Stock Picks Today: ITC, Ashok Leyland, ITC Hotels, Indus Towers On Brokerages' Radar

ITC Ltd., the Indian semiconductor industry, Ashok Leyland, the electric vehicle sector, ITC Hotels, Aavas Financiers, Indus Towers, and the metal sector are the focus of brokerage commentary today.

Analysts are weighing in on key themes, including the impact of a potential GST meet, India's push in semiconductors, and the outlook for various companies.

• Maintained Buy with a target price of Rs 535.

• Jefferies expects the upcoming GST meet to provide clarity on the compensation cess, which is currently creating taxation uncertainty for the stock.

• The brokerage believes that a revenue-neutral outcome would be a relief for the company.

• Recent stock pressure is attributed to the taxation uncertainty, as well as concerns about the BAT stake overhang and the rise of the Marlboro brand.

• Macquarie expects government funding to accelerate the build-out of India's semiconductor supply chain and ecosystem, from chemicals to equipment.

• The conference saw a significant increase in attendees and exhibitors compared to the previous year.

• Alpha and Omega Semi (power semi) has allocated 60% of Kaynes' OSAT capacity, and AOI Group is transferring 2.5D and 3D packaging technology to Kaynes.

• Bharat Semitech is noted as India's first semiconductor equipment company, aiming to become India's equivalent of Naura Tech. The next catalyst for the sector is the launch of ISM 2.0.

• Morgan Stanley's take from the conference is that India is "ready to become a full stack semiconductor nation" and that AI remains one of the strongest growth drivers for the industry, which is expected to grow to a US$1 trillion market by 2030.

• ISM 2.0 is the second phase of the India Semiconductor Mission, focusing on supporting the entire semiconductor ecosystem, including equipment and material manufacturers, and not just chip fabs.

• Maintained Overweight with a target price (TP) of Rs 144.

• Ashok Leyland's partnership with CALB reflects a "step-by-step approach" to the transition to low-emission technologies.

• The brokerage expects the commercial vehicle (CV) sector to gradually move toward these technologies, with EVs potentially capturing a sizable share in buses and light trucks.

• A "long-term plan" is necessary for businesses to build a learning curve around the battery ecosystem, especially as battery cell import duties may increase.

• CLSA provided a view on the potential impact if the GST rate on EVs were to be increased from 5% to 18%.

• It believes that EV consumers in the Rs 2 million and above price range are relatively price-inelastic.

• A price increase of 11-12% would likely have only a "transitional impact" on demand.

• However, CLSA believes an increase in the GST rate is unlikely, given the government's target of increasing EV adoption to 15-20% over the next two years. Such a tax hike would decelerate this adoption.

• Initiated coverage with an Add rating and a target price of Rs 271.

• The brokerage notes that ITC Hotels is "riding the upcycle" on brand strength and diversification.

• The company is described as one of India's hospitality giants with a multi-brand architecture, anchored in a luxury portfolio, but with its mid-premium segment serving as the key growth lever.

• Axis Capital expects medium-term growth to be driven by RevPAR (Revenue Per Available Room) and higher management fees.

• The brokerage cautions that with a 15% Ebitda CAGR over FY25-28, its growth will be lower than peers like Indian Hotels.

• Maintained Buy with a target price (TP) of Rs 2350.

• Citi sees "stabilization underway" and "recovery in sight."

• There are visible signs of disbursement normalization, and operating metrics are likely to have bottomed out in Q1.

• The brokerage advises to "buy the dips" as it expects a gradual recovery.

• Maintained Buy with a target price (TP) of Rs 460.

• Citi finds the valuations attractive in a regional and local context and believes "growth concerns appear overdone."

• It expects strong FCF (Free Cash Flow) generation to support future payouts, despite a temporary delay.

• Any government relief for VodaIdea could trigger a positive chain of events, enabling Indus to reinstate dividends.

• CLSA believes the "worst looks behind" for the metal sector, but the focus remains on capacity cuts in China.

• In China, steel is at the forefront of "anti-involution" efforts.

• Indian prices are at a discount to import parity.

• CLSA continues to prefer the non-ferrous metals, specifically aluminum, due to its tighter demand-supply balance.

• It favors Hindalco and Vedanta within the sector.