Brokerages remains constructive on opportunities across IT, Pharma, eyewear and EMS sector and has issued fresh views on IT major TCS, a pharma player Dr. Reddy's Laboratories, a EMS provider Dixon Technologies, an eyewear company Lenskart.
Axis Cap on TCS
- Maintain Buy; Cut TP to Rs 2500 from Rs 2520.
- Q1 – A glimmer of hope – strong hiring, BFSI growth revival.
- Good growth in BFSI and Hi-Tech offset by sharp decline in Consumer vertical.
- Management's comments suggest broad-based improvement in Q2FY27.
- Hiring and wage hikes the strongest since FY23 => growth pickup is likely.
Kotak Securities on TCS
- Maintain Buy with TP of Rs 2450.
- A solid operator in a difficult transition.
- Muted quarter, marginally ahead of expectations.
- Order bookings remain steady yoy; includes a mega deal.
- AI-linked deflation and macro headwinds will limit near-term recovery for TCS.
- TCS is doing its bit, but it is being pulled down by weight of headwinds.
GS on TCS
- Maintain Buy; Cut TP to Rs 2370 from Rs 2410.
- Subdued but in line quarter.
- TCS believes demand could see an improvement starting in the Sep ‘26 quarter.
- Management continued to sound upbeat about the forward outlook.
- Headcount adds suggest no material AI-driven impact to the business model yet.
JPMorgan on TCS
- Maintain Overweight with TP of Rs 2400.
- In-line print, with some hope of a Q2 recovery.
- Q1 print - minor rev beat led by India, in-line margins.
- TCS is optimistic on demand resuming in Q2.
JPMorgan on Dixon Tech
- Maintain Overweight; Hike TP to Rs 16700 from Rs 14300.
- Vivo JV finally approved.
- Increase mobile volumes by 11 million in FY27 and 22 million each in FY28/29.
- This drives a 24-39% upgrade to revenue estimates over FY27-29E and 13-18% EPS est upgrade.
- Dixon is back to being a high growth stock for the next 2-years.
- FY27 mobile volume guidance will be raised.
- Margin dilutive but ROCE accretive.
JPMorgan on Lenskart
- Initiate Overweight with TP of Rs 635.
- A Vision for Compounding.
- A formidable, disruptive model set to capture accelerated share in an attractive market.
- International: A compelling second growth engine.
- Operating leverage to drive 33% EBITDA CAGR over FY26-30.
- Positives - Volume growth, premiumisation, rising salience of high-retention Gold members, and operating leverage.
- Key risk is execution missteps at scale.
BofA on Dr Reddy
- Maintain Buy with TP of Rs 1570.
- Resolution of API supply issue and ramp-up in supplies remains crucial.
- Stock is pricing in disruption for 4-5months with earlier resolution being a key upside trigger.
- Focus on ex-US business revenue growth and gross margin recovery after tepid Q4FY26.
MS on Dr Reddy
- Maintain Equal-weight with TP of Rs 1215.
- Impact seen as a temporary delay.
- Build in $130 million for FY27 for Canada.
Kotak Securities on Dr Reddy
- Maintain Reduce; Cut TP of Rs 1160 from Rs 1175.
- Another dose of disappointment.
- Semaglutide API impurity issues to partially squander early mover advantage.
- Est. Semaglutide Canada sales of $56/38 mn in FY27/28.
- Slowdown in Semaglutide scale-up to take a toll on earnings.
Jefferies on Dr Reddy
- Maintain Underperform with TP of Rs 1040.
- Scale-Up issues push Sema commercialisation to Oct/Nov.
- For FY27 co plans to sell 6-7 million pens globally vs 10-12mn guided earlier.
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