Stock Picks Today: HDFC Bank, CG Power, Astral, Eternal, Yes Bank, IT Companies, And More On Brokerages' Radar

Brokerages issued fresh views on HDFC Bank, CG Power, Astral, GMR Airports, Eternal, Yes Bank, One 97 Communications alongside commentary on India strategy, IT sector, insurance, and financial sector.

JPMorgan on HDFC Bank

• Maintain Overweight with TP of Rs 990.
• External Counsel Report Concludes – Governance Concerns Likely to Moderate.
• Believe that the conclusion should help narrow some of the governance risk premium.
• HDFC stock has de-rated by 8% on P/BV with the discount to ICICI Bank expanding to 23% since the resignation of the former part-time chairman.
• Also see HDFC being a key beneficiary of the recently announced FCNR initiatives.

MS on HDFC Bank

• Maintain Overweight with TP of Rs 1025.
• Law firms wrap up review related to ex-chair's resignation.
• Think investor sentiment towards the stock should improve.

Jefferies on HDFC Bank

• Maintain Buy with TP of Rs 1050.
• Law Firms Review Doesn't See Evidence to Back ex-Chairman's Comments.
• This is a relief for investors and may lay the path for bank to appoint new Chairman.
• Valuations are attractive; Stays among top picks.

Jefferies India Strategy

• Rising equity supply to cap returns
• Recent easing in Middle east concerns has reopened the equity issuance tap.
• Sizable IPO pipeline, likely higher govt divestment and other offerings point to sustained supply ahead.
• Estimate a supply pipeline of $35-45bn for remaining July-Dec 2026.
• Softer incremental flows and continued FPI outflows will limit broader market upside.
• FPI outflows crossed $30bn in CY26.
• Select ideas in power, other hard assets should continue to outperform.

Jefferies on GMR Airports

• Maintain Buy with TP 125, 16% upside
• GMR will takeover Nagpur operations after prolonged litigation process
• Consolidation likely in Q2 FY27
• Airport is small with 3mn pax but city is strategically important Given its central location
• GMR will have 100% ownership, attractive revenue share and 247 acre land monetisation

Citi on IT

• Infosys: Maintain Neutral; Cut target price to Rs 1080 (Rs 1300 Earlier).
• Wipro: Maintain Sell; Cut target price to Rs 160 (Rs 175 Earlier).
• LTTS: Maintain Sell; Raises target price to Rs 3065 (Rs 2970 Earlier).
• Mphasis: Maintain Neutral; Raises target price to Rs 2365 (Earlier Rs 2310).
• Hexaware Technologies: Maintain Neutral; Raises target price to Rs 490 (Rs 455 Earlier).
• TCS: Maintain Sell; Cut Target Price to Rs 1965 (Rs 2250 Earlier).
• Tech Mahindra: Maintain Sell; Cut target price to Rs 1220 (Earlier Rs 1275).
• Persistent Systems: Maintain Sell; Cut target price to Rs 4090 (Earlier Rs 4230).
• LTM: Maintain Sell; Cut target price to Rs 3455 (Earlier Rs 3850).
• Coforge: Maintain Sell; Raises target price to Rs 1235 (Earlier Rs 1165).
• HCL Technologies: Maintains Neutral; Cut target price to Rs 1135 (Earlier Rs 1385).

Goldman Sachs on India IT Services

• Overall stance remains neutral to negative on India IT

• Buy only on TCS due to relatively better valuation comfort
• TCS: Rated buy; Cut target price to Rs 2410 (Earlier Rs 2710)
• Infosys: Rated Neutral; Cut target price to Rs 1140 (Earlier Rs 1290)
• LTM: Rated Neutral; Cut target price to Rs 3870 (Earlier Rs 4210)
• HCL Tech: Rated Neutral; Cut target price to Rs 1180 (Earlier Rs 1340)
• Wipro: Rated Sell; Cut target price to Rs 179 (Earlier Rs 187)
• TechM: Rated Sell; Cut target price to Rs 1400 (Earlier Rs 1410)
• Demand environment remains weak
• India IT heading towards fourth straight year of low single-digit growth
• Valuation and weak growth outlook seen as not very compelling
• Sector EBIT margins likely to decline ~30 bps QoQ
• Pressure led by wage hikes, AI investments and competition
• Limited near-term triggers for valuation re-rating in sector

Citi on Astral

• Maintains Buy with target price Rs 1,900; ~27.8% upside.
• To demerge plumbing and chemicals businesses into two listed entities.
• Chemicals business  to move into Astral Chemie.
• Each business to use its own cash flows, improving capital allocation.
• Strong plumbing vs relatively weaker chemicals gets separated.
• Expects continued double-digit volume growth in the plumbing segment.
• Trades at ~29x forward EV/EBITDA, premium to Supreme (~20x) and smaller pipe players (10–18x).
• Plumbing business likely to sustain premium.
• Adhesives and paints valuation durability remains uncertain post demerger.
• Near-term volume growth to slow to ~10% vs ~24% earlier due to reversal of PVC-led restocking.
• EBITDA per kg expected to soften as earlier low-cost inventory benefit fades.

Investec on Astral

• Maintain Buy with TP of Rs 1710.
• Demerger approved; 1+1 >2?.
• Entity will be the second-largest listed pure play in the segment after Pidilite.
• This is an attractive business category.
• Astral clocked revenue/EBITDA CAGR 19/ 18% over FY19-26 vs. Pidilite 13/14% with healthy CF/RoCE profile.
• Enhanced disclosures on revenue mix coupled with right execution offers room for value unlocking.

Nomura on CG Power

• Rated Buy; target price raised to Rs 1,100; ~19.7% upside.

• Remains one of the top picks.
• Growth visibility driven by strong domestic momentum.
• Sharp pickup expected in exports.
• US market emerging as big opportunity; acute transformer supply shortages.
• Demand supported by data centres, EV adoption.
• Raises FY28–29 EPS estimates by 4–5% on stronger export and margin outlook.

Kotak Institutional on Escorts Kubota

• Maintains Add rating; target price of Rs 3,400 (Rs 3425 Earlier)
• Market share push, diversification beyond tractors and margin recovery ahead
• Strategy shifting to reduce cyclicality by increasing non-tractor business mix
• Co sees flat growth in domestic tractor industry for FY27
• Construction equipment demand showing early signs of recovery
• Has pipeline of 8–10 launches annually; 15 in FY27
• Margins to remain under pressure near term due to 4–5% rise in raw material costs
• Margins expected to improve from 2HFY27 as input costs correct
• cuts FY27–28 EBITDA estimates by 1–2%

Morgan Stanley on India Financials

• May 2026 Credit Card Statistics
• Mixed trends in May credit card data with some improvement in June.
• SBIC spending share down 21 bps MoM to 19% while cards share flat at ~18.6%.
• SBIC spending strong at ~19% YoY vs industry.
• SBIC cards grew ~6% YoY vs industry ~8%.
• HDFC and ICICI strong in card additions but lost spending share.
• Axis lagged in additions.
• Spending trends weak for ICICI and IndusInd.
• Yes, IDFC First, Federal and AU saw strong YoY growth.

Jefferies on India Equity Strategy

• Brent back to pre-war levels while MSCI India down ~2%.
• Recommends buying cement, Bajaj Finserv, OMCs and TVS.
• Ultratech preferred as cost headwinds ease despite near-term earnings cuts.
• Bajaj Finserv attractive on ~27% holdco discount and ~23% earnings growth visibility.
• BPCL and IOCL supported by lower crude and strong refining margins.
• TVS backed by strong auto demand and easing commodity costs.
• BSE flagged as expensive after ~45 ppt outperformance.
• Pharma exporters to underperform with INR strength.
• positive only on Zydus, cautious on Cipla, Dr Reddy and Lupin.

Goldman Sachs on Eternal

• 1QFY27 Preview.
• Maintains Buy with target price of Rs 350 (Earlier Rs 340).
• Sees strong 1QFY27 with growth in quick commerce and food delivery.
• Margins expected stable to improving.
• FY29 EBITDA target of $1 bn seen achievable.
• Valuations could re-rate with 35–40x EBITDA multiples.

Goldman Sachs on One 97 Communications

• Maintains Buy with target Rs 1,430 (Earlier Rs 1400).
• 1QFY27 expected strong with ~27% YoY GMV growth.
• Raises estimates with revenue up ~2% and EBITDA up to ~6%.
• FY27 revenue growth seen at ~24% vs ~22% earlier.

Citi on Yes Bank

• Maintains sell with target price of Rs 19.50
• Opens 30-day positive Catalyst Watch with near-term upside trigger from earnings
• Core RoA expected at ~0.75–0.8% in 1Q
• Loan growth expected to pick up to ~15%
• Retail growth recovery to be supported by sustained disbursements
• NIMs seen stable aided by RIDF run-down and reduction in bulk deposits
• Retail slippages expected below 3% with stable asset quality across segments
• Key risk remains Supreme Court verdict on AT-1 bonds.

HSBC on Credit cards

• May 2026: Spending visibility still subdued
• Credit card spending growth remained subdued, rising 6.8% YoY in May 2026, versus 7.1% YoY in April 2026
• Mid-sized issuers are gaining traction, both on spending and cards-in-force
• Remain negative on this segment on the back of muted spending growth and long road to recovery in card spending

HSBC on Titan

• Maintain Buy with TP of Rs 5250.
• Headwinds fading, growth holding up.
• Based on industry interactions, believe overall growth for Titan's Jewellery business this quarter remains strong.
• Headwinds related to regulatory uncertainty are fading, though they remain a tail risk.
• Expect 30%-plus growth in the Jewellery business in Q1FY27.

Investec on Home First

• Maintain Buy with TP of Rs 1450.
• CFO resignation update – no change in fundamentals.
• CFO resigned – Transition should be smooth.
• See no impact on short term and long-term fundamentals.

CLSA on Ather Energy

• Maintain Outperform with TP of Rs 1450.
• Prepared for margin pressure.
• EL platform and portfolio diversification to drive profitable growth ahead.
• Raw material inflation remains a key headwind.
• PM E-Drive subsidy support set to lapse this quarter; all eyes on extension.
• Capital raise to fund growth and supply-chain diversification.
• EL platform to unlock a larger addressable market and drive cost efficiencies.

CLSA on Kotak Mahindra Bank

• Maintain Outperform with TP of Rs 440.
• Headwinds gone.
• Credit growth healthy with no signs of asset quality stress.
• Credit demand steady; unsecured lending picking up pace.
• FCNR (B) a cheaper source of funding; ‘811' deposits a focus area.
• Asset quality stable; endeavouring to improve ROE.

Citi on Kotak Mahindra Bank

• Maintain Buy with TP of Rs 485.
• CEO Exit By Dec'26 Triggers Transition; Enters ‘Wait-for-Clarity' Phase.
• This development is a sentiment-driven uncertainty rather than a fundamental earnings or operational risk.
• Bank's internal management bench reflects a degree of institutional preparedness.
• Internal candidates are likely to be market-favoured.
• But the bank is expected to evaluate both internal and external candidates before submitting a shortlist to the regulator.
• Assign high-to-moderate probability to internal appointment.
• Valuation trajectory is now outcome-contingent; fundamentals not structurally compromised.

MS on Kotak Mahindra Bank

• Maintain Overweight with TP of Rs 500
• MD/CEO change in the cards for December 2026
• With respect to internal talent, note that the bank currently has three Executive/Whole-time Directors: Jaideep Hansraj, Paritosh Kashyap and Anup Kumar Saha.

Jefferies on Kotak Mahindra Bank

• Maintain Buy with TP of Rs 450.

• Another Surprise Exit by the Bank's CEO.
• Anup may lead race for CEO.
• A 6-month process incl. external candidates may create overhang.
• Succession quality & durability remain key to growth & rerating.
• Buy stays, but lower in pecking order.

Nomura on Insurance

• Niva Bupa – Initiate Buy with TP of Rs 105.
• Winning with quiet confidence.
• Loss ratios can stabilise at current levels, while fast growth momentum continues.
• Expect FY26-29F premium CAGR at 23% and FY29F ROE at 15.9%.
• Star Health – Initiate Buy with TP of Rs 675.
• Annual repricing, cohort-based pricing and focus across four key pillars.
• Deep dive into new accounting method; expect ROE of 12-14.9% over FY27-29.
• Expect more predictable underwriting profitability.
• ICICI Lombard – Initiate Neutral with TP of Rs 1820.
• Better growth outcome possible only with favorable regulatory event.
• Health is the main driver of growth; price wars in motor and commercial segments.
• High valuation demands high growth momentum.
• PB Fintech – Initiate Neutral with TP of Rs 1590.
• Pending regulations could trigger big changes by management.
• Multiple new-age-platforms; derived 90% of revenue from insurance in FY26.
• Insurance market share tripled in FY22-26; credit business remains volatile.

Investec on Nuvama Wealth

• Initiate Hold with TP of Rs 1900
• Diversified play on capital market
• Asset services is an attractive business
• Wealth and private are doing well
• Scaled player in capital market
• Well positioned to deliver sustained double digit growth
• Forecast revenue/PAT growth of 16%/18% over FY26-29

 MS on Dr Reddy

• Maintain Equal-weight with TP of Rs 1215
• Receives 7 observations at Bachupally site
• Key biosimilar abatacept was filed from this facility
• No material impact on approval and changes in time-lines are expected

 Citi on Aptus Value

• Maintain Buy with TP of Rs 350.
• Open a 30-day positive catalyst watch on Aptus.
• Expecting sharp acceleration in disbursement growth, contained stress pool, and stable spreads.
• Disbursement growth is estimated to re-accelerate sharply to 34% YoY.
• QoQ AUM growth is expected to breach 4.5%, driven by higher ATS, accelerated branch rollouts, and strengthening network productivity.
• Credit costs are expected to remain firmly within the guided band.
• With yields and cost of borrowing holding up, spreads are expected to remain relatively stable.
• Valuations inexpensive.

Disclaimer: The views and opinions expressed by the investment advisers on NDTV Profit are of their own and not of NDTV Profit. NDTV Profit advises users to consult with their own financial or investment adviser before taking any investment decision.

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