Stock Picks Today: IT Sector, Lenskart, RIL, Hero Moto, LIC And More On Brokerages' Radar
A host of global and domestic brokerages have released fresh views on Reliance Industries, Lenskart, Hero MotoCorp and Life Insurance Corporation of India ahead of Friday's session.
They have also outlined sector trends across state information technology sector.
Jefferies on Lenskart
Initiates 'Buy' rating with a target price of Rs 500.
Lenskart, India's largest tech-driven eyewear retailer with 5% market share, has strong growth potential.
Vertically integrated omni-channel model supports cost efficiency, rapid delivery and better customer experience.
India contributes over 85% of Ebitda while international markets offer additional upside.
Attractive unit economics and quick paybacks should drive over 50% adjusted Ebitda CAGR in financial year 2025–2028.
EPS expected to grow at 44% CAGR.
Balance sheet remains net cash with improving return ratios and free cash flow.
Jefferies on RIL
Maintains 'Buy' rating but raises target price to Rs 1,785 from Rs 1,780.
Earnings growth improving with attractive optionalities.
All three businesses delivering double-digit growth in year-to-date fiscal year 2026.
Jio's upcoming IPO could drive tariff actions in the near term.
FMCG business expected to see value discovery in calendar year 2026.
New energy and data centre partnership with Google add to upside
Stock trades below long-term EV/Ebitda averages, keeping risk–reward favourable
Citi on Hero Moto
Maintains 'Buy' rating and raises target price to Rs 6,900 from Rs 6,100.
Set to benefit from improved motorcycle demand post-GST cuts.
Strong rural exposure supports growth as agricultural income environment improves.
Expects better domestic and export volume growth, higher E2W market share and continued cost control.
JPMorgan on LIC
Maintains 'Overweight' rating with a target price of Rs 1,200.
Product mix shift, margin expansion and diversified distribution support growth.
GST removal likely to boost insurance penetration and density.
Company does not intend to pass on cost benefits to distributors or customers.
Kotak Securities on JSW Infra
Upgrades to 'Reduce' from 'Sell' and raises target price to Rs 270 from Rs 260.
Sees growth visibility but questions long-term sustainability.
Company leveraging group strengths to generate reasonable returns over the next five years.
Recovery in Jaigarh expected through pricing and investment actions to regain Maharashtra market share.
Key concern remains longevity and sustainability of growth.
Kotak Securities on Nuvoco Vistas
Upgrades to 'Buy' from 'Reduce' and cuts target price to Rs 410 from Rs 435.
Strong growth pipeline; recent correction seen as overdone.
West region diversification underway through VCL.
East expansion focuses on protecting market share at lower cost.
Price recovery likely pushed to fourth quarter.
Brokerages On IT Sector
Nomura
Outlook 2026: Revenue growth to improve marginally
AI-related opportunities expected to open over the next 12–18 months.
Margins to improve modestly.
Macro recovery is essential for a sharp revival in discretionary spending; remains selective.
Infosys, Coforge and eClerx are the top picks.
CLSA
2026 outlook: Macro expected to outweigh AI impact
Despite evolving AI narratives, EPS growth remains tied to macroeconomic trends.
Key factors for 2026 include US mid-term elections, tariff base effects and Fed rate cuts.
Some structural headwinds persist.
H1B and India–US trade deal resolution could be supportive.
Valuations remain attractive amid AI-driven deflation and macro volatility.
Prefers Tech Mahindra and Infosys in large caps, and Persistent and Coforge in mid-caps.
Jefferies
IT valuations undergoing a reset; selective opportunities emerging.
Stock performance has closely tracked EPS revisions, with mid-sized IT outperforming.
Growth outlook remains uncertain.
Management commentary points to gradual recovery, risking FY27 consensus expectations.
This may keep PE multiples capped.
Prefers mid-sized firms, with Coforge and Sagility as top picks.
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