Stock Picks Today: Infosys, LG Electronics, Tata Steel On Brokerages' Radar

Infosys Ltd., LG Electronics India Ltd., and Tata Steel Ltd. are among companies that have drawn commentary from top brokerages on Wednesday. Goldman Sachs has initiated coverage on the Indian arm of the South Korean electronics-maker while analysts indicated a wait-and-watch approach to Infosys amid AI disruption.

Goldman Sachs on LG Electronics

• Initiate Buy with target price of Rs 1750.
• Well-entrenched market leader capitalizing on India's evolving demographics.
• Company is well-placed to grow faster than the industry in the near to medium term.
• Rising competitive intensity in an increasing commodity price environment should keep margin expansion potential limited.
• Portfolio mix and innovation leadership to sustain premiumisation.
• Parent's ‘Global South' strategy and aggressive capex to drive growth further.
• B2B and AMC business can further add to growth and profitability.
• See 15%/22% revenue/EPS CAGR over FY26E-28.

ALSO READ: Goldman Sachs Initiates 'Buy' On LG Electronics India — Check Target Price And Reasons

JPMorgan On Metals

• Indian metal stocks have traded choppy in the last one month.
• Stocks reacted to earnings commentaries, geo-economic developments and commodity price movements.
• Near-to-medium term, believe the steel price outlook remains supportive.
• Believe the ongoing rally in steel prices appears to be driven by supply tightness/restocking/coking coal cost increases, rather than significant demand improvement.
• Believe Indian steel prices have some more room to run till the seasonally strong period upto May.
• Aluminum stocks have declined in tandem with falling commodity prices.
• Hindalco stock has corrected sharply on debt concerns post the Novelis disruption.
• Hindalco current stock price still implies a favorable ~$3,075-3,100/t LME aluminium price.
• Top pick is Tata Steel and least preferred stocks are NMDC and Coal India.

HSBC on Hindalco Industries

• Maintain Buy with TP of Rs 1,210.
• View the negative stock reaction to Novelis's Oswego fire and consolidated debt increase are excessive.
• Overall, while March could be another weak quarter at Novelis, net debt should decline from H2FY27.
• Highlight that Novelis has delivered a secular improvement in margins from FY16.
• Hindalco remains preferred pick in the India metal and mining space.

ALSO READ: Hindalco Shares Correct 13% From Peak; InCred Downgrades Stock, Cuts Target Price

Brokerages On Infosys AI Day

Nuvama

• Maintain Buy with TP of Rs 1,900.
• Legacy modernisation is a large opportunity enabled by AI.
• Co remains at the forefront of the new tech deployment, and should be a net beneficiary of the same.
• Technology gap is creating a meaningful services opportunity for players.
• Recent sharp correction in IT stocks as overdone.
• Fears of disruption by Gen AI have been highly exaggerated.
• Forecast short-term headwinds shall continue in Indian IT.
• In the medium to long term, Gen AI will create mammoth opportunity for the companies to grow.

Jefferies 

• Maintain Buy with TP of Rs 1,880.
• At its AI Day, Infosys highlighted that IT services will remain key to enterprise AI implementation.
• Infosys has built its AI platform – Infosys Topaz Fabric – is jointly going to market with AI ecosystem partners.
• Devised a 2-pronged talent strategy not only to capture new service demand but also to augment its existing service lines.
• Client AI adoption is increasing with new AI services contributing 5.5% of revenues in Q3FY26.
• 90% of Infosys's top 200 large clients currently using its AI services.

BofA

• Maintain Buy with TP of Rs 1840.
• Several positives on positioning.
• Net opportunity could be bigger but path is still evolving.
• Enterprise AI isn't plug and play.
• Revenue from AI-first offerings stands at 5.5%, not too different from others that have disclosed the metric.
• Key risk with AI, as per company, is less about opportunity and more about strategy and execution.
• Anthropic partnerships signify role of a services company in enterprise AI shift.

UBS

• Maintain Buy with TP of Rs 1870.
• Opportunities from AI to outweigh compression.
• AI potential fast expanding, but organisations not ready.
• $300-400 billion opportunity from AI to outweigh productivity-led compression.
• IT Service vendors need to build capabilities via talent, platforms / IP, partnerships and acquisitions.
• Will keep an eye on Infosys' progress on these fronts going ahead.

Morgan Stanley

• Maintain Equal-weight with TP of Rs 1760.
• Dismissed fundamental concerns on "opportunity risk" while acknowledging "execution risk".
• Showcased Infosys' capabilities and readiness for adopting the same along with relevant client case studies.
• It quantified new AI services are already contributing 5.5% of revenue.
• Limited clarity on the size of the net new opportunity.
• Limited clarity on which stage of the tech evolution cycle IT Services industry is in now.
• Delivery model is going to shift from human to human plus agents eventually.
• Believe it is still early stage for billing/pricing models to evolve from effort based to outcome based.

ALSO READ: Infosys - Anthropic AI Deal Signals Big Shift In Tech Jobs, Not Immediate Cuts

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