Stock Picks Today: Infosys, LTIMindtree, Wipro, Nestle, Eternal On Brokerages' Radar

BofA

• Maintains 'Buy' with Target Price (TP) of Rs 1,780.

• The top end of the guidance implies a flattish CQGR for the second half.

• The company potentially exits the fiscal year at about 3% year-over-year (yoy) organic growth.

Nuvama

• Retain 'Buy' with lowered TP of Rs 1,800 compared to the earlier Rs 1,850.

• In-line performance; valuations attractive.

• Company continues to expect lower pass-through revenue in FY26 compared with FY25.

• All verticals reported sequential growth except retail.

• Retail and Communications faced cautious spending.

• Near-term macro-outlook for the sector appears soft.

Emkay

• Retain 'Reduce' with TP of Rs 250.

• Provision for client bankruptcy led to a miss on reported EBITM (EBIT Margin).

• Deal intake remained strong.

• Weakness in three of the five verticals.

• Pressure on margins in the near term due to the anticipated ramp-up.

• The company remains focused on converting strong backlog into revenue.

MOSL

• Reiterate 'Sell' with TP of Rs 200.

• Deal momentum sustained, but revenue acceleration still awaited.

• Good traction in BFSI and healthcare.

• Growth pickup still awaited.

• Limited room for margin expansion from current levels.

• Margins stable, but near-term headwinds likely as Harman integrates.

Nuvama

• Maintain 'Buy' with TP hiked to Rs 6,900 from Rs 6,200.

• Beats expectations on all counts.

• Still far from achieving its true potential.

• Co continues to target reaching double-digit USD growth in H2.

• Delivered on the expectations the Street had built since the LTI-Mindtree merger.

• Upgrades FY26E/27E EPS by 4% on higher margins.

Emkay

• Retain 'Add' and hiked TP to Rs 6,200.

• Margin beat; deal momentum to bolster growth.

• Brokerage is negative about weakness in the top five clients.

• Brokerages remain positive on Growth, margin beat, and healthy deal intake.

• Raised FY26-28E EPS by 4-5%, given the Q2 performance.

Morgan Stanley

• Maintain 'Underweight' with TP of Rs 1,010.

• Good surprise on topline, in line margins.

• Domestic revenues grew 11% YoY, marking double-digit growth after seven quarters.

• Volume growth in high single digits versus poll of 1-2%.

• Management expects: milk prices to soften, coffee prices to stabilise and edible oil prices to stay inflationary.

HSBC

• Reiterate 'Hold' and a TP of Rs 1,260 compared to Rs 1,270 earlier.

• Q2 performance was impressive, with 11% YoY revenue growth in a disrupted quarter

• Three of four product groups (excluding milk products) reported volume-led double-digit growth.

• Continue to view Nestle's portfolio as well-geared for further strength.

• Retain target P/E multiple of 60x.

Goldman Sachs

• Maintain 'Neutral' with a TP of Rs 1,225.

• Q2 above estimates driven by double-digit top-line growth.

• Revenue grew double-digit, led by volume growth in 3 of the 4 segments.

• Margins are likely to improve from here on as key input costs have softened.

• Implies sequential expansion in Nestle's gross margin in second half.

Nuvama

• Retain 'Buy' with a higher TP of Rs 400 versus Rs 320 earlier.

• Healthy quarter with revenue above consensus estimate.

• Ebitda margin at $1.8\%$ was below consensus estimate of 2.7%.

• Quick commerce losses reduction is lower than expected due to higher marketing expenses.

• Tweaking FY26E/27E by -57%/-9% due to lower margin expectations in near team

• Management expects growth at 100% CAGR in Blinkit for the next two years.

Emkay

• Maintain 'Buy' with TP of Rs 430 versus 330 earlier.

• Better-than-expected revenue growth with strong NOV growth in Quick Commerce and an accelerated shift to the owned inventory model.

• Weaker QCom Ebitda offset stronger food delivery Ebitda.

• Increase NOV growth expectations, while keeping long-term QCom margins at 5%.

• Believe Blinkit is well placed to capitalise on the large long-term QCom opportunity.

• Stock trades at expensive valuations (50x FY28E EV/EBITDA).

• QCom business is still logging suboptimal profitability.

BofA

• Reiterate 'Buy' with TP of Rs 400.

• Believe commentary from con-call was positive.

• Believe QC losses are slightly higher than most investor expectations.

• Management expects to get to 2,100 stores by December versus 2,000 earlier.

• Consider this prudent strategy when competition is not adding dark stores.

• Reiterates Buy on favourable risk-reward.

UBS

• Maintain 'Buy' with TP of Rs 400.

• Strong numbers with positive guidance across segments.

• QC NOV growth expected to be 100% for the next 1-2 years.

• Focus remains on growth, not immediate Ebitda breakeven.

• NOV growth expected around 30% YoY.

• Margins set to improve and losses to remain range-bound near term.

Macquarie

• Maintain 'Underperform' with TP of Rs 200.

• Management painted an optimistic yet measured outlook in the earnings call.

• Constructive on TAM potential, but notes the face of rising competitive intensity.

• Believe consensus overstates the turnaround and sustainability of profitability.

• Fundamentals don't support $40 billion market cap (120x FY28 EV-EBITDA).