Underweight Industrials & Cement but prefer select Capex plays on growth visibility

• Within global plays, prefer Pharma & Aluminum but are Underweight on IT, Steel & Energy

• Prefer Defensives: Telecom & Hospitals

• Maintain Hold with target price of Rs 2350

• What if Kotak buys IDBI Bank?

• EPS accretive; may or may not address excess capital; possible HR issues

• IDBI – Clean balance sheet, good deposit franchise

• Value accretion for Kotak would depend on how the purchase would be funded 

• Maintain Buy with target price of Rs 1250

• BPSL monetization– simplifies structure, de-levers balance sheet

• Post transaction, JSW’s consol net debt to reduce by Rs 38500 cr - 50% of existing net debt

• Maintain Sell with target price of Rs 915

• Consol net debt/EBITDA to reduce from 3x currently to 1.7 times post the transaction

• Transaction provides JSW Steel with flexibility to invest in future growth

• Provides JFE Steel with access to the high growth Indian steel market

• Maintain Overweight with target price of Rs 1,300

• Deal frees up its balance sheet

• Provides additional ammunition toward pipeline expansion to reach 50 MT domestic steel capacity by 2030

• Deal could help it de-lever by Rs 3,7400 crore

• Maintain Buy with target price of Rs 1,400

• See the transaction as broadly neutral for EPS estimates and fair value

• Transaction will strengthen JSW's balance sheet, reducing its FY27E net debt/Ebitda from 2.4 times to 1.7 times

• Partnership aims to upgrade BPSL's product mix and improve productivity.

• Maintain Buy with target price of Rs 1,350

• Met the management of Tata Consumer; Key takeaways include

• India tea growth likely to be volume-led with marginal pricing in H2

• India salt price growth to also anniversarize in Q3

• RTD business is back on a strong growth trajectory

• Capital Foods portfolio growth to improve gradually (multiple initiatives)

• Sampann growth rates remain strong across categories

• Consolidated business Ebitda margin to expand to 15% by Q4, led primarily by the international business

• Maintain Underperform with target price of Rs 1,130

• Met the CFO and IR of Dr Reddy's

• Company remains confident of first wave launches in Canada, India and other EMs incl Brazil

• US FDA filing for biosimilar Abatacept, Dr Reddy's biggest asset, is on track this month with approval expected in 12-months

• M&A will focus on brands, not full companies

• Targets top-5 position in IPM by 2030

• Confident of achieving double-digit growth in India, RoW and EU and single-digit growth in the US base business