Check out top stocks under brokerages' radar heading into trade today.
(Photo: NDTV Profit/ AI generated image)
Brokerages have highlighted opportunities across banks, NBFCs, automobiles, telecom, healthcare, auto ancillaries, agribusiness, and alcoholic beverages, issuing fresh calls on HDFC Bank, ICICI Bank, Bharti Airtel, Reliance Industries, Allied Blenders, Syngene International, IDFC First Bank, Tata Motors PV, Hyundai Motor India, Muthoot Finance, Godrej Agrovet, and SJS Enterprises, while also sharing their outlook on India's GDP growth.
HSBC on HDFC Bank
- Downgrade to Hold from Buy; Cut TP to Rs 830 from Rs 990
- No ‘mean reversion' without a meaningful reversion
- Any new CEO will not have it easy either
- Any new CEO will still have to fix issues of loan growth, margins and ROA, while contending with the past issues as well
- Least preferred among large PVBs.
HSBC on Bharti Airtel
- Maintain Buy with TP of Rs 2500
- Growth levers are intact: rising mobile ARPU, expanding home broadband subs, rising FCF, and growth in dividends
MS on Muthoot Finance
- Maintain Overweight with TP of Rs 3705
- Announced merger of gold loan subsidiary with standalone
- Stated aim of the merger is simplifying the group structure
- Muthoot Money contributes 5% to SOTP valuation
- It is valued at an implied FY28e P/BV of 2x vs. 2.5x for the standalone business.
UBS on Banks
- HDFC Bank – Maintain Buy with TP of Rs 1000
- ICICI Bank – Maintain Buy with TP of Rs 1800
- Axis Bank – Maintain Buy with TP of Rs 1670
- Expanding reach, growing share
- Branch expansion key to building deposit and lending franchise
- ICICI Bank, Axis Bank and HDFC Bank have led branch additions over the past 3-4 years
- Believe this creates a structural advantage in deposit mobilisation, supports stronger business banking growth and reinforces market share gains
- As cyclical tailwinds for PSU banks fade, private banks are well positioned to continue gaining share in both deposits and credit
- Current valuations do not fully reflect this structural growth premium
- ICICI is our top pick; HDFC has asymmetric upside risk-reward skew.
Jefferies on Allied Blenders
Maintain Buy with TP of Rs 780
Evolving from a turnaround story into a premiumisation-led growth story
Management remains confident of sustaining strong momentum in ICONiQ White
Relaunch of legacy brands & new launches in premium whisky & Deluxe Vodka should support incremental growth
Company expects strong double-digit P&A volume growth over the medium term
See meaningful margin expansion over FY26-28e driven by premiumisation & the benefit of backward integration.
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GS on Syngene
- Maintain Buy with TP of Rs 450
- Focus remains on turning around the operations
- Commercial engine reset and pipeline conversion are top priorities
- Delivery engine being fixed, especially in discovery services
- Operationalising Unit 3 and Bayview is central to the medium-term growth agenda
- Large molecules and complex modalities could materially alter the growth trajectory
- Cost management is being balanced against long-term capability build-out
- AI is emerging as an innovation productivity lever, but remains early
Jefferies on RIL
- Maintain Buy; Hike TP to Rs 1710 from Rs 1705
- O2C Strength Supports FY27 Earnings
- 4% of global refinery throughput has been lost due to conflicts resulting in diesel and gasoline inventories falling to 5-year lows
- Singapore GRM prevails near life-high as a result
- The tightness could last through CY2026
- Petchem spreads remain firm supporting O2C earnings growth in FY27E
- Stock trades below long term average suggesting favorable risk-reward
- Project 10% Ebitda Cagr over FY26-29.
Kotak Securities on Godrej Agrovet
- Maintain Buy with TP of Rs 1010
- Oil palm segment deep dive: A hidden gem
- Long runway for growth
- Substantial room for improvement in margins – off already healthy levels
- Oil palm alone could be worth more than Godrej Agrovet's current market cap
Kotak Securities on Tata Motors PV
- Maintain Sell; Cut TP to Rs 285 from Rs 310
- Structural pressure at JLR; India offers limited cushion
- Rising BEV mix intensifies competition for JLR
- US pivot is strategically sound, but execution remains the key challenge
- Mix has peaked, margin recovery will be gradual
Goldman Sachs on Hyundai
- Maintain Buy with TP of Rs 2640
- Expect H2FY27 industry growth on high base + margin levers
- To launch compact EV in Q4 and compete in the Nexon segment
- All Hyundai EV model will be PLI compliant from day one
- New Mid Size SUV expected to be in the Creta category but will be a technology first/Software Defined Vehicle, to be launched
GS on SJS Enterprises
- Maintain Buy with TP of Rs 3080
- Printing moat to scale up in higher value cover glass segment
- Maintains 27-30% EBITDA margins compared to average auto ancillary margins of low teens
- Plans to extend its 20+ years of dial printing expertise.
GS on ICICI Bank
- Maintain Buy with TP of Rs 1935
- Management highlighted that loan growth remains strong, helped by MSME segment and pickup in secured as well as unsecured retail loans
- Bank has sustained strong market share in FCNR (B) deposit mobilization which is expected to be earnings accretive
- Overseas NIM will moderate given self-funded FCNR (B) deposit-related loans
- Domestic NIMs will see slight moderation for three months given the lag in deploying FCNR related deposits
- Cost optimization continues, and revenue growth will outperform operating costs at least over next few years
- Asset quality trends remain benign and competitive intensity with respect to underwriting remains largely disciplined for the system.
UBS on IDFC First
- Upgrade to Neutral from Sell; Hike TP to Rs 92 from Rs 78
- Improving earnings outlook
- Asset quality outlook improving, but high C/I ratio limits RoA expansion
- Branch expansion to support loan growth; margins to remain stable
- Asset quality improving, but likely already priced in
- Expect growth to pick up gradually in the high yielding book, though it is likely to lag overall loan growth
- Consequently, NIMs are likely to remain stable at 5.8% over FY27-29.
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BofA on GDP
- Q2CY26 GDP Review: Momentum retained
- Q2CY26 GDP strong at 7.8% yoy, shrugging off the oil shock
- FY27 GDP growth poised to be above 7%
- RBI to lean more towards a hawkish stance in October
- Given the revised inflation projections, the real rate would turn negative in Q3FY27 and remain so until Q1FY28
- Coupled with robust growth outlook, we retain our call for 50 bps of hikes in FY27, starting in December MPC
UBS on GDP
- India's GDP growth remain resilient at 7.8%YoY in June quarter
- FY27 growth revised up to 6.9%YoY
- India's growth has held up despite energy and weather risks
- Bringing rate hikes back on the table; 50 bps rate hike from FY28 to FY27
- By expenditure: investment and net exports drive growth; consumption softens
- By production: Manufacturing strengthens, services remain supportive
GS on GDP
- Q2 real GDP growth beats expectations; Past series revised higher; Raising CY26 forecast
- Given the stronger-than-expected investment growth in Q2, bake in some sequential moderation over the next two quarters
- Central government capex growth is likely to decline after front-loading in the first four months of the fiscal year.
Citi on GDP
- Growth Resilience Removes Obstacle for Rate Normalization
- Revise up FY27 real GDP forecast by 40 bps to 7.3% YoY
- H2FY27 could witness a slightly slower pace because of unfavorable base effects, the impact of El Nino, and the diminishing effect of last year's policy stimulus
- Lower-than-expected GDP deflator prompts us to revise down our FY27 nominal GDP forecast to 11.5% (12.5% earlier)
- Q1FY27 GDP print ensures that the October MPC will not have to be too worried about the risks of a growth sacrifice if they are considering a rate hike
MS on GDP
- July Fiscal Deficit at Six-Month Low
- Remain watchful of the impact of weather conditions on agri output and yields
- It may weigh on revenue collections and warrant higher food subsidies
- Renewed geopolitical tensions, which could keep commodity prices elevated, adding to fiscal expenditure pressures.
Kotak Securities on GDP
- Q1FY27 GDP: Resilient despite West Asia crisis
- Driven by strong growth in exports and investments
- Private and government consumption growth remained tepid
- Nominal GDP growth at 10.3% surprised on the downside
- Revise FY27E real GDP growth up to 7.2% with risks evenly balanced.
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