Stock Picks Today: HDFC Life, TVS Motor, RIL, More On Brokerages' Radar Amid GST Rate Cut Boost

Brokerages are analyzing the implications of recent GST reforms and other macroeconomic trends on a wide range of companies, including HDFC Life, TVS Motor, RIL, KEI Industries, and InterGlobe Aviation.

Analysts have provided insights on company-specific strategies and broader market outlooks.

HDFC Life: Morgan Stanley and UBS believe the GST exemption on reinsurance will help the company manage the impact of the changes. The overall impact on its Embedded Value (EV) is expected to be minimal, at less than 0.5%. HDFC Life could also leverage the lower cost for customers to increase sales of high-margin products like riders and higher sum assured plans.

Overall Strategy: Both BofA India and HSBC see the GST cuts as a strong signal for demand-led growth. BofA estimates a 13 bps impact on GDP, with potential upside risks. HSBC expects growth to accelerate from Q4 CY25, easing risks of earnings downgrades and potentially attracting foreign investment. They identify Autos, Durables, Staples, and Insurance as the clear winners from the GST rationalization.

• GST rationalization: BofA's analysis suggests that the GST rate reductions were in line with expectations and will have a GDP impact of 13 bps, with potential upside risks.

• Clear winners: The brokerage believes that the GST cuts will make Autos, Durables, Staples, and Insurance the clear winners due to a sharp reduction in rates.

• Market outlook: With the GST cuts now factored in and the Nifty approaching BofA's 25,000 target, the brokerage sees limited upside for the market. It views the risk as skewed to the downside, with a potential 4% upside in a bull case versus an 11% downside in a bear case.

• Maintain Outperform with target price of Rs 3,433

• Portfolio premiumisation a medium-term positive

• Premium scooter launch bodes well for medium-term margins

• Low penetration of premium scooters lends to head start

• TVS remains top pick in the India Auto 2W space

• Maintain Buy with target price of Rs 4,000

• Management is positive on its growth strategy

• Aiming to capitalize on the strong 12-13% CAGR in the Indian Cables & Wires industry

• Growth driven by government infrastructure, power, renewables, and data centers

• KEI expects to grow at 19% CAGR over 2 years, positioning KEI to improve market share

• Maintain Buy with target price of Rs 6,000

• Mgmt maintained a positive long-term outlook on demand and fleet addition

• Closely monitoring industry pricing discipline as a key profitability risk

• Continues to adjust supply by upfronting aircraft maintenance and returning wet-leased planes

• Emphasized on aggressive international expansion by introducing new routes to gain market share

• This is despite anticipating softer international yields due to increased supply

• Maintain Buy with target price of Rs 1,000

• DLF's focus is on building a strong cash flow generating company

• Combination of a high quality land bank and excellent product delivery

• Though P&L may stay flattish near term, margins are trending well

• Underlying sales and by FY28 should reflect in reported numbers

• Maintain Buy with stock trading below historical NAV average, providing favorable risk-reward

• Maintain Buy with target price of Rs 1,670

• O2C Profitability Firm, Russian Crude Impact Manageable

• Benefit of Russian crude, a key investor query, is limited to 2.1% of consol FY27 Ebitda

• Jio's impending IPO could lead to near term tariff intervention

• See improving visibility on double-digit consol Ebitda growth in FY26

• Maintain Buy; Hike target price to Rs 72 from Rs 63

• Recently announced its intent to invest a potentially more modest amount in battery cell manufacturing

• Company to now pursue 5 GWh of capacity, vs the 20 GWh which was the original 2030 target

• Obtained PLI scheme certification for its Gen 3 vehicle models

• Announced plans to launch a range of performance scooters early next year

• Hike FY26-FY28 revenue estimates by up to 5%

• Maintain Buy with target price of Rs 1,670

• Management anchored growth expectations for FY26 to 20% YoY, but highlighted that macro challenges continue

• Margins should benefit from lower cost of funds

• Credit cost guidance for FY26 – 10 bps higher than FY25 average of 1.4%

• For FY27, Chola seemed more optimistic about AUM growth, margin expansion and lower credit costs

• Is India's Internet segment in a bubble?

• Recent investor conversations have drifted toward questioning if there is a bubble

• This is considering attractive returns in the index with no material profit upgrade cycle

• Internet index in India significantly outperformed NIFTY 50 in past 5 months

• Rally in Internet indices not unique to India, has occurred elsewhere as well

• Barring a few stocks, most India Internet stocks are trading at EV/Adj EBITDA multiples of 25x-47x on FY28 estimates

• See abating of competitive pressures in quick commerce, growth acceleration in food delivery, a consolidation theme in ecommerce logistics and OTAs and optionality value in new businesses