Several major brokerages have issued fresh ratings and target revisions across key sectors, putting spotlight on a range of stocks including IT majors, real estate developers, retail players, and metal companies.
IT sector sees cautious outlook from Jefferies; downgrades TCS, Wipro
Jefferies has turned bearish on the Indian IT sector, citing rising macroeconomic uncertainty and the impact of potential US tariff measures. The brokerage expects a slowdown in FY26 and has cut earnings estimates by 2–14% across the sector.
While it maintains a Buy on select names with higher growth visibility — namely Infosys, Coforge, and Sagility — it has reduced their target prices sharply:
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Infosys: Buy, target price cut to ₹1,700 from ₹1,835
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Coforge: Buy, target price cut to ₹7,860 from ₹10,350
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Sagility: Buy, target price cut to ₹48 from ₹64
On the flip side, TCS has been downgraded to Hold with the target slashed to ₹3,300 from ₹4,530, while Wipro has been downgraded to Underperform with the target lowered to ₹210 from ₹310. Mphasis has also been downgraded to Hold, and its target price revised to ₹2,300 from ₹3,250. HCL Tech has been retained at Hold with a cut in target to ₹1,520.
Jefferies noted that without an improvement in the US GDP outlook, IT stocks are unlikely to witness any meaningful re-rating in the near term.
Investec upgrades Vedanta to Buy; sees rebound opportunity
Investec has upgraded Vedanta to a Buy, citing a favourable risk-reward after a 17% correction in the stock price. The brokerage set a target price of ₹510 and highlighted strong fundamentals, including:
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Average free cash flow yield of 12% and dividend yield of 7% over FY26–27.
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Aluminium and zinc smelters placed in the first quartile of the global cost curve. Investec noted that the current market price implies a 12% discount to spot LME prices. However, the brokerage urged investors to monitor potential issues around capital allocation and restructuring.
Jefferies initiates Buy on Vishal Megamart
In the retail segment, Vishal Megamart received a bullish initiation from Jefferies with a Buy rating and target price of ₹125. The firm called it a “compelling value retail play” with strong presence in Tier-2 and smaller cities. Store-level economics remain solid, with typical new stores achieving payback in under two years. The brokerage expects a robust 27% earnings CAGR over FY24–27.
Godrej Properties: Mixed views after record pre-sales
Realty major Godrej Properties continues to stay in the spotlight after delivering ₹10,200 crore in pre-sales during Q4FY25 — the highest ever in a quarter. Morgan Stanley maintained its Overweight rating with a target price of ₹3,400, applauding the company’s strong demand, especially in the NCR region.
However, Nuvama expressed caution and cut its target to ₹2,429, flagging an 8% YoY decline in volumes despite higher realisations. It noted that while the sales performance was robust, the dip in volumes could raise concerns on the sustainability of future growth.
Affle India gets thumbs-up from DAM Capital
Affle India received a reaffirmation of its Buy rating from DAM Capital, with a target price of ₹1,730. The brokerage highlighted the company’s growth strategy, which includes:
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Expanding use of its Opticks AI platform for improved client conversions.
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Targeting SME clients for localized advertising.
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Scaling up in Connected TV and adopting internal AI systems to boost efficiency.
KEI Industries: MOSL maintains Neutral amid tariff-related risks
Motilal Oswal (MOSL) maintained a Neutral stance on KEI Industries, setting a target price of ₹3,000. While demand remains healthy, led by government capex and copper prices, the firm cited risks from US tariff changes, which could impact raw material costs and margins. EPS estimates have been revised down by 4–8% for FY26–FY27.
Investec sees Indian microfinance sector near cycle peak
Investec believes the Indian microfinance cycle is nearing its end, with asset quality indicators improving. The brokerage expects gradual recovery and consolidation across the sector. Top picks include CreditAccess Grameen, Ujjivan Small Finance Bank, and L&T Finance.
Disclaimer: The above views are of the broker’s and not the author or the publication’s. Please make any and every investment decision after consulting your financial advisor.