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Brokerages issued fresh views on HDFC Bank, ICICI Bank, Godrej Consumer Products, Nykaa, Dabur, L&T Finance, Yes Bank, IndusInd Bank, GCPL alongside commentary on sectors such as banking, metals, hotels and consumer goods.
Morgan Stanley on HDFC Bank
- Maintain Overweight with target priceof Rs 1025.
- Believe the share price will rise over the next 60 days.
- There was a perceptible pickup in YoY growth in gross advances and managed assets in Q1.
- Valuation looks attractive versus the stock's historical bands.
- Sustained, gradual improvement in fundamental performance and a narrowing of the financial performance. gap vs. peers should drive stock outperformance in due course.
Bernstein on HDFC Bank
- Maintain Outperform with target price of Rs 1150.
- The balancing act continues.
- CASA deposit growth continued to show improvement.
- Growth in average loan and deposit balances was lower than period-end growth rates.
- Suggests that NII growth could lag the headline expansion in loans and deposits.
Citi on Banks Q1FY27 Update
- HDFC Bank – Growth Steps Up (Above estimates)
- AXIS Bank – Growth Sustained (In-line)
- Kotak Mahindra Bank – Growth Moderates (Below estimates)
Morgan Stanley on Banks
- Diverging loan growth trends
- IDFC First kept loan growth >20%
- IndusInd showed early signs of balance sheet stabilization.
- Deposit momentum improved at both IDFC First and IndusInd
- Loan and deposit growth picked up for most banks on a seasonally adjusted (YoY) basis
- CASA ratio moderated; LD ratio increased, all as directionally expected
- These numbers were in general higher than preliminary preview estimates
- HDFC Bank saw a meaningful pick up in YoY loan growth, which should be positive for investor sentiment
- Axis Bank saw continued volume momentum (as seen in Q4)
- Deposit growth was much higher than expectations
- Investors will be watching implications for NIM
- Kotak Bank saw moderation in both loan and deposit growth
- PSU Banks and mid-sized private banks saw acceleration
Citi on Nykaa
- Maintain Sell with target price of Rs 240
- Q1: Sustained BPC Growth; Further Acceleration in Fashion
- Beauty & Personal Care: Growth Remains Steady
- Expect Revenue/EBITDA growth at 30%/60% YoY with overall EBITDA margins +150bps YoY to 8%
Morgan Stanley on Nykaa
- Maintain Overweight with target price of Rs 321
- Q1 Strong Preliminary Beat: Fashion Growth Steps Up
- Consolidated GMV and NSV growth is expected to be in the early 30% area YoY
- Beauty continued steady execution, with faster growth in Fashion contributing to sequentially better growth
- BPC continued its growth momentum
- Fashion net revenue growth accelerated to near 50% in Q1
- Increase in growth augurs well for the stock
- Believe margins remain key to monitor from earnings
Citi on AU Small Finance Bank
- Maintain Buy with target price of Rs 1225
- Advances Growth Steady, In-Line with estimates
- Deposits Accelerate with CASA Ratio Recovery
- Expect to sustain >20% AUM growth
Citi on Yes Bank
- Maintain Sell with target price of Rs 19.5.
- Loan Growth Accelerates Sharply, Outpacing System Average.
- LCR Rebounds to 138.5% vs. 119% QoQ.
- Expect YES Bank to deliver RoAs of ~0.88% including benefit of tax refund.
Citi on Dabur
- Maintain Sell with target price of Rs 425.
- India FMCG growth remains robust; HPC continues to lead.
- Healthcare & Beverages recovering; sustainability remains the key monitorable.
- International business rebounds sharply despite geopolitical challenges.
- Believe the key debate remains the sustainability of this acceleration.
JPMorgan on Consumer
- Q1 updates: Godrej Consumer delivers revenue beat backed by strong overseas.
- Godrej Consumer: Revenue beat led by sequential step-up across markets, costs beginning to ease.
- Dabur benefits from HPC and overseas growth.
- Dabur: Double digit revenue growth and stable margins; Mixed category growth trends.
Citi on Godrej Consumer
- Maintain Buy with target price of Rs 1300.
- Broad-based momentum continues.
- Strong likelihood of exceeding FY27 profit guidance.
- India continues to deliver healthy volume-led growth.
- Indonesia: Inflection in growth.
- GAUM cluster continues to outperform.
- Margin pressure likely peak in Q1.
Nomura on GCPL
- Maintains buy with target price of Rs 1300.
- Better vs expected; aided by improvement in Indonesia business.
- Cost inflation to pressure margins in 1Q, Mitigating factors to accelerate recovery through remaining FY27E .
- We believe GPCL tracks ahead of its guidance.
- Will likely see margins improvement in coming quarters.
- We expect it to step up investments in its new brands / launches .
- Believe in the near term, higher investments could limit EBITDA growth to early double-digits.
Nomura on Dabur
- Maintain buy with target price of Rs 600.
- The return of double-digit growth.
- The stock price has seen a meaningful correction.
- Given the recent appointment ofCEO, Mr. Herjit Bhalla, there is an expectation for a potential turnaround.
- Business as started seeing a sequential improvement.
Nomura on Gujarat Energy
- Maintain Buy cuts target price to Rs. 382 vs Rs 511 earlier.
- Trading at attractive valuation post restructuring.
- Basecase assumes industrial volume to revert to pre-war levels as propane availability improves.
- Volume expectations reset post West Asia normalisation.
- Trading at bear case implying 5-year low volume and increased margin pressure.
Bofa on Dabur
- Business recovery continues; Overseas print positive.
- Valuation discount (vs. peers / own history) already captures the concerns.
- With visible improvement in business performance, risk-reward appears favorable.
Bofa on GCPL
- Healthy topline; margins pressures set to ease.
- Overseas trends seem ahead of expectations.
- Q1FY27 forecast consolidated revenue/EBITDA/recurring PAT growth of 18%/16%/13% YoY.
HSBC on GCPL
- Maintain buy with target 1250.
- Strong revenue print; EBITDA growth along our expectations.
- Q1FY27 update - expects high-teens consolidated revenue .
- Gave a positive highlight on its FY27 outlook.
HSBC on Metals
- Aluminium sell-off overdone
- Remains Buy on HNDL, NALCO
- Flat steel margins strong
- We view the fall in LME Aluminium prices as excessive given physical markets remain in deficit
- Spot steel spreads have weakened.
- We expect HRC price increases post festivals. Coking coal remains a key risk
- Aluminium remains our preferred metal.
- Top Buys: HNDL, NALCO.
- We also like TATA, JSW, HZ, Jindal Stainless, all Buys.
- Cut TPs on SAIL and Jindal Steel, both rated Hold
CLSA on Capital goods
- Enter the dragon - India grants two-year exemption to four Chinese transformer players
- We do not see this move impacting near-term volume growth
- But increased competition (ex-HVDC converters) is likely to weigh on pricing power and margins of domestic T&D equipment companies such as Hitachi, GE Vernova T&D, BHEL (U-PF) and CG Power
- If Chinese players do scale-up with Make in India factories, this could lead to a long-term structural cap on the lofty PE multiples enjoyed by the sector
- Morgan Stanley on L&T Finance
- Maintains underweight with target price of Rs. 165
- Q1 business update shows good growth
- Awaiting details on NIM and credit costs
Morgan Stanley on Dabur
- Maintains underweight with target price of Rs. 425
- Q1FY27 in line
- Better trends observed
Morgan Stanley on GCPL
- Maintains equal weight with target price of Rs. 1109.
- Q1FY27 overall is a beat.
- Demand trends and consumer sentiment were steady.
- Jefferies on India Industrials.
- Media reports highlight govt approval of four Chinese companies to supply equipment for govt projects.
- Import restrictions still remain.
- Even with supply from these facilities, believe demand-supply mismatch remains.
- Remain positive on Hitachi Energy and Siemens Energy and see the correction as a buying opportunity.
- Remain constructive on Power T&D with supply to lag demand.
- Hitachi Energy and Siemens Energy are top picks given their strong 40%+ earnings CAGR.
Macquarie on India Industrials
- Allowing Chinese entities in government contracts.
- Move is further to government intention to ease shortfall of critical components.
- Most of the grid companies are in the midst of capacity expansion.
- Likely to add capacity over the next 2-3 year, which is the validity of this exemption.
- Negative impact on margins especially for the 765kV GIS players cannot be ruled out.
- Believe this exemption is to address the current shortage of certain of EHV grid equipment.
- Unlikely to allow large scale Chinese imports in the sensitive areas of grid infrastructure.
B&K on Hotels
- Initiates buy on Leela with target price of Rs. 600
- Initiates buy on Ventive hospitality with target price of Rs. 780
- India's luxury hospitality sector is in a structural upcycle
- Demand expected to outpace supply over FY25–28, supporting higher room rates and profitability
- Leela is well-positioned as a pure-play ultra-luxury hotel operator
- Expect 15% revenue CAGR over FY26–28 for Leela
- Expects 11% revenue CAGR over FY26–28 for Ventive
Citi on HDFC bank
- Removed HDFC Bank from Pan-Asia Focus List.
- HDFCB continues to offer medium-term upside.
- Near-term earnings momentum could be tempered by overall loan growth and a moregradual NIM recovery.
- The ongoing CEO reappointment process remains an important monitorable.
Citi on ICICI Bank
- Maintains Buy rating and target price of Rs1,720.
- Added ICICI Bank to the Pan-Asia Focus List given our constructive view on its earnings durability.
- Sustained broad-based growth and resilient asset quality.
- ICICI Bank offers compelling near-term risk/reward.
- Given its high-quality franchise and a balanced approach to growth it deserves to be in focus list.
- ICICI Bank is our preferred pick in the Indian banking sector.
Macquarie on Dabur
- Maintains neutral with target price of Rs. 470.
- Pre-1Q: Above estimate on international strength.
- India largely in line; international surprises positively.
- Stable operating margin; PAT to grow at double-digit levels.
Citi on RBL Bank
- Maintains buy with target price of Rs. 390.
- Advances Sustained 21% YoY/2% QoQ, Deposits Contract 10% QoQ.
- We expect modest RoA trajectory at 0.4% for 1Q given NIM contraction and elevated credit cost.
- Yield compression will be driven by asset mix shifts, and interest reversals.
- NIMs may recover in 2Q supported by capital infusion.
- Credit card stress may persist.
- Opex growth to be curtailed.
Citi on IndusInd bank
- Maintains sell with target price of Rs. 800
- Advance Growth Re-accelerates; Run-Rate Inflection Signals Guidance Visibility
- Disbursement momentum is likely to have improved across vehicle finance, SME, and consumer banking segments.
- MFI disbursements are likely to outweigh repayments/prepayments
- Bulk deposits are being actively optimized and deposits may contract QoQ
- Estimate NIMs (reported) of -3.41% in 1QFY27, up -2bps QoQ.
- Estimate steady 1.9% credit cost for 1QFY27.
- Reduction in NNPA is expected to be gradual.
Macquarie on GCPL
- Maintains outperform with target price of Rs. 1250
- Strong performance across India and international markets
- Sees strong likelihood of exceeding FY27 targets in select metrics
Bofa on India's policy momentum
- The effectiveness of govt initiatives will need to be assessed over time,
- Investors remain closely focused on the continuation of India's reforms momentum
- Reforms are being watch closely in areas such as:
a) power distribution,
b) sustained push towards initlatives to curtail Imports/expand exports such as Shipbuliding
c) expanding Electronics manufacturing, Defense and Aerospace
- the effective implementation of National missions/programs towards Energy security
Citi on L&T finance
- Retail Disbursements Grew ~36% YoY
- Retail AUM Growth Accelerates To ~28% YoY
- Despite seasonal weakness, credit costs to trend down QoQ
- Current lead indicators point to contained slippages
- Retail GS3/GS2 to remain stable with an improvement bias.
- NIMs + fee income to remain broadly stable, underpinned by a higher-yielding portfolio mix.
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