Stock Recommendations Today: United Spirits, Bajaj Finance, Waaree Energies On Brokerages' Radar

United Spirits Ltd., Bajaj Finance Ltd. and Waaree Energies Ltd. were among the top companies on brokerages' radar on Friday.

Further, Nomura in its note said that growth is likely to bottom out in financial year 2025F for Indian IT companies. Citi also maintains a cautious view for the sector.

In addition, BofA said that the Indian markets have finally broken into the panic zone on the back of persistent foreign selling and reallocation of capital towards China. Since 1995, there has been a 73% probability that Indian equities would have posted a positive return in the ensuing 12 months once India risk-love breaks out of panic zone, it said.

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

Citi

• The negative impact on the US Federal business is noted, but Indian IT has limited exposure.

• Competition in other segments may increase.

• Revenue growth in financial year 2026E is expected to be 4%, similar to financial year 2025E.

• Margin improvements in a competitive environment will be challenging, despite favourable INR movements.

• The overall sector view remains cautious.

• Citi prefers HCL Tech and Infosys in the large-cap space and Mphasis in the mid-tier space.

CLSA

• Accenture derives 8% of its revenue from US public services, which are facing significant cutbacks, a headwind not faced by Indian IT companies.

• CLSA remains optimistic about the Indian IT sector based on earnings.

• While near-term revenue growth may be impacted by currency changes, INR depreciation should partially offset this.

• CLSA reiterated an 'outperform' rating on TCS, Infosys, Wipro, and Tech Mahindra due to continued growth in the BFSI and CMT verticals at Accenture.

Nomura

• Accenture's caution regarding US federal contracts and rising macroeconomic uncertainty contrasts with the situation for Indian IT companies, which have no exposure to US federal contracts.

• There is a risk of increased caution from clients regarding IT spending due to macroeconomic uncertainty.

• While growth for Indian IT companies is expected to bottom out in FY25F, it is unlikely to worsen significantly.

• Indian IT companies are better positioned compared to Accenture due to their lack of exposure to US federal government contracts.

• Market has fallen into the panic zone due to persistent foreign selling and capital reallocations to China.

• Despite washed-out sentiment, most negative news may already be priced in.

• It may be wise to wait for sentiment to break out of the panic zone before acting aggressively.

• Historical data shows a 73% probability of positive returns for Indian equities over the next 12 months once India Risk-love exits the panic zone.

• The median return during these periods has been 10%, with an average of 24%.

• The signal did not perform as expected in 1977, 2011, and 2019.

• "Risk-Love" serves as a contrary sentiment indicator, reflecting investor psychology swings based on data.

• The emerging target segment in the automotive market is the 125cc segment.

• Premium motorcycles are outperforming, while entry-level models continue to lag behind.

• Entry-level motorcycles are still below pre-Covid levels, having more than halved since FY19.

• The executive segment is also below pre-Covid levels, but it has shown an 8% year-on-year growth in financial year 2025 year-to-date.

• The premium motorcycle segment (125-250cc) is growing at a faster pace.

• Bajaj Auto is well-positioned to benefit from the rising demand for 125-250cc models and export opportunities.

• Adani Enterprises Ltd. is entering the cable and wire industry, though no details have been disclosed about the joint venture’s plans.

• Two major firms have entered the C&W sector in the past month.

• Adani Enterprises, one of India’s largest developers with a proven incubation track record, could be a credible challenger in this sector.

• The Defence Acquisition Council has cleared acceptance proposals for defence equipment worth Rs 54,000 crore.

• This reflects the government’s focus on key defence projects, which is positive for defence State-Owned Enterprises.

• Financial year 2026 will mark a turning point for defence ordering, according to UBS.

• Maintained a 'buy' rating on Hindustan Aeronautics Ltd.

Citi

• Citi maintained a 'buy' rating and raised the target price to Rs 10,200 from Rs 9,060.

• Leadership continuity provides strong confidence in Bajaj Finance's strategic execution and growth.

• The development mitigates concerns regarding potential risks from management transition.

• The company's medium-term growth outlook remains strong.

Morgan Stanley

• Morgan Stanley maintained 'overweight' rating and increased the target price to Rs 10,500 from Rs 9,300.

• Concerns over management transition have been alleviated, and strong returns are expected ahead.

• Rajeev Jain’s continuity in Bajaj Finance is expected to enhance investor confidence.

• This resolution removes long-standing uncertainty, making Bajaj Finance’s investment thesis one of the strongest in the large-cap private financials sector.

• Citi upgraded the rating to 'buy' from 'neutral' and set a target price of Rs 1,650.

• A favourable policy environment could support growth.

• Citi sees potential levers for managing commodity cost pressures and expects moderate margin expansion.

• The company is well-positioned in India’s organised liquor market, likely to see double-digit revenue growth.

• Bain Capital is set to acquire joint control of Manappuram.

• Morgan Stanley plans to monitor further updates and strategic details before revisiting their views.

• Initially this is seen as a positive development.

• The stock is expected to trend toward the open offer price, with minor adjustments for time value and other factors typical in such transactions.

• Nuvama initiated a 'buy' rating with a target price of Rs 2,805.

• The company’s backward integration strategy is expected to drive a 54% CAGR in Ebitda from financial year 2024 to financial year 2027.

• The strategy is designed to de-risk and sustain growth with modest margins.

• Waaree Energies presents a significant early-stage, multi-decade opportunity, similar to Y2K.

• Valuation indicates high potential returns, with a strong balance sheet and high RoE.

• UBS maintained a 'buy' rating with a target price of Rs 1,460.

• Reports indicate that the Cabinet Committee on Security has approved a deal to procure 307 ATAGs, with Bharat Forge being the lowest bidder, the brokerage said.

• Execution of the order is expected to begin around mid-financial year 2027, with Bharat Forge manufacturing 60% of the total ATAGs.