Stock Picks Today: L&T, Sun Pharma, SBI Life, Eicher Motors, And More On Brokerages' Radar

Brokerages have spotlighted opportunities across capital goods, insurance, mining, automobiles, and pharmaceuticals, with fresh calls on L&T, Sun Pharma, SBI Life Insurance, Eicher Motors, and Samvardhana Motherson, alongside their views on the cement and steel sectors and auto sales trends.

GS on SBI Life

• Maintain Buy with TP of Rs 2235
• Regulatory overhang on commissions remains, but SBI Life appears relatively insulated
• Management does not expect material disruption to the bancassurance model
• Growth guidance remains around 14%–15% on Individual APE
• Protection growth is not viewed as merely GST-led
• Margin outlook should be supported by mix shift and operating leverage, despite GST pressure
• Agency remains a medium-term growth lever, but execution is key
• Credit life bundling concerns appear limited for SBI Life

Citi on L&T

• Maintain Buy with TP of Rs 4650
• Robust Order Inflow Momentum Strengthens Medium Term Visibility
• Order wins strengthen visibility further
• Remains positioned for an execution recovery
• Reasonable valuations.

HSBC on Coal India

• Maintain Hold with TP of Rs 440
• Volume growth finally picks up
• Strong volume growth in August, dispatch growth picks up after 2 years of weak growth
• Strong power demand, and weak hydro generation creates strong thermal and hence coal demand
• Coal Inventories are at 3-year lows and regional coal price surge should drive E auction prices higher

UBS on Coal India

• Maintain Buy with TP of Rs 550
• Higher offtake and e-auction premium in August 2026
• Coal offtake up 6% YoY, though lags 13% YoY growth in power demand
• E-auction premium increased amid strong demand.

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GS on Eicher Motors

• Maintain Buy with TP of Rs 9400
• Demand visibility supporting steady capacity addition
• International business becoming margin neutral
• Eicher indicating broadening of customer base from formal workforce to informal & rural demand
• Management believes commodity may normalize and can raise prices later if it doesn't

HSBC on Sun Pharma

• Maintain Buy with TP of Rs 2120
• MFN deal removes tariff overhang for two years for Sun
• See limited impact of 2% on FY29 EPS estimate, and we wait for further clarity
• Tariff concerns eases

MS on Sun Pharma

• Uncertainty around tariffs has been an overhang, which is reduced
• Agreement delays Section 232 tariffs on Sun's innovative pharma products for over two years
• MFN related pricing adjustments could have some impact, which needs monitoring
• Medicaid is a small part of SUN's U.S. innovative sales, so earnings impact will be limited

Bernstein on Sun Pharma

• Maintain Outperform with TP of Rs 2235
• Agreement is strategically important because it both protects and expands Sun's $1.2-1.3bn innovative-medicines franchise
• Timing is particularly important for Ilumya ahead of its October 29 PDUFA date, but the agreement extends well beyond a single product
• More than two years of Section 232 tariff protection also safeguards margins across Gx portfolio and future Organon driven rollouts.

Jefferies on Cement Sector

• Cement: Pricing Softens, Volume Momentum Intact
• Cement prices were down 1% MoM in Aug amid monsoon-led weakness
• However, demand remains healthy, sustaining the 7-8% YoY industry growth
• East region saw the highest correction after outperforming other regions last quarter
• Currently factor in a 1% QoQ Industry price decline in Q2 & recovery in Q3
• Any deeper correction from current levels could pressure profit estimates
• East - price hike attempts rolled back, with another hike attempt likely in September
• West - Rs20/bag hikes were attempted in Aug but did not sustain; a further Rs20/bag is planned from 10th Sept but unlikely to sustain
• North - price increased by ~Rs10-20/bag in the middle of the month but reverted later on
• Central - Dealers in the region were optimistic on price increases in Sept, with a few stating Rs20/bag kind of hike announcements.
• South - Volume growth in the region has been strong, but Cement pricing has failed to see an uptick; companies continue to attempt new rounds of hikes in September.

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JPMorgan on Steel

• Cost pressures persist; reiterate being selective
• Domestic HRC prices have started increasing now, spreads are largely flattish
• Surprised by the sharp rally in SAIL
• Recent cost escalation is likely to weigh on its profitability, given its higher coke rate vs. peers
• Expect steel prices to be range-bound for now and anticipate a gradual recovery in spreads after the festive season
• JSW Steel remains preferred pick

GS on Samvardhana Motherson

• Maintain Neutral with TP of Rs 158
• Steady momentum in consumer
• Aerospace order backlog has expanded from $1.2bn in FY24 to $1.9bn as of date
• 3 recent acquisitions to contribute Rs 20000 cr
• Targeting standalone listing for 1-2 mature verticals over the next 3-4 years

Citi on Auto Sales

• Aug'26 Sales: YoY Trends Supported by Weak Base
• Channel Stocking Delayed Due to Shift in Festive Season
• Maruti: YoY volume growth healthy but not commensurate with the capacity
• Hyundai: Steady volume growth
• M&M: Strong UV volumes; modest growth in tractors
• Tata Motors PV: Another month of strong volume growth
• Tata Motors CV: Strong growth trends
• Ashok Leyland: Healthy volume growth
• Eicher Motors (Royal Enfield): Healthy RE volume growth

Jefferies on Auto Sales

• Demand Momentum Continues in August
• Auto demand momentum remained strong in August for 2Ws, PVs & trucks with registration up 24-29% YoY
• However, tractors grew just 3% YoY
• Estimate that domestic wholesales grew ~36-43% YoY for PVs & trucks, and ~10% for 2Ws & tractors
• August wholesales were in-line for Maruti, Hero Moto & HYUNDAI, and ahead for the rest.

CLSA Price Action – Laurence Balanco

• Outlook for the Nifty remains largely unchanged
• Price action continuing to consolidate beneath both the 200DMA and the June-July highs at 24,515-24,801
• Prolonged period of indecision reflects the lack of clear directional leadership within the large-cap universe
• Leaves the index trapped within the broader trading range that has been in place since the October 2024 peak
• Longer-term range is defined by support at 21,700-22,182 and resistance at 26,000-26,300
• Until either boundary is decisively breached, the path of least resistance is likely to remain sideways
• Beneath the surface, however, market breadth remains considerably more constructive
• NSE Midcap and NSE Smallcap indices continue to display significantly stronger technical profiles than their large-cap counterparts
• NSE Midcap Index remains in a well-defined uptrend following its breakout from the 2024-2026 trading range
• A development that continues to support an upside objective of 77,700-78,000
• NSE Smallcap Index breakout remains intact and continues to support an upside target of 25,000.

Disclaimer: The views and opinions expressed by the investment advisers on NDTV Profit are of their own and not of NDTV Profit. NDTV Profit advises users to consult with their own financial or investment adviser before taking any investment decision.

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