Jefferies on HUL: Buy, Target Price Rs 3130
The company’s 2Q performance was in line with expectations, with volume growth at 3% year-on-year, indicating ongoing demand challenges. While rural areas showed signs of recovery, urban areas began to slow down. Home care saw strong revenue and EBIT growth, while Beauty & Wellbeing posted modest growth. However, Personal Care and Foods saw declines.
Morgan Stanley on HUL: Underweight, Target Price Rs 2110
HUL’s volume growth of 3% was weaker than Morgan Stanley’s expectations due to a slowdown in urban demand. Personal Care and Food & Refreshments categories continue to weigh on the company’s growth. In the 3rd quarter, price growth is likely to remain low given the current levels of inflation in tea and palm oil.
JPMorgan on HUL: Overweight, Target Price cut to Rs 2870
A slowing urban market is affecting short-term demand outlook. HUL’s revenue and EBITDA were slightly below estimates due to weaker-than-expected volume growth (3% vs. expected 4%), although EBITDA margins met expectations. JPMorgan reduced its FY25-26 earnings estimates by 3%.
HSBC on Bajaj Finance: Upgrade to Buy, Target Price raised to Rs 7740
HSBC believes Bajaj Finance’s weak earnings phase is nearing its end, with a gradual recovery in profit growth expected. A rebound in consumer loan growth and controlled expenses, along with stable net interest margins (NIM), could help drive profits.
Goldman Sachs on Dr. Lal PathLabs: Sell, Target Price Rs 2675
Sales and adjusted EBITDA grew 10% and 14% year-on-year, driven by more tests per patient and a shift in product mix. EBITDA margins improved to 30.7%, up by 110 basis points from last year, benefiting from better product mix and operating leverage.
CITI on Dr. Lal PathLabs: Sell, Target Price Rs 2850
While revenue growth was in line with expectations (9.8% YoY), EBITDA performance exceeded forecasts due to cost optimization measures and improvement in suburban margins. Patient volume growth was 4% year-on-year but considered slightly muted.
UBS on Dr. Lal PathLabs: Buy, Target Price Rs 3500
The company delivered robust revenue growth of 9.8% year-on-year, meeting expectations, and a strong beat on EBITDA margins at 30.7%. UBS praises Dr. Lal’s ability to grow revenue through increased volumes without raising prices.
Morgan Stanley on Coforge: Overweight, Target Price raised to Rs 8000
Morgan Stanley favors Coforge for its higher revenue growth visibility compared to peers, improving margins at Cigniti, and healthy EBITDA to operating cash flow conversion of 65-70%.
Jefferies on IIFL Finance: Buy, Target Price Rs 595
IIFL Finance reported a loss of Rs 1.6 billion due to one-off provisions. However, its pre-tax profits were 30% above estimates thanks to mark-to-market gains. While gold-related AUM fell 27%, NIM on AUM improved by 23 basis points quarter-on-quarter.
Jefferies on TVS Motors: Buy, Target Price cut to Rs 3270
TVS Motors’ 2Q EBITDA grew 20% YoY but was 4% below estimates. The company expects domestic two-wheeler sales to grow by 7-8% in 3Q, with TVS Motors outpacing the industry.
Morgan Stanley on TVS Motors: Equal Weight, Target Price Rs 2265
2Q EBITDA was 6% below expectations due to weaker-than-expected realizations and higher employee costs. While Morgan Stanley appreciates TVS’s focus on innovation, its 2026 price-to-earnings ratio of 38x keeps them neutral.
Morgan Stanley on Godrej Properties: Overweight, Target Price Rs 3100
Godrej Properties reported strong cash flow and margins in Q2. The company is optimistic about growing pre-sales by over 20% annually and expects even faster growth in collections and cash flow. It’s Morgan Stanley’s preferred pick among real estate developers.
HSBC on Godrej Properties: Buy, Target Price Rs 3700
HSBC expects the company’s upcoming fundraising to drive growth beyond 20% year-on-year in the medium term. Strong margins and higher-than-expected bookings are key drivers, along with project completions generating reported profits.
CITI on Paytm: Upgrade to Buy, Target Price Raised to Rs 900
Paytm’s 2Q revenues matched expectations, but a sharp reduction in operating expenses resulted in a significant EBITDA improvement. Citi raised its estimates and increased its valuation multiple to 42x EV/Adj EBITDA. With regulatory risks now reduced and the company adhering to RBI guidelines on Default Loss Guarantees, this could boost growth in its lending business.
JPMorgan on KPIT Technologies: Overweight, Target Price cut to Rs 1900
JPMorgan anticipates a softer second half for KPIT due to delays in deal ramp-ups and closures, which could affect its FY26 growth. They cut revenue growth estimates but maintained overall guidance in the 18-22% range.
JPMorgan on AU Small Finance Bank: Neutral, Target Price Rs 700
AU Small Finance Bank delivered solid results with 2Q profit growing 14% quarter-on-quarter. However, the management raised its credit cost guidance due to increased risks in unsecured loans, which clouds the outlook.
CITI on AU Small Finance Bank: Neutral, Target Price Rs 684
The bank faced elevated slippages and credit costs, prompting management to raise its credit cost guidance for the second half of FY25. On the positive side, net interest margin (NIM) guidance was revised upwards.
Nomura on AU Small Finance Bank: Neutral, Target Price Rs 680
Nomura flagged a sharp rise in credit costs, especially in unsecured retail loans, and expects these costs to remain elevated for the rest of FY25. On a positive note, the bank’s deposit mobilization was strong, and operating expenses were lower than expected.
Macquarie on Avenue Supermarts: Downgrade to Underperform, Target Price cut to Rs 3700
Macquarie downgraded Avenue Supermarts due to competitive concerns, particularly from quick commerce. Same-store-sales growth fell 350 basis points in Q2 FY25, and Macquarie expects ongoing challenges.
Macquarie on Birlasoft: Outperform, Target Price Rs 720
Revenue growth was in line, but margins were weaker due to higher on-site ramp-ups. Despite this, revenue grew across most verticals except for healthcare.
Macquarie on SBI Life: Outperform, Target Price Rs 1830
SBI Life’s Q2 Value of New Business (VNB) growth met expectations, though annual premium equivalent (APE) growth was weaker due to a high base effect. Macquarie cut VNB growth guidance for FY25 to 12-15%. Despite this, valuations remain attractive.
Macquarie Issues Double Downgrade on Avenue Supermarts (DMart)
Macquarie has downgraded DMart’s rating from “Outperform” to “Underperform” due to rising competition from quick delivery services like Zepto, Zomato, and Swiggy, which are raising funds. Flipkart and Amazon are also considering entering the market. Macquarie has lowered its estimates for same-store sales, which has also led to a reduction in expected sales and EBITDA growth rates for FY24-40 by around 200 basis points (2%).
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