A host of brokerage reports released ahead of the market open on Monday have placed the spotlight on several frontline and mid-cap stocks, highlighting both structural positives and short-term challenges. Here’s a look at key brokerage actions and commentary:
UBS on GAIL
UBS has reiterated a Buy rating on GAIL with a target price of ₹225, citing that pipeline tariff reforms and the potential for tariff hikes are likely to aid investor sentiment. While UBS acknowledged cyclical headwinds across certain business segments, it believes the higher contribution from the transmission business and recent regulatory reforms make valuations attractive. UBS values the transmission segment at 9.8x FY27E EV/EBITDA, adding that these long-term tailwinds are not fully priced in yet.
Bernstein on Trent
Bernstein maintained an Outperform rating on Trent with a target price of ₹6,500. The firm noted that the company’s Q1 update confirmed 20% YoY growth but only marginal store additions—1 for Zudio and none for Westside. Bernstein emphasized that this 20% growth may not reflect a “new normal” but maintained confidence in the medium- to long-term story, anchored by Trent’s potential to add 200–250 stores annually, brand strength, and supply chain efficiencies.
Citi on IGL
Citi reiterated its Buy rating on Indraprastha Gas Ltd (IGL), raising its target to ₹270. The upgrade stems from a favorable shift in pipeline tariff regulations approved by PNGRB, which will reduce transportation costs for IGL. The firm raised its EBITDA margin estimates to ₹7–7.5/scm (from ₹6.5–7 earlier), noting that IGL stands to benefit from the shift to a 2-zone tariff system, as it had previously fallen under costlier zones 2 and 3.
Morgan Stanley on Eternal
Morgan Stanley remains Overweight on Eternal with a target price of ₹320, following the appointment of Aditya Mangal as the new CEO for the food ordering and delivery business. While leadership changes may bring sentiment volatility, the brokerage noted that Zomato’s past performance amid multiple leadership changes suggests resilience and continued market share gains.
Jubilant Foodworks – Mixed Views
Morgan Stanley retained an Overweight stance on Jubilant Foodworks with a target of ₹781. The firm highlighted 1Q standalone revenue growth of 18% YoY, with same-store sales (SSSG) growth of 11.6%, supported by strong store additions and continued momentum from the previous quarter.
In contrast, CLSA downgraded the outlook to Underperform with a reduced target of ₹519. Despite the in-line India business, CLSA flagged concerns over profitability, especially given the 2.2% negative LFL growth in Domino’s Turkey.
IndusInd Bank – Diverging Opinions
IndusInd Bank attracted widely differing views.
Morgan Stanley retained an Underweight call with a target of ₹750, pointing to a 3% QoQ and 4% YoY drop in net loans, led by sharp declines in the corporate loan book. The brokerage flagged concerns about the slowing share of high-margin loans and leadership uncertainty.
Citi too maintained a Sell rating with a target of ₹765, citing sharper-than-expected contraction in advances and concerns over NIM compression due to declining higher-yielding MFI advances.
However, Jefferies took the opposite view, maintaining a Buy with a target of ₹920. It noted that retail deposits held steady despite deposit declines, and highlighted India Ratings’ removal of the negative outlook on the bank’s AA+ rating as a potential market-positive trigger.
Jefferies on Tech Mahindra
Jefferies maintained an Underperform on Tech Mahindra with a target of ₹1,430. While AR analysis indicated employee and subsidiary-level stability, Jefferies flagged that the 15% margin target by FY27 looks overly optimistic, especially given the expected lag in employee cost growth and static overheads.
Jefferies on HDFC Bank
A Buy rating was retained with a target of ₹2,340. Jefferies observed that loan growth improved to 6.7% YoY in Q1FY26, up from 5.4% in Q4FY25. With deposits growing 16% YoY and LDR moderating to 96%, the brokerage sees room for further improvement by March 2026.
Nykaa – Neutral to Positive Bias
Nomura maintained a Neutral stance on Nykaa with a target price of ₹216, noting that Q1 revenue growth was broadly in line with estimates at 23%. BPC grew in the mid-20% range while fashion grew in the mid-teens.
CLSA retained an Outperform call with a TP of ₹229, pointing out fashion GMV and revenue outperformance, though the beauty segment saw some drag due to geopolitical tensions during flagship sales.
Morgan Stanley remains Overweight with a TP of ₹225, viewing growth in both beauty and fashion segments as intact, with 1QF26 GMV likely up 27% YoY.
Godrej Consumer Products (GCPL) – Mixed Reactions
HSBC maintained a Buy rating with a TP of ₹1,420, stating that India revenues grew in high single digits, led by strong Home Care performance. Margins are expected to improve in H2FY26.
On the other hand, CLSA stayed Underperform with a TP of ₹1,062, cautioning that expectations of mid-teen growth may be too high and current growth trends are slightly below estimates.
Jefferies on Capital Markets
Jefferies commented on SEBI’s interim order against Jane Street, calling it a sign of the regulator’s focus on governance. The firm noted that while volumes may be impacted in the short term, a pickup in proprietary activity may partly offset the dip. The earnings impact for BSE may be low, but higher for Nuvama’s asset servicing and institutional execution segments.
Disclaimer: The views and ratings mentioned above are those of the respective brokerage firms. This article is for informational purposes only and does not constitute a recommendation to buy or sell any stocks.
