Stock Picks Today: Adani Ports, JSPL, Kotak Mahindra Bank And More On Brokerages’ Radar
Brokerages have also shared their outlook on the ports, steel, banking, FMCG and consumer sectors, alongside broader cross-sector trends.
A host of global and domestic brokerages have released fresh views on Adani Ports & SEZ Ltd., Jindal Steel & Power Ltd., Kotak Mahindra Bank Ltd., HDFC Bank Ltd., Castrol India Ltd., Lupin Ltd. and Lenskart Ltd. ahead of Friday's session.
They have also shared their outlook on the ports, steel, banking, FMCG and consumer sectors, alongside broader cross-sector trends.
Jefferies on Adani Ports
Jefferies maintains a Buy rating with a target price of Rs 1,880.
The Abbot acquisition adds around 7% capacity and is seen as broadly neutral in the near term.
The brokerage awaits clarity on consolidation timelines.
Current estimates factor in the acquisition from FY27, along with expected equity dilution.
A full-year FY26 consolidation could add around 8% to volumes and 6% to EBITDA.
This is broadly in line with the company’s revised pro-forma guidance.
A strong balance sheet enables the acquisition at this stage.
The NQXT acquisition enhances visibility on international expansion.
Jefferies on Cross-Sector Views
Channel checks indicate 6–8% price hikes in the cables and wires industry so far in Q3.
Price hikes are being driven by a sharp rise in copper prices.
This could lead to near-term inventory gains on margins and channel stocking on volumes.
In the EMS segment, including Amber, raw material volatility is passed on with a lag of one to two quarters.
Soft vinyl acetate monomer prices could help sustain Pidilite’s operating margins at 23–24%.
A 6% quarter-on-quarter decline in PVC prices to around $620 per tonne could weigh on Q3 margins.
Pipes companies such as Finolex Industries, Supreme Industries and Astral could see margin pressure.
Kotak Securities on JSPL
Kotak Securities maintains a Buy rating but has cut the target price to Rs 1,150 from Rs 1,250.
Near-term market headwinds are expected to weigh on earnings.
Steel prices are seen softening further in Q3 FY25.
Margins are likely to remain under pressure in the near term.
Multiple accretion drivers remain in place.
New capacity additions are expected to drive volume and earnings growth over time.
Citi on Kotak Mahindra Bank
Citi maintains a Buy rating with a target price of Rs 2,565.
The bank is expected to outperform on sequential growth and deliver over 16% year-on-year growth.
With limited yield repricing pressure, mix changes will drive yield trajectory.
Net interest margins are expected to improve gradually.
Operating expenses are likely to remain under control.
Citi on HDFC Bank
Citi maintains a Buy rating with a target price of Rs 1,200.
The brokerage expects relatively stronger core operating performance in the second half.
HDFC Bank is likely to outpace system credit growth.
The bank continues to gain market share in deposits.
Deployment of excess liquidity into lending could improve the loan-to-deposit ratio.
Net interest margins are expected to expand in the third quarter.
Kotak Securities on Castrol India
Citi maintains a Buy rating with a target price of Rs 1,200.
The brokerage expects relatively stronger core operating performance in the second half.
HDFC Bank is likely to outpace system credit growth.
The bank continues to gain market share in deposits.
Deployment of excess liquidity into lending could improve the loan-to-deposit ratio.
Net interest margins are expected to expand in the third quarter.
Avendus Spark on Lupin
Avendus Spark maintains a Buy rating with a target price of Rs 2,445.
The brokerage believes Lupin’s validated complex generics platforms outweigh near-term earnings concerns.
Investor worries around a potential FY27 earnings cliff remain.
The market is seen as underestimating the importance of recent platform validations and approvals.
Avendus Spark on Lenskart
Avendus Spark initiates coverage with an Add rating and a target price of Rs 490.
The brokerage highlights Lenskart’s vision-led growth across domestic and international markets.
Growth drivers include store expansion, customer acquisition, premiumisation and volume growth.
Consolidated revenue is expected to grow at a 21% CAGR over FY25–28.
EBITDA margins are expected to expand by around 550 basis points over the same period.
Margin expansion is supported by better product mix, premiumisation and operating leverage.
The vertically integrated retail and manufacturing model is seen delivering a superior consumer value proposition.
