Morgan Stanley has refreshed its tactical stock recommendations, identifying companies it expects to outperform over the next 30-45 days while flagging a handful of names that could lag amid slowing growth and limited near-term catalysts.
The brokerage remains constructive on select consumer, retail and discretionary stocks, while maintaining a cautious stance on parts of the banking and FMCG space.
Top Tactical Buys
Morgan Stanley reiterated its 'Overweight' rating on Vishal Mega Mart with a target price of Rs 146, expecting the stock to rise over the next 30 days. The brokerage forecasts 20% revenue growth, driven by 10% same-store sales growth and the addition of 23 new stores. It also expects easing crude prices to support margins and believes Vishal's value-retail strategy remains more resilient than peers.
Among consumer names, Tata Consumer Products remains a preferred pick with an 'Overweight' rating and a target price of Rs 1,351. Morgan Stanley expects the stock to outperform over the next 45 days, forecasting 12% revenue growth in the June quarter and year-on-year EBITDA margin expansion. It also projects a 22% earnings CAGR between FY26 and FY29, the highest among the staples companies under its coverage.
The brokerage also expects Titan to continue its strong run. It maintained an 'Overweight' rating with a target price of Rs 5,182, citing robust jewellery demand. Domestic revenue from Tanishq, Mia and Zoya (excluding bullion) is expected to grow around 30% year-on-year, aided by higher gold prices. Morgan Stanley continues to view Titan as its preferred discretionary stock.
Meanwhile, Hindustan Unilever could surprise positively in the June quarter, according to the brokerage, while maintaining its 'Equal-weight' rating. It expects pricing actions to support double-digit revenue growth, while Lenskart is projected to deliver strong top-line growth alongside improving EBITDA margins in both India and international markets.
Stocks Expected To Underperform
Morgan Stanley maintained an 'Underweight' rating on Punjab National Bank, expecting the stock to underperform over the next month as both credit and deposit growth slowed in the June quarter and continued to lag the broader banking system.
The brokerage also expects Jubilant FoodWorks to trail the market, despite some sequential improvement in growth, as like-for-like sales are likely to remain below management's 5–7% target and near-term triggers remain limited.
In the FMCG space, Morgan Stanley retained an 'Equal-weight' rating on Britannia Industries, expecting the June quarter to improve sequentially but warning that dual pricing in the market could continue to weigh on growth. The brokerage believes the stock may underperform until stronger revenue momentum becomes visible.
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