Brokerages issued a mix of overweight, buy, equal-weight and underweight calls on key financial, auto, energy, and mid-cap stocks on Thursday, highlighting sector-specific growth drivers, valuation support and regulatory challenges.
Key positive calls
Axis Bank: Morgan Stanley maintained an overweight rating with a target price of ₹1,325, implying nearly 17% upside from current levels. The bank highlighted improving deposit traction, with management guiding for loan growth above system levels in FY26 and net interest margins (NIM) expected to recover to 3.8% once deposits are repriced.
Adani Power: Morgan Stanley initiated coverage with an overweight rating and a target price of ₹818, about 29% upside from CMP. The brokerage said Adani Power is a turnaround case in India’s corporate history, with regulatory issues largely resolved and multiple value-accretive acquisitions in place. Capacity and EBITDA are forecast to rise 2.5x and 3x, respectively, by FY33.
JSW Energy: Morgan Stanley maintained overweight with a target of ₹659, while Jefferies reiterated buy with a higher target of ₹700. Both brokerages highlighted recent growth moves, including the ₹17.3 billion acquisition of the Tidong hydro plant, which lifts total capacity to 30.5 GW. Jefferies expects the company to deliver 42% EBITDA CAGR over FY25–28E as Strategy 3.0 drives a 2.8x rise in capacity by 2030.
Adani Green: Jefferies maintained buy with a target of ₹1,300, around 33% upside. It noted management’s confidence in scaling capacity 3.5x from 14 GW in FY25 to 50 GW by 2030. Net debt-to-EBITDA trends are improving, while valuations trade at a 63% discount to January 2023 peaks.
Prince Pipes: Motilal Oswal retained its buy call with a ₹440 target, implying 30% upside. Despite weak PVC prices and demand pressures, the company expects healthy demand recovery in 2HFY26 and maintained its full-year guidance.
Financial sector outlook
SBI: Morgan Stanley maintained equal-weight with a ₹885 target, as the bank reiterated FY26 loan growth of 11–12% and NIM guidance of ~3%. Asset quality remains robust.
Bank of Baroda: The brokerage kept underweight with a ₹235 target, about 5.5% downside. It expects NIM to decline in Q2FY26 before improving on deposit repricing, but noted better-than-expected trends in slippages and credit costs.
RBL Bank: Morgan Stanley reiterated underweight with a ₹175 target, implying steep 35% downside. The bank guided for 14–16% loan growth in FY26 and highlighted a stronger deposit base, but the brokerage flagged stretched valuations.
Autos and others
Citi reiterated buy on Hero MotoCorp (TP ₹6,100) and Eicher Motors (TP ₹7,850), while retaining sell on Bajaj Auto (TP ₹7,900) and TVS Motor (TP ₹2,800). It highlighted a divergence in growth prospects across players.
Morgan Stanley maintained overweight on Maruti Suzuki (TP ₹18,360) and equal-weight on M&M Financial (TP ₹282).
Other notable updates included BofA’s neutral stance on Paytm (TP ₹1,290), Macquarie’s neutral on Indian Hotels (TP ₹780), and Goldman Sachs’ buy call on Cohance (TP ₹1,075).
Brokerage snapshot
| Stock | Brokerage | Rating | Target (₹) | CMP (₹)* | Upside/Downside | Key reason |
|---|---|---|---|---|---|---|
| Axis Bank | Morgan Stanley | Overweight | 1,325 | 1,133 | +16.9% | Improving deposits, above-system loan growth, NIM recovery to 3.8% |
| Adani Power | Morgan Stanley | Overweight | 818 | 633.5 | +29.1% | Turnaround story, regulatory resolution, 2.5x capacity, 3x EBITDA by FY33 |
| JSW Energy | MS / Jefferies | Overweight/Buy | 659 / 700 | 538 | +22.5–30.1% | Hydro acquisition, Strategy 3.0, 42% EBITDA CAGR guidance |
| Adani Green | Jefferies | Buy | 1,300 | 980.6 | +32.6% | 50 GW capacity by 2030, debt metrics improving, valuations at 63% discount |
| Prince Pipes | Motilal Oswal | Buy | 440 | 338.2 | +30.1% | Demand revival expected in 2HFY26, despite PVC volatility |
| SBI | Morgan Stanley | Equal-weight | 885 | 854.1 | +3.6% | Loan growth 11–12% in FY26, asset quality strong |
| BoB | Morgan Stanley | Underweight | 235 | 248.7 | -5.5% | NIM pressure in near term, stable asset quality |
| RBL Bank | Morgan Stanley | Underweight | 175 | 271 | -35.4% | Loan growth guided, strong deposits, but valuations stretched |
*CMPs as per latest brokerage notes.
Disclaimer: The views and investment recommendations expressed are those of the respective brokerages. These do not represent the views of this publication and should not be considered as investment advice. Investors are advised to consult their financial advisors before making any investment decisions.
