Brokerages have shared their latest outlook on key stocks, highlighting Bajaj Finserv, Paytm, Zee Entertainment, InterGlobe Aviation (IndiGo), and Voltas among companies to watch.
JPMorgan on Premier Energies has reduced its target price to ₹940 from ₹1,170, citing potential margin pressures as the company’s margins jumped from 17% in Q3FY24 to 30% in Q3FY25. Falling module prices, stable wafer prices, and an increase in Indian cell capacity from 13 GW in October 2024 to 25.2 GW now could limit pricing premiums. Premier Energies’ stock has declined 28% in the last three months, and further near-term risks remain.
Axis Cap on city gas companies has initiated a Buy on MGL with a target price of ₹1,580, upgraded IGL to Buy with a target of ₹224, and maintained Reduce on Gujarat Gas with a TP of ₹390. The city gas distribution sector is expected to benefit from expanding network infrastructure, favorable CNG pricing vs petrol/diesel, and supportive government policies.
Jefferies on Paytm has given a Hold rating with a target price of ₹850, noting that the government’s incentives for UPI transactions under ₹2,000 have been cut by 50% YoY, which could lower Paytm’s adjusted EBITDA for FY25 by 50% and reduce FY26-27 estimates by 20-30%.
CLSA on Zee Entertainment has maintained an Outperform rating with a target price of ₹170, emphasizing that the stock is at a rock-bottom valuation of 8x PE. Zee’s EBITDA margins have expanded by 9 percentage points from lows, and the company has zero debt with ₹17 billion in cash. CLSA believes that even assuming 6% YoY ad growth, Zee can deliver 22-33% EBITDA/PAT CAGR in FY26-27.
Nomura on Bajaj Finserv has reaffirmed a Buy rating with a target price of ₹2,000, following the exit of Allianz from its shareholding. Bajaj Finserv plans to self-fund the acquisition without external borrowings and aims to strengthen branding, streamline decision-making, and expand into pensions, NRI markets, and new acquisitions.
Nomura on DLF has maintained a Neutral rating with a target price of ₹700, stating that the company is ready for another strong year, expecting pre-sales to reach ₹200 billion in FY26. However, the current valuation may not offer an ideal entry point, and risks remain if NCR or NRI demand slows down.
HSBC on PI Industries has cut its target price to ₹3,500 from ₹3,700, citing muted exports and an uncertain business environment. The brokerage believes that valuation multiples could remain under pressure amid weak near-term triggers.
CITI on InterGlobe Aviation (IndiGo) has reiterated a Buy call with a target price of ₹5,200, highlighting strong air traffic growth, an expanding fleet, and a focus on cost optimization as key drivers. Jefferies has an even more bullish stance, setting a target price of ₹5,700, noting that IndiGo expects early double-digit capacity growth in FY26 and a rising share of international routes (40% by FY30).
Nomura on Voltas has given a Neutral rating with a target price of ₹1,404, while CLSA has a Hold rating with a TP of ₹1,375. The company outperformed the air-conditioning industry’s 30% growth with 35%+ growth, but rising production costs due to INR depreciation and commodity price hikes could impact margins. Voltas has not raised prices significantly, unlike its peers who hiked prices by 3-5%.
(Disclaimer: This article is for informational purposes only and does not constitute investment advice.)