As markets navigate earnings season and macroeconomic trends, brokerage firms have issued fresh recommendations on which stocks to buy and which to hold or sell. Based on recent fund house calls, Mahindra & Mahindra (M&M), State Bank of India (SBI), Fortis Healthcare, and Apollo Tyres emerge as top buy-rated stocks, while LIC, Ola Electric, VRL Logistics, and Sun TV remain in the neutral or hold category. Here’s a breakdown of what to buy and what to hold/sell based on the latest brokerage views.
Stocks to Buy
Mahindra & Mahindra (M&M) – Strong Bullish Sentiment
M&M remains a top buy recommendation, with multiple brokerages highlighting its strong auto and farm segments, upcoming EV launches, and market share expansion.
- Goldman Sachs (GS): ₹3,800 target price
- Macquarie: ₹3,643 target price
- Jefferies: ₹4,075 target price
- Nomura: ₹3,681 target price
These targets suggest a potential upside from current levels, making M&M a preferred stock for investors looking for growth in automobiles and EVs.
State Bank of India (SBI) – Banking Sector Favorite
India’s largest public-sector lender remains a strong buy, with analysts backing its stable earnings, asset quality, and growth prospects.
- CLSA: ₹1,050 target price
- Nomura: ₹1,000 target price
With SBI consistently delivering on credit growth and profitability, analysts expect further upside in stock performance.
Fortis Healthcare – Steady Growth in Healthcare
Nomura has maintained a buy on Fortis Healthcare with a target price of ₹700, citing strong revenue growth in the hospital segment and stable financial performance.
Apollo Tyres – Mixed Ratings but Buy Recommended by UBS
While Apollo Tyres has a neutral call from Nomura and MS, UBS remains bullish, with a ₹525 target price, betting on cost efficiencies and export expansion.
Other Positive Picks
- Bharti Airtel: Macquarie maintains neutral, but the ₹1,710 target price suggests potential gains.
- Insurance Sector: CLSA highlights 20% YoY growth in individual APE, suggesting private insurers remain an attractive bet.
- HSBC’s Five Standouts in a Slowdown: Dixon, Maruti Suzuki, PB Fintech, Godrej Properties, and LTIM are identified as strong growth picks.
Stocks to Hold or Avoid
LIC – Neutral on Long-Term Outlook
Goldman Sachs has maintained a neutral stance on LIC, with a target price of ₹900, citing near-term pressures on margins and slower-than-expected growth in certain segments.
Ola Electric – Cautious Optimism
While both GS (₹101) and Citi (₹85) have buy ratings, the revised lower targets indicate caution. Investors may wait for further clarity on profitability and service improvements before making a move.
VRL Logistics – Margin Gains, but Uncertain Growth
HSBC has cut its target price to ₹600, citing concerns over volume growth sustainability. This suggests that investors should remain cautious despite recent profitability improvements.
Sun TV – Declining Ad Revenue
CLSA has maintained a hold and cut its target price to ₹670, noting weak advertising revenue and slow subscription growth.
Thermax – Short-Term Headwinds
Jefferies continues to back Thermax but has cut its target price to ₹4,835, signaling temporary earnings weakness before a potential rebound.
Cummins – Growth Moderation
HSBC remains neutral, lowering its target price to ₹3,500, citing limited scope for margin expansion.
(Disclaimer: This article is for informational purposes only and should not be considered as investment advice. Investors are advised to conduct their own research before making any investment decisions.)
