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Tata Motors Ltd., Baja Finance Ltd., Kansai Nerolac Paints Ltd. and HCLTech Ltd. are among the stocks that have drawn commentary from top brokerages on Friday. Here's a quick look at them:
Bernstein on Bajaj Finance
- Maintain Underperform; Hike TP to Rs 840 from Rs 750.
- Key near-term concern of elevated credit costs has eased for Bajaj Finance.
- Potential for gains from the sale of their stake in Bajaj Housing provides near-term profitability buffers.
- Long-term concerns on the steady-state earnings growth and the resultant valuation remains.
CLSA on Tata Motors CV
- Initiate Outperform with TP of Rs 673.
- Entering a sweet spot of cyclical upswing.
- Just at the beginning of current domestic CV upcycle.
- Iveco operations to benefit from emission norm changes in CY27 and CY28.
- Consolidated cashflows strong enough to result in lean balance sheet by CY28.
ALSO READ: Bajaj Finance Plans Massive AI Expansion, Eyes 5x Jump in Call Processing By Next Year
Brokerages On Kansai Nerolac Paints
Macquarie
- Maintain Neutral with TP of Rs 220.
- Focus on industrial-led sales growth.
- Targeting profitable growth led by industrial and auto.
- On track to achieve mid-term plan.
- No plans to divest decorative.
- Innovation-led growth in auto coatings.
- Plan to make non-auto industrial the third pillar of growth.
Morgan Stanley
- Maintain Underweight with TP of Rs 191.
- Focus remains on accelerating growth in Non-Auto Industrial, enhancing offerings in auto and stabilizing decorative.
- 5-year decorative growth outlook is 2-4%, as per the company's presentation, with management prioritizing profitability.
- In Auto, the company has seen 300 bps market share improvement over the last 3 years.
- Remains optimistic on the near and long-term outlook.
- Non-Auto Industrial is a major focus area with powder coatings and liquid performance coatings the key focus.
- Margin improvement to be driven by premiumisation and operational efficiencies.
Jefferies on HCLTech
- Maintain Hold with TP of Rs 1390.
- Management in investor meetings highlighted that AI could drive 30-40% effort savings in application services.
- HCL's lower exposure to this should limit the annual impact to 2-3% on growth.
- HCL is not only aiming for wallet share gains but is also scaling new areas with multibillion-dollar potential.
- As operating models shift, revenue growth could outpace employee growth by 4-5%.
Bernstein on PB Fintech
- Maintain Outperform with TP of Rs 2200.
- Think commission regulation risks are now being priced in.
- See downside risks only from drastic reduction in take-rates (less likely in our view).
- Think the AI disruption debate for PB Fin is more nuanced.
- Do not think AI-wrappers selling insurance are a risk.
- PB Fin is best placed to build such a wrapper, and they should.
- Do think futuristic agentic commerce is a risk, but views tilt towards PB Fin's health and term businesses are defensible.
- PB Fin needs to lead the industry in their AI efforts to maintain its moat.
Goldman Sachs on India Industrials
- Target for asset monetization in NMP 2.0 is more than 2.5X the target from the 1st plan looks ambitious.
- Spans across multiple sectors of roads, logistics, power, railway - important is execution on such large scale monetization.
- If executed, this augurs well for Infrastructure spending in India where funds can be recycled.
- Bodes well for cement, EPC contractors and capital goods companies.
- Positive as the key investor questions have been around funding for new infrastructure capex in India.
- L&T should see improved growth in a scenario the funds realized from this assets monetization is re-deployed towards new asset creation.
JPMorgan on Infra and Capital Goods
- Government unveils ambitious Rs 16.7 lakh crore monetization pipeline underlines the Government's commitment to infrastructure capex.
- NMP 1.0: Strong Foundation with 89% target achievement.
- NMP2.0 Allocation : 43% to central government, 39% as private investment.
- Sectoral Composition: roads, power, ports and railways dominate.
- PSU Participation: Major entities driving monetization.
- View NMP 2.0 as a strong statement underlining the Govt' ambitious program for infrastructure creation in India.
- L&T is a key beneficiary and top pick in the space.
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