Stock Picks Today: Groww, Trent, Vodafone Idea And More On Brokerages’ Radar

A host of global and domestic brokerages have released fresh views on Trent, Avenue Supermarts, InterGlobe Aviation (IndiGo), Vodafone Idea, Indus Towers, Groww and Lemon Tree Hotels ahead of the upcoming session.

They have also shared their outlook on consumer discretionary, aviation, telecom, real estate, fintech and hospitality, alongside broader commentary on India’s equity strategy, earnings recovery, labour code implications and the macro growth outlook for 2026.

• Macquarie maintains an Outperform rating with a target price of Rs 4,900.

• Sales weakness is seen as cyclical, with a pick-up expected in 2H CY26.

• Proposed revamp of Zudio stores is expected to widen its competitive moat.

• Investments in RFID technology should support operating EBIT growth.

• Macquarie believes the current moderation in growth is not structural.

• Government initiatives to support demand remain a positive.

• Sales moderation is attributed to demand weakness and store splitting.

• Key catalysts include a sharper recovery in fashion growth and loss reduction at Star.

• Kotak retains an Add rating and cuts the target price to Rs 5,300 from Rs 5,350.

• Domestic demand remains resilient, while IndiGo continues to make inroads internationally.

• Fair value assumptions have been revised for crude and currency changes.

• Domestic operations remain steady with limited competitive disruption.

• Pricing traction continues in a challenging international market.

• Kotak awaits clarity on free pricing and potential market structure changes.

• Regulatory scrutiny by the CCI and aviation regulator remains a key downside risk.

• Citi maintains a Buy (High Risk) rating on Vodafone Idea with a target price of Rs 15.

• Buy rating on Indus Towers is retained with a target price of Rs 515.

• Confirmation of AGR relief is expected to provide material cash-flow support.

• Relief could fast-track Vodafone Idea’s planned ~Rs 250 billion bank debt raise.

• This may also enable another equity raise over time.

• Improved visibility should allow Indus Towers’ management to resume dividend payouts.

• Continued government support remains critical.

• Key risks include limited AGR relief and worsening competitive intensity.

Goldman Sachs on Avenue Supermarts

• Goldman Sachs maintains a Sell rating and hikes the target price to Rs 3,500 from Rs 3,355.

• Q3 PBT beat expectations, driven by gross margin expansion.

• The sharp margin expansion is viewed as unsustainable.

• Operating expense per store moderated.

• Like-for-like growth continued to slow.

Jefferies on Avenue Supermarts

• Jefferies maintains a Hold rating with a target price of Rs 4,050.

• EBITDA margins surprised positively, hitting a multi-quarter high despite slower growth.

• Store additions remain steady, with Q4 likely to see lumpy expansion.

• CEO transition is expected in the March quarter.

• Management expects limited impact from new labour codes.

• Disclosure standards remain a concern.

• Jefferies expects the residential upcycle to remain intact into 2026, with commercial momentum strengthening.

• Improved affordability from mortgage rate cuts should revive mid-segment demand.

• Volume growth is expected to rebound to 5–10% in 2026.

• Listed developers continue to gain market share amid premiumisation.

• Value sales growth of around 15% is expected.

• Supply remains skewed towards premium housing, with ticket sizes up 7% YoY.

• Top-7 city residential area sold has remained flat for two years.

• REITs may trade at a premium to NAV.

• Office leasing strength could see rentals outpace residential price growth.

• WeWork India is the preferred non-REIT office play.

• Preferred developers include DLF, GPL and Lodha.

• BUY ratings maintained on Embassy and Mindspace REITs.

• Kotak Securities initiates coverage with a Buy rating and a target price of Rs 190.

• Groww is building scale through trust and technology.

• The platform is poised for profitable scale-up.

• Monetisation is expanding across broking, margin lending, wealth and consumer credit.

• In-house technology provides speed, reliability and cost advantages.

• Kotak sees strong unit economics and rising profitability.

UBS India Strategy

• UBS maintains an Attractive stance on Indian equities.

• Varun Beverages and Tata Consumer have been added to the model portfolio.

• Avenue Supermarts and ITC have been removed.

• Government has front-loaded growth measures including tax cuts and labour law simplification.

• RBI rate cuts and liquidity support should sustain trend GDP growth.

• Medium-term outlook remains constructive.

• Nifty EPS growth is expected to be single-digit in FY26, accelerating in FY27–28.

JPMorgan India Strategy

• JPMorgan highlights the importance of double-digit earnings growth in Q3.

• Nifty 50 earnings are expected to grow 7% YoY, EBITDA margins by 5 bps YoY.

• Earnings momentum driven by Materials, Energy and Industrials.

• Dragged by Financials, Pharma and Gas Utilities.

• IT likely to remain muted amid global uncertainty.

• Monitoring guidance closely as this is the first quarter post GST cut.

• Year-end Nifty targets: Bull/Base/Bear at 33,000 / 30,000 / 24,000.

• Preference remains tilted toward domestic-facing sectors.

Goldman Sachs India Strategy

• Goldman Sachs sees improving prospects for India in 2026 after a weak 2025.

• Easier financial conditions and tax cuts should revive domestic growth.

• Deregulatory reforms are expected to improve global investor sentiment.

• MSCI India earnings growth expected to re-accelerate in CY26–27.

• Valuations remain high but close to fair value.

• India’s valuation premium to Asia has compressed.

• Foreign selling is expected to reverse.

• Key catalysts include earnings delivery, Union Budget and a US–India trade deal.

• GS retains an Overweight view on India.

• Nifty target for end-2026 is 29,300.

• Top themes: mass consumption revival, financials, defence and energy security.

• HSBC maintains a Buy rating and hikes the target price to Rs 1,060 from Rs 1,040.

• Earnings upside seen from favourable LME aluminium prices and INR moves.

• Tight aluminium supply could drive multiple expansion.

• HSBC sees 20% upside risk to FY27–28 EPS.

• Hindalco remains a preferred pick.

• JPMorgan views cables and wires as “picks and shovels” for electrification and energy transition.

• Near-term EPS upgrades expected due to rising copper prices.

• Entry of large conglomerates could pressure industry margins.

• KEI and Polycab are better positioned due to higher cable mix.

• Polycab initiated Overweight with target price of Rs 8,900.

• KEI Industries initiated Overweight with target price of Rs 5,250.

• Jefferies flags new labour codes as a fresh earnings risk.

• One-time impact in Q3 could be 10–20% of profits.

• Recurring employee costs could rise by up to 5%.

• A 2% increase in India employee costs could cut FY27 earnings by 2–4%.

• TCS, Infosys and IKS are least impacted.

• Coforge, LTIMindtree and Tech Mahindra face higher risk.

• Companies must account for labour law changes from the December quarter.

• Firms with high India employee cost-to-PBT ratios face higher recurring impact.

• Sectors impacted include capital goods, retail, IT, pharma and banks.

• Assuming 2% incremental wage cost, 14 companies face 3%+ recurring impact.

• Key impacted names include L&T, BHEL, Jubilant, Nykaa, Coforge, TechM and LTIMindtree.

• Investec maintains a Buy rating with a target price of Rs 187.

• The long-awaited Fleur demerger is now underway.

• Value is expected to be unlocked in the asset-light, high-growth Fleur platform.

• Post demerger, Fleur will emerge as a zero-debt entity.

• Warburg’s buyout of APG’s stake and primary capital infusion will support growth.

• Management has reaffirmed growth plans, providing comfort on value unlocking.