Stock Picks Today: TCS, Premier Energies, Godrej Properties On Brokerages' Radar

Tata Consultancy Services Ltd., Premier Energies Ltd., Godrej Properties Ltd., 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. Here are the key analyst calls to watch out for today:

JPMorgan on TCS

• Maintain Overweight, hike target price to Rs 4,050 from Rs 3,900

• Underlying trends bottoming out.

• AI colocation business appears to be an unrelated distraction

• Margin improvement was heartening.

• Underlying cost control has been achieved post restructuring.

CLSA on TCS

• Maintain Outperform, hike target price to Rs 3,559 from Rs 3,545

• Beat on all fronts.

• Ambitious data centre investment plans.

• Becoming more acquisitive to gain speed.

• Big, bold and ambitious data centre plans to participate in India AI story.

Avendus Spark on TCS

• Upgrade to Buy from Add, Hike target price to Rs 3,700 from Rs 3,690.

• Better-than-expected Q2, thereby reversing a string of poor performances in last few quarters.

• Massive decline in headcount is a worry.

• Deal win momentum remains strong and provides visibility on recovery in revenue through H2 and FY27.

• This would lead to reversal in the decline in headcount trend in the coming quarters.

• Deal extension from BSNL would augment revenue in the near term.

• Upgrade in the rating also driven by near-term underperformance, which makes the risk-reward attractive and restricts downside.

UBS on TCS

• Maintain Neutral, Hike target price to Rs 3,435 from Rs 3,400.

• Q2FY26: Margin beat; AI investments announced.

• Mgmt highlighted that clients remain cautious leading to tight discretionary budgets and project delays.

• Albeit deferrals are lower than the previous quarter.

Nomura on TCS

• Maintain Neutral with target price of Rs 3,300.

• Q2FY26 – beat at revenue; reported PAT impacted by restructuring costs.

• Forays into Data center (DC) business; capex of USD6-6.5bn over 6 years.

• Management continues to expect FY26E to be better than FY25 for major markets.

• Significant margin improvement in FY26F is unlikely.

• Lower our FY26 EPS by ~2% to factor in restructuring costs in H2FY26.

Citi on TCS

• Maintain Sell, hike target price to Rs 2,800 from Rs 2,790.

• Inline Q2; Asset Intensity to Increase Medium Term.

• Headcount reduction of 3% QoQ highlights weak outlook.

• Continue to worry about increased competitive intensity.

• See risk to AI-led productivity in existing business.

• GCC growth continuing to be better and macro setup is unchanged

• Maintain cautious view.

Jefferies on TCS

• Maintain Hold, Cut target price to Rs 3,100 from Rs 3,230.

• Weak Growth; Data Center to add limited upside.

• Growth in key markets is yet to recover and 3% QoQ decline in headcount does not bode well.

• While TCS' intent to invest  for growth is promising, its data center foray has limited synergies.

• Cut estimates by upto 1% and expect 4% EPS CAGR over FY26.

JPMorgan on Premier Energies

• Maintain Neutral with target price of Rs 1,019.

• A growing solar cell supply overhang.

• Supply overhang could be larger than expected.

• Anti-dumping duties may become irrelevant.

• Upstream integration could compensate for margin losses.

CLSA on Auto

• Festive spirit picking up.

• GST cut and pent-up demand driving robust growth at retail level.

• During the first 16 days of India’s ongoing festive season, like-for-like volumes on a YoY basis increased 25% for passenger vehicles and 21% for two-wheelers.

• Commercial vehicles and tractors recorded modest growth of 5% each, while three-wheelers grew by 7%.

• For the period from the GST cut announcement on 15 August to pre-festive season (38 days), like-for like volumes on a YoY basis declined by 24% for PVs and 16% for 2Ws.

• In this period, CVs and 3Ws declined 11% and 17%, whereas tractor volumes increased by 12%.

• Cumulatively, over the 54-day period on a like-for-like basis, volumes for PVs, 2Ws, CVs, and 3Ws remain down by 5%, 1%, 5%, and 10% YoY.

• Believe they should report growth by the end of the festive season in the next fortnight.

• Mass market players such as Hero Moto and Maruti have executed superior retail growth in the festive season, with 200-300bps increases in market share YoY.

MS on CIO Survey

• First Glimpse at 2026: Growth Expectations Tick Up, but Caution Remains.

• Q3CY25 survey results show small signs of acceleration in the 2026 IT spending environment.

• Budget growth expectations remain below pre-Covid levels and short term revisions skew to the downside.

• On the whole, we continue to see signs of caution in IT spending.

• Software remains the fastest-growing sector but IT Services showing small relative weakness in growth expectations.

• CIO interest in AI continues; ERP remains a top priority too.

• Despite AI's prominence, a significant number of AI projects are yet to be implemented.

• CIO data highlights vendor willingness to discount further increases, but only slightly.

BofA India Strategy

• Q2 preview: Searching for sunshine.

• Q2: Expectations remain low.

• Autos/Discretionary/Staples/Financials to drag earnings.

• Banks, Autos and Consumer in focus.

• Increasing focus on commentary across sectors.

• Prefer rate-sensitive domestic cyclical & defensive sectors - NBFCs, REITs and Autos.

• Remain underweight on globally exposed sectors: Energy because of global growth uncertainties caused by tariffs.

• Remain underweight on capex linked sectors like Cement, Steel, Metals, Energy, and IT on reacceleration of populism.

Bernstein India Strategy

• India: The New IPO Factory.

• Among all countries, India has been the third largest by funding raised through IPOs in this year so far.

• India’s IPO wave is surging—160+ public offerings in the past 21 months have propelled India into the world’s top three IPO markets this year.

• Investing in these new offerings has generally outperformed broad market indices.

• These stocks have beaten Nifty returns in five of the last seven quarters.

• 61% of these outperforming the broader Nifty index in the last 6 months.

• Listing gains, on average, come in at 22%, noticeably better than those from holding for three months or longer.

• Most IPOs, by company count rather than deal size, are in traditional sectors with Industrials leading the numbers.

• This underscores the continued strength and breadth of India’s traditional industry base within the public market.

Citi India Strategy

• Q2 Preview: Ebitda Growth Commodities Led; Revisions Key Watch.

• Expect Q2 Ebitda growth at 5% ex-commodities and 10% ex-commodities ex-financials.

• Headline Ebitda growth est. is 13% YoY, commodities led.

• With NIMs bottoming out & credit growth starting to improve, earnings in Financials may be bottoming out.

• Management commentary on sustenance of urban consumption recovery post GST-cuts will be key to watch and could further aid earnings.

• Valuations, while not inexpensive at 20 times 1 year forward.

• Earnings Revision Trajectory will be key.

• Add Defence to our Overweight and Industrials to Neutral.

• Add Cummins & BEL to top picks.

• Downgrade NBFCs to Neutral and remove Chola Finance from top picks.

• Sep’25 NIFTY target: 27.6k (10% upside).

Jefferies Greed & Fear – Chris Wood

China weightage increased by 2% points while India and South Korea weightage reduced by 1% point each.

Kotak Securities on Insurance

• Moderate APE growth in September.

• Private life companies reported 9% APE growth in September, translating to similar growth for Q2.

• A weak August was likely followed by faster momentum after the GST exemption in September.

• SBI Life, after months of weakness, reported a pickup to 19% APE growth in September, driving 10% growth for Q2.

• Axis Max Life held on tall with 13% growth (15% for the quarter).

• HDFC Life remained weak at 6%, but a strong July lifted quarterly growth to 10%.

• ICICI Prudential Life and LIC remained weak with 6% and 16% yoy decline in September, leading to 5-7% decline in Q2.

Morgan Stanley on Godrej Properties

• Maintain Equal-weight with target price of Rs 2,400.

• Believe share price will rise over the next 60 days.

• Expect Godrej to report robust Q2 presales of Rs 9,300 crore.

• This marks a sharp recovery from a muted Q1, positioning Godrej as the strongest performer.

• Valuations look attractive.

• Additionally, pre-sales growth is predominantly launch-led, with an acquisition-focused strategy that, amid rising land prices, adds margin and leverage risk.

Morgan Stanley on Life Insurance

• Industry individual RWRP fell 6% YoY.

• The private sector reported 8% YoY growth.

• SBI Life and HDFC Life grew 15% and 6%, respectively.

• ICICI PRU Life's individual RWRP declined 8%; individual APE fell 4%.

• Will watch if there is any positive impact on new sales / cross-sell / up-sell over time post GST rate cut.