A flurry of brokerage activity has put several high-profile stocks in focus on Thursday, August 1. Among the names seeing active analyst commentary are JSW Energy, Dabur, Sun Pharma, Swiggy, IIFL Finance, and Maruti Suzuki, each receiving fresh views based on their quarterly performances, growth outlooks, or evolving industry trends.
JSW Energy drew sharply contrasting views from Jefferies and CLSA. Jefferies maintained a bullish stance, upgrading the stock to ‘Buy’ with a target price of ₹700 per share, highlighting an operational beat in Q1 and improved visibility of capacity additions post the integration of KSK and O2 Power acquisitions. The brokerage forecasts a strong 43% EBITDA CAGR for FY25–28. CLSA, however, remained cautious with an ‘Underperform’ call and a ₹423 target, flagging that core performance was weak when excluding recent acquisitions, with standalone EBITDA and PAT down 40% and 36% YoY, respectively.
Swiggy was another name that generated optimism. Jefferies upgraded the stock to ‘Buy’ with a target of ₹500, noting strong growth in the food delivery business and sustained momentum in quick commerce, even though Q1 EBITDA margins declined sequentially. Morgan Stanley also maintained an ‘Overweight’ view with a slightly lower target of ₹450, raising profitability assumptions for the quick commerce segment and lowering loss projections based on Q2 commentary.
In the FMCG space, Dabur received mixed reviews. Nomura retained a ‘Buy’ rating with a ₹575 target, citing stable Q1 performance and expectations of double-digit growth in Q2. Morgan Stanley, however, stayed ‘Underweight’ with a target of ₹396, pointing out that while rural demand outpaced urban, the company’s overall volume growth was flat and margin pressures remain. HSBC took a neutral stance with a ‘Hold’ call and a ₹500 target.
Sun Pharma continued to win favor with brokerages. Morgan Stanley reiterated its ‘Overweight’ view and a ₹1,948 target, lauding its diversified model and consistent growth. HSBC echoed the optimism with a ‘Buy’ rating and ₹1,850 target, citing strong operational momentum and new product launches that could offset tax impacts.
IIFL Finance saw diverging opinions as well. Jefferies downgraded the stock to ‘Hold’ with a reduced target of ₹465 per share after a Q1 PAT miss and signs of rising stress in its microfinance and MSME segments. HSBC, however, maintained a more positive outlook, retaining a ‘Buy’ rating with a ₹550 target, confident in the rebound of gold loan growth and overall AUM expansion.
Auto major Maruti Suzuki also remained on analysts’ radars. Jefferies maintained its ‘Buy’ call and raised the target price to ₹14,750 from ₹13,600, even though Q1 EBITDA declined 11% YoY. The brokerage remains optimistic about export growth and new product launches, despite ongoing market share challenges in the domestic PV segment.
Other stocks under review include Chola Finance, where Morgan Stanley flagged higher-than-expected credit costs and bad loan formation. The brokerage retained an ‘Equal-weight’ stance and a ₹1,475 target, cautioning that premium valuations could see de-rating. Eicher Motors was rated ‘Underweight’ by the same brokerage, noting that while Q1 revenue and profits grew YoY, the stock is already pricing in high growth and margins, leading to downside risk.
This broad sweep of brokerage notes reflects the varying sectoral outlooks as Q1 earnings season progresses. Investors will be closely watching these names for directional cues in Thursday’s trade.
Disclaimer: The views and investment recommendations expressed by brokerages are their own and do not represent the opinion of this publication. Please consult your financial advisor before making investment decisions.
