A fresh wave of brokerage reports has put the spotlight on several stocks that could see action on July 29. From upgrades to earnings commentary and new initiations, key developments have come in for Torrent Pharma, IndusInd Bank, GAIL, BEL, IEX, and others.
Torrent Pharmaceuticals received a Buy rating from Citi, which raised its target price to ₹4,380. The brokerage highlighted a healthy and in-line quarter with strong growth in branded markets such as India and Brazil. Although supply issues were noted in Germany, EBITDA margins stood strong at 32.9%, which Citi believes will be the floor for future quarters. Operating leverage in branded segments and US recovery are expected to support further margin expansion.
United Spirits was initiated with a Hold rating by CLSA, with a target of ₹1,238. While the company has a strong premium portfolio and Diageo brand access, CLSA sees policy headwinds limiting near-term growth and finds the 54x one-year forward P/E valuation demanding.
Radico Khaitan received an Outperform initiation from CLSA, with a target price of ₹3,098. CLSA highlighted Radico’s leadership in white spirits, its expansion into premium and luxury segments, and a 265-bps expected margin expansion by FY28, though noted that profit delivery has been inconsistent.
GAIL saw a positive stance from both CLSA and Macquarie. CLSA retained Outperform, TP ₹200, citing better-than-expected Q1 EBITDA from gas transmission. Macquarie also maintained Outperform, raising the target to ₹215, and highlighted near-term upside potential from a 10–30% hike in transmission tariffs despite continued weakness in the petrochem segment.
Bharat Electronics Ltd (BEL) was rated Outperform by CLSA, with a target of ₹400. The firm praised BEL’s EBITDA margin performance, noting a 576 bps YoY jump and order inflow momentum supported by the government’s ‘Make in India’ push. CLSA expects BEL to win $7 billion in orders over the next 12 months.
Indian Energy Exchange (IEX) faced pressure after Bernstein downgraded it to Underperform and cut the target price to ₹99. The firm sees the market coupling regulation as more damaging than expected and believes IEX has limited scope to overturn the order. Further risks include transaction fee reforms and rising competition.
IndusInd Bank was among the most actively covered, with multiple brokerages offering mixed views:
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J.P. Morgan downgraded to Underweight, TP ₹550, flagging that almost all of Q1 profit came from treasury and interest recoveries while core metrics were weak.
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Macquarie also maintained Underperform, TP ₹650, citing elevated slippages and RoA likely staying below 1%.
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Citi has a Sell rating, TP ₹765, saying legacy issues didn’t recur but high credit costs and slippages kept RoA and RoE muted.
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CLSA rated it Hold, TP ₹725, noting Q1 PAT missed estimates due to weak PPoP and credit costs, with both loans and deposits declining.
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Bernstein, contrastingly, retained an Outperform call with a bullish TP of ₹1,000, despite low RoA and EPS declines, seeing potential for profitability reassessment.
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InCred Equities maintained a Hold with a TP of ₹840, calling the valuation fair given weak fee income and high credit costs but positive steps on governance.
Disclaimer: This article is based on brokerage reports and publicly available information. It does not constitute investment advice. Investors are advised to consult certified financial professionals before making investment decisions.
