Stock Picks Today: Tata Motors CV, Dixon Tech, Shriram Finance And More On Brokerages’ Radar

A host of global and domestic brokerages have released fresh views on Tata Motors (CV), Ashok Leyland, Shriram Finance Ltd., Varun Beverages Ltd., IKS Health Ltd. and Dixon Technologies Ltd. ahead of Monday’s session.
They have also shared their outlook on the commercial vehicle cycle, the power sector and broader market positioning.

• Nomura initiates coverage with a Buy rating and a target price of Rs 481.

• The brokerage sees Tata Motors as a leading CV player and a key beneficiary of the ongoing upcycle.

• MHCV wholesale volumes are expected to grow 10% in FY26, 10% in FY27 and 5% in FY28.

• Export growth is expected to further support volume momentum.

• Valuations are seen as attractive at current levels.

• Citi maintains a Buy rating with a target price of Rs 2,225.

• Street concerns persist around PB Fintech’s yields.

• Recent worries stem from the Insurance Amendment Bill and commission-related clauses.

• The regulator will have enhanced authority to set limits on commissions.

• Markets may be factoring a reversal to the older EOM regime.

• Citi sees a low probability of the regulator backtracking on the current democratized commission framework.

• Penalising efficient distributors runs counter to the regulator’s objective of improving insurance penetration.

• Jefferies notes that flat year-to-date power demand growth in FY26 is largely due to above-average monsoons.

• Historical periods such as FY08 and FY14 saw muted power demand despite strong GDP growth due to excess rainfall.

• Assuming normal weather conditions, demand growth is expected to rebound to around 6% from FY27 onwards.

• Power stocks have corrected sharply year-to-date and may have overreacted to weak CY25 demand trends.

• JSW Energy and NTPC remain Jefferies’ top picks in the sector.

• Citi maintains a Buy rating with a target price of Rs 2,225.

• The brokerage highlights flexibility in revenue recognition under changing commission payout structures.

• Discussions around the MGA model are expected to gather pace, with early signs in the Insurance Amendment Bill.

• Management remains positive on profit-sharing arrangements between distributors and insurers.

• The complexity and granularity of commission yields across manufacturers were highlighted.

• Citi reiterated guidance of limited to negligible impact on blended yields following GST rate cuts.

• Morgan Stanley maintains an Underweight rating with a target price of Rs 11,563.

• Extension of IT hardware import norms has introduced uncertainty around growth visibility.

• IT hardware is expected to contribute around 7% of Dixon’s FY30 revenues.

• More favourable import norms could pose downside risks to these estimates.

• Morgan Stanley maintains an Overweight rating with a target price of Rs 925.

• The proposed capital infusion from MUFG Bank is seen as a structural positive.

• This is expected to strengthen long-term fundamentals, loan growth and business flexibility.

• Benefits are seen in cost of funds and potential credit rating upgrades.

• Near-term EPS upgrades may be limited, with larger upside in outer years.

• Upside is likely to be driven more by valuation re-rating than earnings in the near term.

• Jefferies maintains a Buy rating and has raised the target price to Rs 1,060 from Rs 880.

• The proposed equity infusion by MUFG is seen as book-value accretive.

• The fund infusion is expected to lift Tier-1 capital to 30%.

• A potential credit rating upgrade to AAA could enhance competitiveness in CV and MSME segments.

• EPS estimates for FY27–28 are cut by 6–7%, but book value per share is expected to rise sharply.

• At 1.9x FY27 book value on a post-money basis, valuations are seen as reasonable.

• Citi maintains a Buy rating and has raised the target price to Rs 1,110 from Rs 870.

• MUFG’s proposed 20% stake is viewed as a strong vote of confidence.

• The investment addresses a key overhang and strengthens Tier-1 capital.

• The deal is book-value accretive and provides long-term capital visibility.

• Potential credit rating upgrades and global governance standards are seen as additional positives.

• Citi maintains a Buy rating with a target price of Rs 675.

• The acquisition of a soft drinks brand in South Africa further strengthens the company’s international footprint.

• Backward integration aligns well with Varun Beverages’ strategy to enhance operational efficiency.

• The brokerage expects performance of the India business to improve.

• Scaling up international operations and new ventures are seen as long-term growth drivers.

• Avendus Spark initiates coverage with a Buy rating and a target price of Rs 2,020.

• IKS Health is positioned as a platform-driven, outcome-led healthcare services play.

• The brokerage sees a differentiated value proposition for the company.

• IKS Health is well placed to gain market share over the medium to long term.

• Pricing is based on a mix of output- and outcome-linked models.

• The company is increasingly pushing outcome-based pricing, allowing participation in client financial outcomes.

• This is expected to lead to stronger client relationships and economic benefits from value creation.