• Infosys:
1. INCRED: Upgrades Infosys to Add from Hold, raising target price to ₹1,668 from ₹1,496.
2. Jefferies: Maintains Buy on Infosys, increases target price to ₹1,740 from ₹1,720, impressed by growth, margins, and strong order book.
3. Kotak: Maintains Buy on Infosys, cuts target price to ₹1,800 from ₹1,870; notes cost focus results, stable margins, and long-term growth trajectory.
4. Dam Cap: Upgrades Infosys to Buy from Neutral, hikes target price to ₹1,750; sees improved visibility for FY25 with continued deal momentum.
• TCS:
– Morgan Stanley: Upgrades TCS to Overweight from Equal-weight, raises target price to ₹4,240 from ₹3,900; notes resilience in revenues and positive management commentary.
• Polycab:
– Axis Cap: Maintains Add on Polycab, reduces target price to ₹4,300 from ₹5,809 due to uncertainties from IT raid; expects multiple derating unless charges are proven otherwise.
• Macrotech:
– Jefferies: Maintains Buy on Macrotech with a target price of ₹1,290; highlights the Mumbai Trans Harbor Link project and positive developments in Lodha’s land bank and Palava township. Predicts potential upside in land prices and a boost in residential sales due to affordable housing policies.
• Motilal Oswal on Tata Consultancy Services:
– Target: ₹4,250
– Recommendation: Buy
– Brokerage Radar:
– Q3 revenue and margin beat estimates, TCV moderates quarter-on-quarter; EBIT ahead of estimates.
– Co expects improvement in client sentiment after positive commentary by the US Fed.
– TCS is well positioned to withstand the weakening macro environment.
– TP implies 25x FY26E EPS.
• Citi Research on Tata Consultancy Services:
– Target: ₹3,515
– Recommendation: Sell
– Brokerage Radar:
– Sees TCS reporting good Q3 on the back of sharp India growth.
– Believes 25% EBIT margins were ahead despite higher equipment and software expenses.
– Headcount decline of ~2% year-on-year does not provide visibility into FY25.
– Difficult to interpret deal TCV on the back of lack of accurate data.
• Jefferies on Tata Consultancy Services:
– Target: ₹4,000
– Q3 numbers broadly in line.
– Demand commentary remains uninspiring, recovery not in sight.
– Entire growth in Q3 attributable to India.
– EBIT margins improved: aided by productivity, realisations, subcontracting costs.
• HSBC on TCS and Infosys:
– TCS and INFY both report a slight topline beat with decent deal wins.
– Q3 has not materially impacted FY25 EBIT estimates.
– Slightly cut EPS estimate for INFY on higher tax, lower other income.
– Prefer INFY on cheaper valuations, faster growth potential in banking and telecom space.
• Citi Research on India’s Consumption Sector:
– Demand trends in consumer staples categories remain challenging with only a gradual sequential recovery.
– Will watch for signs of improvement in rural consumption.
– Some near-term profit-taking cannot be ruled out.
– Remains constructive from a 6-12 month view.
– Preferred Picks:
– Godrej Consumer Products.
– Hindustan Unilever.
– Britannia.
– Tata Consumer Products.
– Key Sells:
– Colgate India.
– Dabur.
– United Breweries.
• Morgan Stanley on HDFC AMC:
– Target: ₹3,000
– Earlier Target: ₹2,800
– Recommendation: Equal-weight
– Brokerage Radar:
– Trim F24 and F25 EPS, driven by a higher tax rate.
– AUM forecasts remain high on sustained growth in SIP flows, strong markets.
– Raise target P/E, price target to reflect near-term momentum and sentiment.
– Remain equal-weight given structural pressure on equity yields.
• Citi Research on India’s OMCs/Oil & Gas Sectors:
– Retains a positive view on the sector on OMCs.
– Prefer Hindustan Petroleum, Bharat Petroleum.
– Key sector positives: Political stability, favorable commodity price outlook.
– Preferred gas picks:
– Gail (India), Mahanagar Gas.
– Retain ‘Sell’ on Gujarat Gas, Petronet LNG.
– Highlight Indraprastha Gas as a potential dark horse.
– Reliance Industries remains a preferred India large-cap.
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