A slew of brokerage reports released on April 23 spotlight key stocks that could be in focus, including HCLTech, AU Small Finance Bank, Havells India, Mahindra & Mahindra Financial Services, Cholamandalam Investment, and M&M. Here’s a roundup of the latest views:
HCLTech
Brokerages largely welcomed HCLTech’s Q4 performance and its FY26 guidance, though opinions were mixed on valuations.
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JP Morgan upgraded the stock to Overweight with a raised TP of ₹1,750 citing consistent performance and a strong deal pipeline.
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Nomura maintained a Buy with TP ₹1,670, highlighting strong deal wins and robust FY26 guidance despite tariff uncertainties.
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Nuvama also maintained a Buy with TP ₹1,700, noting strong TCV growth (+31% YoY) and inline EBIT margins.
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Morgan Stanley (MS) remained Equal Weight with TP ₹1,600, citing mixed margins and software drag.
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Jefferies cut TP to ₹1,490 (Hold), while Citi stayed Neutral at ₹1,510 citing “uncertain” commentary and modest growth assumptions.
AU Small Finance Bank
Views were sharply divided on AU Small Finance Bank following its Q4 performance:
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Morgan Stanley retained Overweight with TP ₹750, calling AU the strongest mid-sized private bank with room for RoA expansion.
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Citi stayed Neutral with TP ₹625, noting inline RoA of 1.36% but elevated credit cost of 2.5%.
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Nuvama downgraded to Reduce with TP ₹530 due to higher-than-expected credit costs and weak core PPOP growth.
Havells India
Q4 results saw broad-based outperformance, but brokerages remain cautious on valuation and segment headwinds:
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Morgan Stanley reiterated Overweight, TP ₹1,942, highlighting Lloyd’s 40% YoY growth and strong margins.
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CLSA maintained Outperform, TP ₹1,915, but cut target multiple due to rising competition in C&W.
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Nomura, Nuvama, and Jefferies maintained Buy/Hold ratings with TPs of ₹1,873, ₹1,890 and ₹1,800 respectively.
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JP Morgan was more cautious with a Neutral call and TP of ₹1,700 citing uncertain demand in key segments.
M&M Financial Services
Brokerages flagged ongoing asset quality concerns and margin pressure:
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Goldman Sachs (GS) has a Sell rating with TP ₹224, citing weak disbursals and muted PPOP.
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Nomura retained Reduce, TP ₹230, forecasting continued elevated credit costs of 1.8-1.9%.
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Morgan Stanley stayed Equal Weight, TP ₹290, while Nuvama maintained Hold, TP ₹280, highlighting one-time hits and poor Q4 PAT (-37% QoQ).
Cholamandalam Investment
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UBS upgraded the stock to Buy, raising TP to ₹1,950. It forecasts 24% AUM and 30% EPS CAGR over FY25–27E and sees RoA improving to 2.5% by FY27.
Mahindra & Mahindra
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HSBC retained Buy, TP ₹3,320, citing attractive valuation and potential FY26 outperformance despite slow BEV traction. Strong market position in tractors and SUVs continues to support outlook.
Power Sector Update (HSBC) Power demand in March was strong, up 7% YoY (requirement) and 6% (peak). However, April demand showed signs of moderation as base effects catch up. Renewables contributed significantly, with 28GW added in FY25. Storage tenders of 4GWh have already been awarded in CY25TD.
Disclaimer: The above views are of the brokerages and do not represent the views of the author or the publication. Investors are advised to consult their financial advisors before taking any investment decisions.
