Stock Picks Today: Coforge, Trent, Colgate, Sun Pharma, Tata Motors PV And More On Brokerages' Radar

Brokerages issued fresh views on Sun Pharma, Coforge, LG India, Polycab, Trent, Colgate, Tata Motors PV and more alongside commentary on cement, and financial sector.

Macquarie on Sun Pharma

• Maintain Outperform with TP of Rs 2150.
• Organon - highly sought after asset.
• Competing bids converged meaningfully close to Sun Pharma's offer of $14/share.
• Two other credible parties reaching approximately $13/share before exiting the process.
• Key interested parties included a European pharmaceutical company, a financial sponsor (private equity), and a private healthcare holding company.
• Maintain a constructive view on the Sun–Organon deal.
• Believe concerns around the combined entity's near-term top-line growth are overstated.

MS on Coforge

• Maintain Overweight with TP of Rs 1500
• Aspiration to reach $5bn in revenue by FY30 (including inorganic), which implies a CAGR of 15% on an organic basis
• Preference of debt repayment over dividends can create shareholder value but needs to be evaluated by the Board
• Liked the confidence showcased by management in its FY30 vision
• Expectations for broad-based growth across verticals
• Retain constructive view on Coforge as we expect it to deliver the strongest revenue CAGR over FY26-28
• Believe in the current weak sector environment management's expectations may require even stronger execution than showcased in the past.

UBS on Coforge

• Maintain Neutral with TP of Rs 1505.
• Ambitious targets laid out for FY30.
• Recent growth trajectory to continue.
• Margin expansion led by operational discipline; capital allocation to prioritize growth.
• Large-deal scaling and account concentration driving growth.
• Pivot towards platformisation and hybrid talent models.

Nomura on Coforge

• Maintain Buy with TP of Rs 2100
• Eyeing doubling of revenue by FY30E led by AI.
• Disciplined financial rigour to continue.
• AI is central to delivery organisation.
• Solution team aiding in large deal win momentum.

UBS on Pine Labs

• Technology was the key focus of Pine Labs' Analyst Day.
• Affordability to be key value driver; multiple vectors to support overall growth.
• Revenue/EBITDA guidance reiterated, aided by rising high-margin business.
• Expects to continue generating operating cash flow, although some seasonality could linger.

Jefferies on Polycab

• Maintain Buy; Hike TP to Rs 10920 from Rs 9770.
• Polycab stays a conviction pick, led by consistent market share gains.
• See strong order book in RDSS & Bharat Net, diverse sales, power proxy and FMEG sustaining positive EBIT.
• In past 15-quarters, Polycab has posted double-digit C&W sales growth with 12-15% EBIT.
• Est FY26-29 EPS CAGR at +22%.

Jefferies on AU SFB

• Maintain Buy with TP of Rs 1,250.
• AUM growth outlook remains strong.
• Steady deposit growth; hike in rates may cap NIM expansion.
• Operating leverage to aid profitability.
• Universal bank transition is a key milestone; capital raise contingent.
• Asset quality trends are holding-up well.
• Strong growth & profitability support premium valuations. 

Jefferies on Navin Fluorine

• Maintain Buy; Hike TP to Rs 8700 from Rs 8385.
• Building Long-Term Growth.
• CDMO - US$ 200mn Revenue aspiration for 2030.
• Specialty Chem - Deepening and broadening with key clients.
• Cooling solutions - Multiple growth engines.
• Incubating the semiconductor chemicals vertical.
• Project 22% EPS Cagr over FY26-29; Valuation is at long-term average.

Citi on Crompton Consumer

• Maintain Buy with TP of Rs 400.
• Demand has started to improve, helped by strong summer and partly led by low base.
• Crompton's products are relatively non-discretionary, but price shock can defer purchases and channel elasticity can shift share across brands.
• Crompton has taken 4 rounds of price hikes in fans aggregating 9–10%.
• Near term priority is revenue growth, while margin recovery should be more visible through FY27.

Citi on Godrej Consumer

• Maintain Buy with TP of Rs 1,300.
• Demand trends remain fairly stable so far despite commodity cost inflation and a subsequent price hike to mitigate the impact.
• Mgmt. reiterated its expectations of achieving high-single-digit volume growth in FY27.
• Growth construct to be driven by the ‘Speedboats' growing at 30%+ over the medium-term.
• New category creation through innovation could potentially create the future Speedboats segments.

Citi on Trent

• Maintain Sell with TP of Rs 2733.
• Demand appears to be holding up reasonably well.
• Supply-side remain noisy across RM (polyester/cotton), labour availability, etc.
• inflation impact in the medium-term is limited.
• Prefer not to pass on the entire cost impact.
• Real estate remains an important variable, but Trent's asymmetric lease structures continue to provide a strong option value
• Zudio's opportunity appears larger than earlier envisaged.
• Trent continues to evaluate lifestyle adjacencies.

Citi on Pine Labs

• Maintain Buy with TP of Rs 235.
• Growth guidance of 21-23% YoY led by online payments, prepaid and affordability.
• Substantial operating leverage remains ahead.
• Guidance of steady headcount despite product development initiatives.
• Prepaid breakage is not material to the company's revenue/EBITDA.
• Expect 18.5% top-line CAGR over FY26-28E, Adj EBITDA margins to expand to 26%/30% in FY27/28E vs 21% in FY26.

Citi on Colgate

• Maintain Sell with TP of Rs 2,050.
• Growth trajectory should be more balanced; a favorable base is helping.
• Pricing is returning, but net realization may remain moderated by competitive intensity.
• Premiumization remains the key structural growth lever.
• Margin trade-offs are likely to persist despite healthy gross margins.

Jefferies on PB Fintech

• Maintain Buy with TP of Rs 1950.
• PB has derated 20% over last 6 months due to concerns around commission regulations and founder exit.
• Est. the price is already factoring a 10% commission cut.
• Further, the business model is unlikely to change with renewal profitability unchanged.
• Risks from founder stake sale may be overdone as business management teams are well-entrenched.

​Bernstein on Financials

• Debate around introducing a Merchant Discount Rate (MDR) on UPI has resurfaced—yet again
• Believe broad-based MDR remains unlikely given the risk to adoption
• Any potential MDR is likely to be limited to a combination of merchant size and transaction thresholds
• Further, competitive pressures could constrain realized pricing, even if MDR is introduced
• Biggest beneficiaries would likely be payment platforms serving large merchants that have already demonstrated a willingness to pay processing fees
• A credible path to monetization would represent a clear positive for payment platforms

JP Morgan on Bajaj Housing Finance

• Maintain Underweight with TP of Rs 70.
• Attrition tapering offers sector tailwind.
• Focus on high-yield segments.
• Medium-term RoA/RoE guidance intact.
• The franchise is best-in-class.
• But expensive valuations limit stock upside.

HSBC on Cement

• Cost inflation worries to abate, pricing requires industry discipline; outlook positive.
• Costs to peak in Q1, and decline in H2.
• Lower crude could drive costs down in FY28.
• While pause in new capacity adds is positive, industry discipline is key to cement price increases and earnings upgrades.
• Top picks: Ambuja, UltraTech, Dalmia, Nuvoco all Buys; retain Hold on JK Cement, Shree Cement.

CLSA on LG India

• Initiate Outperform with TP of Rs 1830.
• One brand, many homes.
• Market leadership with margin tailwinds.
• Positioning it as a key beneficiary of India's durable consumption upcycle.
• Expect the large appliances segment to deliver double-digit CAGR.
• Rising penetration and a shift towards premiumisation to aid growth.
• Strong brand, broad product portfolio and deep distribution reach should sustain leadership.
• Operating leverage, coupled with an increasing backward integration, is likely to support steady margin expansion.

BofA on Tata Motors PV

• Maintain Underperform with TP of Rs 335.
• Ahead of JLR analyst day: What matters for the margin bridge.
• Structural drags complicate margin recovery roadmap.
• Self help matters: Cost-out program & new launches key.

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