Brokerages issued a string of updates on Thursday, spotlighting sectors ranging from FMCG and insurance to autos, pharma, aviation, and renewables, with GST reforms emerging as a central theme.
Motilal Oswal Securities (MOSL) reiterated a buy on L&T Finance Holdings (L&TFH) with a target price of ₹260 per share, while Nuvama initiated coverage on Neuland Labs with a buy and a target of ₹17,700, citing strong growth prospects.
On GST reforms, UBS said the sweeping changes would boost consumer sentiment and support cement, consumer durables and FMCG. Bernstein called the move “GST 2.0,” noting it removed skepticism about the government’s intent behind its consumer push. CLSA highlighted that food and home & personal care categories stand to benefit most, identifying Britannia and Colgate as top gainers. Morgan Stanley echoed that staples would benefit from stronger growth and share gains for organised players, pointing to Britannia, Nestle and Tata Consumer as better positioned than HPC names. Goldman Sachs also saw Britannia, Colgate, Dabur, HUL, Britannia and GCPL among the key beneficiaries. Jefferies added that consumer companies were expected to pass on the impact of GST cuts, supportive for apparels, footwear and staples. Antique said the GST cuts, effective September 22, could lift festive demand across multiple sectors.
In insurance, CLSA said the removal of GST on retail life and health policies makes cover more affordable but warned insurers would now bear costs without input credit, possibly leading to 1–4% premium hikes. It flagged SBI Life as best placed due to its low operating expense ratio. Morgan Stanley added that exemptions covered all individual life, health and savings policies, and third-party insurance for goods vehicles had been cut to 5% from 12%, but uncertainty on input credit relief could temper the overall benefit.
Nomura projected India’s solar PV demand would rise 1.4x over FY25–28, driven by 23% CAGR in capacity and policy support. However, it cautioned that 100–110 GW module additions may lead to oversupply, with backward-integrated players best positioned. On stocks, Nomura kept a buy on Waaree Energies with a ₹3,710 target, forecasting 43% EBITDA CAGR FY25–28, and remained neutral on Premier Energies with a ₹1,100 target.
In pharma, Nomura reiterated a buy on Lupin with a target of ₹2,350 after US FDA approval for gRisperdal Consta, making it the second company globally and first Indian generic firm to secure the clearance. The brokerage said it strengthens Lupin’s position in complex generics, building on prior approvals for gGlucagon and gVictoza.
In autos, Nomura stayed neutral on Maruti Suzuki with a target price of ₹13,113, noting the launch of its Victoris SUV on September 3. Morgan Stanley highlighted the start of production of Maruti’s first BEV, the e-Vitara, for exports to over 100 countries, alongside 80% localisation in hybrid battery cells supported by a ₹4,200 crore investment.
In aviation, HSBC reiterated a buy on InterGlobe Aviation with a target price of ₹6,920 per share, pointing to long-term benefits from investments in fleet expansion and MRO facilities. The brokerage said the company’s ongoing initiatives could deliver ₹0.30–0.40 per ASK cost savings, while cash flows remain positive, with benefits yet to be fully priced in.
In IT services, Antique noted that AI-led workloads are driving hyperscaler growth, naming HCLTech, Coforge and MPhasis as its top picks for medium-term upside. However, in city gas distribution, it maintained a hold on MGL and GGAS and a sell on IGL, citing mixed CNG demand trends in August and margin pressures.
Disclaimer: This article is based on brokerage views as cited. The views expressed are those of the brokerages and do not represent investment advice.
