Top global brokerages have issued fresh ratings on Kotak Mahindra Bank, Ashok Leyland, Bharat Forge, Jubilant FoodWorks, HAL, SBI Cards, PFC, Lupin, Indian Hotels, and others, highlighting growth prospects, regulatory developments, and industry trends.
Kotak Mahindra Bank: RBI relief sparks optimism
Several brokerages reacted positively to the RBI lifting restrictions on Kotak Mahindra Bank’s credit card issuances and new customer onboarding.
- Morgan Stanley (Target: ₹2,290) and Citi (Target: ₹2,070) expect Kotak to accelerate unsecured loan growth, aiding profitability.
- JP Morgan (Target: ₹2,100) sees this as removing a major overhang, while Macquarie (Target: ₹2,200) calls the bank well-placed for a re-rating.
- HSBC (Target: ₹2,210) and CLSA (Target: ₹2,125) remain optimistic on digital expansion and deposit growth via the ‘811’ initiative.
- UBS (Target: ₹2,100) maintains a neutral stance, citing market share loss and gradual recovery expectations.
- Bernstein (Target: ₹1,950) believes regulatory risks remain a key concern for the sector.
Ashok Leyland: Margin expansion and industry tailwinds drive positive sentiment
Brokerages were largely bullish on Ashok Leyland, driven by strong industry demand, improving mix, and margin expansion.
- Morgan Stanley (Target: ₹284) expects margin improvements as the MHCV cycle turns positive.
- Citi (Target: ₹270) raised earnings estimates on strong realisations and cost-cutting measures.
- Goldman Sachs (Target: ₹280) sees bus and LCV demand driving FY26 estimates and expects 8-10% EPS growth.
- Macquarie (Target: ₹226) remains neutral despite a Q3 EBITDA margin surprise, citing concerns over cost escalations.
Jubilant FoodWorks: Growth momentum improving
- Citi (Target: ₹750) and Morgan Stanley (Target: ₹781) expect continued sales recovery, despite dine-in weakness.
- Jefferies (Target: ₹1,000) remains bullish, highlighting double-digit SSSG growth and a focus on new launches, faster deliveries, and discounting strategies.
Bharat Forge: Strong outlook despite weak Q3 EBITDA
- Morgan Stanley (Target: ₹1,336) remains bullish on strong US Class 8 truck cycle recovery and non-auto business expansion.
HAL: Strong order inflows drive optimism
- Morgan Stanley (Target: ₹4,958) sees a robust order pipeline worth ₹1,65,000 crore, driven by aircraft and Sukhoi engine orders.
- HAL is set to roll out the first Tejas MK-1A from its Nashik facility by FY25-end.
Lupin: US business pipeline strong, but competition risks remain
- HSBC (Target: ₹2,565) forecasts a 26.5% EPS CAGR over FY24-27, driven by US launches and cost efficiencies.
- Jefferies (Target: ₹2,200) remains cautious, citing increased competition in FY26.
- Goldman Sachs (Target: ₹2,225) raised its EPS estimate by 5%, highlighting EBITDA margin improvements.
SBI Cards: Credit risks stabilizing, positive catalysts ahead
- Macquarie (Target: ₹1,000) upgraded the stock to ‘Outperform’, expecting credit costs to decline significantly in the next two quarters.
PFC: Strong ROE, credit write-backs support growth
- Macquarie (Target: ₹660) remains bullish, citing write-backs from stressed assets and an attractive valuation at 0.7x FY27E P/B.
Hotel Sector: Lemon Tree, Chalet Hotels preferred over Indian Hotels
- Macquarie sees strong pricing power in the sector but prefers Lemon Tree (Target: ₹210) for its asset-light model and Chalet Hotels (Target: ₹1,100) for its high-growth potential over Indian Hotels.
ICICI Pru AMC: Prudential evaluating potential listing
- Morgan Stanley notes Prudential is considering listing its ICICI Pru AMC stake, with valuations pegged at $0.9-1.8 billion.
Brokerages continue to favor financials, auto, and defense sectors, citing regulatory relief, margin expansion, and strong order books. However, competition risks, cost escalations, and macroeconomic factors remain key watchpoints across sectors.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors are advised to consult their financial advisors before making any investment decisions.
