Hindustan Aeronautics Ltd., Hindalco Industries Ltd. and Titan Ltd. were among the top companies on brokerages' radar on Friday.
Jefferies points out that despite multiple reliefs for the Indian markets, there is no rally. On the other hand, BofA sees pockets of sectoral strength in an overall weak market. The brokerage said that financials are in focus on the back of rate cut.
In addition, Jefferies has cut the target price for Entero Healthcare Ltd.
NDTV Profit tracks what analysts are saying about various stocks and sectors. Here are the analysts' calls to keep an eye out for on Friday.
Jefferies India Strategy
Despite multiple reliefs, the Indian equity market has not seen a rally yet.
The Reserve Bank of India’s pro-growth commentary and the postponement of the LCR implementation have been positive.
The new income tax bill has not introduced any negatives.
The results season has been broadly inline, and there has been strong mutual fund inflow.
However, these factors have not been sufficient to drive equity market growth.
Potential positive developments may come from the Modi-Trump meetings, and improvements in high-frequency indicators.
BofA India Strategy
See pockets of sectoral strength, but the overall market remains weak.
Nifty concluded third quarter earnings with a 7% year-on-year growth.
NSE200 earnings tracked a 4% beat and an 11% year-on-year growth.
Financials were in focus due to rate cuts, but there have been marginal downgrades to Nifty/NSE200 EPS since Jan. 1.
Slower earnings growth is expected ahead, so BofA remains selective.
HSBC On OMCs
Maintain a 'Buy' rating on IOCL (target price of Rs 170), BPCL (target price of Rs 440), and HPCL (target price of Rs 450).
Oil price volatility is expected to reduce the risk of auto fuel pump price reductions, a major risk to profitability.
The return of auto fuel demand and better margins in non-controlled products should help offset the recent weakness in marketing margins.
With INR depreciation and US oil sourcing emerging as new risks, the stock correction makes OMCs even more attractive.
CLSA On Power Financiers
Maintain an 'Outperform' rating on PFC with a target price of Rs 540 (down from Rs 610) and on REC with a target price of Rs 590 (down from Rs 680).
Both PFC and REC are expected to benefit from renewable and thermal capex as well as the Discom RDSS scheme rollouts.
However, with the growth outlook now more in the mid-teens than the +20% seen in financial year 2024, CLSA has lowered its target prices.
Jefferies On Entero Healthcare
Maintain a 'Buy' rating on Entero Healthcare but lower the target price to Rs 1,650 from Rs 1,840.
The company reported strong margins in third quarter, but delays in closing acquisitions were a disappointment.
No new acquisitions were announced, and Entero is likely to fall short of its financial year 2025 revenue growth guidance of 35-40%.
Due to the delays, financial year 2025-2027 EPS estimates have been cut by 10-17%.
Despite the cuts, Entero is expected to achieve a robust 31% revenue CAGR over financial year 2025-2027, along with a three times growth in profit.
HSBC On Maruti Suzuki
Maintain a 'Buy' rating on Maruti Suzuki with a target price of Rs 14,000.
India is expected to become the export hub for electric vehicles for Suzuki and Toyota, offering strong volume growth potential.
Although percentage margins may be lower for exported EVs, the absolute margins should still be viable.
HSBC sees 5,000 to 6,000 units per month as a plausible sales estimate.
Brokerages On Hindalco Industries
CLSA
Maintain an 'Outperform' rating on Hindalco with a target price of Rs 800.
The company’s third-quarter aluminium profitability was in line with estimates.
Hindalco secured the crucial Meenakshi coal block, with a 12 million tons per annum capacity, which could fulfill 75% of its coal requirement.
CLSA will watch for commentary on costs, hedging impacts, and the benefits of alumina sales during the conference call.
JPMorgan
Maintain an 'Overweight' rating on Hindalco with a target price of Rs 670.
The company’s Ebitda in the India business beat expectations, aided by lower costs and a better copper business performance.
JPMorgan does not see any negatives from the third quarter results.
However, attention should be given to the future trajectory of aluminum and copper segment Ebitda.
Guidance for fourth quarter of this fiscal and first quarter of financial year 2026 aluminum EBITDA/t will be key items to monitor.
The recent decline in alumina prices is expected to lead to lower profitability.
CLSA on Hindustan Aeronautics
Maintain an 'Outperform' rating on Hindustan Aeronautics with a target price of Rs 4,662.
The company’s third-quarter backlog grew by 60% year-on-year, driven by Modi 3.0’s 100-day plan delivering two large orders.
A large helicopter order in first half of this fiscal and visibility on GE engine deals are seen as key catalysts.
Hindustan Aeronautics trades at a deserved premium to global aerospace peers due to its Make-in-India pipeline and market access.
Risks include a shift in key aerospace programs to the PPP mode and sustaining high margins.
Goldman Sachs on Titan
Maintain a 'Buy' rating on Titan with a target price of Rs 3,900.
Growth momentum is expected to continue, and gold leasing is not a major concern.
Jewellery growth remains strong despite rising gold prices.
The increase in gold leasing costs and supply shortages are expected to be transient and have only a marginal adverse impact on Titan.
The focus remains on EBIT growth rather than EBIT margins, and the gap between consolidated and standalone margins is narrowing.
JPMorgan On Reliance
Maintain an 'Overweight' rating on Reliance Industries with a target price of Rs 1,520.
Valuations suggest that further downside would require multiples to fall to extreme lows, which is considered a low probability.
There are risks to Ebitda forecasts due to uncertainties around commodity outcomes and potential financial year 2026 tariff increases.
Despite the lack of near-term catalysts, Reliance could benefit from a restoration of retail segment growth, telecom tariff increases, or valuation upside from subsidiary listings.
Brokerages On Manappuram
CLSA
Maintain an 'Outperform' rating for Manappuram with a target price of Rs 225.
The company is experiencing slower gold loan growth due to operational restructuring.
There has been an increase in operating expenses and the cost of funds.
Asirvad MFI's credit costs stand at 17% (annualized), and the growth guidance has been revised downwards.
Jefferies
Maintain a 'Hold' rating on Manappuram and raise the target price to Rs 205 from Rs 190.
For third quarter, the company missed profit expectations due to higher provisions.
The AUM growth missed estimates, and net interest margins declined quarter-on-quarter.
Credit costs increased due to stress in the MFI book.
While Manappuram should benefit from higher gold prices, its growth has lagged behind peers.
Elevated stress in MFI loans is expected to drag earnings in the near term.
Although valuations seem reasonable, easing stress in the MFI portfolio is likely to be key for a potential re-rating.
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