L&T Technology Services Ltd., Varun Beverages Ltd., and Swiggy Ltd. were among the top companies on brokerages' radar on Friday.
Morgan Stanley expects the Indian market to rise rather than fall, as growth data is anticipated to improve, the RBI is likely to stay dovish, and a strong earnings season is forecasted.
While JPMorgan has downgraded and cut target price of L&T Technology, UBS has initiated 'buy' rating for PNB Housing Finance.
NDTV Profit tracks what analysts are saying about various stocks and sectors. Here are the analyst calls to keep an eye out for on Thursday.
JPMorgan On L&T Technology Services
JPMorgan has downgraded L&T Technology Services to 'neutral' from 'overweight' and reduced the target price to Rs 4,100 from Rs 5,000.
The stock has been placed on Negative Catalyst Watch.
The Mobility business is expected to face prolonged challenges due to delays in deal ramp-ups from automotive OEMs.
This is likely to drag overall growth in financial year 2026 below 10%, with organic growth estimated at just 3%.
The Hitech segment is also expected to face continued near-term headwinds, which will further pressure growth.
Margins are projected to be negatively impacted due to operating leverage effects.
The company is likely to revise its financial year 2026 revenue guidance downward over the next four months.
Earnings estimates have been cut by 9–11%, led by both revenue and margin reductions, with the target P/E multiple reduced from 32 times to 28 times.
Morgan Stanley India Strategy
Morgan Stanley expects the Indian market to rise rather than fall.
Growth data is anticipated to improve, the RBI is likely to stay dovish, and a strong earnings season is forecast.
However, global factors—including tariffs and wars—remain the most crucial influences.
A global recession or near-recession scenario could challenge the bullish outlook and cap market upside in 2025.
The firm believes that upcoming earnings will likely surprise to the upside, starting from July.
UBS On PNB Housing Finance
UBS has initiated coverage on PNB Housing with a 'buy' rating and a target price of Rs 1,300.
The stock is seen as a turnaround story with attractive valuations.
A mid-teen CAGR in AUM is expected, supported by product diversification.
Expansion into mid-tier segments is likely to fuel loan growth.
UBS expects AUM and EPS CAGR of 16% and 13% respectively over financial year 2025–2027.
HSBC On Varun Beverages
HSBC maintained a 'buy' rating on Varun Beverages with a target price of Rs 670.
The recent 28% correction in the company’s share price is considered overdone.
Concerns around poor weather, increased competition, and innovation lags do not justify such a sharp decline.
The company remains well-positioned for repeat consumption in urban areas and continued rural market expansion—making it one of the strongest global beverage growth stories.
The stock is currently trading at a 20% discount to its historical average P/E multiple.
JPMorgan On IT ER&D Sector
JPMorgan expects the current growth premium of Engineering, Research and Development over IT services to reverse in financial year 2026, turning into a discount.
Auto sector headwinds are anticipated to derail the ER&D growth narrative.
IT services are relatively better placed, thanks to strong exposure to the BFSI sector.
Although the ER&D valuation premium has declined, it still remains elevated.
JPMorgan prefers midcap IT stocks over ER&D names, with Persistent Systems as its top pick within the ER&D space.
Nomura On Dixon Technologies
Nomura has maintained a 'buy' rating on Dixon Technologies with a target price of Rs 21,409.
The mobile phone manufacturing ramp-up remains on track, supported by strong export demand for smartphones.
Management is confident of reaching 60–65 million smartphone volumes by financial year 2027.
Dixon expects to secure 30% to 70% share of business from key customers such as Xiaomi, Oppo, and Vivo.
Motorola, one of Dixon’s anchor customers, is currently ramping up capacity.
UBS On Bajaj Housing Finance
UBS has initiated coverage on Bajaj Housing with a 'neutral' rating and a target price of Rs 135.
The company’s strong growth outlook is viewed as fairly priced in.
The optimised asset mix offers limited incremental benefits going forward.
Return on Equity expansion is expected to be driven by leverage, though net interest margins may face near-term pressure.
Bajaj Housing deserves a scarcity premium, being the only private sector housing finance company focused on the prime loan segment.
JPMorgan On Tata Motors
JPMorgan maintained a 'neutral' stance on Tata Motors with a target price of Rs 740.
Retail sales trends for Jaguar Land Rover appear weak in first quarter.
The US market may have seen pre-buying ahead of potential tariff imposition.
Inventories in the US and China remain under control, with US incentives stable to declining.
Jefferies On GAIL
Jefferies maintained a 'buy' rating on GAIL but has lowered the target price to Rs 210 from Rs 218.
A transmission tariff hike is likely soon, with expectations of a 20% increase as per the upcoming PNGRB board meeting.
A 10% to 20% tariff hike could help transmission ROCEs reach double digits, aiding valuation re-rating.
Fair value in such a scenario is estimated at Rs 235–Rs 250, offering healthy upside.
The target price cut reflects lower volumes and trading Ebitda due to weaker crude prices.
Brokerages On Nykaa
CLSA:
Maintained 'outperform' with a target price of Rs 229.
Nykaa’s guidance, especially in fashion, is more bullish than CLSA's estimates.
The BPC segment is forecast to grow at a mid-20% CAGR over the next five years.
"Nykaa Now" is a key growth driver in the premium personal care space.
Fashion Ebitda margin guidance for FY26 remains unchanged.
BofA:
Maintained 'underperform' with a target price of Rs 172.
BPC traction remains steady, and the fashion segment is expected to reach breakeven.
"Nykaa Now" is offering express delivery for beauty products.
The platform may explore charging a platform fee in the long term.
Macquarie:
Also maintains Underperform with a target price of Rs 145.
Growth targets are largely reiterated, with financial year 2025–2030 beauty GMV guidance retained.
Fashion sales growth targets have been moderated, while Ebitda breakeven is reaffirmed for fiscal 2026.
Ebitda losses in the B2B beauty segment are narrowing.
However, higher delivery costs due to the "Nykaa Now" initiative could pressure beauty segment margins.
BofA On Swiggy
BofA maintained an 'underperform' rating on Swiggy with a target price of Rs 330.
In quick commerce, the focus is on growth, category expansion, and market consolidation.
Swiggy is expected to aggressively explore new growth avenues in food delivery.
Its ecosystem-based approach is seen as enabling synergies and cost optimisation.
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