Buy, Sell, Hold: Here are 4 stocks that are on analysts’ radar today

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26 Aug, 2025 12:21

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Union Bank

Brokerage: Bank of America Merrill Lynch | Rating: Underperform | Target: Rs 79

The global brokerage stated that the bank’s Q4 profit miss was mainly on high provisions and elevated slippages. It has also cut FY18 and FY19 net profit estimates by over 18 percent, factoring in higher credit costs. The underperform rating is on the back of a likely de-rating on the stock to 1.1 times adjusted book value in FY19.

Brokerage: Citi | Rating: Neutral | Target: Rs 150

Citi believes that the extent of potential stress in the bank is a key concern. Having said that, growth trends have picked up, operating profitability has improved quarter on quarter and slippages have fallen. Margin improvement QoQ is also led by shift in balance sheet from investments to loans.

Brokerage: Credit Suisse | Rating: Underperform | Target: Rs 130

The brokerage houses has cut earnings per share (EPS) by 16 percent on higher provisioning.

Brokerage: Deutsche Bank | Rating: Hold | Target: Rs 165

Deutsche Bank has raised earnings forecast by 4 percent for FY18 as the valuations are being rolled forward for the next fiscal. It believes that the overall slippages were largely driven by corporate book. It expects a slippage ratio at 2.5 percent for FY18.

Brokerage: CLSA | Rating: Sell | Target: Rs 130

CLSA believes that slippages in the bank are stabilizing, but overall stress loan ratio is high at 16 percent. Meanwhile, CASA growth was healthy at 18 percent and has aided the margins. The bank’s limited buffer on capital and restriction from the Reserve Bank of India (RBI) can limit growth for it, the report added.

Canara Bank

Brokerage: Morgan Stanley | Rating: Underweight | Target: Rs 175

The bank’s Q4 miss was driven by higher than expected provisions, partly offset by higher pre-provision operating profit (PPoP). Meanwhile, its Q4 gross NPAs were stable given the higher write-offs. PPoP was aided by higher fees, write back in staff provisions and interest income on IT refund. It sees credit cost unlikely to decline over the next couple of years given the high impaired loans.

Brokerage: Bank of America Merrill Lynch | Rating: Underperform | Target: Rs 200

The brokerage said that the bank would have reported a net loss in Q4 if not for the stake sale in Can Fin Homes. Loan mix and stressed book combined leave enough worry on asset quality, it said. It retained FY19 earnings estimates of 46 percent on low base, better operating performance. It tweaked down EPS estimates for FY18/FY19 by over 17 percent to adjust for FY17 miss. Weak capital and lower returns will remain key challenge

Brokerage: CLSA | Rating: Sell | Target: Rs 280

CLSA observed that the bank’s lower earnings for the next fiscal will build in a higher operational expenditure and tax rate. The sell rating on the stock is due to low return on assets (ROA). The rise of 21 percent in CASA deposits led by demonetisation-linked flows was a key positive.

Aurobindo Pharma

Brokerage: Goldman Sachs | Rating: Buy | Target: Rs 875

The brokerage stated that Unit IV is the most important of the 4 injectable formulations plants for the company. Key observations in the Form 483 for the company include building maintenance, insufficient lab testing procedures. It further stated that escalation of pending Form 483 into import alerts and warning letters are a challenge. Slowdown in product approval and launch rate was a key risk as well.

Brokerage: Bank of America Merrill Lynch | Rating: Buy | Target: Rs 1,010

Unit IV approvals may be delayed by 2-3 months but see minimal risk of escalation, the brokerage said in its report.

Bharti Infra

Brokerage: Kotak | Rating: Cautious

The company’ revenues were ahead of estimates, largely driven by surprise on energy revenues. One should not read much into either the marginal EBITDA beat, or PAT miss, it said. Near-term looks good as co gains from 3g/4g loading by incumbents and Jio entry.

Brokerage: CLSA | Rating: Buy | Target: Rs 430

Revenue, EBITDA was led by rise in net tenancy addition. It raised consolidated EBITDA forecast by 2-3% and expect co to deliver 10% EBITDA CAGR over FY17-19. The potential Vodafone-Idea Merger may pave way to acquire towers owned by firms.