Time to buy? Top 7 stocks which global brokerages upgraded post Q2 results

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26 Aug, 2025 12:21

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Benchmark indices tested new record high on Friday with support of positive global and domestic cues and supported by September quarter earnings followed by FII inflows.

According to Manish Sonthalia, Head Equities-PMS, Motilal Oswal AMC, the earnings are not as bad as they were expected prior to the start of the (results) season. GST-related sectors have performed fine. Overall, it is a mixed bag,” he told CNBC-TV18 in an interview.

The S&P BSE Sensex rallied over 26 percent so far in the year 2017 and Nifty rallied more than 27 percent, inching towards 10500 level.

Global brokerage houses have also taken Q2 earnings positively and upgraded stocks post earnings.

Here is a list of top seven picks where foreign brokerages have upgraded their rating after September quarter earnings.

Interglobe Aviation | Brokerage: JPMorgan | Rating: Upgrade to overweight | Target: Raised to Rs 1,500

JPMorgan said that the airline delivered a major earnings beat, primarily driven by yield improvement. Further, revenue and expenses impacted by compensation by P&W. The overall impact on profits due to P&W was negligible. It increased FY18/19 EPS estimates by 15%/ 13%. Further, yield improvement can be sustained over the next year.

Bharti Airtel | Brokerage: CLSA | Rating: Upgrade to Buy | Target: Raised to Rs 637

The brokerage said that consolidation & data have revived long-term growth. Further, it sees 16% CAGR in EBITDA over FY18-21 and the long-term growth is set to revive starting FY19.

UltraTech Cement | Brokerage: CLSA | Rating: Upgrade to buy | Target Rs 4,900

CLSA has upgraded the stock to buy from outperform and has raised its target price on the stock to Rs 4,900 from Rs 4,700 per share as it feels overall Q2 results were good and there was no shock in newly acquired Jaiprakash Associates' units. Management sounded hopeful on demand revival, led by government initiatives, it feels.

ACC | Brokerage: CLSA | Rating: Upgrade to buy | target: Raised to Rs 2,150

CLSA said that it was heartening to see 18 percent volume growth and the underlying cement realisations being flat was a positive outcome. It raised profit estimates for CY17-19 by 6-7 percent.

Axis Bank | Brokerage: CLSA | Rating: Upgrade to buy | Target: Raised to Rs 620

According to broking house the valuations are attractive and can rerate as asset quality normalises. It believes that the retail business continues to grow well and operating efficiencies to aid earnings. It expect normalisation of asset quality will lift return on equity to mid-teens over FY19-20.

Reliance Power | Brokerage: Nomura | Rating: Upgrade to Neutral | Target: 42

According to Nomura the near-term earnings outlook is tepid but stock fairly valued. It also cut earnings per share estimates for the current and next financial year by 33 percent and 22 percent respectively, driven by revised estimates of net finance cost.

Asian Paints | Brokerage: CLSA | Rating: Upgrade to Underperform | Target: 1250

CLSA said the company's management hopes for improvement in demand environment, while gross margins down to at least 10-quarter low. The volume growth aided by festive season and GST re-stocking.