Stock Recommendations Today: DMart, M&M Finance, Punjab National Bank, NBFCs On Brokerages' Radar

Avenue Supermarts Ltd., M&M Financial Services Ltd., Punjab National Bank and financial companies were among the top companies on brokerages' radar on Thursday.

Analysts have reviewed the first-quarter business performance of companies such as DMart, PNB and M&M Finance.

Macquarie sees PSU banks losing market share on deposits. It expects EPS decline in the current fiscal and sharp return on equity compression in the near term.

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

Brokerages On Avenue Supermarts Q1 Update

Macquarie

• Maintained 'underperform' with a target price of Rs 3,000.

• First quarter sales growth moderated slightly from the fourth quarter; healthy pace of store additions.

• Q1 sees a stronger gross margin given the product mix.

• Competitive concerns linked to quick commerce are not yet behind, according to brokerage.

Goldman Sachs

• Maintained 'sell' with a target price of Rs 3,400.

• Sales growth is weaker than expected.

• Store additions in line with expectations.

• Expects year-on-year margin contraction.

Brokerages On Punjab National Bank Q1 Update

Citi

• Maintained 'sell' with a target price of Rs 101.

• Advances growth of 1.3% QoQ; deposits growth of 1.4% QoQ.

• Overseas advances were broadly flat in Q1, the same as those in Q4.

• Expects retail, agriculture, and MSME segments to be the primary growth drivers.

• Building in 2% QoQ fall in NII and 12 bps QoQ fall in NIMs, given the higher External Benchmark Lending Rate book.

Morgan Stanley

• Maintained 'underweight' with a target price of Rs 100.

• Loan growth decelerates; now in line with system.

• Domestic loans/deposit growth moderated compared to last quarter.

• Domestic loan book rose 1.3% QoQ/9.7% YoY vs 13% YoY last quarter.

• Domestic deposits rose 1.7% QoQ/12.2% YoY vs. 13% YoY last quarter.

• Bank continues to gain market share but likely at lower spreads.

Brokerages On M&M Finance Q1 Update

Citi

• Maintained 'neutral' with the target price of Rs 291.89.

• Rise in GS-2/3 restricted suggesting lower credit cost than earlier envisaged.

• Liquidity buffer was reduced to Rs 9,600 crore versus Rs 10,000 crore in Q4.

• Expects NIMs to be broadly stable with positive bias.

Morgan Stanley

• Maintained 'equal-weight' with target price of Rs 282.

• Muted performance, on expected lines.

• AUM growth continued to moderate.

• Lack data on write-offs and coverage, which are needed to estimate slippages as well as credit costs.

• Growth and asset quality remain muted.

• See downside risks to FY26 Pre-Provision Operating Profit and weak return on assets.

UBS On NBFCs

• Growth to keep moderating, limited (asset quality) improvement.

• Cost of funds could see a small decline sequentially.

• Commentary on asset quality, cost of fund and growth are key.

• Top picks are Chola Finance, Power Finance Corp and PNB Housing Finance.

Macquarie On Financials

• IndusInd Bank – Downgraded to 'underperform' from 'outperform'; cut target price to Rs 650 from Rs 1,210.

• HDFC Life – Downgraded to 'underperform' from 'neutral'; hiked target price to Rs 720 from Rs 570.

• Kotak Mahindra Bank – Downgraded to 'neutral' from 'outperform'; target price raised to Rs 2,300 from Rs 2,200.

• SBI Cards – Downgraded to 'neutral' from 'outperform'; target price hiked to Rs 1,040 from Rs 1,000.

• PB Fintech – Upgraded to 'neutral' from 'underperform'; hiked target price to Rs 1,945 from Rs 1,530.

• Financials – stable, strong, and resilient: Mid-teen EPS growth.

• Margin issues are transient; expects banks to deliver solid 15% EPS CAGR over the next three years.

• Prefer large private banks, selective risk-reward for NBFCs.

• PSU banks losing market share on deposits; expects EPS decline in FY26E and sharp ROE compression in the near term.

• NBFCs: NIMs to expand, growth to decline.

• Insurance: see regulatory overhang; positive on general insurance and negative on life insurance.

• Top picks: HDFC Bank, Axis Bank, Aditya Birla Capital, PFC, Shriram Finance and LIC.