Check out top stocks under brokerages' radar heading into trade today.
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Brokerages have highlighted opportunities across fintech, industrials, defence and aerospace engineering, insurance, real estate, and hospitality sector issuing fresh calls on One 97 Communications Ltd. (Paytm), Billionbrains Garage Ventures (Groww), ICICI Lombard, Bharat Heavy Electricals, Leela Palaces, Emmvee Photo, Adani Enterprises, Godrej Properties, Tata Power, Bharti Hexacom, Tata Technologies, Indostar, Dhoot Transmission while also sharing their outlook on FMCG, IDBI Bank deal alongside a broader view on India strategy.
Kotak Securities on Groww
- Maintain Buy with TP of Rs 245
- Strength in diversity
- Earnings surprise led by diverse revenue drivers and lower costs
- Broking: CAS weighs on derivatives; MTF and commodities fill the gap
- Platform metrics continue to reinforce conviction.
Macquarie on Groww
- Maintain Outperform with TP of Rs 260
- Q2: Steady quarter; thesis intact
- Slight beat in the quarter drive by MTF and credit
- Lower customer acquisition cost due to no IPL related spend
- Market shares largely flat across segments.
Jefferies on Groww
- Maintain Buy with TP of Rs 240
- Q2 Results: Beat Led By Better Realization; Adding New Growth Levers
- Q2 saw higher cash equity revenues and lower opex.
- Revenue diversification continued with options revenue share falling below half
- US stocks, now being tested, could add 9% to FY28 PAT
- SEBI's resolution of CAS-related issues could accelerate Q3 EPS growth
- MTF risk measures mitigated the recurrence of one-off costs
Jefferies on ICICI Lombard
- Maintain Buy with TP of Rs 2050
- Much-Awaited Loss Ratio Surprises Positively
- Q2 loss ratio of 72.7% was lower than estimates
- ICICI Lombard indicated that additional provisions related to the Supreme Court judgment are unlikely
- H2FY27 growth commentary was positive
- See benefits from commission regulations.
HSBC on ICICI Lombard
- Maintain Hold; Hike TP to Rs 1820 from Rs 1741
- Sharper-than-expected improvement
- Q2FY27: Beat was driven by higher retention rates and investment income
- Core-combined ratio was stable YoY
- Regulatory overhang increases risks
- Stock seems well placed to outperform peers, but we think valuations reflect this comfort.
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Nomura on Paytm
- Initiate Buy with TP of Rs 2250
- Riding India's digital payments highway
- From regulatory shock to structural rebound
- Core Payments business and Merchant Lending likely to drive revenue growth
- Building a leaner, indirect cost base: AI, scale, and disciplined marketing
- Unlocking next leg of growth: UPI merchant discount rate (MDR), international expansion, AI
JPMorgan on BHEL
- Maintain Underweight; Hike TP to Rs 262 from Rs 220
- Strong P&L but very weak order inflows in Q2
- Very weak order inflow in 2QFY27 was surprising
- Past track-record of unprofitable execution warrants caution
Jefferies on BHEL
- Maintain Underperform; Hike TP to Rs 335 from Rs 270
- Gross margins improve – sustainability key
- Key concern has been the aggressive industry pricing on power equipment seen till end CY24
- Concerned on sustainability of gross margin improvement till H2FY28.
CLSA on BHEL
- Maintain Underperform with TP of Rs 351
- Q2FY27: Inflows weaken; execution pick-up drives profit
- Backlog built, but growth halved and pipeline peaked
- Frothy valuation from momentum while the core market is peaking
CLSA on Indostar
- Initiate Outperform with TP of Rs 310
- A new beginning
- Turnaround story at attractive valuations
- Asset quality improving as legacy issue is addressed
- AUM to double in three years; opex and NIM further tailwinds
- Returns set to improve
JPMorgan on Tata Tech
- Upgrade to Neutral from Underweight; Hike TP to Rs 660 from Rs 545
- Q2 print – services revenue beat, margins miss
- FY27 organic guide of strong double digit maintained
- Margins should expand from here
Nomura on Bharti Hexacom
- Initiate Buy with TP of Rs 1870
- De-rating overdone; tariff hike to revive sentiment
- Among most levered to likely tariff hikes
- Pure-play mobility model justifies valuation premium
- Premium operator in under-penetrated Rajasthan/ North-East markets
- Pure-play wireless mobility operation implies limited capital allocation risks
- Superior RoCE; potential for progressively higher shareholder returns.
GS on PTC Industries
- Maintain Buy with TP of Rs 25770
- Safran repeat order strengthens PTC's position in global aero-engine supply chain
- MoU establishes a pathway towards long-term serial production following qualification
- Repeat orders increase the potential for additional component wins and higher wallet share with Safran over time
MS on Leela Palaces
- Maintain Overweight with TP of Rs 729
- Impressive quarter, higher for longer thesis at play
- Ex-BRICS summit, ARR growth was in the high teens.
- Remains on track for high double-digit RevPAR growth in Q3 and noted upside risk to earlier FY27 EBITDA guidance
- Multiples look attractive given its luxury portfolio and strong execution.
CLSA Price Action – Laurence Balanco
- Combination of support at the lower boundary of the 2024-to-date trading range at 21,700–22,182
- September/October price/momentum divergence suggests that the selloff from the August highs is becoming mature and increasingly vulnerable to a reversal
- This sets up for another cyclical rally within the broader 21,700–22,182 to 26,000–26,300 trading range, similar to the opportunities seen at the March 2025 and April 2026 lows
- Initial resistance is at 23,070, followed by the confluence of the 50DMA and 200DMA at 23,654–24,183
- Formed the outline of a double bottom around the July/October relative lows, coinciding with additional support from the 2020 relative lows
- This suggests that India is beginning to form a relative base versus the broader EM benchmark
- India is showing early signs of a cyclical bottom, both in absolute and relative terms
- Combination of major range support, improving momentum and potential double-bottom formations argues for a more constructive tactical stance
- Break above the 50DMA/200DMA resistance zones would provide more decisive confirmation that the basing process is transitioning into a renewed cyclical rally.
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Jefferies on Emmvee Photo
- Maintain Buy; Cut TP to Rs 430 from Rs 440
- Q2 Inline; Strong Volume Growth
- Order book rose +5% QoQ with strong visibility of revenue/EBITDA over H2FY27-28
- Working capital expanded and borrowings rose as cell capacity expansion is underway
- Broadly maintain estimates and project 33% EBITDA CAGR over FY26-29.
Jefferies on IDBI Bank Deal
- Fairfax Group's purchase of 61% stake in IDBI Bank reiterates theme of Changing Faces of Indian financials
- This is 9th in recent years
- IDBI has 1.2% market share in loans
- This is a secondary market transaction, accretive to India's fiscal & forex, at 10% disc to mkt price, and will lead to an open-offer
- Fairfax also owns stake in CSB, IIFL & Go Digit
- Will keep attrition level in the industry relatively high and may keep their competitive positioning quite dynamic
- CSB & IDBI Bank Merger Deal metrics – 4 IDBI shares for 1 share in CSB.
Nomura on Dhoot Transmission
- Initiate Buy with TP of Rs 1800
- Well positioned to benefit from EV adoption and premiumization
- Expanding 2W wiring harness leadership into EV components and more segments
- Localization push should support margins
- India's EV demand at an inflection point, capable suppliers to be key beneficiaries
- Expect Dhoot to deliver a 27% revenue CAGR over FY26-29
- EBITDA margins stable at ~15.2%-15.7%, leading to strong 28% EPS CAGR
- Believe valuation is attractive given its robust RoIC and structural demand tailwinds in EVs
IIFL on Adani Enterprises
- Initiate Buy with TP of Rs 3282
- FY27 is a turning point as recently commissioned projects start contributing
- Airports - core of our valuation; newer verticals offer optionality
- Well positioned to benefit from diversified and emerging capex themes - airports, data centers, energy transition, copper
- Expect revenue/Ebitda Cagr of 22%/35% over FY26-29
MS on Godrej Properties
- Maintain Overweight with TP of Rs 2500
- Believe the share price will rise over the next 60 days
- Expect 2QFY27 pre-sales to broadly match the strong base of Q2FY26 and come in ahead of market expectations
- This would take H1 sales to 44% of its FY27 target
- Continue to see healthy project level sales momentum
GS on Tata Power
- Maintain Sell; Hike TP to Rs 305 from Rs 300
- Expect PAT growth to moderate from 18% in FY27E to 15% CAGR over FY27E-30
- High margins in upstream solar manufacturing to normalize with potentially easing cell shortages
- See competition increases in rooftop solar, partly offset by growth in regulated assets, TBCB and PSP
- Risk reward remains less favorable.
GS on FMCG
- FMCG earnings growth has accelerated, but investors have concerns about sustainability in H2
- Three headwinds concerning investors —1) rural demand post weak monsoons, 2) further inflation in input costs, and 3) high base from GST rate cut
- Vulnerability varies significantly across companies
- Marico and Tata Consumer have the lowest risk
- Dabur, Colgate, Emami, Britannia and HUL have a relatively larger share of rural revenue
- Gross margin risks could emerge for companies like Britannia and GCPL's India business
- Varun Beverages could also face gross margin headwinds
- Emami, HUL, GCPL, Colgate, Marico and Dabur face a modestly high base effect in Q3.
HSBC India Strategy - Herald van der Linde
- India equities: Improving conviction, some caution
- Investors are more open to non-AI stories
- India offers diversification and valuations have become more reasonable
- Macro headwinds still matter
- Higher bond yields and elevated oil prices continue to limit foreign investor enthusiasm
- Financials provide the best risk-return
- Also like industrials for their growth opportunities
- Forecast FY27 earnings growth of 11-12% YoY
- More selective in the consumer space, and favour selected discretionary, retail, and auto names over staples
- Valuations look more reasonable, with the Nifty 50 trading at 16x forward PE – a level reached only twice in the past decade.
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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