Stock Recommendations Today: Autos, BEL, GCPL, Amber Enterprises On Brokerages' Radar

UBS believes discretionary demand in the automobile space is witnessing a sharp dip, and shares its top stock picks from the sector.

CLSA and Jefferies are both bullish on Amber Enterprises after the company unveiled its final quarter earnings, citing margin and returns improvement.

Meanwhile, Jefferies also holds that Data Patterns (India)'s management delivered after two quarters of over a 30% dip in revenue. They highlighted ordering delays, which are expected to be made up in the current fiscal.

NDTV Profit tracks what analysts are saying about various stocks and sectors. Here are the analyst calls to keep an eye out for on Tuesday.

UBS On Automobile Sector

• Discretionary demand is slowing sharply due to rising commodity prices.

• Two-wheeler demand in non-marriage markets remains weak.

• Mahindra & Mahindra and TVS Motors stand out positively.

• Eicher Motors, despite growth on a favourable year-on-year base, has started seeing sequential demand weakness.

• Maruti Suzuki, Tata Motors, Bajaj Auto, and Hero MotoCorp continue to underperform.

Nomura On Godrej Consumer Products

• Maintain buy rating with a target price of Rs 1,485, up from Rs 1,450.

• Analyst meet update: The company has taken new bold steps in deodorants and launched a pet care segment.

• Guidance for the financial year 2026: India volumes expected to grow in the mid-to-high single digits, with Ebitda growth in double digits.

• The company is persistently investing in future growth categories.

• Fiscal 2026 guidance indicates volume-led Ebitda growth, which is better than peers.

JPMorgan On Bharat Electronics 

• Maintain overweight rating with a target price of Rs 396.

• Fourth-quarter results were ahead of expectations on stronger margins.

• Commentary on fiscal 2026 estimates and medium-term order inflow, revenue growth, and margin profile will be important to watch

Macquarie On Sun Pharmaceutical Industries

• Maintain outperform rating; target price raised to Rs 2,135 from Rs 2,100.

• Checkpoint Therapeutics' merger agreement reveals Sun Pharma's bid is nearly twice that of another serious buyer.

• Despite the premium, the acquisition is seen as value accretive to Sun Pharma.

• Unloxcyt is considered a solid strategic fit, filling a crucial gap in Sun's dermatology-oncology portfolio and enhancing its Medicare channel focus.

• Estimated base case net present value of $500+ million for Checkpoint's lead asset, Unloxcyt, with a bull case NPV exceeding $1.5 billion.

Morgan Stanley On Power Grid Corp

• Maintain equal-weight rating with a target price of Rs 295.

• Fourth quarter results were in line with expectations.

• Profit after tax beat driven by higher other income.

• Awaiting details on commissioning and new tariff-based competitive bidding projects won.

Macquarie On Petronet LNG

• Maintain underperform rating with a target price of Rs 260.

• Fourth quarter showed volume moderation at Dahej terminal.

• No near-term uptick expected in utilisation for the Kochi terminal.

• Foray into petrochemicals expected to be returns-dilutive.

Macquarie On Gujarat Gas

• Maintain underperform rating with a target price of Rs 380.

• Fourth quarter results showed soft volumes but margin beat.

• Cautious on volume growth outlook.

• Management prioritising volume, which poses downside risk.

Macquarie On Eris Lifesciences

• Maintain outperform rating with a target price of Rs 1,680.

• Fourth quarter results for fiscal 2025 showed an all-round miss but upbeat guidance.

On Amber Enterprises

CLSA

• Upgraded to outperform from hold; target price raised to Rs 7,275 from Rs 7,000.

• Fourth quarter results were in line with estimates with strong growth guidance.

• Uptick in non-room air conditioner segments is key.

• Capital expenditure in electronics under the Production Linked Incentive scheme likely to generate high teens return on capital employed.

• Margin and returns improvement, helped by non-RAC growth, expected to be a key catalyst.

Jefferies

• Strong execution in fiscal 2025; optimistic outlook.

• Electronics Ebitda doubled in fiscal 2025; mobility sales weakened due to order delays.

• Estimated 50% earnings per share compound annual growth rate over fiscals 2025-28.

• Factors include faster growth in margin-accretive components, new capital expenditure, client additions, and strategic partnerships.

• Slight cut in fiscal 2026-27 EPS to factor impact of unseasonal rain in April-May 2025 (summer quarter).

JPMorgan On Premier Energies

• Maintain neutral rating; target price increased to Rs 1,013 from Rs 940.

• Fourth quarter results ahead of estimates; margins expected to rise.

• Premier forecasts strong Indian cell demand.

Nomura On Infosys

• Maintain buy rating with a target price of Rs 1,720.

• Fiscal 2026 revenue guidance incorporates a range of macroeconomic scenarios.

• Demand outlook varies across verticals.

• Project Maximus continues to drive margin expansion.

• Generative AI projects are maturing; no revenue headwind expected from GenAI.

• Focus on cash flow generation will continue; mergers and acquisitions to be disciplined.

• Infosys remains the top pick in large-cap India IT.

Jefferies On Data Patterns

• Maintain buy rating; target price raised to Rs 3,400 from Rs 2,690.

• 23% Ebitda beat in fourth quarter.

• Management delivered after two quarters of over 30% revenue miss.

• Ordering delays highlighted, expected to be made up in fiscal 2026.

• Rs 1,000-1,500 crore ordering, 3-4 times year-on-year growth is fiscal 2026 guidance.

• Raised fiscal 2026-27 EPS estimates by 3-10%.

• Retain buy given strong 20-25%+ medium-term growth story.