Indian equities are set to trade with stock-specific action on Friday, August 22, as global brokerage commentary highlights opportunities across cement, airports, IT, autos, pharma, and defence. Analysts remain cautious on near-term demand in some sectors but see strong earnings potential into FY26, aided by structural demand, policy support, and order wins.
Morgan Stanley on cement said that demand remains lukewarm due to the ongoing monsoon season, though pricing trends are solid. The brokerage expects sequential weakness in the near term but stays optimistic about FY26 earnings on the back of stronger demand in the second half of the year and cost improvement. It prefers pan-India franchises with cost advantages.
Citi maintained a buy on GMR Airports, raising the target price to ₹103 per share from ₹90 earlier, citing stronger mid-term international growth prospects from the resumption of China–US flights and IndiGo’s increasing A350 aircraft orders. The brokerage also highlighted potential upside in Delhi’s commercial land value and expects positive momentum in the stock to continue into CY26.
Nomura reiterated a buy on Wipro with a target of ₹310 per share after the IT major acquired Harman Connected Services, a $375 million ER&D-focused buyout. Nomura said the deal enhances Wipro’s AI-powered digital and device engineering capabilities and could add about 280 basis points to revenue by FY27. However, EBIT margin could be impacted by around 50 bps due to integration costs. The deal also expands Wipro’s footprint in embedded software, IoT, and new markets such as South Korea.
HSBC, however, retained a hold call on Wipro with a target of ₹260 per share. The brokerage said strong deal wins boost confidence in an H2FY26 recovery and client issues in Europe have largely been resolved, but valuation gap with peers remains close to historic lows.
On the auto sector, Nomura said a GST cut on automobiles looks highly likely after the Group of Ministers approved the proposal. The brokerage expects major upside for companies such as Mahindra & Mahindra, Maruti Suzuki, Ashok Leyland, and TVS Motor. GST on small cars and two-wheelers is forecast to drop to 18% from 28%, while large cars may attract 40% GST. Tractors could benefit from a reduction to 5% from 12%. Suppliers like Uno Minda, Motherson Sumi, Sansera Engineering, and Ceat are also expected to gain.
Nomura also maintained a buy on Alkem Labs with a target of ₹6,300 per share, calling valuations reasonable given the recovery in domestic growth and prospects at Enzene. The brokerage said Alkem has gained strong traction in post-patent anti-diabetes launches and is well placed to participate in the GLP-1RA opportunity. It expects Enzene’s revenue to grow from ₹360 crore in FY25 to ₹800 crore by FY28, though profitability may be moderated by CDMO overhead costs.
CLSA remained outperform on Reliance Industries with a target price of ₹1,650 per share, highlighting a year-on-year jump in free cash flow and operating cash flow, aided by a sharp $5 billion rise in advances from oil and gas customers. The brokerage, however, flagged that opex and interest cost capitalisation is equal to 33% of consolidated PBT, which may weigh on future operating leverage. CLSA is looking for clarity on Jio’s IPO, the AI roadmap, FMCG strategy, and updates at next week’s AGM.
On Hindustan Aeronautics (HAL), CLSA also retained an outperform call with a target of ₹5,436 per share after the government cleared the company’s biggest-ever order—97 LCA Mk1A jets worth ₹67,000 crore. The brokerage said the order boosts HAL’s backlog by 35% and adds over $1 billion in cash from advances, easing concerns on delays that were linked to GE engine supply. With a long-term pipeline of $54 billion, key catalysts ahead include a large fighter jet order in 2025 and clarity on GE engine deals.
Shares of these companies are likely to remain in focus in Friday’s trade as investors react to the latest brokerage commentary and policy developments.