Stock Picks Today: What Brokerages Are Saying About Wipro, Axis Bank, Indian Hotels, HDFC AMC

Wipro Ltd., Axis Bank Ltd., The Indian Hotels Co., and HDFC Asset Management Co. are among the top companies on brokerages' radar on Friday. Analysts have shared their views on the June quarter earnings of these companies.

NDTV Profit tracked analysts' views on various stocks and sectors. Here are the analyst calls to keep an eye out for today.

Morgan Stanley

• Maintain 'Equal-weight' rating; Hike target price to Rs 285 from Rs 265.

• The company's IT Services Q1 performance surpassed Street expectations.

• The Q2 guidance provided was in line, with no negative surprises indicated.

• Strong large deal wins are expected to contribute positively to growth acceleration in the second half of the fiscal year.

• Improved capital allocation strategies are anticipated to support an uplift in the company's valuation multiples.

• Despite the equal-weight stance, there is perceived potential for a re-rating of the stock.

Jefferies

• Maintain an 'Underperform' rating; Hike target price to Rs 235 from Rs 200.

• While the overall outlook is improving, the potential for upside in the stock appears capped.

• Revenues are currently facing pressure due to challenges in large verticals.

• A healthy pipeline of deal wins is expected to improve the future revenue outlook.

• However, the ramp-up of these new deals is anticipated to impact profit margins.

Morgan Stanley

• Maintain 'equal-weight'; Hike target price to Rs 4,910 from Rs 4,470.

• The company reported a good first quarter.

• Operating profit was in-line with expectations, despite better revenue yields.

• HDFC AMC is benefiting from its commission rationalization efforts initiated in FY25.

• We find the current valuation to be expensive from a longer-term perspective.

Jefferies

• Maintain 'Buy'; Hike target price to Rs 6,100 from Rs 5,000.

• Q1 results show that Mark-to-Market (MTM) gains and strong flows lifted growth.

• The company demonstrated healthy Assets Under Management (AUM) growth with steady market shares.

• It reported healthy operating profit and non-core income.

• We expect a 16% CAGR in operating profit over FY25-28.

Macquarie

• Maintain 'Neutral' with a target price of Rs 800.

• The company reported a resilient Q1, with capital expenditure (capex) trending higher.

• Revenue drivers remain intact, and the pipeline has increased.

• The capex guidance of Rs 1,200 crore in FY26 and Rs 5,000 crore over the next five years is considered disappointing.

Jefferies

• Maintain a 'Buy' rating; Cut target price to Rs 960 from Rs 980.

• The company delivered a decent performance despite a turbulent quarter.

• Management has reiterated its guidance for double-digit revenue growth in FY26 and expects a healthy Q2.

• Indian Hotels is expanding its room count at approximately a 12% CAGR over the next five years, with contributions from several new greenfield assets.

• Management also disclosed plans for a new Tata Sons platform specifically for investments in select assets.

Citi

• Maintain 'Neutral'; Cut target price to Rs 1,285 from Rs 1,320.

• Technical slippages significantly dragged earnings, and volatility limits conviction.

• Significantly higher technical slippages adversely impacted earnings.

• The core slippage run-rate (excluding technical slippages) stands at 2.1%, with core credit cost elevated at 1.2%.

• We await greater consistency before turning more constructive on the stock.

Jefferies

• Maintain 'Buy'; Cut target price to Rs 1,370 from Rs 1,450.

• Q1 saw disappointing asset quality, though trends are expected to stabilize.

• Slippages surged primarily due to a new classification method, with normalization anticipated from Q2.

• Growth remains moderate, accompanied by a margin correction.

• Despite weak results, the current valuation discount underpins our Buy recommendation.

Macquarie

• Maintain 'Outperform' with a target price of Rs 1,450.

• Q1 results showed a net profit miss, primarily driven by higher credit costs.

• The elevated credit costs are concerning, partially influenced by a policy change.

• The company's growth aspirations appear onerous, and downside risks continue for our Return on Assets estimates.

UBS

• Maintain 'Buy'; Cut target price to Rs 1,300 from Rs 1,400.

• The recent performance is viewed as more of a delay than a structural issue.

• As Q1 is a smaller quarter, even minor delays in deal closing can significantly impact growth.

• We believe the muted growth observed this quarter is likely a one-off event influenced by macroeconomic conditions.

• Management has highlighted that demand for BFSI (Banking, Financial Services, and Insurance) solutions remains resilient, with a recovery expected in the second half of the fiscal year (H2).

• A relatively softer growth is anticipated in Q2 as macroeconomic conditions stabilize.

• The company is expected to get back on track to achieve strong double-digit growth.

Jefferies

• Downgrade to 'Underperform' from 'Hold'; Cut target price to Rs 835 from Rs 965.

• The company reported a significant miss on revenues, although profits were ahead of estimates.

• A disappointing decline was observed in licensee sales and implementation.

• Rising client caution is expected to negatively impact the growth outlook.

• Margins are projected to remain around 25%.

• The downgrade to Underperform is primarily driven by concerns regarding growth.

Jefferies

• Maintain 'Buy'; Hike target price to Rs 8,180 from Rs 7,150.

• The company reported its highest-ever Q1 sales and profit, showcasing strong execution once again.

• In the Cables & Wires segment, growth momentum continues.

• The Fast Moving Electrical Goods (FMEG) segment saw further expansion in profitability.

• We view Polycab as a key beneficiary of private capital expenditure, housing, and infrastructure growth, with an estimated Earnings Per Share (EPS) Compound Annual Growth Rate (CAGR) of +26% over FY26-28e.

UBS

• Maintain Buy; Hike target price to Rs 8,100 from Rs 7,150.

• The company demonstrated leadership strength in Q1.

• The Fast Moving Electrical Goods (FMEG) segment reported its second consecutive quarter of profitable growth.

• Valuations remain constructive, supported by the current demand scenario.

• Maintain 'Outperform' with a target price of Rs 2,300.

• The company reported a mild Q1 miss; while the digital portfolio showed growth, other segments were soft.

• We find the quarterly calibration for multi-segment B2B businesses to be challenging.

• The Q1 results, in isolation, present a mild downside to our current forecast.

• We still identify clear revenue-side growth levers that are expected to drive a 300 basis points Ebitda margin expansion.

• Maintain 'Buy'; Hike target price to Rs 1,390 from Rs 1,270.

• Q1 results were bolstered by strong Mark-to-Market (MTM) gains, which lifted Annualized Recurring Revenue (ARR); net inflows are expected to improve.

• AUM growth was aided by MTM gains and the B&K merger, with net flows anticipated to improve from the second half of the fiscal year.

• Operating profit saw a decline due to a high base effect, but normalization is expected ahead.

• The normalization of teams is projected to further aid flows and core revenues.

• Initiate 'Buy' with a target price of Rs 210.

• Productivity gains are expected to significantly boost profitability.

• The company is well-diversified across various products, geographies, and customer segments.

• A favorable mix change and reduction in borrowing costs are anticipated to drive Net Interest Margin expansion.

• Increased productivity is projected to spur a 46 basis points (bp) Return on Assets expansion, reaching 3.8% over FY26–28.

• The company is actively integrating technology to facilitate a seamless loan journey for its customers.