Stock Picks Today: HDFC Bank, ICICI Bank, RIL, JSW Steel, Bandhan Bank On Brokerage Radar

HDFC Bank Ltd., ICICI Bank Ltd., Reliance Industries Ltd., and JSW Steel Ltd. are among the top companies on brokerages' radar on Monday. Analysts have shared their views on the June quarter earnings of these companies.

Several brokerages have also changed their target price for these stocks based on a fundamental outlook revision.

NDTV Profit tracked analysts' views on various stocks and sectors. Here are the analyst calls to keep an eye out for today.

Jefferies

• Maintain 'Buy'; Hike target price to Rs 2,400 from Rs 2,340.

• Q1 performance showed better growth with manageable margins and asset quality.

• The bank has an improving outlook on retail demand and its own credit growth.

• Growth is expected to continue improving, aided by the monetization of merger synergies.

• The stock remains among our top picks.

Bernstein

• Maintain 'Outperform' with a target price of Rs 2,300.

• Q1 results showed steady improvement.

• Net Interest Margin (NIM) decline was limited by a rundown in borrowings and a shift in the loan mix.

• Floating and contingent provisions offset gains from higher Net Operating Income (NOI).

• Improvement in Earnings Per Share (EPS) growth is continuing.

CLSA

• Maintain 'Outperform' and Hike target price to Rs 2,300 from Rs 2,200.

• Good delivery on deposits and NIM.

• Asset quality remains pristine; good job on opex.

Bernstein

• Maintain 'Market-perform' with a target price of Rs 1,440.

• Q1 results continued the trend of stellar margins offsetting weak growth.

• Credit costs saw a slight increase from previously ultra-low levels.

• Higher Net Operating Income (NOI) effectively offset the rise in credit costs and operating expenses (Opex).

• Following the concerns surrounding Axis Bank, the sustained healthy asset quality trends for this entity are viewed as a positive and a relief.

• Overall, the company delivered a good set of numbers that justifies its current valuation premium.

Jefferies

• Maintain 'Buy'; Hike TP to Rs 1,760 from Rs 1,710.

• Q1 showed better profitability, with growth anticipated to improve.

• The quarter saw softer growth, but with improved Net Interest Margins (NIMs) and stable asset quality.

• Management expects growth to accelerate going forward.

• Asset quality continues to hold up well.

• Deposit growth of 13% and Current Account Savings Account (CASA) growth of 14% were healthy.

• The stock remains among our top picks.

CLSA

• Maintain 'Outperform' with a TP of Rs 1,700.

• The bank is described as a steady ship navigating turbulent waters.

• Profitability metrics are holding up well, even as growth softens.

• It demonstrated strong performance on Net Interest Margin (NIM), and asset quality remains stable.

• ICICI Bank is noted as the only bank under coverage to report sequential growth in Net Interest Income (NII), despite the prevailing sharp rate cut environment.

Macquarie

• Maintain 'Outperform' with a target price of Rs 1,500.

• In Q1FY26, Jio demonstrated robust performance, while retail growth lagged; the June quarter earnings optically beat estimates primarily driven by one-off investment gains.

• At a segment level, Jio exhibited strength, retail performance was lackluster, and the Oil-to-Chemicals (O2C) business is gradually recovering.

• The management's presentation suggests significant optionality in New Energy, Jio, and Retail businesses over a three-year horizon.

• We believe Reliance's share price could experience a near-term moderation following the results print.

Morgan Stanley

• Maintain 'Overweight' with a TP of Rs 1617.

• The company experienced a tough quarter, with its earnings failing to provide the anticipated growth confidence.

• There were misses in both retail revenue growth and fuel refining segments.

• Management's guidance was optimistic, outlining a plan to double earnings by 2029.

• New energy, telecom, and the balance sheet were identified as bright spots.

• The impact of the new European sanctions on Russian oil is still being assessed.

JPMorgan

• Maintain 'Overweight'; Hike TP to Rs 1,695 from Rs 1,568.

• While headline figures were behind, key positives included better telecom margins and progress in New Energy.

• Retail growth decelerated to 11% year-on-year, missing estimates, and O2C Ebitda was weaker than forecast.

• Overall, Reliance Industries is positioned for improved profit growth in FY26 and FY27.

CLSA

• Maintain 'Underperform' and hike target price to Rs 890 from Rs 880.

• Q1 results were largely in line, impacted by foreign exchange loss.

• The guidance suggests a better outlook for Q2.

• Progress on ongoing projects will be a key factor to monitor.

• The Underperform rating is maintained due to demanding valuations.

Citi

• Maintain 'Sell'; Hike TP to Rs 880 from Rs 760.

• The company saw strong Q1 pricing, with an expected cost decline in Q2 that will partly help price contraction.

• In China, a gradual Average Selling Price (ASP) and margin recovery is anticipated as supply cuts occur in second half of CY25.

• The current valuation reflects too much optimism.

Macquarie

• Maintain 'Outperform' with a target price of Rs 210.

• Q1 results indicated business as usual, with disappointment in asset quality.

• Net profit miss was primarily driven by higher credit costs, although this was partly offset by higher other income.

• Elevated slippages and increased write-offs were the main contributors to the higher credit cost.

• Net Interest Margin is expected to remain under pressure in the near term.

• There is a downside risk to the Return on Assets (ROA) expectations for FY26.

CLSA

• Maintain 'High Conviction Outperform' with a target price of Rs 220.

• Pre-Provisioning Operating Profit was impacted due to NIM, but slippages showed improvement.

• While slippages improved quarter-on-quarter (QoQ), the Special Mention Account (SMA) book increased.

• The loan book shrank due to the Microfinance Institution (MFI) segment, and Current Account Savings Account (CASA) performance was poor.

• The stock is currently trading at 9-10 times FY27 Price-to-Earnings.

• A positive outcome from this quarter is that our MFI recovery thesis has begun to materialize.

• We believe this improvement will continue over the next two to three quarters.

JPMorgan

• Maintain 'Neutral' with a TP of Rs 155.

• NIM and PPoP margins are expected to remain under pressure over the next few quarters.

• A shift in the loan mix towards secured loans over micro-loans is anticipated to result in lower yields.

• Guidance from the bank suggests that Q2 credit costs and NIM will continue to face pressure, with a possible recovery emerging in the second half of the fiscal year.

• There are significant concerns regarding competition in the individual loans segment.

• Maintain 'Underweight' with a target price of Rs 132.

• Q1 results beat expectations primarily due to lower borrowing costs, but the sustainability of this trend needs to be observed.

• We note a meaningful shift towards lower-yielding loan segments, the impact of which is expected to be visible in subsequent quarters.

• Risks are identified for our estimates and consensus views regarding loan growth and NIM.

• We remain cautious on L&T Finance.

• The emergence of Return on Equity improvements could be delayed by growth moderation. ROE of 11% remains well below the cost of equity.

• Maintain 'Buy' with a target price of Rs 575.

• Q1 results indicate a good start, accompanied by an optimistic outlook.

• Management sounded optimistic during the conference call, and business development efforts have been stepped up.

• With the stock currently trading at a 39% discount to its Net Asset Value (NAV), we believe the downside risk is limited.

• Maintain 'Buy' with a target price of Rs 1,000.

• DLF's entry into the Mumbai market appears to be focused on courting the end user.

• A site visit suggests the company aims to build initial momentum by starting with entry-level 3BHKs.

• While the product offering may be scaled up in future phases, the potential project size is estimated at $2 billion.

• Potential success in Mumbai would not only add a new growth market but could also provide much-needed longer-term stability for the company.

• This development is considered positive for valuations.

• Maintain 'Underperform' and hiked target price to Rs 2,150 from Rs 2,000.

• Q1 review indicates that growth concerns persist.

• The company experienced a revenue miss, although margins and profit beat estimates.

• Subscriber additions remain muted.

• Collections growth continues to be soft.

• Increased advertising spends are expected to keep margins under check.

• Maintain 'Neutral' reduce target price to Rs 850 from Rs 873.

• The company experienced a core earnings miss due to a weak NIM profile and elevated credit cost.

• Unsecured loans and stress in the Southern mortgage portfolio led to higher credit costs.

• The credit cost guidance for FY26 has been raised.

• NIMs contracted by 38 basis points (bps) quarter-on-quarter (QoQ) to 5.4%, resulting in Net Interest Income (NII) disappointment.

• Maintain 'Buy' with a target price of Rs 500.

• Sona has announced a Joint Venture aimed at entering the Chinese EV market.

• The initial earnings contribution from this JV is likely to be around 5%.

• This move is expected to help reduce customer concentration and open up new, significantly large growth avenues.