Check out top stocks under brokerages' radar heading into trade today.
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Brokerages have highlighted opportunities across FMCG, IT, healthcare, media software, EMS and online travel services sector, issuing fresh calls on HUL, LTIMindtree, Wipro, Fortis Healthcare, Amagi Media Labs, Info Edge, TBO Tek, Avalon Technologies, Prime Focus, while also sharing their outlook on the steel, auto ancillaries, commercial vehicles sectors, along with a broader view on India strategy.
Macquarie on Hindustan Unilever - (Analyst Day)
- Maintains OUTPERFORM | TP Rs. 2,860
- Targets competitive volume-led profit growth, but no specific sales growth target
- Consumption/premiumisation to drive 40% of incremental sales; market-making 40%, new growth spaces 20%
- EBITDA margin guidance widened to 22–24% from 22.5–23.5%
- Cost savings, operating leverage and AI-led media efficiencies expected to generate ~500 bps benefits for reinvestment
- Capex to rise to 3% of sales from 2% over the next five years
- Focus on premiumisation and underpenetrated categories across Home Care, Beauty & Wellbeing, Personal Care and Foods
- Stable near-term demand trends; clarity on volume growth pickup remains key.
Jefferies on Hindustan Unilever - (Analyst Day)
- Maintains BUY | TP cut to Rs. 2,450 from Rs. 2,850
- Strategy focused on "New India" with broader reach and sharper segment-led growth.
- Premiumisation, category creation and deeper distribution contributing to growth.
- AI-led execution and productivity initiatives funding growth investments.
- Expanding reach through direct distribution, rural expansion and specialised beauty channels.
- AI increasingly embedded across marketing, R&D, planning and execution.
- Mgmt remains constructive on FY27 growth despite input cost volatility.
- Raised upper end of medium-term Ebitda margin range to 24%.
- Premiumisation remains a key opportunity; Minimalist scaling rapidly and gaining traction.
HSBC on Hindustan Unilever (Analyst Day)
- Maintains BUY | TP cut to Rs. 2,440 from Rs. 2,450
- Volume-led growth to be driven by Consumption & Premiumisation (40%), Market-making (40%) and New Spaces (20%).
- Guidance unchanged, but wider margin band provides flexibility to invest for growth.
- Expects growth pickup in coming quarters to drive performance.
- Focus on winning in Beauty & Foods, with premiumisation and market-making initiatives.
- Entering new spaces through new formats, segments and fast-growing categories.
- BITDA margin guidance widened to 22–24%; lower end cut to 22% from 22.5%.
- Expects double-digit growth and re-rating potential if growth accelerates in coming quarters.
Morgan Stanley on Hindustan Unilever – (Analyst Day)
- Maintains EQUAL-WEIGHT | TP Rs. 2,480
- Focus remains on volume-led growth
- Growth to come from consumption & premiumisation (40%), market making (40%) and balance from innovation.
- Focused on scaling both premium and mass opportunities in Beauty
- Foods growth driven by core brands and extensions.
- AI being used to improve product & packaging, media effectiveness, pricing, sampling and channel investments.
- Ebitda margin guidance widened to 22–24% providing flexibility to invest in growth.
- Capex increased to 3% of revenue with 85% allocated towards growth and savings programs.
- Premiumisation remains a key opportunity.
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Goldman Sachs on LTIMindree
- Maintains NEUTRAL | TP Rs. 3,870
- Expects FY27 revenue growth broadly similar to last year
- 3Q growth likely stronger than 2Q, aided by deal ramp-ups
- EBIT margins expected to improve in FY27
- BFSI seeing month-on-month improvement; Travel remains weak
- Tech vertical challenges largely behind the company
- Randstad acquisition expected to be integrated in 3QFY27
- Medium-term ambition remains double-digit growth
- AI creating pressure in some legacy areas but opening new growth opportunities
- Around 25% of code is now AI-generated, with scope to increase further.
Goldman Sachs on Info Edge - (Mgmt Meet)
- Maintains BUY | TP Rs. 1,410
- Recruitment billings growth driven by premium hiring and new products.
- Recruitment business remains well diversified across IT, Tech, BPO, GCCs and non‑IT sectors.
- Premium hiring growing 25-30% YoY; company gaining share.
- AI‑Rex seeing good traction with nearly 400 paid clients.
- JobHai launched in May'26; aims to double revenue in FY27 vs FY26.
- B2C recruitment business seeing strong growth and margin improvement.
- Real estate classifieds business remains market leader in traffic and supply.
- Management expects 20-25% sustainable annual billings growth in real estate classifieds.
- Goldman likes diversified portfolio and multiple growth drivers.
Goldman Sachs on TBO Tek - (Mgmt Meet)
- Maintains BUY | TP Rs. 1,800
- Expects over 20% annual growth, faster EBITDA growth driven by operating leverage.
- Global travel remains largely offline, creating a large opportunity for TBO.
- TBO has both direct and third-party supply, direct supply accounting ~40% of hotel GTV.
- Travel agents fulfil only 30–40% of demand through TBO, scope for wallet share gains.
- Growing faster than the market in Europe, aided by language support, local payments and global supply aggregation.
- Europe is a high-margin market.
Jefferies on Fortis Healthcare - (Investor call on Forensic Audit)
- Maintains BUY | TP Rs. 1,125
- Delhi HC‑ordered forensic audit unlikely to disrupt operations, expansion plans or strategy.
- IHH reiterated commitment to Fortis, willing to provide additional capital if required.
- Co. sees no change in FY27 guidance despite audit-related developments.
- Mgmt remains confident of achieving 25% EBITDA margins by FY28.
- Strong brownfield expansion visibility with limited operational risk.
- Jaipur and Faridabad hospitals continue to improve margins;
- Oncology planned to be added in facilities where currently absent.
HSBC on Fortis Health
- Maintain Buy with TP of Rs 1100
- Forensic audit overhang
- On 31 August, Delhi High Court ordered a forensic audit into alleged dissipation of erstwhile promoter's stake in Fortis
- Fortis indicated no impact from the Court order on operations; no change in IHH's (parent entity) plan to raise stake in Fortis
- See no major impact on Fortis and watch for audit updates.
Goldman Sachs on Wipro - (Mgmt Meet)
- Maintains SELL | TP Rs. 172
- Near-term growth outlook remains subdued, client-specific issues persisting.
- Demand environment stable, but discretionary spending remains muted.
- Recently ramped-up deals should aid revenue growth.
- BFSI remains resilient with strong pipeline; Healthcare facing pressure from policy changes.
- Deal activity remains largely cost take-out focused; competitive intensity high.
- 1QFY27 marks the bottom for margins; Mgmt sees room for margin improvement.
- AI deflation impact could take a few more quarters to fully play out.
- Mgmt expects tech spending to flow from hyperscalers and AI frontier companies to IT services.
Nomura on Avalon Technologies
- Maintains BUY | TP raised to Rs 2,767 from Rs 2,211
- Avalon forms JV with Zollner Elektronik AG, a leading European EMS company
- JV to focus on PCBA, box-build & system integration manufacturing in India
- Zollner to initially hold 51% stake
- After 3 years of commercial production, Avalon can acquire an additional 2% stake to become 51% majority shareholder
- JV to initially serve Indian operations of established customers, enabling localisation & closer proximity
- JV enables Europe expansion and entry into healthcare & life sciences and test & measurement
- Expects JV to deepen Avalon's capabilities in complex EMS & semiconductor ecosystem
- Estimated total JV investment at ~US$30–50 million
- JV expected to improve long-term growth, support EU diversification and be margin accretive.
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ICICI Securities on Prime Focus
- Initiates BUY | TP Rs. 375
- DNEG offers predictable, de-risked services revenue with an expanding TAM
- Order book at US$1 billion, with 60% contracted and 40% highly visible pipeline
- India VFX market expected to grow at 12% CAGR, aided by 40-60% cost advantage
- Over 90% of revenue comes from recurring customers, including major global studios
- Expanding beyond film & TV into theme parks, gaming and digital concerts
- Brahma AI seen as a key growth trigger; valued at US$1.43 billion
- AI platform targets a US$130 billion opportunity across GenAI content, marketing and distribution
- Early AI adoption across clients including Disney, NBA and Mayo Clinic.
ICICI Securities on Amagi Media Labs
- Initiates BUY | TP Rs. 700
- Cloud migration in media remains at an early stage
- Adj. Ebitda turned positive in FY26
- margins expected to improve through operating leverage.
- Revenue growth supported by cross-selling and upselling opportunities within existing customers.
- Strong customer stickiness with products embedded in mission-critical workflows.
- AI products seen as key revenue and margin drivers.
- Top 10 customers have been with Amagi for over 4 years with near-zero churn over the last 3 years.
- Migration to cloud offers a compelling TCO benefit versus on-premise infrastructure.
Morgan Stanley on India Strategy
- Sees India in a multi‑quarter growth upcycle supported by improving earnings &valuations.
- Expects capital expenditure growth to accelerate aided by lower rates, policy support and stronger investments.
- Domestic Cyclicals preferred over Defensives;
- Overweight: Financials, Consumer Discretionary and Industrials.
- Sees Materials and Healthcare as undervalued, while IT appears near fair value.
- India's earnings cycle in an upcycle, broad‑based growth acceleration expected.
- Domestic flows remain strong; foreign positioning remains weak, leaving room for inflows.
- India's valuation de‑rating is cyclical rather than structural.
- Expects IPO activity and capital market flows to rise as growth confidence improves.
HSBC On Steel
- Coking coal surge should be passed through
- Coking coal prices have surged 26% in a month, in what is seasonally the weak period
- Expect domestic price hikes to offset cost increases
- Further hikes from here require regional price hikes
- Like TATA and JSW Steel in Indian Steel – both Buy
- Coking coal costs impact SAIL the most – Hold
- Jindal Steel impact is lower – Hold
- Domestic steel prices have inched higher, driven mostly by restocking
- Companies would need price hikes of 4-5% to fully pass on higher costs
- Strong demand, weak INR supportive but further hikes need higher regional prices
BofA on CV Autos
- Truck cycle inflection is real: Broad & gathering pace
- Market shares are sticky: Moat is in the ecosystem
- Margin hit a speed bump, not a structural risk
- Both stocks – Tata Motors CV and Ashok Leyland – have corrected on crude concerns
- Volume prints have consistently surprised on the upside & growth outlook is set for an upgrade
- Risk reward is positive here
- Valuations at sub 20x PE, 12x EV/EBITDA will likely re-rate backed by strong earnings growth in FY28, better industry structure & sector leading ROEs
Jefferies on Auto Ancillaries
- Auto ancillaries in a High Gear
- Auto-component companies outperformed OEMs on EBIT growth in June
- Witnessing a meaningful improvement in consensus earnings outlook
- Stronger earnings and valuation re-rating have resulted in most auto-comp stocks outperforming Nifty Auto Index CYTD
- Valuations are above long-term averages
- Growth outlook is strong along with expanding business footprint
- Prefer SONA BLW and Bharat Forge.
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