Stock Picks Today: DMart, L&T Finance, LTM, CarTrade, Aurobindo Pharma, And More On Brokerages' Radar

Brokerages have identified opportunities across FMCG, IT, pharma, an online auto classifieds platform and financials, with fresh calls on Avenue Supermarts, L&T Finance, LTM , CarTrade and Aurobindo Pharma alongside a constructive stance on select metals, housing finance stocks and India strategy.

UBS on CarTrade

• Initiate Buy with TP of Rs 4000
• Scaling network effects, hidden value
• Asset light model offers significant operating leverage
• Expect margins to expand from 33% in FY26 (9% in FY23) to 47% by FY30
• Expect this to be driven by significant top-line growth
• Current revenue across its platforms representing only 3-4% of total addressable market
• Analysis shows significant growth potential in OLX, its dominant used C2C platform
• Growth potential is underappreciated
• See scope for 15-20% upside in consensus earnings for FY27–29.

MS on Avenue Supermarts

• Maintain Overweight with TP of Rs 5083
• Q1: Margins in line; top-line growth recovery is key
• Management commentary alludes to higher quick commerce competition in metros
• Weak top-line growth could limit near-term upside
• Remain Overweight due to its large total addressable market and business model strengths
• Await management comments at the annual investor meeting usually in July or August.

Bernstein On Avenue Supermarts

• Maintain Outperform with TP of Rs 5000
• Result underscores the resilience of the DMart model in the context of the quick commerce onslaught
• Averaging Q4 and Q1, is more representative of the near term performance
• Expect store expansion to remain 80+ (albeit partly fueled by debt)
• Success in sustaining gross margins with positive SSSG despite competition is impressive
• Expect the cost curve to become supportive over next 2-3 quarters
• DMart Ready is a distraction, not a distinction - suggest investors avoid trying to solve a problem the company has not solved for itself.

Citi on Avenue Supermarts

• Maintain Sell; Cut TP to Rs 3400 from Rs 3650
• Metro SSSG Stalls as Quick Commerce Pressure Intensifies
• Profit growth has lagged revenue growth in 10 out of last 13 qtrs
• This is owing to quick commerce competition, lower other income and higher interest expense
• Cut FY27-29 revenue est by 4-6%, EPS est by 5-7%
• Seek better entry point/valuation as risk-reward seems unfavorable.

MS on L&T Finance

• Maintain Underweight with TP of Rs 185
• PAT 3% above estimates; L&T Finance executing well
• Believe valuation already prices in too much future improvement while underestimating key risks
• Peers offer significantly more attractive valuations
• See risks to loan growth given exposure to MFI, tractor and 2W, given El Nino
• See limited scope for NIM expansion, especially as MFI share moderates
• See risks to fee income from potential regulatory changes with respect to  insurance commissions.

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MS on LTM

• Maintain Equal-weight with TP of Rs 4000
• Q1: Lack of revenue growth downgrades a positive but already priced in
• Revenue in line, margins ahead of expectations
• Key verticals and top client buckets performed well
• Management reiterated expectation of FY27 revenue growth exceeding FY26
• CBDT deal expected to ramp up in Q2.

Citi on LTM

• Maintain Sell; Cut TP to Rs 3450 from Rs 3455
• Q1 largely inline; subcontractors led growth
• Mgmt commentary – Confident about growing in Q2 and continuing momentum into H2
• Below consensus estimates are largely unchanged
• Expect LTM to deliver ~5% CAGR in organic revenues over FY26-28.

GS India Strategy - Amorita Goel

• India's outlook has improved in recent weeks
• Lower commodity prices, stabilized currency, resilient domestic growth, healthy earnings expectations in Q2, and potential recovery in select domestic pockets
• With ultra-light foreign positioning, see ample room for flows to return
• Renewed geopolitical tensions in the Middle East may fuel near-term volatility
• See room for NIFTY to recover towards June 2027 target of 26,500, implying 10% upside
• Expect Rotation To Value, Large-caps And Most Sold Foreign Pockets
• Key Events To Monitor: Q2 Earnings, Bond Inflows, And ‘Super' El Niño
• Recommend going long on banks, tourism and energy refiners
• Favor Large-caps over Mid-caps, value over growth, power utilities over rural/agriculture stocks, and domestics over exporters
• Raise Utilities to Overweight and Industrials to Marketweight
• Remain Overweight on banks, energy refiners, telecom, internet, and defense
• Stay Underweight exporters, downstream oil
• Downgrade metals & mining and cement to Underweight and Staples to Marketweight.

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Morgan Stanley on India Financials 

Affordable Housing Finance Companies: Secular, Secured, Small- cap Compounders

• Disbursements growth and loan growth appear poised to accelerate
• Asset quality concerns and idiosyncratic issues are largely resolved
• Looking at an upcycle for secured, good quality, structural compounders
• Strong earnings CAGR and ROE ahead, limited downside risks
• At the beginning of a strong up-cycle in earnings and stock returns at AHFC
• Any rising demand for small cap ideas could re-rate these stocks materially
• Key OWs: Aptus, HomeFirst and PNB Housing Finance.

WHAT'S CHANGED

• Aavas Financiers,  hike TP to Rs.1,555 vs Rs.1,490 earlier 
• Aptus Value Housing Finance, hike TP to Rs.405 vs Rs.395 earlier 
• Can Fin Homes, hike TP to Rs.1,055 vs Rs.1,025 earlier 
• Home First Finance, hike TP to Rs.1,650 vs Rs.1,585 earlier 
• PNB Housing Finance, hike TP to Rs.1,405 vs Rs.1,250 earlier.

Macquarie on Aurobindo Pharma

Reiterate Underperform with a target price of Rs1,300 

Dissecting Lannett deal: Profitability expectations overstated

• Street expectations and mgmt's EBITDA margin guidance of 15% for Lannett appear optimistic
• No material product launches since FY23 and stagnant revenue over FY24-25
• A meaningful profitability inflection appears unlikely
• Lannett's scale further challenges the profitability narrative
• EPS estimates for FY27 and FY28 remain 11% below consensus.

Morgan Stanley on India Materials

NMDC Cuts Iron Ore Prices, albeit Marginally

• Disclosed revised iron ore prices effective July 10, 2026
• NMDC cut prices by Rs250/t for lumps and Rs150/t for fines
• Not surprising, as seaborne iron ore prices have moderated
• Recently seaborne supply has risen coupled with a relatively softer Chinese demand
• Note a seasonally weak demand period in the domestic market 
• Moderation in steel prices should keep iron prices in check in the near term
• Relatively positive for JSW Steel and Jindal Steel given their external iron ore requirements.

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