Eternal Ltd., Lenskart Ltd., Hindalco Industries Ltd. and data know-how shares are among the many counters which have drawn commentary from prime brokerages on Tuesday. Here’s a fast take a look at them:
CLSA on IT Stocks
- EPS progress turnaround could change the narrative not administration commentaries.
- Commentary’s indicate macro upcycle this 12 months with tariff affect as a base
- Stock costs might see one other 5-10% draw back
- Pecking order of Tech Mahindra and Infosys in massive caps
- Prefer Persistent Systems and Coforge in midcaps
- Coforge TP decreased from Rs 2426 to Rs 2278/share (Outperform-High Conviction)
- HCL Tech TP decreased from Rs 1661 to Rs 1506/share (Hold)
- Infosys TP decreased from Rs 1779 to Rs 1653/share (Outperform)
- LTI Mindtree TP decreased from Rs 7067 to Rs 6304/share (Outperform)
- Persistent Systems TP decreased from Rs 8865 to Rs 8058/share (Outperform-High Conviction)
- TCS TP decreased from Rs 3593 to Rs 3333/share (Outperform)
- Tech Mahindra TP decreased from Rs 1810 to Rs 1698/share (Outperform)
- Wipro TP decreased from Rs 231 to Rs 218/share (Hold)
HSBC On Indian IT Services (AI Deflation vs AI Opportunity)
- Expect 14-16% gross deflationary threat from AI over subsequent few years to general sector revenues (Earlier was 8-10%).
- For pro-active corporations different income streams ought to offset this affect and drive mid-single digit progress.
- US supplies favorable macro backdrop for IT spends in 2026.
- Indian IT companies-valuations usually are not low cost in absolute phrases however undemanding on relative phrases.
Citi On AI Headwinds For Software Exports
- Current RBI information signifies double-digit progress in IT and Consultancy.
- Sensitivity evaluation suggests software program companies sector must keep away from YoY decline.
- If the decline is avoided-then India will be capable to preserve Balance of Payment surplus.
- If there may be flat FY27 progress by software program services-most BoP surplus of $20 billion could also be wiped off.
Jefferies on Lenskart’s US-UK non-deal roadshow
- Maintain Buy, goal worth of Rs 575 per share.
- Long time period EBIDTA margins to develop at 25%.
- Built a globally aggressive manufacturing spine.
- Model is conversion led somewhat than channel-led.
- Overseas operations raise model credibility and aspirations in India.
Jefferies on Eternal’s Mumbai non-deal roadshow
- Maintain Buy, TP Rs 480 per share.
- Akshat Goyal (CFO) struck a assured tone about medium time period.
- Food supply is predicted to maintain 20% progress with modest margin enlargement.
- Quick Commerce stays engaging by means of competitions stays intense.
- Blinkit will keep rational, posing some threat to progress.
- Deepinder Goyal’s administration transfer was private resolution for brand new initiatives.
- Management guidelines out additional stake sale or any window-dressing of income.
JPMorgan On Aluminium
- Remain cautious on the commodity rallies.
- Potential near-term spike in LME A1 costs to $3,200 per tonne (from spot $3,079).
- Hindalco’s truthful worth could improve to Rs 1002 per share and Vedanta to Rs 792 per share.
- Chinese aluminum demand slowing down 2026.
- But pipeline of Chinese backed initiatives in Indonesia and different nation’s proceed to develop.
- Maintain impartial view for each Hindalco and Vedanta.
Morgan Stanley On Indian Oil Corp
- Maintain Overweight, TP Rs 219/share.
- Believe share worth will rise in absolute phrases over subsequent 15 days.
- Returned to progress in gasoline market share, refinery effectivity and capital allocation.
- EBIDTA will almost double by FY28 and $20 billion worth creation alternative.
- Gains 250 bps market share on fuels and will increase publicity to discounted fuels.
- Captures worth on downstream gasoline operations.
Morgan Stanley On Fluorochemical Industry
- India’s R-32 footprint is ready to greater than double this 12 months.
- See dangers to R-32 costs going forward.
- Likely decline of 25% from final 12 months’s peak however nonetheless above marginal money prices.
- Reiterate underweight ranking for each Navin Fluorine and SRF.
- But suppose decrease tariffs might assist cushion challenges.
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