Stock Picks Today: Infosys, Kotak Mahindra Bank, Dr. Reddy's, SBI Cards, And More On Brokerages' Radar

Brokerages have highlighted opportunities across IT, banks, pharma, oil and gas, NBFC, consumer electricals, metals, cement, steel, automobiles and agro chemicals sector issuing fresh calls on Infosys, Kotak Mahindra Bank, AU Small Finance Bank, Coforge, IndusInd Bank, CG Power, Dr, Reddy's, Bharat Petroleum Corporation, Torrent Power, Rallis India, Tata Motors PV, Tata Motors CV, SBI Cards, SBI Funds, Adani Energy, IDFC First Bank, Shriram Finance, Westlife FoodWorld, JSW Steel, Jindal Steel, Jindal Stainless, Newgen Software, Nuvoco Vistas, and Shree Cement.

JPMorgan on AU SFB

• Maintain Overweight; Cut TP to Rs 1165 from Rs 1230
• Q2 review: Growth momentum strong, credit cost delivery much better than guidance
• Balance sheet growth continues to accelerate
• Asset quality trends were a key concern, but largely seasonal
• Monsoon risk key to watch.

Jefferies AU SFB

• Maintain Buy; Cut TP to Rs 1250 from Rs 1270
• Healthy loan growth with tad lower margins
• Deposit momentum sustains
• Tad higher slippages; lower coverage reflects higher write-off and change in NPL mix
• Transition to Universal Bank will strengthen deposit franchise and grading

JPMorgan on Kotak Mahindra Bank

• Maintain Overweight; Hike TP to Rs 492 from Rs 468
• Q2: Strong 2Q with a beat on key operating metrics
• Rate hikes provide a strong margin and earnings tailwind
• FCNR(B) drags near-term NIM, improving CASA mix and liquidity deployment to support recovery
• Benign asset quality trends; ECL transition impact manageable.

Bernstein on Kotak Mahindra Bank

• Maintain Market-Perform with TP of Rs 500
• Strong balance-sheet growth drives EPS despite margin pressure
• Strong loan growth, led by corporate and SME
• Margin compression remains sharper than peers
• Asset quality remains benign; higher provisions largely reflect standard asset buffers
• Operating performance holds up, though higher provisions weigh on RoA.

JP Morgan on Infosys

• Maintain Neutral, TP at Rs 1050/share
• Softer print than peers; 2H faces challenges
• Organic growth slowing to laggard levels in FY27
• Growth likely to be  soft from a contract loss in FY28
• Multiples are likely to remain at a discount to TCS/HCL Tech
• Cut margins by 30bps for FY27E, driving 3% EPS cut while FY28-29E EPS cuts of 1% are mainly driven by forex. 

Jefferies On Infosys

• Maintain Hold, TP at Rs 1140/share (Rs 1160/share)
• Results missed estimates, with softer margins and a 75bps cut to organic growth guidance
• Strong deal wins were a key positive
• Cut estimates by 1.5% and co to deliver 4.5% recurring EPS CAGR
• See limited downside, but growth concerns should limit scope for PE re-rating. 

CITI On Infosys

• Maintain Neutral, TP at Rs 1105/share (From Rs 1030/share)
• Inline 2Q- Good TCV
• FY27E/FY28E EPS revised marginally by 0-1%
• New mega deal should address some concerns around Infy starting FY28 at a disadvantage relative to peers
• Sector view stays cautious. 

Kotak On Infosys

• Maintain Add, FV at Rs 1200/share
• Weak growth profile; in-line margins
• Sharp revenue declines in retail and hi-tech signal possible execution misses
• A weak macro and discretionary spending drove guidance cut
• Strong growth in AI business, mega deal win and strong bookings are positives
• EPS estimates are broadly unchanged.

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Kotak Securities on IndusInd Bank

• Upgrade to Reduce from Sell; TP at Rs 850
• Improvement led by revenue growth and lower provisions
• Healthy non-interest income growth and lower provisions drive earnings
• Gradual improvement is underway; return ratios to improve steadily
• Normalization cycle is far from complete.

HSBC on IndusInd Bank

• Maintain Buy with TP of Rs 1180
• Turnaround picking up momentum
• Q2 earnings performance was underscored by sharp improvements in asset quality, strong fees
• Lower credit costs will likely be the near-term catalyst, while higher growth, margin recovery would play out in the long term
• Upgrade EPS by 5-10% for FY27-29

Bernstein on IndusInd Bank

• Maintain Outperform with TP of Rs 1000
• Q2 - Signs of stabilization
• Loan growth strengthens across segments
• Asset quality improves; further provision relief should be more measured
• Profitability improves; income growth becomes the next driver.

Macquarie On IndusInd Bank

• Maintain Underperform, TP at  Rs 760/share
• PAT beats estimates, aided by higher non-interest income
• Core margins fell 12bps QoQ mainly due to FCNR deposit mobilisation
• ROA improves despite margin compression but there are headwinds
• Increasing ROA beyond 1% to the medium-term target of ~170bps could be challenging. 

Jefferies On IndusInd Bank

• Maintain Buy-Rs 1130/share (From Rs 1250/share)
• Q2-Core trends improving
• Slight drag from Banca, but valuations attractive
• See levers to improve profitability even as credit costs are near the bottom.
• Lower earnings estimates to factor in tighter banca fee rules and a tad higher credit cost

Jefferies on BPCL

• Maintain Buy; Cut TP to Rs 380 from Rs 410
• Refining-led Beat; Favourable Valuation
• Performance was better for the second successive quarter
• With the Indian crude basket at US$120, marketing margins are currently deep in the red
• Stock is down 28% since the start of the conflict and trades at a discount to HPCL despite higher ROE.

Citi on BPCL

• Maintain Buy with TP of Rs 360
• Q2: Resilient Performance
• Refining moderates, but still healthy
• Marketing improves, but Q3 once again looks challenged

Jefferies on IDFC First

• Maintain Buy with TP of Rs 96
• Q2: Healthy Core Trends Aid EPS Upgrade
• Healthy core loan & deposit growth, operating efficiencies and stable asset quality were key positives
• Larger FCNR-B mobilisation led to near-term drag in NIMs
• This will be recouped in 2-3 Qtrs with deployment and rate hikes
• See 23% Cagr in loans, opex efficiencies and manageable credit cost
• Raise FY28-29 EPS by 2-3%; bank may raise capital in 12 months.

Kotak Securities on SBI Cards

• Maintain Buy with Rs 900
• A solid performance on credit costs
• Healthy earnings growth led by lower provisions; revenue growth still weak
• Lower risk intensity could make through-the-cycle returns cyclically stronger
• A stronger RoE trajectory is not yet reflected in the stock.

JPMorgan on SBI Cards

• Maintain Underweight; Cut TP to Rs 505 from Rs 588
• Q2: Credit cost decline continues but likely bottoming
• Muted loan growth and NIM risks cap upside
• NIMs to decline on higher funding costs
• Credit cost delivery better than expected; likely bottoming
• Opex increase likely to be front-loaded to support new card additions.

JP Morgan On SBI Cards Payment

• Maintain Underweight, TP at Rs 505/share (From Rs 588/share)
• Operating performance came in slightly below estimates
• Credit cost decline continues but likely bottoming
• Muted loan growth and NIM risks cap upside
• Despite de-rating in last 2 years-trades inline/premium to NBFCs
• Revise FY27/28/29E earnings by +4.9%/-0.1%/0.8%

Jefferies On Torrent Pharma

• Maintain Buy, TP Rs 5900/share
• In-line Sep-Q
• JB integration is ahead of schedule, with half of the total cost synergies already achieved
• Revenue synergies should drive strong growth in India next year
• Brazil market rebounded with 21% cc growth.
• US growth was steady, driven by new launches
• Goldman Sachs On Torrent Pharma (Not Rated)
• 2Q27 inline: Another solid quarter despite JB/ Germany headwinds
• Co expects to continue to outperform in the India/Brazil markets
• Lower FY27-FY29E EPS estimates by -16.3%/-2.8%/+0.3% to factor in the near-term headwinds
• On JB pharma synergies-co aims to achieve most of them by year 2 now (vs. earlier expectation of year 3).

Kotak Securities on Torrent Pharma

• Upgrade to Buy from Add; Hike TP to Rs 5665 from Rs 5520
• Ahead of the curve; Seamless execution
• Strong base business growth, offset by planned integration exercise with JB
• Tracking well ahead of guidance; bulk of cost synergies to accrue by FY28
• Expect the merged entity to deliver a robust 19% EBITDA CAGR over FY26-29.

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Kotak Securities on CG Power

• Maintain Sell with TP of Rs 720
• Power Systems business drives strength across metrics
• Industrial Systems margin returns to yoy levels with limited scope for improvement
• Axiro at break-even levels; OSAT business may start from FY28/29
• Working capital uptick yields lower YoY CFO and negative FCF for H1

Jefferies on Dr. Reddy's

• Upgrade to Hold from Underperform; Hike TP to Rs 1320 from Rs 1040
• Improving margin outlook; Valuations limit downside
• Ebitda beat est by 15% despite in-line revenue
• Core business of India and RoW remained strong while the US recovered QoQ
• Expect to resume supplies for Semaglutide in Nov'26 and US approval for bAbatacept in Dec'26
• Increase FY28/29 EPS est by 5-7% to factor in the above and higher margins for the base business.

HSBC on Dr. Reddy's

• Maintain Buy with TP of Rs 1375
• On track to resume semaglutide supplies
• Better mix and new launches in the US aided gross margin in Q2
• Plan to resume commercial supplies for semaglutide in Nov 2026 remains on track
• Execution key to gaining market share
• Relaunch of semaglutide and FDA approval of abatacept are key catalysts

BofA on Dr. Reddy's

• Maintain Buy with TP of Rs 1480
• Large beat aided by gross margins
• Near 20% margin in Q2 without semaglutide
• All eyes on abatacept approval.

Kotak Securities on Dr. Reddy's

• Maintain Reduce; Hike TP to Rs 1220 from Rs 1125
• Margins reclaim lost ground
• Upside from Semaglutide and Abatacept launches in H2 already factored in
• Limited sustainable earnings drivers.

Goldman Sachs On Dr. Reddy's Labs

• Maintain Sell, TP at Rs 1150/share (From Rs 1100/share)
• Q2-Above-Margins surprise positively
• Canada Semaglutide opportunity size remains uncertain
• Raise FY27-29E EPS estimates by up to +4%
• Adj. EBITDA margin beat was driven by better gross margins as well as achievement of cost savings.

Citi on Dr. Reddy's

• Maintain Buy; Hike TP to Rs 1510 from Rs 1450
• Strong Beat, Broad-Based Margin Strength
• Mix improvement, operating leverage and cost efficiencies drove a sharp margin recovery
• Q2 margin strength encouraging; we retain conservative 2H assumptions
• Management expects margin strength to sustain in H2

Jefferies on Adani Energy

• Maintain Buy; Cut TP to Rs 1980 from Rs 2060
• Trading business drives EBITDA beat
• Raise FY27 EBITDA by 6% but lower FY28E-30E by 4-5% to factor the lower capitalization guidance in transmission and smart meters
• Remain confident on 25%+ EBITDA CAGR over FY26-30
• See upside from the trading business
• Retain Adani Energy as one of sector top picks
• Buy for strong medium-term growth.

HSBC on SBI Funds

• Maintain Buy; Cut TP to Rs 590 from Rs 640
• Business traction improving
• Q2 EPS miss driven by elevated costs and weak treasury income
• Growth in equity mutual fund improved
• Yield management, AIF / PMS scale up, and leverage gains should drive mid-teens EPS growth in the medium term
• Cut FY27-29e EPS estimates 4-6%.

HSBC on Shriram Finance

• Maintain Buy; Cut TP to Rs 1000 from Rs 1140
• Emerging risks likely to weigh on stock performance
• Q2 PAT impacted by higher credit costs amidst rising stage 2 and stage 3 assets across several segments
• Improving NIM and operational efficiencies should be partly offset by high credit costs
• Increase FY27-29e EPS estimates 2.8-6.5%
• Asset quality stress building up, growth targets curtailed.

CITI On Shriram Finance

• Maintain Buy, TP at Rs 1100/share (From Rs 1200/share)
• NIM and growth tailwinds meet near-term credit cost headwinds
• AUM growth robust
• Relatively conservative on monsoon/geopolitical headwinds
• Management flagged elevated credit costs for next 2–3 quarters
• Equity buffer should keep NIMs elevated near-term, before normalizing.
• Raise FY27E earnings by 3%, trim FY28E/FY29E by 1–3%.

Nomura on Tata Motors CV

• Maintain Buy; Cut TP to Rs 51 from Rs 554
• Positive growth outlook for CV cycle
• Q2 broadly in-line; high commodity prices to delay margin recovery
• Raise FY27 MHCV industry demand growth to 15% YoY from 8% due to the strong demand momentum in MHCVs.

Jefferies On JSW Steel 

• Maintain Buy, TP Rs 1650/share 
• Remains top Buy in India metals.  
• Raise FY27-29E EPS by 2-4% 
• Expect EPS to treble over FY26-29.  
• Expect margins to expand as the 15% rise in India steel prices since Aug-26 more than offsets higher costs.  
• Announced 10mt expansions further strengthen visibility on JSTL's target to double capacity by FY32. 
•  At 8x 1Y forward EV/EBITDA, valuation is justified.  

CITI On Jindal Steel 

• Maintain Sell, TP at Rs 850/share (From Rs 900/share) 
• 2Q Ahead on Realizations & Volumes 
• Domestic HRC Prices at a Premium to Import Parity 
• Lower target multiple from 8x Sep27 EV/EBITDA earlier on rising concerns around the global macro-economic outlook. 
• China analysts see lower GP/t upside, tepid demand environment. 

Jefferies On Jindal Stainless 

• Maintain Buy, TP at Rs 735/share (From Rs 970/share) 
• Import pressures but spreads improving 
• Cut  FY27-29E EPS by 6-9% on lower volumes and weaker earnings contribution from associates due to lower nickel prices 
• Expect volumes to recover from 2% fall in 1HFY27 to 10-11% growth over 2HFY27-29E 
• Margins remain resilient as higher Asian spreads help offset pressure from rising imports 
• Any import protection measures would provide further upside 
• Valuation at 10x 1Y forward EV/EBITDA is reasonable. 

Kotak On Tata Motors CV 

• Retain Buy, FV at Rs 500/share  
• Marginal miss; demand trends remain steady 
• Domestic CV business profitability was 30 bps below expectations 
• CV momentum remains strong through sustained GST-led momentum and improving fleet operator profitability 
• Margin recovery will be gradual owing to commodity headwinds and a weaker product mix. 

Jefferies On Coforge  

• Maintain Buy, TP Rs 2230/share  (From Rs 2040/share) 
• Maintain as top pick in the sector 
• Steady growth-Improving margin outlook 
• To deliver 14%/26% CAGRs in organic cc revenues/EPS.  
• Strong earnings delivery can sustain stock outperformance even after its 56% rally over the past six months.  
• Raise EPS estimates by 3-5%.

CITI On Coforge 

• Maintain Sell, TP at Rs 1750/share (From 1670/share) 
• 2Q revenues below expectations 
• Mgmt. confident on margin expansion 
• Organic executable orderbook growth yoy & cash conversion trends need to be monitored. 
• Growth trends across sector continued to be muted at low-single-digit yoy organic. 

Kotak On Coforge 

• Maintain Buy, FV at Rs 2300/share (From Rs 2,000/share) 
• Record bookings lend comfort on growth sustenance   
• Record deal wins, higher margin outlook and a healthy cash conversion outlook more than offset the miss 
• Has strengthened its AI capabilities rapidly, is a well-run challenger and is strongly placed to gain wallet share. 
• Raise FY2027-29E EPS by 2-7%, roll over to September 2028E. 

JP Morgan On Coforge 

• Maintain Overweight, TP at Rs 2150/share (From Rs 1850/share) 
• Top pick in the IT sector 
• Growth momentum to continue with expanding margins 
• Revenue growth below consensus due to softness in Encora 
• Increase Ebit margins by 40-100bps over FY27-29E  
• 3% EPS upgrades over FY28-29E while FY27 gets cut due to FX losses.  

CITI On Nuvoco Vistas 

• Maintain Buy, TP at Rs 440/share (From Rs 450/share) 
• 2Q ahead on better-than-expected realisations and volumes 
• Slowing pace of capacity additions in East/Central should help with profitability 
• Co's acquisition of Vadraj Cement's assets provides medium-term growth visibility.  
• At EV/t of ~$50, a substantial discount to the range of $70–150/t for other regional producers 
• Risk reward remains favorable. 

CITI On Shree Cement  

• Maintain Buy, TP at Rs 28000/share (From Rs 30000/share) 
• 2Q ahead on revenues; volume focus visible 
• 3Q Prices should more than offset costs 
• Shree expects to outperform the industry – likely achieve 10-13% volume growth in FY27 
• Likely EBITDA/t expansion and inexpensive valuations. 

Jefferies On Newgen Software  

• Maintain Buy, TP at Rs 550/share (From Rs 630/share) 
• Q2- Revenues were in line, but profits beat estimates 
• Pickup in growth in the EMEA region and a 30bps YoY expansion in margins were positive surprises 
• Decline in license revenues and India region were disappointments. 
• To deliver 10%/11% CAGRs in revenue and profit over FY27-29 

 Kotak On Rallis India  

• Maintain Add, FV at Rs 220/share (From Rs 260/share) 
• Resilient 1HFY27 results, but challenges do not end yet 
• Q2- results held up better than feared-despite the challenging Kharif season 
• Outlook for Rabi season appearing difficult 
• Cut EPS by 6-9%. 

JP Morgan On Westlife Foodworld 

• Maintain Overweight, TP at Rs 570/share 
• SSSG beat and higher margins backed by operating leverage 
• Constructive narrative amidst improving SSSG momentum and margin outlook 
• Everyday Value platform continues to drive higher penetration and frequency 
• Management remains confident of ~100-150 bps margin improvement in FY27.

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