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HDFC Securities Institutional Equities
Several stocks including Bajaj Auto, TVS Motor, Indian Hotels, Mahindra anmd Mahindra Financial Services, Bandhan Bank, Sobha, Aavas Financiers and IndiaMART InterMESH remained in focus after HDFC Securities released its Q1 FY27 review, highlighting key growth drivers, target prices and ratings across sectors.
Among auto names, Bajaj Auto remained HDFC Securities' 'Buy' pick with a target price of Rs 12,146. The brokerage cited a strong launch pipeline of 10 new models, growing traction in electric vehicles, improving export demand and better performance from subsidiaries as key growth drivers.
For TVS Motor, the brokerage maintained an Add rating with a revised target price of Rs 4,084. HDFC Securities highlighted the company's industry-leading growth across domestic, export and EV segments, supported by capacity expansion and upcoming Norton motorcycle launches.
In the hospitality space, Indian Hotels Company Ltd. continued to remain a bullish bet with a Buy rating and target price of Rs 801. The brokerage said strong domestic tourism demand, healthy MICE activity, rising occupancy levels and an expanding asset-light portfolio should support earnings growth over the next few years.
Within financials, Mahindra & Mahindra Financial Services reported a strong quarter, aided by improving asset quality and lower credit costs. HDFC Securities maintained its Add rating and raised the target price to Rs 385, noting that stable earnings and stronger loan growth could drive further re-rating.
On the other hand, the brokerage remained cautious on Bandhan Bank, retaining a Reduce rating and slightly lowering the target price to Rs 155. It cited higher funding costs, elevated deposit mobilisation requirements and a gradual path toward improving profitability despite stable loan growth and improving asset quality.
In the real estate segment, Sobha remained one of the brokerage's preferred ideas. HDFC Securities maintained a Buy rating and target price of Rs 1,930, driven by robust pre-sales growth, a strong launch pipeline and expectations of margin improvement in the second half of FY27.
For housing finance player Aavas Financiers, HDFC Securities retained its Add rating while raising the target price to Rs 1,595. The brokerage expects stronger loan growth and improving operating efficiency under the company's new leadership, although margins may remain under pressure in the near term.
Meanwhile, IndiaMART InterMESH continued to attract a positive stance despite moderation in subscriber additions. HDFC Securities maintained its Buy rating with a target price of Rs 2,375, citing the platform's strong market position, healthy ARPU growth and substantial cash reserves.
Overall, HDFC Securities remains constructive on Bajaj Auto, Indian Hotels, Sobha and IndiaMART, while maintaining a cautious stance on Bandhan Bank, reflecting divergent earnings outlooks and valuation comfort across sectors.
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