Brokerage commentaries on Monday highglighted opportunities across sectors ranging from beauty, aviation, non-banking financial companies (NBFCs) and the consumer sector.
Analysts also gave their view on banking giants such as Bank of Baroda and HDFC Bank.
Among sectoral calls, brokerages remained broadly positive on the FMCG sector and retail sectors post Q2 business updates from avenue supermarts, and Nykaa among others.
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Citi on ITC
- Upgrade to Buy from Sell; Hike TP to Rs 300 from Rs 270
- Mitigation actions progressing better than initially expected
- Profitability appears to be bottoming
- Earnings downgrade cycle is largely over
- Risk-Reward Favorable Despite Near-Term Pressures
Nomura on IndiGo
- Initiate Buy with TP of Rs 6000
- Large order book will allow domestic dominance and global expansion
- High yields and lean cost structure to overcome 50-70% of cost increase
- See Revenue/EBITDA CAGRs at 16%/38% in FY26-29
BofA on Nykaa
- Maintain Neutral with TP of Rs 370
- Q2 commentary: Another strong quarter for GMV growth
- Q2 growth slower than 1Q; Margin to inch up qoq to 8.9%
- Limited room for surprise; Consensus est. have inched up
Nomura on Nykaa
- Maintain Buy with TP of Rs 411
- Q2: Strong revenue growth sustains
- BPC sustains strong momentum
- Fashion revenue growth continues to accelerate
- Expect 8.7% EBITDA margin
CLSA Price Action – Laurence Balanco
- Nifty's breakdown from the April-September trading range leaves the index vulnerable to further weakness towards major chart support at 21,700-22,182
- This support zone also coincides with the areas from which significant cyclical rebounds emerged following the March 2025 and April 2026 lows
- As the index approaches this key support area, will be looking for the development of a bullish price/momentum divergence
- Such a development would provide evidence that downside momentum is beginning to fade
- This create an attractive bottom-fishing opportunity in anticipation of another cyclical rebound within the broader 21,700-22,182 to 26,000-26,300 trading range
JPMorgan on Bajaj Finance
- Maintain Overweight; Hike TP to Rs 1310 from Rs 1295
- Strong Q2 delivery likely to drive growth
- Customer acquisition guidance upgraded
- Meaningful upgrades to management guidance likely
- NIM outlook to be in focus
Citi on Bajaj Finance
- Maintain Buy with TP of Rs 1300
- AUM growth comfortably exceeding the guided band
- Upward revision to FY27 growth guidance looks increasingly likely
- Cost ratios should see further improvement
HSBC on Bajaj Finance
- Maintain Buy with TP of Rs 1270
- Timely capital raise a positive
- Fund raise approval – 170 bps of its 20% Tier 1 CAR
- Capital infusion leads to 2% EPS dilution, 140 bps ROE dilution, and 7.6% book value per share accretion
- Given AUM growth exceeds ROE, Bajaj Finance should make up for the dilution in the medium term
Jefferies on Bajaj Finance
- Maintain Buy with TP of Rs 1280
- AUM growth accelerates to 7 quarter high of 26% YoY
- Growth in new loans slowed owing to festive season in base quarter
- Stays among top picks
CLSA on Avenue Supermarts
- Maintain High Conviction Outperform with TP of Rs 5723
- Top line above expectations
- Store additions in H1 were muted; 18 stores added in H1FY27 vs 17 in H1FY26
- Pivot to private labels, store growth, inflation to be growth drivers
Citi on HDFC Bank
- Maintain Buy with TP of Rs 970
- FCNR fuels the headline; core advances growth trails system average
- Excluding FCNR, core deposits and advances stood at 15.3%/14.5%
- Asset quality across segment expected to remain resilient and stable
Citi on Avenue Supermarts
- Maintain Sell with TP of Rs 3300
- Q2 Update: Revenue Growth In Line
- H1 Store Addition Pace Remains Flat YoY
- Remain cautious on expensive valuation
CLSA on Vedanta Aluminium
- Maintain Outperform with TP of Rs 540
- Recurring bauxite cost increase muted; one-time impact manageable
- Estimate one time cost of $290 million – 2.8% of market cap
- Also see a $10/tonne rise in the aluminium cost of production
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