Stock Picks Today: Tata Steel, M&M, PNB, Kaynes Tech, IndiGo On Brokerages' Radar
Tata Steel Ltd., Mahindra & Mahindra Ltd., Punjab National Bank, Kaynes Technology India Ltd., and IndiGo are among the companies garnering brokerage commentary
Tata Steel Ltd., Mahindra & Mahindra Ltd., Punjab National Bank, Kaynes Technology India Ltd., and IndiGo 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, broadly based on the first quarter financials that the players have put out. Here are the key analyst calls to watch out for today:
On Tata Steel
Macquarie
Maintained Outperform; target price of Rs 181.
Q1: Domestic inline; EU surprises positively.
EU margins helped by higher steel prices.
Capacity ramp-up to aid volume growth.
CLSA
Maintained Hold; Target price of Rs 155.
Q1 largely in line.
High standalone realizations offset by Rest of World losses.
Achieved Rs 2900 cr in cost takeouts in Q1 Vs guidance of Rs 11500 cr in cost reductions through FY26.
Europe improved to profitability mainly due to reduced losses for the UK.
JPMorgan
Maintained Overweight; Target price of Rs 180.
Q1 - Healthy beat, Europe turns EBITDA positive.
All eyes now on Q2 guidance.
Don’t see any negatives from the Q1 earnings print.
Investec
Maintained Hold; Target price of Rs 740.
To acquire Iveco (excl. defense) for $4.5bn.
Another rickety ride in the offing.
Acquisition sizeable and expected to have positive implications on PAT.
This acquisition is margin dilutive and would also have lower growth prospects vs TAMO’s India operations.
Outlook for the European CV industry is subdued, implying muted growth outlook for Iveco.
Overall, not enthused by this acquisition.
On M&M
Morgan Stanley
Maintained Overweight; price target of Rs 3,668.
Q1 - In-line; 2026 & Beyond Pipeline in Focus.
M&M confident of achieving mid to high teen UV growth guidance in FY26.
August 15th platform launch and Analyst day in November are key to track.
Could give confidence on M&M sustaining in-line to ahead of industry growth.
Citi
Maintained Buy; cut Target price to Rs 3700 from Rs 3810.
Q1 Ebitda Marginally Below Estimates.
Higher Other Income and Lower Depreciation Boost PAT.
See some concerns regarding rising commodity price pressures, particularly in steel and precious metals.
On Punjab National Bank
Morgan Stanley
Maintained Underweight; price target of Rs 100.
Good asset quality; core PPoP miss.
Credit costs negative 17bps helped deliver RoA of 0.4%.
Core PPoP margins, however, continued to moderate.
Think RoA will remain low in F27 and beyond.
On Kaynes Technology
Morgan Stanley
Maintained Equal-weight; target price of Rs 6,155.
Q1: Margin beat on favorable mix.
PAT beat led by stronger Ebitda margins, higher other income, and lower tax rate.
JPMorgan
Maintained Overweight; Target price of Rs 7150.
Mixed print as revenue misses while EBITDA beats.
Strong growth in Industrial, Medical, IoT/IT.
Acceleration in Railways growth to 17% vs avg of -2% in the last 4 quarters.
Order book growth healthy at 47% YoY but lower than the avg of 60% in the last 4 quarters.
On IndiGo
Morgan Stanley
Maintained Overweight; target price of Rs 6,502.
Impressive Performance in a Turbulent Quarter.
Q2 will be muted but expect strong Q3 for Indigo, thus should support outperformance.
See scope for multiple re-rating.
Domestic industry market shares have consolidated.
International is a profitable growth opportunity for Indigo.
Goldman Sachs
Maintained Buy; Target price of Rs 6000.
Q1: Cost-driven beat.
Lower capacity growth in Q2 reflecting weak demand.
Yield and daily traffic trajectory improving from here will be a key monitorable for near-term.
Believe the longer-term story of Indigo being well-positioned to grow its international operations.
On Avenue Supermarts
Goldman Sachs
Maintained Neutral; hiked Target price to Rs 3450 from Rs 3400.
Store expansion to accelerate.
Acceleration will lead to margin pressures, negative free cash flows, and increasing debt.
Not planning to pivot their e-commerce to quick commerce.
Focus on improving store experience, but that is leading to higher store costs.
Private label scale up will take time.
On IGL
Nomura
Maintained Neutral; Target price of Rs 210.
Q1 miss on soft margins and volumes.
Margin impacted due to revised rates of trade margins being paid to OMCs.
On Navin Fluorine
Jefferies
Maintained Buy; hiked Target price to Rs 6025 from Rs 5280.
Q1 Review: Refgas Led Beat; Strong Earnings Growth Visibility.
Focus on monetizing Rs 2000 cr of capex commissioned in past 3 yrs by entering into LT contracts.
See improved asset turns and 36% EPS CAGR over FY25-27E.
Have upgraded FY26/27E PAT 16%15%.
