Brokerage houses released fresh updates on multiple companies and sectors, with views ranging from bullish to cautious depending on growth outlooks, margins, and execution challenges.
CLSA retained an outperform rating on Bharti Airtel with a target price of ₹2,035 per share. The brokerage highlighted the company’s strong balance sheet, continued investments in digital infrastructure, and robust performance in FY25 as 5G ramped up. Airtel’s Indian mobile revenue share rose to 40%, supporting growth, while operating and free cash flow rose 25–41% year-on-year to $4.3–11.3 billion. Gearing was comfortable at 1.9x EBITDA, and RoCE improved to 15.4%.
HSBC took a cautious stance on Page Industries, maintaining a reduce call with a target price of ₹41,040 per share. The brokerage noted that the launch of JKY Groove moves away from basics but has limited potential. Margins are already near peak levels as raw material costs have stabilised, while rising employee costs could weigh on profitability. HSBC cut PAT estimates by 3% on weak demand. On Ujjivan, however, HSBC remained positive with a buy call and a target of ₹61 per share. The brokerage said Ujjivan aims to build scale and diversify over the next five years, targeting RoA of 1.7–1.8% and RoE above 15%, though execution remains critical. Earnings were cut on conservative loan growth and credit cost assumptions. On the telecom sector, HSBC said the probability of a tariff hike in 2026 has increased. Airtel and Jio remain well placed on growth, with ARPU, broadband subscriber additions, and free cash flow growth to support dividends. HSBC gave Bharti Airtel a buy rating with a target of ₹2,200, Reliance Industries a buy with a target raised to ₹1,750, and Vodafone Idea a reduce rating with a target of ₹5.80.
Morgan Stanley (MS) maintained an underweight rating on Yes Bank with a target price of ₹17 per share. The brokerage noted that SMBC has completed an initial 20% stake acquisition in Yes Bank and signed a definitive agreement to acquire an additional 4.2% from Carlyle. However, it maintained an underweight view citing a gradual recovery in profitability. On PNB Housing, MS stayed overweight with a target price of ₹1,100. Management reiterated 18% retail loan growth guidance for FY26, with affordable and emerging segments leading expansion. It guided FY26 NIM at 3.6–3.7% versus 3.7% in FY25 and signalled lower borrowing costs being passed on as PLR cuts. Gross stage 3 assets in the affordable segment are expected to rise to 85–90 bps by March 2026. CEO selection is targeted by October 2025-end.
MS also retained an overweight call on Bajaj Finance with a target price of ₹1,050. The brokerage said the company maintains 24–25% loan growth guidance for FY26, though cuts in MSME and housing finance subsidiaries may trim AUM growth by about 160 bps. Still, other segments may offset the weakness, with strong asset quality expected to support growth into FY27. On ICICI Bank, MS reiterated an overweight stance with a target of ₹1,800. It expects gradual acceleration in loan growth on the back of rate cuts, regulatory easing, and fiscal incentives. NIMs may continue to moderate in Q2 due to repo cut transmission, partly offset by deposit repricing, while asset quality trends remain favourable. On Shriram Finance, MS kept an overweight rating with a target of ₹740. Loan growth guidance of 15% for FY26 remains intact, with vehicle upgrades offsetting price cuts. Credit cost guidance was maintained at 2.0% of assets, and NIMs are expected to improve meaningfully in Q3FY26. On ICICI Prudential Life, MS has an equal-weight rating with a target price of ₹625, stating that GST reforms will boost medium-term demand and VNB, though short-term margin impact is likely. Persistency improvements are expected to offset part of the 1% EV impact.
Nomura said crude oil prices are down on rising OPEC+ supplies, with INR depreciation posing a risk for OMCs and CGDs. A sharp fall in Singapore GRM is unlikely to dent Indian refiners as OMC margins remain healthy at over ₹6 per litre. The brokerage retained buy ratings on HPCL, BPCL, and IOCL, with BPCL the most favoured. Lower LNG prices are seen as a positive for Petronet LNG, Gujarat Gas, GAIL, MGL, and IGL.
Nuvama reiterated a buy call on Saregama with a target price of ₹630. It said the company plans to invest ₹700 crore in music content over the next two years, targeting a 25–30% incremental market share. Investments are expected to deliver a 26% IRR with a 4–5 year payback. Music revenues are expected to grow at a 20–23% CAGR, with live events expanding 25–30%. Paid subscribers currently stand at 80 lakh, well below global levels, but consolidation in free streaming is expected to accelerate paid growth over the next 18 months.
Emkay initiated coverage on Minda Corporation with a buy call and a target of ₹600, citing strong R&D spends, management vision, and market acumen as drivers for structural outperformance.
Goldman Sachs (GS) maintained a buy rating on Eternal with a target price raised to ₹360. The brokerage highlighted Blinkit’s strong growth, with FY27 NOV estimates now 80%–260% higher than earlier. Store counts are expected to double in 2–3 years, with margin expansion of 240 bps over the next two quarters as competition stabilises.
Citi reiterated a buy call on Sun Pharma with a target price of ₹2,180 and added the stock to its Pan Asia Focus List. The brokerage expects innovation revenues to rise to $3.2 billion by FY30 compared with $1.2 billion in FY25. Key drivers include strong formulary coverage for Leqselvi, additional approvals such as Ilumya’s PsA indication, and US Medicare expansion. Citi expects FY27–28 EPS to be 10–18% ahead of consensus, with valuations attractive at around 0.8 standard deviation above mean.
Disclaimer: The views and investment recommendations expressed are those of the brokerages cited. These do not represent the views of this publication and should not be considered as investment advice. Investors are advised to consult their financial advisors before making any investment decisions.
