Stock Picks Today: Dixon Tech, Bharti Airtel, IT Sector And More On Brokerages' Radar

A host of global brokerages have released fresh views on the IT sector, ICICI Lombard, Dixon Technologies, Bharti Airtel, and broader India macro themes including GDP growth, West Asia risks, monsoon outlook and sector positioning ahead of the upcoming session.

They have also shared commentary on AI-driven valuation resets in IT, evolving PLI incentives in electronics manufacturing, telecom tariff dynamics, oil price sensitivity and remittance risks from West Asia, alongside strategic calls on power, autos and consumer discretionary as potential beneficiaries of cyclical and weather-related tailwinds, while reiterating sector preferences within Financials, Industrials and select consumption plays.

Citi on IT Sector

• Citi cuts target prices across coverage by 14–29%, while earnings changes remain modest.
• Target multiples have been reduced significantly due to lower medium-term growth visibility and a global sector derating.
• The brokerage remains cautious and will closely watch FY27 outlook commentary and AI's impact on enterprise spending.

Rating and target price changes:

• Coforge – Maintain Sell; TP cut to Rs 1,100 from Rs 1,560.
• LTIMindtree – Maintain Sell; TP cut to Rs 4,190 from Rs 5,415.
• Persistent – Maintain Sell; TP cut to Rs 4,170 from Rs 5,455.
• TCS – Maintain Sell; TP cut to Rs 2,500 from Rs 3,020.
• Tech Mahindra – Maintain Sell; TP cut to Rs 1,260 from Rs 1,500.
• Wipro – Maintain Sell; TP cut to Rs 185 from Rs 235.
• Mphasis – Maintain Neutral; TP cut to Rs 2,335 from Rs 2,905.
• Infosys – Maintain Neutral; TP cut to Rs 1,440 from Rs 1,700.
• Hexaware – Maintain Neutral; TP cut to Rs 475 from Rs 625.
• HCL Tech – Maintain Neutral; TP cut to Rs 1,460 from Rs 1,700.

Goldman Sachs on ICICI Lombard

• Goldman Sachs maintains Neutral with a target price of Rs 1,925.
• Industry growth inflected positively in Q3.
• Motor growth outpaced industry trends.
• Company's motor combined ratio remains materially better than industry.
• Health segment remains in a strategic investment phase, with near-term drag seen as acceptable.

Brokerages on India GDP

Nomura on GDP

• Revisions indicate slower past growth but stronger current momentum.
• Post-pandemic recovery in consumption and informal sectors was weaker than earlier estimated.
• Current growth trajectory is stronger.
• Tailwinds from policy easing, wage growth and easing trade tensions to support recovery.
• Nomura expects FY27 GDP growth at 7.1% YoY, above consensus.

Goldman Sachs on GDP

• Goldman Sachs raises CY26 real GDP growth forecast by 10 bps to 7%.
• Stronger manufacturing activity and broad-based credit growth driving upgrade.

UBS on GDP

• December quarter GDP exceeded consensus expectations.
• FY27 growth likely driven by resilient domestic demand and supportive cyclical policy.
• End of reciprocal US tariffs could benefit India despite lingering uncertainty.

JPMorgan on Dixon Technologies

• JPMorgan maintains Overweight with a target price of Rs 13,700.
• Mobile PLI 2.0 likely to focus more on local value addition and exports.
• Street had largely assumed PLI extension unlikely.
• Without extension, Dixon may see 50 bps margin reduction from FY27.
• If extended, Dixon could retain 50 bps margin benefit.
• Potential 12–16% EPS upgrades over FY27–28 if scheme continues.

Citi on Bharti Airtel

• Citi maintains Buy with a target price of Rs 2,380.
• Chairman's strategic clarity reinforces long-term opportunity.
• Near-term catalyst may be limited due to uncertainty around tariff hikes.
• Recent underperformance seen as a buying opportunity.
• Positive read-through also expected for Indus Towers.

BofA India Watch – Rahul Bajoria

• West Asia conflict clouds near-term sentiment.
• India has 9.7 million people working/living in West Asia.
• 35–40% of India's $132 billion remittances originate from the region.
• India imports 45% of energy from West Asia.
• India currently holds roughly three weeks of oil inventory.
• A $10/bbl oil increase adds $12–15 billion to current account deficit and 25–30 bps to inflation.
• India exported $67 billion (15% of total exports) to West Asia in 2025.
• Key exposed sectors include gems & jewellery, autos, petroleum products and food.

Jefferies India Strategy – Mahesh Nandurkar

• Impact likely short term unless conflict escalates significantly.
• Region accounts for 17% of exports, 55% of crude imports and 38% of remittances.
• Oil marketing, travel, hospitality and rate-sensitive names face near-term risk; defence stocks benefit.
• Companies with meaningful exposure include L&T, Newgen, Dabur, Titan, Ajanta Pharma, Biocon, Cipla, major hospital chains and Voltas.
• Any sharp dip could present a buying opportunity.

Morgan Stanley on February 2026 Auto Sales

• Retail sales grew 25%+ YoY across segments.
• Strong demand momentum continues.
• Preferred picks: Maruti, TVS, M&M and Hero.

Jefferies India Strategy – Mahesh Nandurkar

• El-Nino likely to cause a monsoon deficit in 2026.
• Deficit monsoon could benefit power, cement, construction and summer-linked plays.
• Moderate deficit (5–10%) may be EPS supportive.
• Lower rainfall raises power demand from agriculture and residential cooling.
• Beneficiaries include NTPC, JSW Energy, Adani Green, Power Grid, Adani Energy, Tata Power, Torrent Power.
• Power equipment makers Siemens Energy, Hitachi Energy and CG Power also benefit.
• Solar module makers WAAREE, Premier Energies and Emmvee may gain.
• Consumer summer plays such as AC makers and Varun Beverages also benefit.
• Add Coal India, Bharat Forge and Max Financials.
• Remove Samvardhana Motherson, Bharti Airtel and HDFC Bank.

Morgan Stanley India Strategy – Ridham Desai

• Adds Adani Power, Lenskart and Prestige Estates to Focus List.
• Removes Reliance Industries, Titan and InterGlobe Aviation.
• Sector Overweight: Financials, Consumer Discretionary and Industrials.
• Adani Power expected to fund 60–65% of its $27bn capex via internal accruals.
• Lenskart seen as scalable global platform with strong profitability potential.
• Prestige Estates expected to deliver strong growth momentum.

Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.