Several key companies are in focus today as leading brokerages released their latest research reports, commenting on earnings, margins, and operational trends. Here’s a detailed look at the top stock ideas and outlooks:

ITC share

Brokerages remain largely positive on ITC following its Q1FY26 results.

  • CITI (Buy, TP ₹500): Revenue grew 21% YoY, driven by the agri segment. Cigarette revenue rose 8% YoY, with an estimated 7% volume growth. FMCG showed growth improvement, though paperboard remained under pressure.

  • Goldman Sachs (Buy, TP ₹490): Results were in line; cigarette growth solid with margin recovery likely in H2.

  • Macquarie (Outperform, TP ₹500): 6.5% volume growth in cigarettes helped offset input cost pressure. Positive on margin recovery in 4QFY26.

  • HSBC (Buy, TP ₹510): Revenue beat by 10%, though EBITDA missed by 3%. Core segments performed in line. Lowered FY26–28e EPS by 2–3%.

  • Jefferies (Buy, TP ₹535): Cigarette volumes rose >6%, but margins declined. Overall EBITDA grew 3%, slightly below estimates.

  • Morgan Stanley (Overweight, TP ₹500): Cigarette and FMCG revenue trends positive. Paper business weak but likely bottomed.

Tata Steel share

  • Jefferies (Buy, TP ₹200): Q1 EBITDA grew 11% YoY and beat estimates. While 2Q margins may compress due to lower steel prices, signs of recovery from higher Chinese export prices are emerging.

Thermax share

  • Jefferies (Buy, TP ₹4,500): Revenue miss in Q1, but EBITDA margin improved 162 bps YoY. Bio-CNG drag in FY25 is expected to subside, helping margin expansion in FY26.

Godrej Properties share

Views remain mixed post Q1 results:

  • Jefferies (Buy, TP ₹3,000): Pre-sales fell 18% YoY, but management remains confident. Strong launch pipeline.

  • Nomura (Reduce, TP ₹1,900): Expects FY26 sales to miss guidance. Concerns over growth strategy, equity dilution, and valuation premium.

  • Morgan Stanley (Equal-weight, TP ₹2,400): Q1 pre-sales in line, but collection dropped 47% QoQ. D/E ratio rose.

Tata Power share

  • CLSA (Underperform, TP ₹351): Weakness in Indonesian coal, RE IPP business, and Tata Projects hurt core profitability. Solar EPC & module business was the only bright spot.

UPL share

  • HSBC (Buy, TP ₹775): Q1 was muted but recovery and deleveraging underway.

  • Kotak Institutional Equities (Sell, TP ₹520): Gross margins improved, but long-term gains uncertain amid demand softness and intense competition.

Delhivery share

  • Goldman Sachs (Neutral, TP ₹375): E-commerce volumes grew but realization declined. Profit aided by treasury gains.

  • Kotak Institutional Equities (Buy, TP ₹500): Strong PBT growth despite challenges. Continued scale-up in express parcel.

  • Jefferies (Underperform, TP ₹350): EBITDA miss due to timing issues in Ecom Express volume. Industry shift to insourcing remains a headwind.

Federal Bank share

Brokerages split on Federal Bank’s Q1 print:

  • Morgan Stanley (Underweight, TP ₹165): Slippages increased due to MFI stress. RoA may moderate.

  • CLSA (Outperform, TP ₹230): PAT beat, but credit costs 70% above estimates. Other income and opex helped.

  • Nuvama (Buy, TP ₹230): NIM and slippages worsened; expects elevated credit costs in Q2, then easing.

PB Fintech share

  • HSBC (Buy, TP ₹2,250): Beat estimates on margin uplift in new segments, though core business saw margin compression.

  • Jefferies (Buy, TP ₹2,100): Adj. EBITDA rose 80%. Sees healthy growth and valuation support from strong cash flows.

LIC Housing Finance share

  • Morgan Stanley (Underweight, TP ₹480): NIM declined, credit costs slightly higher. Franchise weakening; outlook remains subdued.

MCX share

  • Morgan Stanley (Underweight, TP ₹5,750): Core EBITDA missed due to higher employee costs. Transaction revenue falling; valuation seen as expensive.

Adani Power share

  • Jefferies (Buy, TP ₹690): EBITDA missed by 2%, capacity expansion plans intact. Acquired 600MW Vidarbha unit in July.

Adani Enterprises share

  • Jefferies (Buy, TP ₹3,000): EBITDA fell 12–13% YoY/QoQ due to legacy businesses. PAT down 50%. Retains FY27/28 outlook despite Q1 miss.

Disclaimer: This article is based on brokerage reports and is for informational purposes only. It does not constitute a recommendation or investment advice. Investors should consult their financial advisors before making investment decisions.

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