Check out the top stock calls, upgrades, downgrades, and target price revisions from leading brokerages ahead of today's trade.
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STOCKS IN THIS STORY
Brokerages have highlighted opportunities across the IT, metals and mining, pharma, renewable energy, consumer durables, and railway engineering sectors, issuing fresh calls and updates on Hindustan Zinc, Tata Consultancy Services, Infosys, LTIMindtree, Navin Fluorine, Anthem Biosciences, Crompton Greaves Consumer Electricals, Adani Green Energy, Urban Company, and Titagarh Rail Systems, along with their latest views on the financials and insurance sectors.
HSBC on Hindustan Zinc
- Maintain Buy with TP of Rs 770
- Increasing disconnect with strong LME zinc prices; Upside risks to consensus
- Given strong LME zinc prices, HindZinc's relative underperformance is surprising
- Weakness in silver and potential government sell down likely weighed on the stock
- Strong LME zinc and improving silver prices, weak INR and strong sulfuric acid prices build substantial upside risks to consensus estimates.
Kotak on Infosys
- Downgrade to Add from Buy; TP at Rs 1200
- Near-term prospects are not encouraging
- Infosys is set to underperform on organic growth relative to TCS, HCL and Cognizant in FY27
- Loss of share in a large European account to peers poses initial headwinds to growth in FY28 as well.
Kotak on TCS
- Downgrade to Add from Buy; TP at Rs 2450
- Mega deal wins have improved the past three quarters, a positive
- But not sufficient to drive material growth improvement, offsetting headwinds
- Inorganic strategy started off with a couple of rather unexciting Salesforce services acquisitions, but has stalled since
- Data center play is interesting, but is in initial stages
- Better revenue growth in FY27 largely due to the non-recurrence of higher headwinds, largely client-specific in nature.
Kotak on LTMindree
- Downgrade to Sell from Reduce; Hike TP to Rs 4150 from Rs 3900
- Execution strength has not been sufficient to pull away from the gravity of industry headwinds and client-specific issues
- LTM has been able to scale up top-two accounts to very large sizes, progress in other accounts has been rather slow
- Acquisition of Randstad entities has potential but requires strong execution.
Jefferies on Anthem Bioscience
- Initiate Buy with TP of Rs 1050
- Powerhouse of Capability
- High-growth Indian CRDMO with industry-leading manufacturing capabilities and a technocrat-led mgmt team
- Boasts highest EBITDA margin and ROCE among Indian CRDMOs
- One of the few players with complex fermentation-based peptide capabilities
- Expect Anthem to deliver FY26-29E Revenue/PAT CAGR of 18%/20%
- See scale-up of existing contracts & robust late phase projects pipeline.
Kotak Securities on Navin Fluorine
- Maintain Sell with TP of Rs 5250
- Continues to guide to 20-25% revenue CAGR over FY25-30
- Retains a confident outlook for pharma CDMO
- Sees advanced materials scaling up to Rs 1400 cr of revenues by FY35
- Acknowledged near-term oversupply concerns in the Indian R-32 market.
GS on Banks
- HDFC Bank – Initiate Buy with TP of Rs 861
- ICICI Bank – Initiate Buy with TP of Rs 1935
- Axis Bank – Initiate Buy with TP of Rs 1477
- Kotak Mahindra Bank – Initiate Buy with TP of Rs 509
- IndusInd Bank – Initiate Neutral with TP of Rs 1020
- Federal Bank – Initiate Buy with TP of Rs 425
- RBL Bank – Initiate Sell with TP of Rs 285
- Yes Bank – Initiate Sell with TP of Rs 22
- IDFC First Bank – Initiate Neutral with TP of Rs 92
- AU Bank – Initiate Buy with TP of Rs 1270
- Bandhan Bank – Initiate Neutral with TP of Rs 180
- SBI – Initiate Neutral with TP of Rs 1170
- Bank of Baroda – Initiate Sell with TP of Rs 245
- PNB – Initiate Sell with TP of Rs 103
- Core PPoP growth to inflect in FY27, and grow in high teens during FY27e-FY29e
- Private banks at an inflection point
- Profitability will be the key driver of stock performance in the current cycle
- Valuation de-rating over the past five years more than prices in the structural challenges facing private banks
- HDFC Bank: PPOP growth to inflect in FY27
- ICICI Bank Multi-year earnings compounding story with a virtuous flywheel at play
- SBI: Balanced Risk Reward
- Kotak Mahindra Bank: An Underappreciated Franchise
- Axis Bank: PPoP recovery amid undemanding valuations to drive stock returns
- PNB: Favorable tailwinds subsiding, weak core profitability
- Bank of Baroda: Elevated LDR and weak funding profile to weigh on growth and profitability
- Federal Bank: A Self-help Story
- AU Bank: Strong earnings compounding to drive stock returns
- IndusInd Bank: Re-leveraging its asset franchise; Valuations fair
- IDFC First Bank: Improving earnings trajectory reflected in valuations
- Yes Bank: Gradual RoA improvement; Valuations expensive
- RBL Bank: Pace of turnaround will be gradual
- Bandhan Bank: Cyclical inflection ahead but structural challenges remain.
UBS on Urban Co
- Initiate Buy with TP of Rs 180
- India's largest online home services platform
- India's online home services market entering its "Blinkit" moment
- Believe Urban Co is at forefront of this evolution
- See right product-market fit, strong balance sheet and execution track record with a clear focus on unit economics
- Believe market is not fully appreciating India home services' growth acceleration
JPMorgan on Gold Financiers
- IIFL Finance – Initiate Overweight with TP of Rs 750
- Manappuram Finance – Initiate Overweight with TP of Rs 395
- Muthoot Finance – Initiate Overweight with TP of Rs 3400
- The Credit Gold Rush; Crowded, but not contested
- Low penetration sets the path for structural growth
- Competition is intensifying, but high barriers to entry should protect incumbents' profitability
- IIFL, preferred pick, is in early stages of a turnaround and should re-rate on higher profitability
- Muthoot's underperformance offers a compelling entry point
- Manappuram's turnaround has just begun, with the Q1 print a confirmation.
Bernstein on Financials
- India's macro backdrop remains broadly supportive
- Growth rebounds, fundamentals remain firm for the sector
- Private Banks gain momentum as PSU Banks defend profitability
- Expect the banking sector to sustain healthy growth in FY27
- See robust liquidity conditions and a recovery in nominal credit growth
- Although potential policy tightening could moderate momentum later in the year
- Margin outlook remains stable, with deposit repricing largely behind us and any rate hikes likely to provide an incremental boost to NIMs
- Asset quality is expected to remain benign, supporting stable credit costs and earnings resilience
- Within the sector, Private Banks are likely to continue narrowing the growth gap with PSBs
- Latter's greater reliance on borrowings could weigh on relative margin performance
Jefferies on Crompton Consumer
- Maintain Buy with TP of Rs 330
- Aiming at Metamorphosis
- Growth outlook of 2x sales in 5-Year, with operating margin at 11-12%
- Premium Fans mix rose to 25% now; Solar and Wires are new products
- Avg 14% price hikes in lead categories in last 1-Year
- Est FY26-29e EPS CAGR at +18% vs +1% CAGR in FY20-26
Citi on Crompton Consumer
- Maintain Buy with TP of Rs 400
- Less Seasonal, More Scalable
- Targeting 15% CAGR over FY26-31 vs 10.7% CAGR over FY22-26
- Profit growth to outpace revenue growth
- New businesses (Wires, Solar Rooftop, etc.) are expected to contribute 20% of FY31 revenue
- Addressable market has doubled
- Weather-dependent categories have declined from 45% to 20% of TAM
- Successful de-risking of the business model, turnaround at Butterfly, and launch of new growth levers, provide better visibility for future earnings.
JPMorgan on Crompton Consumer
- Maintain Neutral; Cut TP to Rs 290 from Rs 307
- Ambitious Growth Aspirations, Execution Key
- Premiumization, innovation and distribution expansion in focus
- Butterfly - Scaling profitable growth
- New Ventures - TAM expansion and seasonality reduction.
MS on Adani Green
- Initiate Overweight with TP of Rs 1525
- Powering Intelligence, Cleanly
- Adani Green is India's leading clean energy platform
- Combining strong execution at scale across clean technologies
- Improving portfolio quality that supports better cash flow
- See returns visibility, with one of the strongest capacity and earnings growth profiles in the sector
- Future of Energy – Leveraging Scale in a Rapidly Growing Market
- The Adani Ecosystem – Positioned to Win.
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Jefferies on Titagarh
- Maintain Buy with TP of Rs 990
- Brick by Brick, Up the Value Chain
- Included in the Approved Vendor category of Indian Railways for supply of traction motor for locomotives
- Estimate 4-5% annual revenue accretion from the order
- Believe, the order paves way for the company's plans to move up the technology value chain through backward integration.
MS on Insurance
- IRDAI takes action on FY25 EOM non-compliance
- IRDAI has warned Niva Bupa and directed it not to open any new place of business for six months from the date of the order
- This action follows a breach of expense of management (EOM) limits in FY25
- Niva Bupa complied with EOM limits in FY26 and Q1FY27 and remains on track for FY27
- It is evaluating the order and will take appropriate steps to safeguard stakeholder interests
- View IRDAI's action on EOM non-compliance as positive for the sector, and it could ease competitive intensity.
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