Stock Picks Today: Asian Paints, Trent, TCS, Suzlon Energy, And More On Brokerages' Radar

Brokerages have highlighted opportunities across paints, retail, IT, pharma, cables, mining, consumer electroncis, aviation and capital goods sector issuing fresh calls on Asian Paints, Trent, Schaeffler India, Laurus Labs, Tata Consultancy Services, Pine Labs, Havells, Pidilite, Blue Star, ICRA, Raymond Lifestyle, RR Kabel, KEI Industries, Coal India, Blue Star, Apar Industries, IndiGo, Godrej Consumer Products, Hexaware Technologies, eClerx, Polycab, while also sharing their outlook on gold loans, IT, NBFC, wires and cables sector, alongside a broader view on rural India.

Jefferies on Asian Paints

• Maintain Buy; cut TP to Rs 3,025 from Rs 3,350
• Expects 8–9% decorative volume growth in H2, aided by festive and wedding demand
• Retains FY27 EBITDA margin guidance of 18–20%; additional price hikes to offset inflation
• VAM/VAE backward integration expected to deliver 3–5 percentage-point benefit at full potential.

Goldman Sachs on Asian Paints

• Maintain Sell; Cut TP to Rs 2,375 from Rs 2,725
• Q2 revenue rises 16.9% YoY; EBITDA grows just 3.6%, missing estimates by 11.6%
• Decorative volume growth slows to 6.4% from 9% in Q1; gross margin contracts 350 bps YoY
• Management retains FY27 EBITDA margin guidance of 18–20%; expects H2 volume growth of 8–9%
• Cuts FY27–29 EPS estimates by around 2%; high input costs and competition to delay recovery.

Macquarie on Asian Paints

• Maintain Outperform; TP Rs 3,300
• Q2 revenue grows 16.9% YoY; EBITDA rises just 3.6%, missing estimates
• Decorative volumes grow 6.4%; gross margin contracts ~400 bps YoY
• Retains 18–20% EBITDA margin guidance; expects pricing and backward integration to support recovery.

Bernstein on Trent

• Maintain Outperform; TP Rs 3,500
• Q2 standalone revenue grows 22% YoY; retail area expands 26%
• Gross margin improves 120 bps YoY to 44.5%, aided by premiumisation and product elevation
• Flags slower Zudio/Westside store additions and 3% decline in revenue productivity per sq. ft.

Jefferies on Trent

• Maintain Hold; cut TP to Rs 3,300 from Rs 3,435
• Retains annual store-opening guidance of 200–250 Zudio and 50 Westside stores
• Emerging categories, online channels and smaller-city expansion remain growth drivers
• Flags input-cost inflation and competitive pressures; lowers valuation multiples

Citi on Trent

• Maintain Sell; cut TP to Rs 2,815 from Rs 2,950
• Expects annual store-opening pace to remain broadly consistent, with expansion into smaller cities
• Raises FY27–29 revenue estimates by ~2% amid improving consumer sentiment
• Cuts FY27/28 EPS by 6%/3%; flags valuation concerns and risks from input-cost inflation.

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Nomura on TCS

• Maintain Buy with TP of Rs 2,630
• AI revenue reaches $3.1 billion annualised, growing 15–20% sequentially
• Only 5% of enterprises ready to deploy advanced AI at scale, offering significant opportunity
• AI-led modernisation could shorten transformation timelines from 3–4 years to 6–18 months
• Expects deflationary pressures to ease; AI investments of $1 billion annually weigh on near-term margins.

Citi on Pine Labs

• Maintain Buy; raise TP to Rs 220 from Rs 215
• Expects FY27 revenue growth at upper end of 21–23.5% guidance
• UPI MDR monetisation expected to add Rs 1.3 bn to FY28 adjusted EBITDA
• Forecasts FY26–28 revenue/adjusted EBITDA CAGR of 23%/36%, aided by affordability and payments growth

Kotak on Schaeffler India

• Maintain Reduce; revised fair value Rs 3,800
• Expects rising content per vehicle, e-mobility adoption and export expansion to drive growth
• Sees double-digit CAGR in bearings, industrial and aftermarket businesses over CY25–28
• Domestic auto demand and gradual raw-material cost pass-through expected to support earnings

Kotak on Laurus Labs

• Maintain Sell; fair value Rs 1,400
• Expects ~34% EBITDA CAGR over FY26–29, with margins reaching ~36% by FY29
• Plans Rs 30 bn-plus capex over FY27–28, largely targeting high-growth projects
• Peptides, oligonucleotides and advanced therapies expand CDMO opportunities; valuations remain a concern.

Jefferies on Laurus Labs

• Maintain Hold; raise TP to Rs 2,100 from Rs 1,700
• Q2 revenue rises 33% YoY; EBITDA jumps 86%, with margin expanding to 34%
• Peptide manufacturing capacity reaches 16,000 litres; commercial revenues expected from 2HFY28/FY29
• Raises FY27–28 EPS estimates by 6%/4%, supported by improved product mix and CDMO growth.

Goldman Sachs on Laurus Labs

• Maintain Sell; raise TP to Rs 1,600 from Rs 1,425
• Q2 revenue grows 33% YoY; EBITDA surges 86%, with margin at 34%
• CDMO revenue jumps ~86% YoY, supported by late-stage projects and commercial API supplies
• Raises FY27–29 EPS estimates by 17–22%, but flags expensive valuations at ~75x FY28 P/E.

Kotak on RR Kabel

• Maintain Sell; raise fair value to Rs 2,000 from Rs 1,900
• Cuts FY27 W&C volume growth guidance to 14–15% from 18% earlier
• Retains FY27 W&C EBIT margin guidance at 9.5%; targets FMEG operating breakeven
• Raises FY27–29 earnings estimates by 7–9%; flags intensifying competition

Kotak on Hexaware Technologies

• Maintain Buy; cut fair value to Rs 620 from Rs 660
• Withdraws CY26 revenue growth guidance; expects sequential revenue decline in Q4
• Cuts CY27–28 EPS estimates by 6.5–7%; lowers EBIT margin guidance to 13–13.5%
• New CEO expected to focus on large-deal conversion, sales execution and margin improvement.

Jefferies on Hexaware Technologies

• Maintain Underperform; cut TP to Rs 470 from Rs 500
• Withdraws CY26 revenue growth guidance amid delayed large-deal ramp-ups
• Lowers CY26 EBIT margin guidance to 13–13.5%; expects wage hikes to pressure margins
• Forecasts ~5% organic revenue CAGR over CY25–28; cuts revenue/EPS estimates by 2–3%.

Kotak on IT Sector – Cognizant

• Maintains Neutral sector view; Cognizant cuts CY26 revenue growth guidance to 4–4.4%
• Weaker discretionary spending in healthcare and consumer verticals clouds demand recovery
• CY26 adjusted EBIT margin guidance narrowed to 16.1%; EPS growth guidance retained at 8–10%
• Flags uncertainty around CY27 acceleration amid weaker deal conversion and client spending.

Citi on Indian IT Services

• Remain cautious on Indian IT services despite Cognizant outperforming Indian peers in Q3CY26
• Cognizant revenue grows 4.8% YoY in constant currency versus 0.6–4.1% growth for Indian IT peers
• Elevated competition, AI-led productivity gains and market-share shifts towards GCCs remain key headwinds
• Indian IT valuations remain expensive; TCS/Infosys/HCL Tech trade at 16x/15x/18x forward PE versus Cognizant at 11x
• Demand remains challenging despite AI opportunities; sector's valuation premium to global peers limits upside

Kotak on eClerx

• Maintain Sell; revised fair value Rs 1,450
• Expects revenue growth to decelerate to high single digits in 2HFY27
• Weak deal wins and smaller AI-related contracts threaten double-digit growth sustainability
• Cuts FY28–29 EPS estimates by 5–6%; flags structural profitability pressures.

Nomura on eClerx

• Maintain Neutral; cut TP to Rs 1,710 from Rs 1,850
• Q2 constant-currency revenue grows 1.4% QoQ; EBITDA margin falls 310 bps YoY to 23.9%
• Annual contract value declines 33% YoY to $30.8 mn amid weak deal wins
• Cuts FY27–28 EPS estimates by 7–8%; flags client budget pressures and longer decision cycles

Kotak on ICRA

• Maintain Buy; fair value Rs 6,400
• Expects ratings revenue CAGR of 14% over FY27–29, supported by corporate credit demand
• Forecasts ratings segment margin expansion to 43% by FY29
• Higher interest rates could moderate near-term growth; non-ratings acquisitions offer diversification

Jefferies on IndiGo

• Maintain Buy; cut TP to Rs 5,650 from Rs 5,840
• Guides for low-single-digit ASK growth in FY27 and mid-teens capacity expansion in FY28
• Expects 25%+ PRASK growth in Q3, supported by disciplined capacity deployment
• Cuts FY27 EPS estimates by 9%; elevated fuel costs remain key earnings risk. 

HSBC on Rural India

• Rural demand remains steady, with most companies maintaining neutral to positive outlook
• 2026 driest year in five years; 44% of districts report deficient rainfall
• Reservoir levels 18% below 10-year average; South worst affected at 46% below average
• Higher crop prices support affluent farmers but pressure landless and lower-income households
• Rabi crop risks could weigh on rural consumption in H2FY27

HSBC on Gold Loans

• Gold loan growth could slow sharply from Q4FY27 if gold prices remain stable
• Industry gold loan AUM grew at 37% CAGR over FY21–26 to Rs 18.6 trillion
• Muthoot, Manappuram, IIFL and select banks face higher growth slowdown risks
• Does not anticipate a bad loan cycle, but slower growth could hurt earnings and sentiment
• Prefers Bajaj Finance and Chola Finance; both rated Buy.

BofA Securities on Polycab

• Maintain Buy; Cut TP to Rs 8,800 from Rs 11,000
• Stock corrects 18% since September; valuations reset despite strong earnings outlook
• Expects 20% EPS CAGR over FY26–29; industry leadership and exports support growth
• Limited exposure to global AI capex; competition and commodity concerns seen as manageable
• Prefers Polycab for its 24% market share, strong margins and attractive valuations

BofA Securities on KEI Industries

• Maintain Buy; Cut TP to Rs 4,800 from Rs 6,300
• Stock corrects 33% since September; revised TP implies 23% upside
• Expects 20% EPS CAGR over FY26–29, supported by Sanand capacity ramp-up
• Exports, EHV cables and improving product mix to drive growth
• Competitive pressures manageable; remains preferred pick alongside Polycab

BofA Securities on Havells India

• Maintain Underperform; Cut TP to Rs 900 from Rs 1,050
• Stock corrects 19% since September; revised TP implies 11% downside
• Expects 16% EPS CAGR over FY26–29 versus historical 24% growth
• Higher wires exposure increases vulnerability to competitive pricing pressure
• Lloyd business overhang persists; valuations remain expensive despite correction

BofA Securities on Wires and Cables Sector

• Retains 14% industry CAGR forecast over FY26–29 despite recent stock corrections
• Industry expected to grow from Rs 1.27 trillion in FY26 to Rs 1.9 trillion by FY29
• Stress-case analysis suggests 12–13% growth even under weaker demand assumptions
• Global electrification, power infrastructure and exports offer structural growth opportunities
• Prefers Polycab and KEI over Havells; cuts target prices by 14–24% on valuation reset.

Goldman Sachs on Craftsman Automation

• Maintain Buy; Retain TP at Rs 13,000
• Q2 revenue/EBITDA/net profit grow 47%/30%/68% YoY; results broadly in line
• EBITDA margin contracts 178 bps YoY to 13.3% amid input-cost pressures
• New production launches, higher-CC engine mix and Sunbeam margin recovery to support H2 growth
• Cuts FY27–29 EPS estimates by 2% each; expects stronger growth from Tata Motors-Stellantis partnership.

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Goldman Sachs on Pidilite Industries

• Maintain Buy; Cut TP to Rs 1,700 from Rs 1,850
• Q2 revenue rises 20.9% YoY; EBITDA grows 3.1%, missing estimates by 6.4%
• Underlying volume growth at 10.7%; gross margin contracts 650 bps YoY on higher input costs
• Additional 3–5% price hikes and easing VAM prices expected to support H2 margin recovery
• Cuts FY27–29 EPS estimates by 1–1.7%; expects FY27 EBITDA margin at higher end of 20–24% guidance

Jefferies on Raymond Lifestyle

• Maintain Buy; Cut TP to Rs 800 from Rs 900
• Q2 revenue grows 13% YoY; EBITDA declines 3% as margin contracts 173 bps to 10.6%
• Branded Apparel revenue rises 20%; Garmenting revenue/EBITDA jump 26%/75% YoY
• Festive and wedding demand, strong garmenting orders and store rationalisation to drive H2 recovery
• Expects FY26–29 revenue/EBITDA/PAT CAGR of 9%/14%/23%; retains FY27 double-digit revenue growth guidance

UBS on Suzlon Energy

• Maintain Buy; Cut TP to Rs 58 from Rs 66, implying 58% upside
• Q2 revenue rises 26% YoY; EBITDA remains flat, with margin contracting 386 bps YoY to 14.8%
• Wind turbine deliveries grow 26% YoY to 710 MW; order book of ~6 GW provides 18-month visibility
• Cuts FY27 EBITDA margin guidance to 15–16% from 17%; H1 operating cash flow turns negative at Rs 2 bn
• Cuts FY27–29 EPS estimates by 10%/11%/9%; retains FY31 targets of ~40% market share and ~10 GW annual sales

Goldman Sachs on Godrej Consumer

• Maintain Buy; TP Rs 1,030
• Q2 revenue rises 15.4% YoY; EBITDA grows 11.8%, margin at 18.6%
• India volumes grow 7%; home care sales rise 19% despite inventory correction
• Retains FY27 guidance of high-single-digit India volume growth and double-digit consolidated revenue/EBITDA growth.

Jefferies on Godrej Consumer

• Maintain Buy; cut TP to Rs 1,075 from Rs 1,400
• Q2 revenue grows ~19% YoY; EBITDA rises 13%, India volumes grow 7%
• Home care grows 19%; international business remains strong, led by Indonesia and GAUM
• Cuts FY27–28 EPS estimates by 3% amid rising input costs; retains double-digit growth guidance

Nomura on NBFCs

• Prefers Piramal Finance, Tata Capital, Aadhar Housing Finance and Bajaj Finance
• Monsoon deficit of 13% and Rabi sowing decline of 37% YoY raise rural income concerns
• Flags drought, food inflation, higher interest rates and regulatory pressures as key risks
• Favours urban housing/business lenders over rural, vehicle and microfinance-focused NBFCs.

Jefferies on Coal India

• Maintain Buy; cut TP to Rs 460 from Rs 500
• Q2 cash EBITDA rises 29% YoY; PAT jumps 53%, dispatch volumes grow 12%
• Power plant coal inventories fall to six days against a 10-year average of 15 days
• Expects 7% EPS CAGR over FY26–29; dividend yield of ~7% supports total returns

Nomura on Apar Industries

• Maintain Buy; raise TP to Rs 17,500 from Rs 15,400
• Q2 revenue grows 21% YoY; EBITDA jumps 55%, beating estimates by 32%
• Cable order book reaches Rs 30 bn, supported by data-centre orders from Google and Amazon
• Raises FY27–29 EBITDA estimates by 5–10% on strong transformer oil profitability and conductor demand.

UBS on Blue Star

• Maintain Buy; TP Rs 2,000
• Q2 revenue/EBITDA/PAT grow 21%/10%/2% YoY, beating consensus estimates
• Unitary Products revenue jumps 29%; profitability remains subdued at 2.3%
• Data-centre demand supports Rs 14 bn order inflows; expects stronger MEP orders ahead

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