Stock Picks Today: Defence Stocks, Axis Bank, Allied Blenders, L&T, Kotak Mahindra Bank On Brokerages' Radar

Defence stocks, Axis Bank Ltd., Allied Blenders and Distillers Ltd., Larsen and Toubro Ltd., Kotak Mahindra Bank Ltd., auto stocks, real estate stocks and cement sector, 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:

Morgan Stanley

• Maintain overweight; Hike target price to Rs 1,450 from Rs 1,325

• Revisiting the turnaround story

• Bank has taken significant additional steps over the past year

• Bank should get traction as the macro climate improves

• Expect re-rating relative to large private banks to be gradual

• Expect trends in all three drivers – i.e., NIMs, growth, and credit costs – to turn positive

• Extent will be linked to the pace of macro recovery

• Benefits of the bank's strategic decisions could be visible over the next 2-3 years

• But until then, expect the valuation gap to remain wide

• Key drivers for structural re-rating will be narrowing of retail deposit growth differentials and loan spreads vs. large banks

Morgan Stanley

• Gunning for Growth

• Equity market may be underestimating the likely turn in the growth cycle

• While global factors matter for India's relative performance, in our view, the earnings and market peak is still in front of us

• India’s low beta implies outperformance in a global bear market but underperformance in a bull market

• The growth pivot is for real

• Domestic Cyclicals > Defensives and External-facing sectors

• Overweight Financials, Consumer Discretionary, and Industrials

• Underweight Energy, Materials, Utilities, and Healthcare

Jefferies

• Maintain buy with target price of Rs 620

• Backward integration plans remain on track with recent addition of a PET bottle manufacturing facility and work underway on a malt distillery

• Single malt launch likely in 4-5 years

• These factors along with distillery expansion in Maharashtra, to drive 300bps margin uplift over FY25-28e and strengthen franchise in key states

Goldman Sachs

• Add Havells India to the APAC Conviction List

• Havells as well-placed for a growth revival over the next few years

• New capacity in core categories and GST cuts across various consumption categories to support growth

• Forecasts Havells to grow at 19% in FY27 and 16% in FY28, from a weak base of 8% in FY26

Goldman Sachs

• Solar Industries – Initiate Buy with target price of Rs 18,215

• PTC Industries – Initiate Buy with target price of Rs 2,4725

• Astra Microwave – Initiate Buy with target price of Rs 1,455

• Data Patterns – Initiate Buy with target price of Rs 3,640

• Azad Engineering – Initiate Buy with target price of Rs 2,055

• BEL – Initiate Buy with target price of Rs 455

• Hindustan Aeronautics – Initiate Neutral with target price of Rs 5,255

• Bharat Dynamics – Initiate Sell with target price of Rs 1,375

Morgan Stanley

• Q2 - Not Weak Despite Seasonality

• Expect the top five developers to register Q2 pre-sales of Rs 11000 cr - +44% YoY

• H1 has reached 55% of full-year 2026 estimate

• For Q2, expect Godrej and DLF to report stronger pre-sales than consensus expects

• Lodha and Oberoi could disappoint

JP Morgan

• September 2025: a month where commentary matters more than data

• Maruti underperformed industry in wholesale while retail was in-line; Hero still a key laggard in retail

• M&M continues to outperform in PVs and Tractors

• 2W wholesale and retail delivered similar outcomes

Goldman Sachs

• Maintain neutral with target price of Rs 3,540

• Expect a good quarter; market focus to shift to FY27

• Expect healthy double digit growth in revenue, Ebitda and PAT driven by a strong order book

• Order inflow growth of 15% year-on-year

• Expect EPC and installation of offshore structures in Middle East to be included

• Expect 20 bps improvement in core Ebitda margins at 7.8%

CLSA

• GST cut-led demand enhancement and festive season driven retail demand

• TVS and Royal Enfield gain retail share YoY as volumes climb 17% YoY and 43% YoY

• In PVs, EVs grew at much higher pace of 163% YoY, followed by CNG at 33% YoY

• CV sales increased by 7% YoY while M&HCV remained flat YoY

Morgan Stanley

• Maintain overweight with target price of Rs 2,600

• Believe the share price will rise relative to the industry over the next 30 days

• Remain positive given its strong setup and exposure to segments that benefit from macro recovery

• After two years of headwinds, the bank is now on the front foot with rising disbursements and stable margins

• Expect core PPoP/EPS growth to return to 18-20% from FY27

• Improving spreads, easing supply-side constraints, and strong profitability support re-rating potential

Jefferies

• Status Quo on Rates Is a Relief for Private Banks; tad negative for NBFCs/ small-banks

• ECL transition will start from Apr-27, and the impact of the one-time charge can be partly offset by the lower risk weight/ spread over 5 years

• RBI also relaxed restrictions on bank loans that will aid credit growth

• Stay positive on HDFC, Axis, ICICI, SBI

Jefferies

• Cement prices hold as intense monsoon ends

• Cement prices (ex-GST related changes) was marginally lower by 0.5% MoM

• YTD FY26 price is tracking 5-6% higher YoY vs FY26 est of +4% YoY

• For Q2, price (ex-GST) remained relatively steady (1-1.5% dip QoQ), despite severe monsoons hurting demand

• GST rate cut from 28% to 18% has reflected on cement cos passing the benefit

• Petcoke/fuel have inched up recently (to impact Q4)

• Higher RM prices, could push companies to price hikes from Nov/Q4

• Like Ambuja, UltraTech and JK Cement

CLSA

• Outlook for the Nifty remains unchanged as the lack of follow through has resulted in the market consolidating within a newly defined range

• This range currently spans between 24,337–24,432 on the lower end and 25,448–25,669 on the upper end

• Crucially, just below the lower boundary of this newly established range lies a key zone of support

• Area represents the confluence of the 200-DMA and the upper boundary of the February-April basing pattern

• As long as price action holds above this critical support level, there is a case for continuing to favour the upside

• Eventual resumption of the February-April double bottom pattern that still provides a measured target of 26,333