Stock Picks Today: Autos, Spirit Stocks, Northern Arc, Havells, Eicher Motors On Brokerages' Radar

Northern Arc Capitals Ltd., Havells India Ltd., Eicher Motors Ltd., are among the companies garnering brokerage commentary today.

Analysts have shared their insights and, in several cases, revised their target prices based on their updated fundamental outlooks for these firms. Here are the key analyst calls to watch out for today:

DAM Capitals

• Initiate Buy with target price of Rs 335

• Positives - increasing share of direct to customer lending, coupled with easing interest rate environment would ensure margin expansion

• Fund management and placement business would enhance the fee income

• See RoAs could enhance further

• Expect asset quality headwinds to also abate from H2 and expect a normalcy from FY27 onwards

• Culmination of all these factors will ensure healthy improvement in earnings and thereby return ratios

• Expect earnings CAGR of 39% over FY26-FY27

• Stock is trading at an attractive valuation of ~0.9x on FY27e book

Jefferies

• United Spirits – Initiate Buy with target price of Rs 1,570

• Radico Khaitan – Initiate Buy with target price of Rs 3,590

• Allied Blenders – Initiate Buy with target price of Rs 620

• Spirits category offers premiumisation led strong growth potential

• See double-digit top-line CAGR across companies and a meaningful room to expand margins

• Radico (top pick) leads on growth (>35% EPS Cagr)

• United Spirits offers favorable risk-reward after >20% stock correction

• Allied Blenders is a dark horse, with meaningful upside but execution holds the key

Jefferies

• The Bottom up market

• Weak FPI positioning & large India underperformance

• This implies that any potential good news on India-US trade can cause a sharp market upswing

• But beyond that, returns might be muted given the potentially large equity supply & high PE / weak earnings

• Strong domestic buying should prevent downside though

• A sideways market would be great for bottom-up ideas

• Changes In Model Portfolio

• Addition/Weight Increase – Bajaj Finance, Radico Khaitan and GMR Airports

• Deletion/Weight Decrease – Bandhan Bank, ITC & Infosys

• Move IT to Underweight by trimming the weight of Infosys as AI adoptions weakens the growth outlook and recent upmove captures gains

• Overweight on lenders is maintained, with Bajaj Finance replacing Bandhan

• Bajaj Finance could capture any post GST cut consumption upside

• Add Radico Khaitan, which is a fast growing spirits franchise

• GST uncertainty on ITC makes us remove the same

• Add some weight on GMR as it is evolving into a diversified consumer platform from being a utility airport operator

Goldman Sachs

• Maintain Buy; Hike target price to Rs 1,720 from Rs 1,660

• Well positioned for growth revival in electrical/durables

• Q2 will be disrupted by GST implementation uncertainty

• Would see any share price weakness as opportunity to build on positions in the stock

• Shares have not corrected much, believe earnings growth revival can drive up multiples and lead valuations higher

HSBC

• Demand recovery vs heightened expectations

• Led by GST-driven price cuts we factor in 200-300 bps higher CAGR over the next 4-5 years across Auto segments

• Share prices are up 6-17% since the GST revisions announced on 15 August, so are now likely to track earnings growth

• Growth could be front-end loaded, leading us to lift our FY27/28 EPS estimates 4-14% across companies

• Maruti – Maintain Buy; Hike target price to Rs 17,000 from Rs 14,000

• Hyundai – Maintain Buy; Hike target price to Rs 2,800 from Rs 2,300

• M&M – Maintain Buy; Hike target price to Rs 4,000 from Rs 3,570

• Tata Motors – Maintain Hold; Hike target price to Rs 770 from Rs 730

• Ashok Leyland – Maintain Hold; Hike target price to Rs 145 from Rs 130

• Escorts – Maintain Reduce; Hike target price to Rs 3,400 from Rs 3,000

• Bajaj Auto – Maintain Hold; Hike to target price Rs 10,000 from Rs 9,700

• Eicher – Maintain hold; Hike target price to Rs 7,000 from Rs 5,800

• TVS – Maintain Buy; Hike target price to Rs 4,000 from Rs 3,500

• Ola – Maintain Hold; Hike target price to Rs 55 from Rs 49

• Ather Energy – Maintain Buy; Hike target price to Rs 600 from Rs 450

Morgan Stanley

• Benign Trend in CPI

• Disinflationary Pressures to Continue

• Headline CPI ticked up to 2.1% YoY in Aug, due to a softer decline in food prices while core CPI remains range-bound

• Lower CPI forecast to 2.5% for FY26, building in a benign CPI trend and deflationary impact from GST

• Expect the RBI to ease in Oct policy with risk of further easing

Goldman Sachs

• Maintain Buy; Hike target price to Rs 7,300 from Rs 6,600

• Surprised to the upside on quarter to date volume

• Raise Q2 Royal estimates to 290k units (vs 261k units prior)

• Implies +27% volume growth for Q2, well above the YTD underlying 2W industry growth

• Pass on of GST rate cut could represent more upside optionality to FY26 and FY27 volume potential