Stock Recommendations Today: TCS, HUL, Bharat Forge, Glenmark Pharma On Brokerages' Radar
UBS has downgraded Bharat Forge and Maruti Suzuki Ltd. while initiating coverage on IDFC First Bank Ltd.
Tata Consultancy Services Ltd., Hindustan Unilever Ltd., Bharat Forge Ltd., and Glenmark Pharma Ltd. were among the top companies on brokerages' radar on Friday.
Analysts have shared their views on the TCS June quarter earnings, besides the change of leadership at HUL.
UBS has downgraded Bharat Forge and Maruti Suzuki Ltd. while initiating coverage on IDFC First Bank Ltd.
NDTV Profit tracked analysts' views on various stocks and sectors. Here are the analyst calls to keep an eye out for today.
Brokerages On Glenmark Pharma
Nomura
Maintained 'neutral' with a target price of Rs 1,500.
The AbbVie licensing deal is the largest by any Indian pharma company, with a deal value ahead of expectations.
The value of the deal is particularly large given ISB 2001’s early stage of development and limited clinical data.
The company was able to establish proof of concept, which triggered interest in the asset.
HSBC
Maintained 'buy' and hiked target price to Rs 2,275 from Rs 1,720.
Transformative deal for ISB 2001 is here.
Estimate potential Net Present Value of Rs 320 per share for the ISB 2001 deal.
Yet to integrate the deal financials into its estimates as the brokerage waits for deal closure.
Axis Capital
Maintained 'buy' and hiked target price to Rs 2,300 from Rs 1,715.
ISB-2001 jackpot; sweeter-than-expected deal.
ISB-2001’s unique mechanism of action: $4 billion cash flow potential.
Raise consolidated FY27/28E EPS by 13%/11% mainly due to higher interest income.
Sustainable re-rating is likely.
Brokerages On Hindustan Unilever
Macquarie
Maintained 'outperform' with target price of Rs 2,750.
Change of guard driving a stronger focus on growth, especially in the beauty segment.
Sudden departure of MD and CEO Rohit Jawa and the relatively short period of transition remain a concern.
Gain comfort from new MD and CEO Priya Nair's long experience in India.
Investec
Maintained 'hold' with a target price of Rs 2,538.
Rohit Jawa’s departure is sudden, unlike other CEO terms in HUL’s history.
This also comes on the back of a change in Unilever’s CEO in February.
Priya Nair comes as a strong replacement with her proven track record.
Headed the Home Care division of HUL from 2014-2020, where she was critical in driving ahead of category revenue growth, margin expansion and market share gains.
A change will be viewed as act to change growth trajectory and, hence, positive, the brokerage said.
Visible improvements are unlikely in the near term, as multiple areas within the portfolio still require focused attention.
Morgan Stanley
Maintained 'equal-weight' with target price of Rs 2,338.
Unexpected MD/CEO departure; leadership change comes as a surprise.
Jawa stepped down after a brief tenure of two years, which is significantly shorter than that of his predecessors.
In February 2025, Unilever PLC announced the stepping down of its then-CEO.
Goldman Sachs
Maintained 'neutral' with target price of Rs 2,400.
Nair has had a distinguished career at Hindustan Unilever since 1995.
She has overseen most of HUL’s categories, excluding foods.
Anticipates HUL’s volume growth will gradually improve over FY26.
This will be driven by an improving macro environment and various growth initiatives in the home care and beauty segments.
Citi
Maintained 'buy' with target price of Rs 2,750.
Management changes in the Indian consumer space have been a much talked about factor on street.
In recent memory, Godrej Consumer and Colgate India witnessed significant stock rallies that were eventually backed by sustained improvements in their business performance.
Focus will be on strategy refresh by the new MD and CEO in the coming months, according to the brokerage.
UBS On Auto
Bharat Forge – Downgraded to 'sell' from 'buy' and target price at Rs 1,215. Reasons being global uncertainty, weakness in non-defence businesses and weak end-consumer commentary.
Maruti Suzuki – Downgraded to 'neutral' from 'buy' and target price at Rs 13,300. Triggered by weak demand environment and low confidence on it regaining market share.
Brokerages On TCS Q1 Results
Jefferies
Maintained 'hold' and hiked target price to Rs 3,480 from Rs 3,400.
Revenue-led miss; broad-based weakness in growth.
Revenue growth unlikely in FY26.
Challenged environment to limit margin expansion.
Cut FY26 and FY28 EPS estimates by 1-2% to factor this; expect 7% EPS CAGR over FY26-28.
Downside is mostly limited at 4% yield, weak growth will cap upsides as well.
Citi
Maintained 'sell' and cut target price to Rs 3,135 from Rs 3,220.
Sequential decline in international business in a seasonally strong quarter was the key negative.
Still optimistic about FY26 being better YoY for international business.
Sector growth outlook continues to be challenged – valuations remain high in that context.
Lower FY26 and FY27 EPS estimate by 2-3%.
Investec
Maintained 'buy' and hiked target price to Rs 3,705 from Rs 3,660.
Demand uncertainties continue to linger.
Dichotomy of strong wins with weak near-term demand highlights client intent to spend, but is curtailed by near term uncertainties.
Difficult to predict a revival in the near term.
Continue to build a recovery through FY27E-FY28E after three years of subdued demand.
Cut EPS estimates for FY26 by 2%, FY27 BY 0.4% and FY28 by 1%.
UBS On IDFC First Bank
Initiated 'neutral' with a target price of Rs 85.
Limited return-on-assets upside potential.
High credit cost and opex pose medium-term ROA challenges.
Sector tailwinds to support growth; NIM to remain stable.
High credit cost and opex to be challenging; expect ROA of around 1% by FY27.
Jefferies On Mankind Pharma
Maintained 'buy' and hiked target price to Rs 3,000 from Rs 2,870.
Reboot complete and company now poised for a recovery from hereon.
Expects Q1-Q2 to be step quarters, India Rx growth to normalise in the second half.
BSV synergies to start reflecting in the 26% Ebitda margin guidance for FY26.
Starting FY27, Mankind should achieve 1.5x IPM growth and further improvement in margins.
A favourable risk-reward, Mankind is our top pick.
