Stock Picks Today: Trent, Bajaj Auto, Divis Lab, Lupin On Brokerages' Radar

Trent Ltd., Bajaj Auto Ltd., Divi's Laboratories Ltd., Lupin., are among the companies garnering brokerage commentary today. There is also analyst insight coming in on Trump's fresh tariffs on India.

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:

• Maintain Buy; Hike target price to Rs 1850 from Rs 1700

• 1QFY26 - Strong Operating Performance

• P&L beat, Resi revenues set to jump

• Excellent pre-sales performance

• Guidance maintenance, but beat is likely

• Maintain Buy; Hike target price to Rs 650 from Rs 825

• Weak domestic growth impacts Q1

• Rail Freight margins improve 260 bps YoY to 27%

• 13% FY26E volume growth guidance maintained

• Volume growth recovery to drive upside

Jefferies

• Maintain Hold; Hike target price to Rs 6750 from Rs 6200

• Divi's misses Q1, near-term outlook uncertain

• API growth remains weak

• Custom Synthesis near-term outlook uncertain

• FY26 to be a heavy capex year

Morgan Stanley

• Maintain Overweight; Cut target price to Rs 7024 from Rs 7185

• Earnings Miss But Rising Capex Keeps us Bullish

• Given B2B nature of business and limited information from the company, capex tends to be a key leading indicator

• To adjust for Q1 miss and higher capex spend guidance, cut FY26 EPS by 7.7%, driven by lower revenue growth

• Maintain Underperform with target price of Rs 2600

• Q1 EBITDA above estimate on lower other expenses

• Sequential uptick in volume growth across the consumer bazaar vertical

• Healthy double-digit sales and Ebitda growth across domestic subsidiaries

• Did not like the unchanged cautiously optimistic outlook on demand

Morgan Stanley

• Maintain Overweight with TP of Rs 6359

• Q1: Beat on Margins; Play for the long run

• Fashion – Low-single digit LFL growth Vs Q4 mid-single digit growth

• While the recent growth trends do not easily justify the current valuations

• Believe the growth slowdown is a well-devised growth strategy which could start showing the results in the coming quarters

• Taking a short-term negative view on a long-term business may not be advisable

• Believe Trent's total addressable market is highly expandable

• Consistent margin improvement and improvement in return ratios add to our comfort

Jefferies

• Maintain Hold; Hike target price to Rs 6000 from Rs 5900

• Revenue growth decelerated to multi-qtr low of 20%

• Margins surprised positively despite a decline in per sqft revenue & GM

• Lower cost allowed unit Ebitda to stay near flat, which is difficult to understand given lack of adequate disclosures

• Yet to understand the reason for a 7% YoY decline in staff costs despite >30% increase in retail footprint

• Continue to seek improved disclosures to better appreciate business drivers

• Maintain Equal-weight with target price of Rs 2096

• Strong US Growth in FY26

• Growth led by new launches, partially offset by seasonal softness and increased generic competition

• Robust pipeline and launch momentum plan

• Focus on complex generics, inhalation, injectables, and biosimilars.

• Management reaffirmed FY26 guidance

• US has imposed additional 25% tariffs

• Direct financial cost to India of replacing Russian Oil is <15 bps of GDP

• Flattish Oil markets over past week imply good supplies exist

• Believe the political fallout of US asks on dairy & agri still remain the key stumbling block

• Remain hopeful of an eventual trade deal with the US

• Maintain Underperform with target price of Rs 3330

• Q1: Weak but Inline Quarter

• PAT was flat YoY, boosted by higher financial income

• Hero is seeing good traction in its electric mobility business

• Industry premium growth rose 3% YoY in July versus. 5% in June

• Private multi-line players reported a decline of 3% YoY versus. no decline in June

• Lower growth since Oct-2024 is partly due to a change in the accounting of long-term policies in certain segments

• ICICI Lombard reported a decline of 10% YoY, same as June

• Go Digit reported 27% YoY growth, versus. 12% in June

• SAHI players reported 10% YoY growth in July, same as June

• Niva Bupa's GDPI rose 10% YoY, versus. 16% in June

• Maintain Hold with target price of Rs 8,000

• Subdued but Inline Q1

• Remain optimistic on Indian 2W demand

• Lowered our FY25-28 industry volume CAGR from 10% to 8%

• 2W exports are growing strong though

• Like Bajaj's EV franchise; concerned on market share dip in domestic motorcycles and decline in volume share in India's 2W exports

• Valuations at 24x FY26E PE is not cheap

• Maintain Outperform with target price of Rs 525

• PAT beat driven by lower credit cost

• PAT beat driven by lower provisions, partly offset by higher opex

• Higher AUM growth optical given low base; FY26 growth guidance at 10-11%

• Negative provisions driven by upgrade in rating from discoms

• Maintain Underperform with target price of Rs 950

• Tough Q1; Export Outlook Weakens

• Weak macro and rising US-India tariffs have significantly impacted export outlook

• On the positive side, ramp-up of large Indian guns order should boost growth starting Q4

• FY26-28E EPS are 9-14% below the Street

• View stock as expensive at 21x FY26E EV/Ebitda