Asian markets began the week on a steady note, with a flurry of brokerage actions setting the tone for key stock movements on Monday. Leading brokerages, including HSBC, Morgan Stanley, CLSA, Jefferies, Nomura, DAM Capital, and Nuvama, issued fresh updates and revised targets on several major companies spanning auto, retail, pharma, and industrials.
HSBC reiterated its buy call on Chola Investment, raising the target price to ₹1,970 per share. The brokerage said the company’s second-quarter results showed an underlying slowdown but were largely in line with earlier guidance. HSBC lifted earnings estimates for FY26–28, citing an improved net interest margin outlook.
In the auto space, DAM Capital upgraded Bajaj Auto to neutral with a target of ₹9,050 per share, saying the “worst is behind” for the automaker as export growth and product upgrades are expected to support performance. It noted strong traction from higher CC bikes, new launches, and healthy margins, though valuations were termed “fairly priced.” Meanwhile, CLSA maintained an outperform rating on Bajaj Auto with a higher target of ₹10,604, highlighting better-than-expected export realizations and robust product mix benefits that offset mild cost inflation.
Jefferies initiated coverage on the industrials space, placing a buy on Hitachi Energy with a target of ₹25,000 per share and a hold on CG Power at ₹745. The brokerage expects Hitachi and Siemens Energy to post 81% and 61% EPS CAGR over FY25–27E, respectively, citing strong margin expansion and robust order visibility.
Among consumer and retail names, Morgan Stanley maintained its overweight call on Trent, setting a target price of ₹5,456 per share. The firm noted 16% YoY growth in consolidated revenue and a 27% jump in EBITDA, supported by stable margins and lower occupancy costs. However, Jefferies trimmed its target on Trent to ₹5,000 while retaining a hold rating, citing a moderation in revenue growth to 17%, the slowest pace in several quarters.
On Nykaa, both Morgan Stanley and CLSA turned upbeat. Morgan Stanley retained its overweight stance with a ₹271 target, pointing to 25% revenue growth and a narrowing loss in the fashion segment. CLSA raised its target to ₹298, maintaining an outperform call after a 125-bps improvement in EBITDA margin and steady performance across both beauty and fashion verticals.
In the metals space, CLSA reaffirmed its outperform rating on Hindalco Industries with a target price of ₹875 per share. The brokerage cited strong aluminium profitability and an optimistic H2 outlook, supported by higher metal prices and capacity expansion plans.
For PFC, CLSA remained bullish with a high conviction outperform rating, though it trimmed the target price to ₹495 following a Q2 earnings miss due to forex losses. It highlighted stable asset quality but noted a slight dip in margins and moderation in loan growth.
Meanwhile, CLSA also reduced its target for NCC to ₹261 per share (from ₹315), maintaining an outperform rating. The brokerage flagged weak execution due to prolonged monsoon conditions and slower project pick-up, cutting FY26–28 earnings estimates by up to 24%.
In the FMCG space, Nomura retained a buy on Britannia Industries with a target of ₹7,000 per share, citing strong margin performance despite modest topline growth due to the GST transition.
Pharma stocks were active too. HSBC reiterated a buy on Divi’s Laboratories with a target price of ₹7,400, noting a healthy beat led by the custom synthesis segment and growing interest in peptides. Morgan Stanley maintained an equalweight rating on Lupin with a target of ₹2,173, while Jefferies stayed buy with a higher target of ₹2,300, highlighting strong U.S. sales and improved margin guidance.
Finally, Nuvama Institutional Equities lifted its target on Neuland Laboratories to ₹22,130 after a stellar second-quarter performance. Revenue, EBITDA, and PAT beat estimates by 18%, 46%, and 59%, respectively, with margins at 64.3%. The brokerage credited the strong showing to higher contributions from the CMS and specialty segments and guided for new product additions in the coming quarters.
With fresh momentum across auto, pharma, and industrial names, these brokerage notes are likely to drive stock-specific action in Monday’s session.
Disclaimer: The above article is based on brokerage reports and is for informational purposes only. It does not constitute investment advice or recommendations to buy or sell any securities.
