Stock Recommendations Today: ITC, Adani Power, Swiggy, Gujarat Gas On Brokerages' Radar

ITC Ltd., Gujarat Gas Ltd., Adani Power Ltd., Swiggy Ltd., are among the top companies on brokerages' radar on Monday.

Further, analysts have also given their take on the Union Budget 2025 of India that was presented by Finance Minister Nirmala Sitharaman on Saturday, Feb. 1. Budget highlights include a huge relief for middle class as the government said there will be no income tax on income up to Rs 12 lakh and more seats for medical students, among various other announcements.

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

Brokerages On ITC

Jefferies on ITC

• Maintain "Buy" with a target price of Rs 550

• ITC comes out as a winner, with government leaving tobacco taxes unchanged

• GST rates are also likely to stay stable until Mar-26 until the Centre settles state dues

• Stable taxation improves earnings visibility for ITC

• Personal tax rate cuts/benefits will help consumption in general

• ITC should also be a natural beneficiary

MS on ITC

• Maintain "Overweight" with a target price of Rs 554

• No change, yet again, is a good change

• Budget allays one of the usual concerns of tobacco tax hikes

• This will be viewed as a reflection of future policy action

• Continue to believe in a moderate cigarette tax environment over the medium term

• ITC is well placed for sustainable growth with strong business fundamentals

• A re-rating play, in our view

YES Securities On Gujarat Gas

• BCD on propane import remains the same 2.5% which is the new ceiling

• So there is no impact on the end mile consumer propane price

• This could result in a recovery in Gujarat Gas stock price as nothing has changed

Jefferies On Adani Power

• Initiate "Buy" with target price of Rs 660

• India's second-largest thermal power generation company after NTPC

• Pure thermal play - estimate 1.7x capacity rise in FY25-30

• Land requirements and financing plans are in place

• Night peak deficit provides scope for merchant upside

• B/S leverage to reduce to 0.6x by 2030 vs 1.2x

• Expect 2.2x Ebitda rise over FY24-30E with capacity addition

• Close co-ordination with BHEL for equipment delivery and inhouse EPC are ensuring capex is on schedule

• Thermal capacity in an overall peak deficit scenario with merchant exposure is a positive

Kotak Securities On Swiggy

• Initiate "Buy" with a target price of Rs 500

• Pioneer of hyperlocal commerce with a steady addition of new businesses

• Food delivery: Expect steady growth with some catch-up on margins

• Quick commerce: Fast-paced growth backed by elevated store additions

• Believe that food delivery margin improvement will drive a 62% adjusted Ebitda CAGR for the segment over FY2025-28

Brokerages On Budget 

Bernstein on Budget

• Budget —The $15bn question for the middle class

• The budget lacked the boldness or clear policy direction we would have liked

• Capital expenditure and social welfare for lower-income households have been deprioritised

• Is it a mid-course correction in policy stance or a sign of running out of ideas?

• The capex revision looks clearly to be an underpromise by the government

• 'Underweight' on industrials, and that stays

• Upgraded consumer staples to 'equal-weight' last month, anticipating the tax cuts

• Do not see any reason to upgrade that further as we see more benefits to discretionary

• Move discretionary ex-autos to 'equal-weight'

• Given the year-to-date correction in sector, move back to a modest 'overweight' on durables

• Have been positive about select stocks in QSR and retail; also like small cars in autos

• Financials and IT 'overweight' stays

• On equity markets, view remains unchanged with the shift in cautious stance last year in the second half to a more positive selective buy — as we see macro at the bottom

• On small and midcaps, we are less positive but selective

Bank Of America on Budget

• Finmin balances between growth and fiscal prudence

• Fiscal policy adopts a 'do no harm' approach to growth

• Fiscal stability means monetary support needs to grow

• Revenue assumptions broadly in line, but tax reduction may need reduced exemptions as well

• GDP growth partly hinges on capex spending execution

• Personal income tax cuts math needs some more scrutiny

HSBC on Budget

• India announced tax cuts to support consumption, held on to its capex thrust, and yet stuck to a fiscal consolidation path

• On the budget math, expenditure assumptions can be met with the pruning of schemes, but tax revenues could disappoint mildly

• Overall fiscal impulse will likely be negative

• Maintain a mildly bullish view on India government bonds

• USD-INR remains on an uptrend

JPMorgan on Budget

• Tax cut pushes consolidation pressures on the expenditure side

• Deficit consolidation achieved through expenditure compression and tax buoyancy will need watching

• Public capex has likely peaked

• Medium-term fiscal framework envisages continued fiscal consolidation

• Underwhelming growth in infrastructure-related capex in FY26

• Headline capex growth driven almost entirely by items unrelated to infra capex

• Defence capex growth to pick up in FY26 after a muted FY25

• Growth in defence capex is positive for the defence sector and should benefit Bharat Electronics

• Muted infrastructure capex growth in the budget though is sentiment negative for L&T

Goldman Sachs on Budget

• Budget announcements small positive, remain constructive

• Uptake in the new tax regime is already high

• Tax savings as the primary reason for buying life insurance products has been steadily falling in consumer preferences

• Demand trends have been healthy

• ULIP taxation on par with equity oriented funds; this should be net-net positive for the product category

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