Stock Recommendations Today: Bajaj Finance, Trent, Ambuja Cements On Brokerages' Radar

Bajaj Finance Ltd., Trent Ltd., and Ambuja Cements Ltd. were among the key stocks in focus in Wednesday's brokerage notes.

Brokerages offer a contrasting outlook on Bajaj Finance on the back of the company's healthy final quarter performance, with some saying that a de-rating could be in sight, while Trent drew bullish calls citing improved profitability metrics.

NDTV Profit tracks what analysts are saying about various stocks and sectors. Here are the key brokerage calls to watch on Wednesday.

Bernstein

• Maintains 'underperform' with a target price of Rs 6,400

• Q4 was a solid quarter with two one-offs across earnings.

• Asset quality stabilised, with healthy AUM growth across various segments

Macquarie

• Maintains 'underperform' with a target price of Rs 6,290

• Q4 profit after tax in line, higher provisions offset by lower taxes

• Believe a de-rating event could be in sight

• Earnings growth to remain below expectations in fiscal 2026

• Credit costs are set to decline, and fiscal 2026 margin guidance remains subdued.

Morgan Stanley

• Maintains 'overweight' with a target price of Rs 10,500

• Fiscal 2026 earnings outlook trumps the misses in fiscal 2025's Q4.

• Lower slippages were a positive, while issues on PPOP and credit costs were negatives.

• Cut forecasts based on company guidance

• One of the strongest earnings outlooks; recommend buying on any declines.

Jefferies

• Maintains 'buy' with a hike in target price to Rs 370 from Rs 330.

• Q4 was a beat on refining, and inventory gains will reverse next quarter.

• Hold that marketing is in line, but profitability is inflated currently.

• Say capex rose sharply, while net debt is headed higher.

• Stock still has room to rerate.

Citi

• Maintains 'buy' with a target price of Rs 390

• Q4 saw a strong refining performance, which drives a beat.

• Marketing was aided by inventory gains.

• Believe LPG compensation unfortunately continues to elude

Morgan Stanley

• Maintains 'overweight' with a target price of Rs 6,359

• Fashion LFL growth was mid-single-digits, and a greater-than-expected gross margin compression in the quarter implies some inventory write-offs.

• PAT miss was about 17% owing to losses from associates, but profitability metrics improved.

Macquarie

• Maintains 'outperform' with a hike in target price to Rs 7,200 from Rs 7,000.

• Q4 results remain a beat with the brokerage confident on growth

• Better than expected mid-single-digit same-store growth; lower operating costs drove Q4 Ebitda beat

• Strong traction across cities and improving store accessibility make Trent confident in growth.

• See fiscal 2025 as more representative of business health

Investec

• Maintain 'buy' with a target price of Rs 836.

• Believe Ambuja rebounds on operating metrics quarterly.

• Makes up for the dent owing to maintenance shutdown in the previous quarter

• Management reaffirms growth targets, cost/synergy initiatives, and ESG targets.

• Management remains optimistic on growth prospects, guiding for over 25% volume growth for fiscal 2026.

• Company looks to ramp up acquired assets

Macquarie

• Maintains 'outperform' with a target price of Rs 608

• Believe execution on growth and cost synergy are key

• Lower costs drive Ebitda beat

UBS

• Maintained 'buy' with a hike in target price to Rs 675 from Rs 620 per share.

• Strong rebound post a dismal Q3.

• Robust volume performance continued, margin improvement back on track.

• Ambuja has the highest margin levels, the brokerage said.

• Expects consolidated Ebitda to more than double over next fiscal.

• Maintains 'outperform' with a target price of Rs 1,210

• A lot of management uncertainty given the resignation of the top brass

• Believe one should keep an eye on the potential candidate being appointed as the CEO.

• Believe that the appointment of a private sector banker as a CEO is essential for a rerating.

• What I would watch out for is the appointment of a nominee director by the RBI who is a PSU banker.

• In the near-medium term, I believe the focus will be to obtain more clarity around management succession.

• Maintain 'buy' with a target price of Rs 480.

• Believe risk-reward appears favourable

• Estimated fiscal 2024 to 2027 earnings per share CAGR to revive to 22% versus -3% CAGR in fiscals 2020 to 2024

• Premiumisation, new orders in solar pumps, sales, revival in lighting and a butterfly turnaround are expected to aid

• Fans are at a 25% premium now versus 12%-15% in the last five years and have taken four to five price hikes of 1%-1.5% each in the last five to six quarters.

• Maintains 'underperform' with a hike in target price to Rs 2,000 from Rs 1,870.

• Revenues missed but margins and profits beat estimates

• Paid subscriber additions and collections growth remain lacklustre.

• Subscriber adds may remain under pressure as churn remains elevated.

• Cut revenue estimates by 2% but raise EPS by 10-15% on higher margins.

• Expect Indiamart to deliver an 11% CAGR in collections and a 6% CAGR in EPS over the next two fiscals

• Slower growth may warrant derating.

• Observed decline in most segments, modest growth of passenger vehicles

• April 2025 retail sales remain slow, with moderate growth across segments.

• Estimate passenger vehicle wholesales up 4% yearly

• Two-wheeler industry wholesales likely to be down 13% yearly

• Medium and heavy commercial vehicle wholesales are likely to be down 3% on an annual basis.