Stock Picks Today: BPCL, Titan, Eicher, HPCL, Hyundai, M&M On Brokerages' Radar

Bharat Petroleum Corporation Ltd., Indian Oil Corporation Ltd., Hindustan Petroleum Corporation Ltd., auto players and others 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 and sectors. Here are the key analyst calls to watch out for today:

• BPCL stock has corrected 10% over the past year despite a firm earnings outlook.

• The stock trades at the same forward P/B as HPCL, due to concerns about entering an elevated capex phase.

• Jefferies notes a higher risk to HPCL's earnings from new projects that take 3-5 years to stabilize after commissioning and from any potential excise duty hike.

• Jefferies prefers BPCL due to its strong earnings visibility and favorable valuations.

Ratings and Price Targets:

• BPCL – Maintained Buy with a target price of Rs 410.

• IOCL – Maintained Buy with a target price of Rs 160.

• HPCL – Maintained Underperform; cut target price to Rs 340 from Rs 360.

• Auto registration trends have improved in August month-to-date for tractors (+32%) and 2Ws/trucks (+6-7%), but remained soft for PVs (+1%).

• Consumers are deferring purchases ahead of a potential GST cut.

• Policy: Lower taxes could provide a significant demand boost, especially for 2Ws and small PVs.

• Expect August wholesales to rise 8-13% YoY for Eicher/M&M/TVS, but to remain within -5% to +1% YoY for other OEMs.

• Preferred Picks: M&M & TVS, followed by Maruti & Eicher.

• The industry is moving towards higher pricing.

• GST cut, a struggling Category C, and a brand upgradation strategy by Category B players are expected to result in higher pricing.

• GST reduction could fast-track the upgradation/premiumization process.

• Price hikes are already occurring ahead of the GST cut, with West Bengal announcing an Rs 11/bag price hike.

• Category B players, such as Shree Cement, are improving pricing and narrowing the price gap.

• Category C players are struggling to maintain volumes and losing market share.

• India is expensive for valid reasons, including high ROEs, higher long-term growth potential, and domestic appetite for equities.

• Believe the perceived risk for India is lower due to a strong and proactive regulatory framework and institutions.

• Near-term slow growth and a long-term deterioration in ROEs are viewed as downside risks.

• India is the most expensive among emerging markets, trading at around 60% premium to others.

• Maintained Buy with a target price of Rs 2,400.

• Positive in the rural market, while urban demand remains lackluster.

• Uncertainty remains on GST restructuring, but a lower rate is likely to buoy demand.

• Taking steps to boost market share through product portfolio enhancement, network expansion (especially in rural areas), and competitive pricing/discounts.

• Premiumisation, platform rationalisation, and promotional activities.

• Re-iterated a model launch pipeline of 26 new vehicles in the next 5 years.

• Maintains double-digit Ebitda margin guidance for FY26.

• Maintained Underperform; hiked target price to Rs 2,800 from Rs 2,564.

• One round of earnings cuts is behind, but another is expected.

• The street remains overly optimistic about this segment.

• The short-cycle DI segment is being hit by weak private capex.

• Valuations are near long-term averages, but earnings are expected to disappoint.

• Initiate Outperform with a target price of Rs 4,200.

• Titan started as a watchmaker, expanded to a jeweller, and is now aiming to become a global lifestyle brand.

• Demand is becoming more formal and contemporary, and competition is increasing.

• Titan has under-leveraged growth optionalities.

• The dynamics of natural diamonds versus. LGD (Lab-Grown Diamonds) threaten its studded jewellery sales, which provide higher margins.

• While LGD is a key long-term risk, the 1-2 year impact is expected to be muted.