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Eternal Ltd., Lenskart Ltd., Hindalco Industries Ltd. and information technology stocks are among the counters that have drawn commentary from top brokerages on Tuesday. Here's a quick look at them:
CLSA on IT Stocks
- EPS growth turnaround may change the narrative not management commentaries.
- Commentary's imply macro upcycle this year with tariff impact as a base
- Stock prices could see another 5-10% downside
- Pecking order of Tech Mahindra and Infosys in large caps
- Prefer Persistent Systems and Coforge in midcaps
- Coforge TP reduced from Rs 2426 to Rs 2278/share (Outperform-High Conviction)
- HCL Tech TP reduced from Rs 1661 to Rs 1506/share (Hold)
- Infosys TP reduced from Rs 1779 to Rs 1653/share (Outperform)
- LTI Mindtree TP reduced from Rs 7067 to Rs 6304/share (Outperform)
- Persistent Systems TP reduced from Rs 8865 to Rs 8058/share (Outperform-High Conviction)
- TCS TP reduced from Rs 3593 to Rs 3333/share (Outperform)
- Tech Mahindra TP reduced from Rs 1810 to Rs 1698/share (Outperform)
- Wipro TP reduced from Rs 231 to Rs 218/share (Hold)
HSBC On Indian IT Services (AI Deflation vs AI Opportunity)
- Expect 14-16% gross deflationary risk from AI over next few years to overall sector revenues (Earlier was 8-10%).
- For pro-active companies other revenue streams should offset this impact and drive mid-single digit growth.
- US provides favorable macro backdrop for IT spends in 2026.
- Indian IT companies-valuations are not cheap in absolute terms but undemanding on relative terms.
Citi On AI Headwinds For Software Exports
- Current RBI data indicates double-digit growth in IT and Consultancy.
- Sensitivity analysis suggests software services sector needs to avoid YoY decline.
- If the decline is avoided-then India will be able to maintain Balance of Payment surplus.
- If there is flat FY27 growth by software services-most BoP surplus of $20 billion may be wiped off.
Jefferies on Lenskart's US-UK non-deal roadshow
- Maintain Buy, target price of Rs 575 per share.
- Long term EBIDTA margins to grow at 25%.
- Built a globally competitive manufacturing backbone.
- Model is conversion led rather than channel-led.
- Overseas operations lift brand credibility and aspirations in India.
Jefferies on Eternal's Mumbai non-deal roadshow
- Maintain Buy, TP Rs 480 per share.
- Akshat Goyal (CFO) struck a confident tone about medium term.
- Food delivery is expected to sustain 20% growth with modest margin expansion.
- Quick Commerce remains attractive through competitions remains intense.
- Blinkit will stay rational, posing some risk to growth.
- Deepinder Goyal's management move was personal decision for new initiatives.
- Management rules out further stake sale or any window-dressing of profits.
JPMorgan On Aluminium
- Remain cautious on the commodity rallies.
- Potential near-term spike in LME A1 prices to $3,200 per tonne (from spot $3,079).
- Hindalco's fair value may increase to Rs 1002 per share and Vedanta to Rs 792 per share.
- Chinese aluminum demand slowing down 2026.
- But pipeline of Chinese backed projects in Indonesia and other country's continue to grow.
- Maintain neutral view for both Hindalco and Vedanta.
Morgan Stanley On Indian Oil Corp
- Maintain Overweight, TP Rs 219/share.
- Believe share price will rise in absolute terms over next 15 days.
- Returned to growth in fuel market share, refinery efficiency and capital allocation.
- EBIDTA will nearly double by FY28 and $20 billion value creation opportunity.
- Gains 250 bps market share on fuels and increases exposure to discounted fuels.
- Captures value on downstream gas operations.
Morgan Stanley On Fluorochemical Industry
- India's R-32 footprint is set to more than double this year.
- See risks to R-32 prices going ahead.
- Likely decline of 25% from last year's peak but still above marginal cash costs.
- Reiterate underweight rating for both Navin Fluorine and SRF.
- But think lower tariffs could help cushion challenges.
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