Stock Picks Today: TCS, Britannia, Tata Motors CV, Cyient, Hero MotoCorp And More On Brokerages' Radar

A host of global and domestic brokerages have released fresh views on TCS, Britannia, Tata Motors CV, Cyient, Hero MotoCorp, and more ahead of Thursday's session.

They have also shared their outlook on asset management companies' stocks.

• Maintain Buy with target price of Rs 350

• See high-teens growth in RAM, high-single-digit growth in corporate lending

• Gives confidence on comfortably achieving guided growth

•  Core NIMs to be range-bound; near Q2 levels of 2.76%

• Support from interest on IT refund to drive reported NIMs to 2.85–3%

• Exposure to export-oriented entities at <1%

• Overseas student education loans not showing any stress

• 100–125bps of new ECL norms impact on CRAR partially offset by 50–55bps of positive impact of lower credit risk weights

• Maintain Equal-weight with target price of Rs 2700

• Less Drag on Earnings than Draft Proposal

• Expect impact of 3-3.5 bps on large AMCs

• Think AMCs should be able to pass through 60-70% of this impact to distributors

• See net impact of 1-1.5 bps

• 1.5 bps is 4% of operating profit and 3.4% of PBT for HDFC AMC

• This could be mitigated through further pass-throughs

• SEBI’s Balancing Act on TER is a Relief for AMCs, Brokers & RTAs

• SEBI's final expense caps for mutual funds offer some relief, vis-a-vis the proposal in October 2025

• The 5bps cut in exit load on equity AUMs stays

• Cut in cap on brokerage net of taxes by 260 bps to 6 bps is better than proposal

• Understand that net impact of new changes may be 3-5bps of equity AUMs

• AMCs may compensate this by sharing part of this with ecosystem

• Still, we see this as relief for AMCs, brokers & RTAs

• Sector is now favorably positioned on both bottom-up and top-down factors

• Expectations of a normal summer in CY26 based on early weather forecasts

• Pent-up demand & a low base should aid

• Cost tailwinds – Bureau of Energy Efficiency (BEE) rating linked cost escalation offset by GST cuts

• Expect robust growth in well-off/discretionary categories

• Additionally, within SMID caps, durables remain one of the few attractive pockets post recent correction

• Earnings downgrades behind; inventory largely normalized

• Cyclical industry; valuations re-rating ahead

• Risks skewed to upside; Prefer LG Electronic over Voltas & Havells

• Maintain Outperform with target price of Rs 6800

• Will 2026 be another year of outperformance?

• Expect underlying growth momentum to gather pace in the coming quarters

• GST reduction benefits could be meaningful for the biscuits category

• With larger size packs now in the market should aid volume growth uptick

• Expect much of near-term growth acceleration outlook to be intact

• Expect Revenue/EPS CAGR of 11%/14% over FY25-28

• Initiate Buy with target price of Rs 350

• Crompton 2.0 unlocking potential

• Investing in the transition from tradition to technology

• A renewed focus on revenue growth to drive profitability

• Higher advertising expenses to strengthen brand value

• Earnings and return ratios to improve following a dip in FY26E

• Estimate an EBITDA/PAT CAGR of 17%/21% over FY26-28

• Sharp INR decline of 5-16% against major currencies during CY25 has raised concerns on INR outlook

• Robust fundamentals imply that there's no need to panic

• See low CAD, high FX reserves, weaker DXY and rising gross FDI

• Last 3 months' exports are +4% YoY, despite the 50% US tariffs

• On REER (Real Effective Exchange Rate) basis, INR is 5% undervalued - most undervalued in the last 12 years

• Continue to believe that INR should not further depreciate and should hold the current levels

Morgan Stanley

• Maintain Overweight with target price of Rs 3430

• Highlighted strategic pivot to cover full stack of AI-led services

• Enterprise AI journey still in early stages and TCS will play a key role

• AI to open up addressable market

• Making necessary investments to realize the vision

Jefferies

• Maintain Hold with target price of Rs 3100

• TCS delved deeper into its five-pillar strategy to emerge as the world's largest AI-led tech services firm

• Openness to proactively drive AI adoption

• Growing focus on acquisitions to build capabilities is a step in the right direction

• TCS has seen initial success with AI-engagements contributing $1.5bn in ARR and growing rapidly at 16% QoQ

• TCS maintained its margin aspiration of 26-28%

CLSA

• Final MF norms largely neutral on AMC earnings

• Sensitivity analysis suggests a net TER impact of -2bps to +3bps across AMCs, depending on commission payouts, leaving profitability largely unchanged

Nomura

• Accommodative outcome for AMCs vs draft regulations

• Believe this is neutral to positive for the AMCs

• Believe its impact will be limited to 3-4% of FY27F PBT for AMCs

• The reduction in brokerage caps is much lower than initially proposed

• Maintain Overweight with target price of Rs 1500

• Semis acquisition helps faster scale-up; await more details on the call

• Should help to scale up the semis business at a faster pace

• Valuation is on the higher side compared to the average multiple of 1.9x it has paid for its last three acquisitions

JPMorgan

• Initiate Overweight with target price of Rs 475

• Disciplined India cycle and potential upside from global foray

• Expect a modest recovery in India CV demand, with upside risk in financial metrics

• Iveco should be a value-accretive acquisition

• Forecast FY26-28 EBITDA/EBIT CAGRs of 13%/16%

BoFA

• Initiate Buy with target price of Rs 475

• Proxy on both India & EU truck cycle set for rebound ahead

• Expect 15% EBITDA CAGR FY26-28

• See case for valuation re-rating

• See steady market shares, margin discipline, >35% ROCE & lower regulatory/EV risk

• Iveco to yield equity value accretion

• Iveco Deal done at trough cycle & discount valuations

• Self help program & balance sheet deleveraging to add in

• Downgrade to Underperform from Hold; Cut target price to Rs 4950 from Rs 5550

• Positive on 2W demand outlook

• Recognize that the GST cut driven demand boost has faded in Nov-Dec

• Hero's registration market share, after a seasonal improvement in festive season, has dropped again in Dec

• Stock is up 40% CYTD mainly led by valuation expansion

• Find 20x FY27E PE expensive; prefer M&M, TVS and Eicher in autos