Stock Picks Today: PB Fintech, IndiGo, Asian Paints And More On Brokerages’ Radar

A host of global and domestic brokerages have released fresh views on PB Fintech Ltd., HDB Financial Services Ltd., Sona BLW Precision Forgings Ltd., InterGlobe Aviation Ltd., Indraprastha Gas Ltd., Avenue Supermarts Ltd. and Asian Paints Ltd. ahead of Monday’s session.

They have also shared their outlook on the insurance sector, alongside broader views on market positioning.

• UBS maintains a Sell rating with a target price of Rs 1,660.

• The Insurance Amendment Bill proposes limits on commissions, which is negative for PB Fintech.

• For every 1% reduction in unit economics, earnings could be impacted by 3–4%.

• Citi maintains a Buy rating with a target price of Rs 2,225.

• Street concerns persist around PB Fintech’s yields.

• Recent worries stem from the Insurance Amendment Bill and commission-related clauses.

• The regulator will have enhanced authority to set limits on commissions.

• Markets may be factoring a reversal to the older EOM regime.

• Citi sees a low probability of the regulator backtracking on the current democratized commission framework.

• Penalising efficient distributors runs counter to the regulator’s objective of improving insurance penetration.

• Jefferies maintains a Buy rating with a target price of Rs 900.

• Growth is improving while asset quality trends are stabilising.

• Management indicated growth has picked up post GST cuts, though sustainability remains uncertain.

• AUM is expected to grow at an 18–20% CAGR over the next three years.

• Net interest margins are likely to remain range-bound.

• Stress in unsecured business loans has stabilised, while CV stress is moderating.

• Credit costs are seen peaking in Q2 and moderating over time.

• ROA and ROE are expected to improve to 2.5% and 16–17% over the next three years.

• Kotak Securities maintains a Reduce rating and has cut the target price to Rs 480 from Rs 500.

• The brokerage recently interacted with the management.

• Recovery in the differential assembly business is expected from CY2026 onwards.

• Traction motors and railway segments are seen as key growth drivers.

• The differential gear business could see an uptick driven by a EUR 300 million opportunity in Europe.

• The impact from Mexico tariffs is expected to remain minimal.

• Investec maintains a Sell rating with a target price of Rs 4,050.

• Regulatory action could cap the airline’s growth prospects.

• Rising cost pressures are expected to weigh on margins.

• Increased government oversight adds a fresh overhang on the stock.

• Valuations are seen as elevated given the cyclical nature of the industry.

• Goldman Sachs maintains a Buy rating but cuts the target price to Rs 5,600 from Rs 5,700.

• The brokerage factors in the impact of a 10% capacity cut in the winter schedule.

• IndiGo is issuing vouchers to affected passengers and adjusting pilot deployment.

• The impact on FY27–FY28 earnings is expected to be limited.

• Goldman remains positive given IndiGo’s dominant market position and low-cost structure.

• Kotak notes the Insurance Act amendments include limited proposals with no immediate impact.

• The amendment raises the FDI limit in insurance to 100%.

• This could pave the way for new foreign and niche players entering the market.

• The impact on life insurance is expected to be limited due to long gestation periods and distribution challenges.

• Proposals around commission caps could weigh on PB Fintech’s stock.

• IRDAI already has the flexibility to fix commission caps, with the amendment reinforcing this power.

• The regulator may periodically reassess expenses and payout structures.

• Morgan Stanley welcomes IRDAI’s enhanced powers over investments, commissions and expenses.

• These changes are expected to strengthen governance and improve transparency.

• The enabling provision for mergers between insurers and non-insurers is also viewed positively.

• Industry views on commissions remain mixed, ranging from acceptance of current levels to support for deferral.

• The removal of certain investment restrictions could benefit the sector.

• The Bill also empowers IRDAI to frame regulations for composite licenses.

• Nomura upgrades IGL to Buy from Neutral and raises the target price to Rs 230 from Rs 215.

• Margins are expected to benefit from lower taxes and transmission tariffs.

• The DTC transition is nearing completion, supporting volume growth.

• Demand trends could improve as the transition phase ends.

• Risk-reward has turned favourable after the recent sharp correction.