Stock Picks Today: HAL, Britannia, Shyam Metalics, SBI Cards, IKS Health On Brokerages' Radar
Brokerages also offered their outlook on the Labour Codes and what it means for the market.
Brokerages shared the latest views and insights on Hindustan Aeronautics (HAL), Britannia, Shyam Metalics, SBI Cards, IKS Health, and more on Monday.
They also offered their outlook on the E-Commerce/Gig Economy sector and India's Strategy.
Read on to know more:
CLSA on Hindustan Aeronautics (HAL)
Maintain Outperform with a target price of Rs 5,436
Tejas Mk1 went down at the Dubai Air Show
Experts highlight three possible causes: sudden loss of thrust from GE engine, biological effects of aerodynamic stall induced during a negative-G manoeuvre, or human error
Tejas is HAL’s no.1 aircraft at 44% of its orderbook with 180 aircraft on order
Tejas has had only one incident in over 20 years
See any stock volatility as an added opportunity to accumulate
HAL has a decadal pipeline of $54 billion
See the start of fighter aircraft deliveries and visibility on the GE deals as key catalysts
UBS on Britannia
Maintain Buy with target price of Rs 6,350
Q3 volume growth looking good, trajectory afterwards will be the key
Entering an interesting phase in Britannia
Believe input prices have completed their adverse cycle and are entering an expansionary phase
Valuations have corrected recently; 1-year forward PE at 14.2% below peak
Believe volume growth is likely to accelerate post GST
Makes the risk-reward of owning Britannia still favourable in the near term
Jefferies on Shyam Metalics
Initiate Buy with target price of Rs 1,050
A Growth Mindset
Offers one of the best growth potential in India metals underpinned by capacity expansions and healthy balance sheet
Poised to become one of India's top-3 stainless steel manufacturers while also expanding cold rolled steel and intermediates volumes
Expect 13% volume and 18% EPS CAGR over FY26-28
9x FY27E EV/EBITDA is attractive for the strong growth outlook
Morgan Stanley on SBI Cards
Post-festive season spending growth so far looks to be largely aligned with pre-festive YTD growth
There are timing differences in festive season YoY
On a calendar basis, assuming the 3% YoY growth in November so far extends to the rest of Q3, then growth could be 8% YoY vs. 16% in H1FY26
During the festive period (22 September to 26 October), industry credit card spending was up 21% YoY (adjusted)*
Strength was largely driven by robust spending in the last week of September – 22 September marked the onset of GST cuts, Navratri, and ecommerce sales
Observe 14% YoY (adjusted) growth in credit card spending* after festive season (27 October to 20 November) near the 15% YoY in April-August 2025 data
Need to keep monitoring post-festive growth trends to form a view on the sustainability of the growth upturn seen in the festive period
Nomura on IKS Health
Initiate Buy with target price of Rs 2,000
Attractive play on US healthcare provider space
US healthcare outsourcing market likely to record a 12% CAGR over CY23-28E
Comprehensive and integrated platform stack with next-gen tech capabilities
Long-term relationships with marquee, large enterprise clientele
Expect ~16% revenue, 32% EPS CAGR over FY25-28
UBS on Shaily Engineering
Initiate Buy with a target price of Rs 4,000
High potential, high growth, high optionality
Multiple growth levers; potential for positive surprise ahead
On strong footing for generic semaglutide launch
Consumer and industrials to grow steadily; consumer electronics an optionality
Jefferies India Strategy
Worst for the earnings trend likely behind
Analysis of corp earnings suggests that the EPS trend should improve from H2FY26 and through FY27
Downgrade pace likely reduces on significant disruptions in base
Bulk of the earnings swings is likely to come from autos, banks, power and consumer
Low base and policy support is expected to drive an uptick
Cement & telecom offer the strongest EPS growth
Confidence on 13-15% FY27 EPS growth should support market sentiments
Brokerages On Labour Codes
CLSA: Labour reform likely to have a net impact of approximately Rs 1 per order for aggregators. Believe it is likely to be passed on to users.
Bernstein: New Labour Code could reduce Food delivery Adjusted EBITDA margin by 25-65 bps, and Quick commerce by 60-70 bps. Believe Eternal and Swiggy have levers to reduce the net financial impact.
Citi: New laws impose a direct financial cost on the platforms. Estimate would translate to 30/50bps (Rs 2-3/order) impact in quick commerce/food delivery, if fully absorbed. Expect most of the cost increases to be passed through.
UBS & BofA: Labour reforms to boost India's potential growth and medium-term growth outlook, reinforcing ease of doing business. Major step towards formalisation & scale of industries.
