Top brokerages including Jefferies, Nomura, Morgan Stanley, and HSBC have released their updated ratings and target prices on a range of stocks following the Q4FY25 earnings season. Here’s a roundup of notable calls across banking, housing finance, IT, pharma, and consumer segments.
Jefferies has reiterated a buy on Axis Bank with a target of ₹1,450, noting that Q4 profit at ₹7,100 crore was flat year-on-year but in line with expectations. While treasury income remained weak, lower credit costs supported profitability. The brokerage expects the bank to narrow its 25–35% valuation gap with peers as growth and liquidity improve, despite cutting EPS forecasts in anticipation of rate cuts.
On Can Fin Homes, Jefferies maintained a buy with a raised target of ₹900. Q4 PAT of ₹230 crore slightly beat estimates, aided by lower tax outgo. The firm expects gradual loan growth in FY26 and stable NIMs due to the structure of its liabilities. Asset quality remains healthy, and the stock’s valuation at 1.6x FY26 book value is seen as reasonable.
Laurus Labs was downgraded to underperform by Jefferies with a target of ₹480. While Q4 results were broadly in line and ARV sales rose 13% YoY, the API segment declined 8%. The company did not issue FY26 guidance, citing expected but unspecified growth.
SBI Cards received an equal-weight rating from Morgan Stanley, which raised the target price to ₹775 after Q4 PAT of ₹530 crore beat estimates by 15%. The brokerage noted improved credit cost trends but flagged uncertainty around normalization.
Morgan Stanley also downgraded Cyient to underweight, cutting the target to ₹1,050 citing limited visibility on growth, delayed margin recovery, and a review of the dividend policy. Despite low valuation, the brokerage expects earnings downgrades to weigh on the stock.
Tech Mahindra drew contrasting views. Jefferies maintained an underperform with a target of ₹1,260, citing a Q4 revenue miss despite margin and profit beats. The firm considers the 530 bps margin expansion goal by FY27 ambitious and finds the stock fully valued at 27x FY26 P/E. In contrast, Nomura maintained a buy rating and raised the target to ₹1,630, highlighting a margin beat and strong deal pipeline as signs of a continuing turnaround.
SBI Life Insurance was a consensus buy for both Jefferies and Nomura. Jefferies set a target of ₹2,000 after a 10% YoY rise in Q4 VNB to ₹1,700 crore, led by improved mix and term products. Nomura, with a target of ₹1,800, pointed to 21% YoY growth in total APE and a 220 bps expansion in VNB margins, crediting product changes and rider attachments.
Nomura also maintained a buy on Nestlé India with a target of ₹2,680 after in-line Q4 results. Volume and urban growth remained modest, while exports declined. Lower opex supported operating margins despite raw material inflation. The stock now trades at 61x FY27 EPS.
Macrotech Developers retained its buy call from Nomura, with a target of ₹1,450 despite a slight Q4 miss on revenue and EBITDA. Operating cash flow came in strong at ₹2,300 crore for the quarter.
In the cement space, ACC was rated reduce by Nomura with a cut target of ₹1,920. While Q4 cement volumes grew 14% YoY to 11.9 MT, EBITDA per tonne at ₹673 was 4% below estimates.
HSBC issued a reduce on Rallis India, with a target of ₹210, as Q4 missed estimates across segments. Domestic pricing pressure remains a key concern, and while a business model revamp is underway, progress is expected to be gradual.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always consult with a qualified financial advisor before making investment decisions.
