Stock Picks Today: Pharma Stocks, IndusInd Bank, HUL, Delhivery, Pidilite, United Spirits On Brokerages' Radar

Pharmaceutical stocks, IndusInd Bank Ltd., Hindustan Unilever Ltd., Pidilite Ltd., Vishal Mega Mart Ltd., Marico Ltd., and Unite Spirits Ltd., are among the companies garnering brokerage commentary today.

Analysts have shared their insights and, in several cases, revised their target prices based on their updated fundamental outlooks for these firms. Here are the key analyst calls to watch out for today:

Morgan Stanley

• Upgrade to Equal-weight from underweight; Hike target price to Rs 785 from Rs 750

• Stock trades at 0.8x FY27e book value, which is fair in the context of good CET-1 and strong LCR

• There is management clarity post new CEO appointment

• Expect coverage build-up in FY26 driving EPS cut

• RoA outlook is unchanged at 0.85%/1.0% in FY27/28 vs. 0.3% in FY26

Morgan Stanley

• Q2 preview: Lack of clarity on FY27 outlook to prevail

• Key investors concerns include a lack of any growth acceleration in FY27 and de-rating of tech services globally

• Think Q2 could help confirm business stability, but believe it may be too early to get firm signals for FY27

• Near-term growth trends expected to be stable, with limited clarity around acceleration

• Revenue guidance band could be tightened

• Expect Infosys to move from 1-3% to 2.5%-3% YoY in cc terms for FY26

• Currency to help margins in Q2, but FY26 outlook unlikely to change despite favorable currency trends

BofA

• Maintain Neutral with target price of Rs 500

• Strong momentum heading into festive season

• Lower competition also helps

• Delhivery momentum strong; 3PL competition now lower

• Express yields: Stable in near-term; to inch up going ahead

• Initial upfront costs, demand shifted back due to GST cuts

Morgan Stanley

• Government focus on improving market caps for the energy SOEs was clear

• Policy direction is less interventionist with heightened focus on quality of capex and unlocking value

• Management term are being looked at to be more medium- to long-term

• Cross-holding reduction among SOEs

• Stable fuel pricing; cooking gas in recovery

JP Morgan

• Maintain overweight with target price of Rs 1,700

• Positive demand narrative

• A resilient diversified portfolio at play

• Double digit growth aspiration intact in FY26

• Multiple levers in place to strengthen diversified portfolio

• B2B segment on a good footing

• Distribution and higher throughput/store enhancement

Goldman Sachs

• Limited earnings impact on coverage, SUN Pharma to see higher impact

• Generic/biosimilar drugs savings significant

• Sun’s Specialty portfolio likely to be the most impacted

HSBC

• US tariffs: headline risk for Sun Pharma, though earnings impact may be limited

• Among Indian companies, only Sun Pharma has sizeable sales from patented drugs in the US

• Await clarity on tariffs flows but expect limited impact

• 8-10% risk to FY27e EPS for Sun in worst case scenario

CLSA

• Indian steel stocks have defied expectations, despite consistent earnings downgrades

• Divergence is primarily driven by investor optimism surrounding a potential recovery in China and resilient domestic demand

• Market expectations of a rebound can delay valuation corrections even amid estimate cuts

• Chinese steel spreads at multi-quarter lows and Indian steel prices trading below import parity

• Investors appear to be positioning for a margin recovery led by price improvements

• Structural caution remains, despite elevated valuations, immediate downside catalysts seem limited

JP Morgan

• Maintain Overweight with target price of Rs 158

• CEO meeting reassures on sustaining high growth delivery with disciplined operational approach

• Robust revenue growth outlook

• Aggressive but disciplined store expansion strategy

• Private brands are central to growth strategy

JP Morgan

• Maintain overweight with target price of Rs 800

• Future proofing with active portfolio diversification

• Stable demand trends prior to Sep

• Digital brands scaling up well

• Foods - attractive long runway for growth

BofA

• Maintain Buy with target price of Rs 1,630

• Finding opportunity in adversity

• Recent concerns seem overdone

• Negatives adequately priced in; Fundamentals good

• Future-proofing the business with many bottom-up efforts

BofA

• Maintain neutral with target price of Rs 2,840

• GST transition impact near-term

• Gradual recovery likely thereafter

• Unexciting quarter; Commentary key

Jefferies

• Maintain buy with target price of Rs 3,000

• De-stocking due to GST rate cuts

• Q2 revenue growth is likely to be flat-to-low single digit

• Impact would also continue in October basis current pipeline inventory

• Recovery expected from November

• Expect the impact to be similar for other FMCG firms too during Q2

• In the medium term, this should spur demand and help boost volume growth

• Q3 should be much better

• Revenue growth may also be negatively impacted for retailers, incl. quick commerce

Morgan Stanley

• Maintain equal-weight with target price of Rs 2,335

• Consolidated business growth to be flat to low single digits - below market expectations

• Believe releasing its first-ever post-quarter update is is a good change from the market leader

• GST rate cut benefits passed on through higher value and competitive pricing across a wide range of products

Jefferies

• Interaction with India's Minister of Petroleum

• Minister addressed issues that affect valuations of PSU Oil & Gas cos

• Clarity on pricing reform in crude oil & LPG under-recovery compensation was well received

• Upstream earnings closely align with market price of crude/natural gas

• Govt preference for sticky pump prices of petrol/diesel will keep marketing margins volatile

• Capital efficiency & opex reduction are in focus

• Believe prioritising IPO/demerger of valuable subsidiaries could unlock value

Morgan Stanley

• Demand trends in Q2 to the second week of September were weak, affected by monsoons and floods in some regions

• Part of western region has seen a pickup post Shraddh

• Dealers, in general, are hopeful of a strong festive demand in October

• Competitive intensity in paints is unchanged vs. last quarter

• Higher discounts and increased competitive intensity are evident

• Breadth of product availability continues to improve for Birla Opus

• Inter-dealer competition is rising

Morgan Stanley

• Expect earnings to beat in the next couple of quarters

• Expect RBI to remain dovish, more reforms from the government, and a likely trade deal with the US

• YTD underperformance makes a potential rally a significant pain trade for foreign investors

• Domestic bid could get stronger but foreigners may still be able to buy

• Positive – underperformance, better relative valuations, weak FPI positioning, shorts in the derivatives market, and improving growth momentum

Morgan Stanley

• Maintain overweight with target price of Rs 1,300

• SC upholds acquisition of BPSL; a positive development

• Removes a major overhang for JSW Steel

• Expect this development to support the stock price