Several large-cap and mid-cap stocks are on the radar of top brokerages following the release of Q4FY25 results and key operational updates. Brokerages including Morgan Stanley, Jefferies, Citi, HSBC and Nomura have released fresh views on Bajaj Finance, Trent, BPCL, Ambuja Cements, Oberoi Realty, and Prestige Estates, among others.
Trent drew mixed responses post its Q4 results. Morgan Stanley maintained an Overweight rating with a price target of ₹6,359 per share, noting a 17% miss in PAT due to associate losses and gross margin compression—partly attributed to possible inventory write-offs. However, the brokerage highlighted a beat in EBITDA margin.
Jefferies has a Hold rating on Trent but raised the target price to ₹5,900. While it acknowledged a moderation in revenue growth to multi-quarter lows, the margin surprise drove stronger EBITDA. The brokerage expects a 35% CAGR in standalone sales from FY25 to FY28 despite sequential moderation in Zudio and Westside due to base expansion.
Ambuja Cements also received attention, with Morgan Stanley reiterating an Overweight call and setting a target of ₹590. The brokerage cited market share gains and a growing share of premium products in the trade segment. However, it flagged lower-than-expected margins and rising input costs as areas of concern.
BPCL was rated a Buy by Citi, with a target price of ₹390. The company’s strong refining performance led to an earnings beat, as gross refining margins (GRM) rose QoQ from $5.6 to $9.2—well above expectations. While inventory gains helped marketing, core marketing margins were weaker on lower retail fuel spreads. Citi noted that LPG compensation remains pending.
In the auto sector, Jefferies expects wholesale volumes for April to rise between 10–16% year-on-year for M&M, Eicher Motors, and TVS Motors. These three stocks remain its preferred picks, although registration trends across segments have diverged month-to-date.
Oberoi Realty saw its target price cut to ₹2,000 by Nomura, which maintained a Buy rating. The brokerage cited slower-than-expected sales at its Jardin project in Thane and lower visibility on Versova land development. However, it sees strong pre-sales growth from a robust new project pipeline driving a 30% CAGR over FY26–27.
Morgan Stanley upgraded Prestige Estates to Equal-weight and trimmed the target to ₹1,370, acknowledging a better pre-sales outlook and strong office and retail leasing business. The brokerage noted the worst may be behind and pointed to a recent RERA approval for the Indirapuram project as a possible Q1 or Q2 sales trigger.
In financials, Bajaj Finance received positive commentary. Jefferies retained a Buy rating with a target of ₹10,440, stating that earnings were largely in line. The management used tax write-backs to create buffer provisions and slightly lowered near-term growth expectations while maintaining a healthy long-term RoE outlook.
HSBC also maintained a Buy rating on Bajaj Finance with a higher target of ₹10,800, projecting a 25% CAGR in earnings from FY25–28. While fee growth estimates were trimmed slightly, net interest margin (NIM) assumptions remain intact. HSBC believes the stock will compound at the pace of its earnings growth.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to consult certified financial professionals before making any investment decisions.
