Brokerages' Radar
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Brokerages issued fresh views on Infosys, State Bank of India (SBI), Tata Motors PV, Belrise Industries alongside commentary on emerging markets, renewable energy, equity strategy, and more.
Jefferies On Infosys (Annual Report)
- Maintain Hold, TP Rs 1235
- Infosys' FY26 AR outlines its strategy to evolve from tech implementer to a value orchestrator.
- Sharp rise in R&D spend reflects Infosys' focus on building AI capabilities
- Continued rise in cost of software for own use shows intensifying efforts to automate delivery.
- The share of employees below age of 30-years was at a 15-year low reflecting rising work complexity.
- With CEO's second term ending in Mar-27, focus will be on succession plans.
Jefferies On Emerging Markets
- EM returns have never been more concentrated, and the recent correction should ease the crowding.
- Momentum unwinding has also been at the forefront as AI stocks fell again.
- Still find AI's earnings robust, but momentum as a style could be subdued amid upcoming AI-related mega fund-raising and rate-hike risks.
- Past unwind cycles have not sustained without substantial earnings destruction
- EM long-only market and sector positioning indicator highlighted a significant overweight in Korea/Taiwan at the expense of India/China by the end of March.
- Some of those extreme active weights were being neutralised, a fullscale re-evaluation of positioning requires significant reversal in earnings fortunes for these markets, which is not on the cards yet.
Citi India Equity Strategy
- Based on conference meetings, stocks where thesis is reinforced include Axis Bank, ICICI Bank, M&M, AngelOne, CG Power, Polycab, HUL, Torrent Pharma, GAIL, JSW Cement
- Key Overweight: Financials, Healthcare, Defence, Utilities.
- Key Underweight: IT Services, Staples, Metals. Our NIFTY Dec'26 target is 27k (19x 1yr forward PE)
- AI is rapidly transforming businesses, moving from niche applications to broad adoption across sectors.
- Geopolitical uncertainty is now becoming permanent operating condition
- India continues to have the opportunity to emerge as net beneficiary of global supply chains realignments.
- Visible areas of long-term growth opportunities: data-centres, MSME Finance, Healthcare, Middle-Income Consumption.
- India needs to drive R&D spends higher as an economy to unlock higher growth/productivity potential.
Axis Capital Equity Strategy
- May equity supply landed at Rs344bn, picking up from Apr lows
- Equity supply driven by promoter/PE block deals, which rose sharply to Rs273bn as pent-up block deals cashed in on steady valuations.
- In line with seasonal trends, ECM issuance remains weak at Rs71bn.
- Equity supply is likely to remain weak in the near term, with no major IPO planned for Jun so far. S
- Steady domestic institutional demand largely offset further FII outflows, supporting market valuations.
CLSA-India Strategy
- Growth in Apr 2026 tracking above official 6.6% GDP growth estimate.
- Macrometer suggests continued strong momentum in economic activity in April 2026.
- Industrial activity improved, led by a sharp pickup in exports, alongside stronger services net exports and modest improvement in IIP growth.
- Consumption indicators also rebounded, supported by strong PV and 2W sales, rising electronic goods imports, and continued momentum in retail credit.
- Rural activity was mixed but broadly resilient, with tractor sales holding up and a big YoY fall in work demanded under the rural employment guarantee scheme.
- Macroeconomic indicators were mixed with strong liquidity offsetting a widening of the trade deficit and an increase in wholesale inflation.
- Early indicators for May 2026 show continued strength helped by strong vehicle registrations and a recovery in diesel demand.
- Dominant risks come from the ongoing Middle East conflict and expectations of a below-normal monsoon, which could accentuate risk to rural incomes as well as the impact of inflation.
Jefferies On Renewable Energy
- Reiterate Buy on Emmvee , TP Rs 360.
- Reiterate Buy Premier. TP Rs 1135.
- Power demand rose double digits y/y in May, driven by cooling demand, with peak demand hitting record highs.
- Harsh summer, weak monsoon forecast and high probability of El Niño should sustain demand growth.
- Supporting a pickup in renewable energy tendering in 2HFY27.
- Domestic PV cell mandate followed by domestic ingot/wafer mandate favor domestic cell-backed players like Emmvee and Premier.
- Both have strong balance sheets.
Citi On Cognizant (Management Meet)
- Maintain Neutral TP $55 (From $51)
- Management suggested a growing TAM related to AI based demand, particularly for enterprises, as the gap between realized value and potential value widens.
- Co believes that customer spend on Services can expand from ~5% of total corporate expenses to 30%
- Taking share from traditional buckets, given the wide-ranging use cases for agentified platforms.
- Believe company's pyramid can be flattened as well, with increased emphasis on AI-first talent supported by agents.
Kotak Institutional Equity On State Bank of India
- Maintain Buy, FV Rs 1250
- Another year of steady execution with no negative surprises
- FY26 gone by saw the bank navigating through continued NIM compression, but loan growth and asset quality were better than expected.
- The growth versus NIM trade-off is set to intensify, but RoE should remain resilient despite these pressures.
- Valuation is at a comfortable level, but re-rating will require more conviction on the sustainability of RoE
Elara On Telecom
- Bharti Airtel-Initiate Buy TP Rs 2387
- Bharti Hexacom-Initiate Buy TP Rs 1756
- Indus Towers-Initiate Accumulate-Rs 491
- Sector in multi-year recovery.
- India is at the forefront of this shift, due to three structural changes: the most affordable tariffs, broad smartphone adoption, and extensive network expansion.
- Expect ARPU CAGR to accelerate to 7% during FY26-29E.
- Data consumption -- structural upswing.
UBS On Apparel Exporters (Europe)
- Middle East Conflict - what is the Indian supplier base saying?
- No demand shock with stable relationships, recovering utilisation and steady inquiry pipelines.
- Sharp increase in raw material costs - cotton 25-30%; man-made fibres 20% all amplified by energy cost shocks.
- 8 out of 9 suppliers said they are trying to recover some of the cost increases from retailers.
- None described full or immediate pass through as it looks like they might achieve some pass through in H2 FY26/27.
- No clear demand slowdown yet; margin pressure sits with suppliers first.
HSBC On Belrise Industries
- Initiate Buy, TP Rs 270
- Belrise is moving into more advanced fabrication to cater to rising passenger and commercial vehicle needs.
- This strategy is supported by various recent acquisitions.
- Diversifying into the defence and aerospace segments.
- Simplification of its group structure should further enhance shareholder value.
HSBC On IDFC First Bank
- Initiate Buy, TP Rs 90 (24% upside).
- Play on multi-year high loan growth and operating leverage across business segments.
- Execution has been strong recently.
- See 35% core PPOP CAGR in FY26-29e and ROA/ROE expansion.
- Implying 1.4x FY28e PB.
HSBC On Tata Motors PV
- Maintain Hold, TP Rs 450 (From 410)
- Are the peak troubles behind?
- Multiple headwinds in FY26 saw JLR's net debt position fall back to FY23 levels; warranty cost seems to have peaked in FY26.
- RR-EV and Jaguar EV target segment is small.
- New SUV on EMA platform (in 2027 though) could be a volume trigger.
- Increase JLR margin estimates as we expect lower warranty cost in FY27 and onwards.
Nomura On Motherson Sumi Wiring (Management Meet)
- Maintain Buy, TP Rs 50
- Outlook remains healthy so far based on production schedules of OEMs.
- With new launches picking up from 2HFY27E
- Copper was stable in Apr/May and has inched up slightly in June
- Localisation levels are high in some ICE models and the company continues to increase it gradually for the new models and EVs
- In new greenfields, utilisation is ~65% currently and it should improve to 70-80% in 2HFY27E
Nomura On Indian Pharma
- April-IQVA data
- Ex gRevlimid, T3M sales for April 2026 rose the most for Zydus m-m, by USD15mn
- It declined the most for Lupin, by USD15mn.
- Zydus recorded a step-up in sales of gMyrbetriq, while Lupin was impacted by a decline in gPulmicort respules sales.
- Cipla also recorded a USD9mn m-m decline, primarily on account of lower Lanreotide sales
Nomura On Steel (Weekly Trends)
- Maintain Positive Stance On Indian Steel Sector.
- India flat steel prices cool further while rebar correction deepens.
- Domestic HRC prices in India moderated by Rs 200/t w-w to Rs 58,350/t
- Rebar prices declined sharply further by Rs 1,100/t w-w to Rs 55,000/t
- India's HRC spot margin in June-26 (month-to-date) stands at Rs 34,409/t, down by over Rs 520/t m-m so far.
- China coking coal supply disruption may pose potential raw material risk for steelmakers.
- India steel update: Consumption continued to outpace production and India remained net importer in May-26.
- Input cost trends: global coking coal prices and iron ore prices remained stable.
Bernstein On Indian Capital Markets (Survey)
- Markets are on the clock, domestic flows can weaken
- 35% investors increased their allocation while ~38% said they have maintained their SIPs over the last year
- 37% respondents said they will wait 3 to 12 months before reassessing their SIP allocation
- 38% of respondents said they would continue their SIPs even if markets do not generate returns over the next 3 years.
- Believe flows for asset managers with higher reliance on direct-plan investors will likely be more volatile.
Investec On InterGlobe Aviation
- Maintain Sell, TP Rs 4050
- Remain cautious on stock
- FY30 targets reiterated
- Capacity growth tapering; FY27 outlook weak
- The growth profile is becoming increasingly back-ended
- From asset-light to more asset-heavy
- Earnings normalisation now pushed to FY28
Jefferies On Banks
- Terms on FCNR-B and ECB raising are supportive.
- For FCNR-B, (1) banks won't bear cost of hedge vs. cost of 3.5% in 2013, (2) deposits will be exempt from CRR & SLR, alike 2013, (3) leveraging will be permitted.
- For ECB, (1) banks & PSUs can raise, and (2) banks' cost of hedge is 1.5% vs. 1% disc to mkt in 2013.
- Leverage will be key attraction: 7-10x leverage at 1.5-2% spread drives US$-IRR of 17-27%.
- These can drive larger inflows ($50-70bn) vs. $34bn in 2013.
Axis Bank On Economics
- 4Q balance-of-payment (BoP) release showed a bigger gap between the actual BoP deficit and RBI's dollar sales in 2HFY26.
- 4Q current-account surplus brought the FY26 CAD to just $25bn (0.6% of GDP), and despite weak capital inflows, the 2HFY26 BoP deficit was only US$19bn.
- 2H the RBI had to intervene by US$70bn across spot and forwards currency markets.
- This large US$51bn divergence in just six months in our view is due to a rise in hedging (importers and investors) and its retention offshore by exporters.
- With external debt to GDP still low, RBI and/or government have rightly announced measures to bring in dollars, and stem the palpable of anxiety on the rupee.
JP Morgan On EMS
- Exports outpaced domestic in FY26; could be next frontier of growth.
- This is despite the tariff-led uncertainty for the bulk of FY26 indicating clients' focus on diversifying the supply chain along with looking at cost-effective options.
- Large TAM that could help keep growth higher for longer for EMS companies.
- India-US trade deal finalization is important to an extent for all given they all have US exports
- Dixon Tech Remains Top Pick.
- Dixon potential upside here of 4-5mn if a mobile PLI 2.0 scheme is rolled out
MOSL on Gabriel India
- Initiates with a buy for a TP of Rs 1266, 29% upside
- Transforming into a scalable mobility platform
- Undergoing a structural transformation into a diversified mobility platform
- See a significantly larger growth runway
- Co is gaining traction in the suspension business
- Recent restructuring initiatives driving long-term shareholder wealth creation
- Strategic integration of Dana Anand to drive scale
- Broadening market presence through the Henkel Anand India integration
- Building the next growth pillars through diversifying beyond suspensions via adjacencies and JVs
- Net cash balance sheet, lean working capital (~27 days), and strong return ratios
- Est Revenue/EBITDA/PAT CAGR of 22%/23%/55% earnings CAGR for consolidated business (FY26-FY28E)
Jefferies On AC
- India Air Con: Sizzling Through Summer
- Per IMD's recent outlook, monsoon for 2026 (Jun-Sep) can be ~10% below normal with rising probabilities of El Niño.
- This can benefit Air Con, as Q1+Q4 is est 55-65% of annual sales.
- May26 was a strong month for RAC industry, with est 40%+ YoY volume growth (weak Q1LY).
- In Apr-May26, industry value growth rose by est +25-30%.
- Price hikes (avg +13% YTD) can cushion margin headwinds.
- Est FY27e UCP sales of Voltas, Bluestar to grow by 15-16%YoY
- Buy rating on LG Electronics and Voltas
Jefferies On Industrials
- Defence and power standout on capex visibility
- Believe Power equipment and defence remain the best way to play the sector
- Top picks- Siemens Energy, Hitachi, HAL, BEL, KEI, and L&T
- FY26 order flow rose 9% YoY for the coverage universe, led by L&T and BEL.
- Power equipment companies Hitachi Energy (Hitachi) and Siemens Energy (SE) saw strong operating leverage driven margin expansion of 210-611 bps YoY in FY26, though universe margins were up only 30 bps YoY.
- BEL and Data Patterns saw 53-216% YoY order flow rise.
- KEI Industries-Maintain Buy, TP Rs 6670 (From Rs 6000)
- CG Power-Maintain Hold, TP Rs 840 (From Rs 745)
- BHEL-Maintain Underperform, TP Rs 220 (From Rs 185)
Disclaimer: The views and opinions expressed by the investment advisers on NDTV Profit are of their own and not of NDTV Profit. NDTV Profit advises users to consult with their own financial or investment adviser before taking any investment decision.
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