HDFC Bank Ltd., Marico Ltd., Larsen & Toubro Ltd., and auto and power stocks were among top companies on brokerages' radar on Wednesday.
According to Goldman Sachs, Indian markets have undergone significant correction, and near-term volatility is expected to remain high due to elevated domestic positioning in small and mid-cap stocks, as well as ongoing global uncertainty surrounding tariffs. Despite this, it maintains a 'marketweight' stance on India, advising investors to focus on high-quality growth stocks, with clear earnings visibility.
JPMorgan has initiated coverage on a string of power companies, including NTPC Ltd., Tata Power Co., JSW Energy Ltd. and Torrent Power Ltd.
NDTV Profit tracks what analysts are saying about various stocks and sectors. Here are the analyst calls to keep an eye out for today.
Goldman Sachs On HDFC Bank
Maintained 'buy' rating but reduced target price to Rs 2,090 from Rs 2,152 per share.
The bank is at an inflection point for a re-rating.
Visibility on loan growth key.
Five factors that give the brokerage confidence are: market share gains in deposits; PPOP/ROA moderation under control despite sharp reduction in loan-to-deposit ratio; loan growth in core segments such as retail/commercial and rural remains ahead of the industry; accelerating market share gains in credit cards business; and stable asset quality amid challenging macro environment.
HSBC On L&T
Maintained 'hold' rating with a target price of Rs 3,600.
There are big opportunities in the Middle East still.
The strength of opportunities from the Middle East market and L&T’s scale-up of this business continue to surprise.
After a dip in CY24, albeit on a very high base, CY25 is looking like a promising year for L&T after a great start.
JPMorgan On Power Stocks
Tight power market, structural growth, but execution challenges warrant caution on valuations.
NTPC and Power Grid are relatively defensive ways to play thermal and transmission capex.
For private IPPs/utilities, valuations leave little room for execution slippages.
Transmission and distribution capex are increasing fast.
Distribution companies' losses remain high, but payment problems are unlikely.
Reforms in the power sector have helped, but more needs to be done.
Renewables’ favourable economics are driving growth.
Fuel supply has eased out, coal inventories are healthy.
NTPC – Initiated 'overweight' with target price of Rs 417.
Power Grid – Initiated 'overweight' with target price of Rs 316.
Tata Power – Initiated 'neutral' with target price of Rs 378.
JSW Energy – Initiated 'underweight' with target price of Rs 500.
Torrent Power – Initiated 'neutral' with target price of Rs 1,504.
JPMorgan On Marico
Maintained 'overweight' with a target price of Rs 730.
Own initiatives provide growth visibility in a soft operating environment.
Price led growth for Parachute with resilient volume; VAHO recovery is underway.
Foods, digital and premium personal care salience is on the rise with a tight focus on improving profitability.
BofA On Auto Sector
March 2025: Demand lull amid low seasonality.
Weak retail trends for both two-wheelers and passenger vehicles in March.
Underlying walk-in and enquiries have also been subdued.
Eicher (RE) stands out with possibly another sub-90,000 print.
PV OEMs take annual price hikes ranging 2-3%, though sustainability needs to be seen.
EV adoption has been stagnant in 2Ws despite e-scooters being cheaper than petrol scooters.
Commercial vehicles see some stabilisation in February and March; while tractor hopes are high for the upcoming season.
April will be an important month to monitor, given the festive period, wedding dates and easing of financing.
Preferred picks: Eicher Motors, Mahindra & Mahindra, Maruti Suzuki.
Jefferies On Auto Sector
Channel checks amid weak demand.
India's auto demand has weakened in recent months
PV and 2W registrations are down 11% and 6% YoY, respectively, in February and March.
Channel checks with 50 PV and 2W dealers suggest weak enquiries in both segments.
See higher inventories in PVs and stricter finance underwriting in 2Ws
Amid a weak underlying demand, M&M is outperforming in PVs, and TVS Motor and Eicher Motors in 2Ws.
Goldman Sachs On AU Small Finance Bank
Maintained 'buy' rating and cut target price to Rs 796 from Rs 813.
A GARP play with an industry-leading earnings growth profile.
Valuation de-rating an opportunity on sector-leading earnings growth over three years.
AU Small Finance Bank will likely start delivering a strong growth momentum in the second half of FY26.
Expects the bank to deliver earnings growth of 31% in the next three years.
Axis Capital On Real Estate
Launches across top seven cities in February declined 47% year-on-year.
Mumbai, Delhi NCR, Hyderabad and Pune were the key underperformers.
Bengaluru was the only outlier, witnessing 19% YoY growth in launches
Absorption remained relatively stable, down 5% YoY to 56 million sq ft.
Inventory declined 7% YoY and 3% month-on-month to 717 million sq. ft.
Inventory stayed below the 5,00,000-mark at around 4,84,700 units.
Nuvama On Laxmi Dental
Initiated 'buy' with a target price of Rs 570.
End-to-end integrated dynamo in an underserved yet growing market.
Shift to metal-free products, digitalisation catalysts for lab business.
Aligners: Nascent but thriving segment; Kids-e-Dental a pioneer.
See revenue and adjusted PAT growth of 26% and 59%, respectively, with return on capital employed rising from 19% to 29% over four years.
Goldman Sachs India Strategy
Growth slowdown is cyclical rather than structural and largely reflects policy tightness.
Some recent policy easing measures may help revive real GDP growth later in the year.
The worst is likely behind us in terms of economic growth and earnings trajectory, according to the brokerage.
Prices have corrected meaningfully.
Sees higher market volatility in the near term, given still elevated.
Domestic positioning in small/mid-caps and ongoing global uncertainty from tariffs.
Remains 'marketweight' on India; recommends focusing on quality growth and earnings visibility.
Highlights stocks that offer 23% upside on average.
HDFC Bank, AU Small Finance Bank, M&M, InterGlobe Aviation, Adani Ports, Power Grid Corp., Apollo Hospitals, Titan and Godrej Consumer Products are among picks.
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