Brokerages have reacted to the third-quarter financial results of Infosys Ltd., Axis Bank Ltd. and Reliance Industries Ltd.
Analysts were mixed on Axis Bank's numbers, with Macquarie and Bernstein remaining positive on the stock while Citi stayed cautious. They noted credit costs inched up again for the private lender with increased slippages and stagnant recoveries.
Infosys failed to impress analysts as they flagged internals appear weak even as operationally strong headline revenue.
NDTV Profit tracks what analysts are saying about various stocks and sectors. Here are the analyst calls to keep an eye out for on Friday:
Brokerages On Infosys
Nomura
Maintains 'Buy' with target price hiked to Rs 2,220 from Rs 2,190.
Third quarter earnings were an all-round beat.
Another guidance lift for this fiscal.
Project Maximus’ impact on margins continues to play out.
1% change in two years' earnings estimate; reiterate as top pick in large-cap India IT services.
Investec
Maintains 'Sell'; hiked target price to Rs 1,773 from Rs 1,700.
Operationally strong headline revenue, but internals appear weak.
Quarter also saw a 20 basis points benefit to revenue from the acquisition of Intech.
Improved revenue growth guidance implies a -2% to -0.2% sequential decline in the fourth quarter.
Decline on the back of lower working days and lower third-party revenue.
Increased earnings estimate to factor in a weaker rupee.
Bernstein
Maintain 'Outperform' with target price at Rs 2,330.
Top pick in IT services.
Delivered another all round beat across revenue, margins and earnings.
FY25 revenue growth guide was raised by 60 bps to 4.5%-5% year-on-year in constant currency terms.
Deal momentum was healthy at $2.5 billion TCV.
Continue to see “Up-cycle” in large cap IT services.
Citi On Reliance Industries
Maintains 'Buy' with target price of Rs 1,530.
Third quarter results a beat – lots to like but especially retail recovery.
Jio: Shade below, but net subscriber adds is positive.
Retail softness has been a key drag on stock, which we believe should now reverse.
Brokerages On Axis Bank
Macquarie
Maintains 'Outperform' with target price of Rs 1,440.
Clouds of uncertainty loom.
Tough macro: Net profit miss driven by higher credit costs.
Unsecured and agri delinquencies contributed to higher provisions.
Lower deposit growth restricts loan growth.
Citi
Maintains 'Neutral'; target price reduced to Rs 1,160 from Rs 1,190.
Slippages/credit cost elevated, growth slows, NIMs decline.
Curtailed opex supports earnings.
Slippages at more than 2.1% attributed to seasonal agri, unsecured stress.
Loan growth below 10%; Retail lagged, SME/SBB/MC sustained traction.
Bernstein
Maintains 'Outperform' and target price of Rs 1,300.
Yet another uninspiring set of numbers.
Credit costs inched up again with increased slippages and stagnant recoveries.
Loan and deposit growth dipped below the system.
Moderation in Opex growth used to maintain RoA at 1.64%.
Axis Capital On Bajaj Housing
Initiate 'Reduce' with target price of Rs 110.
Uniquely positioned but expensive franchise.
Second-largest HFC; sustainable tailwinds promise healthy growth.
Credit costs to remain range bound, operating leverage to improve.
Borrowing mix well diversified, spreads to remain steady.
Like the franchise but stretched valuations.
CLSA On Indus Towers
Upgrade to 'High Conviction Outperform' from 'Outperform'; target price at Rs 575.
Indus Tower’s cashflows surge with Vodafone Idea's past dues and as tenancies expand.
Indus' anchor tenants investing in networks.
Big reduction in past overdues from Vodafone Idea.
Growth and high FCF yield.
Citi On Aadhar Housing Finance
Initiates 'Buy' with target price of Rs 565.
Superior return on asset, diversified distribution and cost efficiency.
Scale with granularity.
Non-conventional diversified distribution approach.
Tech stack improving productivity, efficiency.
Cost-efficient graded branch structure, phased expansion.
Investec On Ola Electric Mobility
Initiates 'Hold' with target price of Rs 76.
Electric two-wheeler penetration at an inflection point.
Electrified India, though first mover advantage fading now.
Cell manufacturing – an optionality fraught with risk.
Now faces increasing pressure from established OEMs and new entrants.
Brokerages on LTIMindtree
Macquarie
Maintains 'Outperform' with target price of Rs 7,100.
Record deal wins, broad-based growth across clients.
EBIT margin declined 170 basis points sequentially primarily due to the impact of wage hikes.
Calendar year 2025 will be better than 2024 and they are seeing an improvement in demand.
Citi
Maintains 'Sell' with target price reduced to Rs 5,375 from Rs 5,460.
Largely inline third quarter both on revenues and margins.
Good growth in BFSI; cashflow trends decent.
Growth and margin trajectory over next few quarters will be key.
UBS On SBI Cards
Upgrades to 'Neutral' from 'Sell' and hike target price to Rs 800 from Rs 600.
Credit costs near peak; expect a decline in fiscal 2026.
Margins to expand with better mix and aided by rate cuts.
Raised next two years' earnings estimate by 4-5% to factor in 30-35 bps lower credit costs.
CLSA On Havells India
Havells reported weak December quarter results.
Revenue was in line, Ebitda and net profit were 7% and 10% below our estimates.
Margins fell due to weaker margins in switchgears, higher provision write-backs last year and commodity price fluctuations.
Believes these earnings will be taken negatively by the street.
Macquarie On Carborundum Universal
Downgrades to 'Neutral' from 'Outperform'; reduced target price to Rs 1,260 from Rs 1,650.
Potential earnings impact looks manageable, VAW-related uncertainty could weigh on sentiment.
Step-down subsidiary in Russia, VAW, has been placed on a designated list by US authorities.
Per management, while it is engaging with customers, the development potentially could reduce up to 12% of VAW revenue.
BofA On L&T Tech – Double Upgrade
Upgrades to 'Buy' from 'Underperform' and hiked target price to Rs 6,200 from Rs 4,660.
Investment payoff arriving earlier than expected.
Uptick in deal wins implies the start of the pay-off phase.
New deal intake to outweigh slow spends in auto ER&D.
Acquisition aids favourable diversification, TAM expansion.
Jefferies On Adani Energy Solutions
Maintains 'Buy' with target price of Rs 1,300, a potential 67% upside.
Growth story intact.
Rs 25,000 crore Rajasthan project win – 46% of project pipeline.
Cancelled Tamil Nadu smart meter tenders – not a part of existing pipeline.
Capital management programme focus is on reducing volatility in interest costs through long-tenure bonds.
Citi On India Pharmaceuticals
Underweight on Dr Reddy's Laboratories at target price Rs 1,110, a likely downside of 15%.
Overweight on Sun Pharmaceuticals Industries at target price Rs 2,080; an upside of 17.5%.
On Dr Reddy's, Citi believes margins could decline as market overestimates complex Gx/biosimilars and underestimates gRevlimid's impact.
DRL's Ebitda margins may drop below 16-17% in the next two financial years, driven by gRevlimid decline, fewer US approvals and rising expenses.
Sun Pharma is better placed on earnings growth, margins and risks.
Sun Pharma's valuation shifted upwards due to stronger branded segment mix.
UBS On APL Apollo Tubes
Upgrades to 'Buy' with target price at Rs 1,900 from Rs 1,600, a 26% potential upside.
APL's growth momentum is likely to remain.
Positively surprised the market on sustained demand momentum.
Gaining market share due to competitive pricing, narrowing the gap with refurbished steel prices and good demand for large diameter pipes.
Channel's commentary around demand and infra-activity remained strong with 10-12% growth in volumes.
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