Polycab, RBL Bank, GST reform beneficiaries and more: Top stock calls by leading brokerages
Indian equities recorded strong losses on August 28, ending in the red for a second consecutive session after additional US tariffs on India's exports came into effect.
Benchmark Indian indices ended lower on August 28, down for the second consecutive session after Trump's tariffs on India's exports were raised to a 50 percent. Analysts expect the downturn to continue, although some say that chances of a sharp rally cannot be ruled out. Sensex dropped nearly 706 points (nearly 0.9 percent) to close at 80,080.57, now down more than 1,500 points over past two sessions. The Nifty 50 index, meanwhile, fell more than 211 points (0.85 percent) to end the session at 24,500.90. Analysts have advising to track certain stocks and sectors that offer potential of an upside.
2/8
RBL Bank: Investec issued a ‘Buy’ call on the stock with a target price of Rs 300 per share. The shares of the lender closed nearly 1 percent lower at Rs 253 apiece. The latest target price implies an upside potential of nearly 19 percent from the current market price. The bank has highlighted that RoA should trend upwards to 1 percent by Q4FY26, primarily aided by normalization of NIMs. The bank expects loan growth in FY26 to be above the industry average, and asset quality to improve. Investec also said the bank does not have meaningful exposure to unsecured MSME loans.
3/8
Reliance Industries: Macquarie in its note on telecom said Reliance Jio's pivot to 'value over volume' drives a stronger EBITDA growth outlook in comparison to Bharti Airtel. It has maintained an ‘Outperform’ call on the stock while raising the target price to Rs 1,650 apiece. The shares of the Mukesh Ambani-led business conglomerate closed in the green at Rs 1,390.90 apiece ahead of the Annual General Meeting (AGM) which scheduled on August 29. The target price implies an upside potential of nearly 19 percent from the current market price. Macquarie has kept an ‘Outperform’ call on Bharti Airtel and Tata Communications but has issued an ‘Underperform’ rating on Vodafone Idea.
4/8
Polycab India: Jefferies kept a ‘Buy’ call on the stock with a target price of Rs 8,180 per share. The shares of the company closed in the green at Rs 7,105.50 apiece. The latest target price implies an upside potential of more than 15 percent from the current market price. The international brokerage noted that the company has consistently delivered double-digit sales growth over the past 12 quarters. The firm estimates FY25–28 EPS CAGR at over 26%, and highlighted that FY27 P/E is now at 32x, in-line with the 5-year historical average.
TVS Motor: Jefferies said a potential GST rate cut should provide a strong boost to demand for automotive, especially in 2-wheelers and small passenger vehicles segment. The international brokerage said TVS Motor and Mahindra & Mahindra can deliver a EPS CAGR for FY25-28 of 27 percent and 19 percent respectively. The note rates TVS Motor, Mahindra & Mahindra and Maruti Suzuki as its preferred picks and has upgraded Hero MotoCorp to ‘Hold’ but retained its ‘Underperform’ call on Hyundai Motor India and Tata Motors.
6/8
BPCL: HSBC and JPMorgan have kept a ‘Buy’ call on the stocks. HSBC said it expects strong earnings for the oil marketing companies (OMCs) given lower oil prices and reduced LPG losses. Any payouts for under-recoveries would be a positive, it said, while adding that Q1 earnings were lower due to higher inventory losses. The firm kept a target price of Rs 420 per share for BPCL. The shares of the company closed in the red at Rs 311.65 apiece. The latest target price implies an upside potential of nearly 35 percent from the current market price.
7/8
Macrotech Developers (Lodha): Morgan Stanley in its latest note on real estate has said that the July trends favours Macrotech Developers (Lodha) and Prestige Estates. The note said that July launches were weak, with real estate companies recording their first decline in four years on LTM QoQ basis, however they can catch up in August/September.
8/8
Bajaj Finance: Morgan Stanley in its latest note on non banking financial companies (NBFCs) has recommended a selective approach with focus on margin of safety. Among largecaps, it remains overweight on Bajaj Finance, Power Finance Corporation (PFC), REC, Shriram Finance & Muthoot Finance. It has kept an ‘Equal weight’ call on Cholamandalam Investment. Among the small and midcaps, Morgan Stanley remained ‘Overweight’ on Aptus, Home First, Aditya Birla Capital, Can Fin Homes.
