Stock Picks Today: What Brokerages Are Saying About Tech Mahindra, L&T Tech, Angel One, ITC Hotels

Tech Mahindra Ltd., L&T Technology Services Ltd., ITC Hotels Ltd. and Angel One Ltd. were among the top companies on brokerages' radar on Thursday.

Analysts have shared their views on the June quarter earnings of the two IT majors as well as Angel One and ITC Hotels.

Kotak Securities has hiked the target price on Thermax as the firm expectes double-digit EPS growth in the coming years.

NDTV Profit tracked analysts' views on various stocks and sectors. Here are the analyst calls to keep an eye out for today.

Morgan Stanley

• Maintain 'Underperform' and reduce target price to Rs 1,555 from Rs 1,575.

• The company effectively delivered on its margins.

• Key positives include strong deal wins, stability in top clients, and steady improvement in margins.

• However, significant concerns remain, such as the weak conversion of deals to revenue, a challenging outlook for verticals like manufacturing, and a weak macroeconomic environment.

• We maintain an Underperform rating due to the risks to consensus estimates and premium valuation multiples.

Macquarie

• Maintain 'Underperform'; Hike target price to Rs 1,110 from Rs 1,090.

• EBIT margin was in line with expectations, excluding an 18 basis points one-time gain.

• The company continues to lag behind its peers in growth across key verticals.

• Continue to believe that achieving a 15% EBIT margin and peer group average growth by FY27 remains a very challenging task.

Jefferies

• Maintain 'Underperform' and reduce target price to Rs 1,400 from Rs 1,430.

• The company reported a revenue miss, though profits were ahead of estimates.

• Revenue growth continues to be under pressure despite strong deal wins.

• Achieving 15% margins by FY27 would require a quarterly margin expansion of 75 basis points over the next seven quarters, which appears very optimistic given the expectation of 1-2 wage hike cycles and a challenging growth environment.

• Rich valuations, coupled with what are perceived as overtly optimistic consensus estimates, compel us to maintain an Underperform rating.

Jefferies

• Maintain 'Buy' and hike target price to Rs 270 from Rs 240.

• The company delivered a healthy beat with positive surprises across the board.

• Robust growth in Revenue Per Available Room (RevPAR) was primarily driven by the scale-up in the Sri Lanka project and higher other income.

• Q1 also saw additional overhead costs following the demerger.

• The company remains focused on scaling its capacity to over 20,000 keys (from the current 13,500) by 2030, largely through asset-light expansions.

• Ebitda estimates have been raised by approximately 4% for FY26-FY28.

Macquarie

• Maintain 'Outperform' and hike target price to Rs 270 from Rs 250.

• The Hotel segment's outperformance is attributed to improvements in Key Performance Indicators (KPIs) and the contribution from ITC Ratnadipa.

• Solid revenue and Ebitda growth of 16% and 19% respectively, were driven by an increase in Average Room Rate (ARR), higher occupancy, and effective cost controls.

• ITC Ratnadipa's Revenue Per Available Room (RevPAR) nearly doubled from its launch, while maintaining stable occupancy.

Citi

• Maintain 'Sell' and reduce target price to Rs 4,015 from Rs 4,055.

• The company reported a weak Q1, with revenues coming in lower while margins were in line with expectations.

• Management reiterated double-digit FY26 revenue growth, supported by a strong backlog orderbook and a healthy pipeline of deals.

• Management indicated that the second half (H2) of the fiscal year is likely to be better than the first half (H1), based on multiple client conversations and another quarter of large deal wins.

Morgan Stanley

• Maintain 'Equal-weight' and hike target price to Rs 4,500 from Rs 4,300.

• The company's results were in-line with our expectations.

• It has performed well on deal wins over the past three quarters and is optimistic about revenue conversion going forward.

• Margin recovery, however, is expected to be gradual.

• We foresee no major negative surprises with a near-term positive bias.

• Despite this, the upside potential for the stock is limited.

• Maintain 'Buy' with a target price of Rs 2,700.

• The company's performance was better than expectations.

• The beat in net profit was primarily driven by lower costs compared to our estimates.

• Earnings growth is projected to improve quarter-on-quarter.

• While new initiatives are showing traction, they currently contribute only 3% of the total revenue.

• Maintain 'Add' and hike target price to Rs 3,800 from Rs 3,500.

• The company anticipates a busy year for launches, alongside the scaling up of fledgling businesses, new partnerships, and increased R&D efforts.

• Its dominant share of business is on a solid footing regarding both growth and margin performance.

• There is a strong case for Earnings Per Share (EPS) to grow at a CAGR exceeding 20% over FY25-28.

Based on insights from a consumer durable dealer operating 50 retail stores in west India:

• Unseasonal rains during April-May 2025 led to an estimated 15-20% year-on-year dip in the industry's AC sales.

• Channel inventory for ACs is currently high, at over five weeks, compared to the normal level of 2-3 weeks.

• Liquidation of this excess inventory could commence from the second half of August 2025 and might be boosted by an early festive season.

• New Bureau of Energy Efficiency (BEE) norms, effective January 1, 2026, are expected to increase energy efficiency by 10% but may also raise prices by approximately 7%.

• Key players in the summer cooling market identified are Voltas, Blue Star, Crompton Consumer, V Guard, Whirlpool, and Amber.