A full of brokerage actions is likely to impact several stocks on July 28, as global and domestic firms issued fresh views following earnings and business developments. Key names on the radar include Mphasis, Cipla, Kotak Bank, Laurus Labs, and Bank of Baroda.
Mphasis was upgraded to Overweight by Morgan Stanley, which raised its target price to ₹3,500. The brokerage believes strong deal wins in Q1 are not a one-off and could set the stage for sustained growth.
TCS continued to face scrutiny, with Citi maintaining a Sell rating and a target price of ₹3,135, citing sluggishness in core markets and concerns around its plan to cut 2% of the workforce. Jefferies echoed caution, flagging execution risks and long-term attrition pressure but did not assign a formal rating.
Bank of Baroda attracted mixed views. Morgan Stanley maintained an Underweight rating with a ₹235 target, citing overseas slippages. Jefferies has a Hold call at ₹255, highlighting higher credit costs. Nomura retained Neutral at ₹240 due to limited near-term catalysts. Citi remained bullish with a Buy and ₹310 target, supported by treasury gains, while Antique also maintained a Buy with a ₹290 target, noting consistent RoA above 1%.
SAIL saw Morgan Stanley maintain an Underweight rating with a ₹105 target, citing a 16% EBITDA miss despite better volumes and realisations.
SBI Cards remained under pressure with three bearish views. Macquarie maintained Neutral with a ₹1,040 target, while Morgan Stanley downgraded it to Underweight with a revised target of ₹710, citing rising stress and elevated credit costs. Bernstein retained Underperform with a ₹690 target, flagging persistent credit cost concerns.
Shriram Finance received a more upbeat view from Jefferies, which maintained a Buy with a ₹800 target, noting improved asset quality and credit cost surprise.
IEX came under pressure as Jefferies retained an Underperform call and cut its target to ₹105, citing regulatory risks from the CERC’s proposed market coupling, which could erode market share.
Macrotech Developers (Lodha) attracted divergent opinions. Nomura maintained a Buy with a ₹1,450 target, citing strong Q1 performance and Bengaluru launches. J.P. Morgan, however, kept a Neutral rating with a ₹1,300 target, noting slower free cash generation and muted Q2 guidance.
IDFC First Bank was widely covered. Jefferies retained a Buy with a ₹82 target, highlighting improving MFI asset quality. CLSA kept a Hold at ₹75, while J.P. Morgan was Neutral with a ₹65 target despite a PAT beat. Nuvama also maintained Hold with a ₹68 target, citing stress in non-MFI segments.
Premier Energies drew a Neutral rating from J.P. Morgan with a ₹1,019 target, despite an earnings beat, due to margin pressures.
Kotak Mahindra Bank received contrasting opinions. Morgan Stanley remained Overweight with a ₹2,600 target, optimistic about earnings recovery post-Q2. Bernstein maintained Market Perform with a lower ₹1,950 target, citing weak NIMs and rising credit costs. Antique kept a Buy but cut its target to ₹2,440, adjusting earnings estimates amid unsecured loan weakness.
Cipla saw mixed reactions. Goldman Sachs reiterated a Sell with a ₹1,375 target, warning of growth slowdown as gRevlimid impact fades. Nomura retained Buy at ₹1,810 on margin confidence and US product launches. Jefferies maintained Hold with a ₹1,690 target, balancing weak India and US sales with strength in ROW and guidance support.
Laurus Labs was a high-coverage stock. Goldman Sachs (Sell, ₹675) and Kotak (Sell, ₹555) believe earnings recovery is fully priced in. Jefferies also retained Underperform with a ₹590 target, citing poor margin visibility. However, MOSL remains bullish with a Buy and raised its target to ₹970 on strong CDMO growth. Antique took a middle stance, upgrading the target to ₹700 but maintaining a Hold due to limited CDMO visibility.
Lastly, Tata Chemicals saw MOSL maintain a Neutral call, raising its target to ₹970. The brokerage noted steady India and UK operations but flagged global supply overhang and trade uncertainties in the soda ash segment.
Disclaimer: This article is based on brokerage reports and publicly available disclosures. It is not investment advice. Please consult a registered financial advisor before taking any investment decisions.
