Stock Recommendations Today: Tata Technologies, RIL, HDFC Bank On Brokerages’ Radar NDTV Profit Desk NDTV Profit

Brokerages have reacted to the third-quarter financial results of Tata Technologies Ltd., ICICI Prudential Life Insurance Co. and KEI Industries Ltd.

Citi maintained a ‘sell’ rating for Tata Technologies, while reducing the target price to Rs 765 as near-term issues are likely to weigh on the company’s growth prospects.

Morgan Stanley has maintained an ‘overweight’ rating for Reliance Industries Ltd. and reduced the target price to Rs 1,606 per share.

Analysts maintain a ‘neutral’ rating on ICICI Prudential Life Insurance, amid declining margins.

NDTV Profit tracks what analysts are saying about various stocks and sectors. Here are the analyst calls to keep an eye out for on Wednesday:

Citi On Tata Technologies

• Maintained a ‘sell’ rating and cut the target price to Rs 765 from Rs 835 per share.

• The company has missed revenue expectations, although margins remain largely in line with projections.

• Near-term challenges are expected due to delays in decision-making in the US.

• See weakening consumer demand and rising competition from China in Europe.

• These near-term issues are likely to weigh on the company’s growth prospects.

Morgan Stanley On Reliance Industries

• Maintained an ‘overweight’ rating and reduce the target price to Rs 1,606 from Rs 1,662 per share.

• The major debates are expected to shift from traditional energy to new energy, and from retail to powering AI.

• New energy is projected to power Reliance Industries’ Generative AI infrastructure within the next two years.

• This shift will likely become a significant driver of earnings and valuation multiples.

• Currently, investor focus is on refining and retail, both of which have seen improved demand.

CLSA On HDFC Bank

• Maintained a ‘hold’ rating with a target price of Rs 1,785 apiece.

• Given the current macro environment, a key point to watch will be the asset quality performance.

• Investors are likely to be looking for quantifiable growth guidance from management.

• HDFC Bank has been focusing on repaying high-cost liabilities.

• The bank may perform slightly better than peers in terms of Net Interest Margins.

• Expects third quarter NIMs to remain stable quarter-on-quarter at 3.3%.

Brokerages On ICICI Prudential Life Insurance

Goldman Sachs

• Maintained a ‘neutral’ rating and reduced the target price to Rs 650 from Rs 665.

• Third quarter performance was in line with expectations, with annual premium equivalent growth driven by unit linked insurance plans.

• Strong APE growth came at the cost of margins.

• The decline in margins is largely due to a shift in the business mix towards lower-margin ULIPs and group funds.

Macquarie

• Maintained a ‘neutral’ rating with a target price of Rs 725 per share.

• Value of new business growth continues to disappoint.

• Higher contributions from ULIPs, declining savings, and increased costs are negatively impacting margins.

• See downside risk to financial year 2025 VNB estimates.

UBS On KEI Industries

• Has a ‘buy’ rating and reduced the target price to Rs 5,750 from Rs 6,050.

• Third quarter results showed an in-line topline with consensus expectations, but missed on margins and bottom line.

• The margin miss was primarily due to volatile commodities and muted government capex.

• Timely capex and ongoing demand momentum are expected to drive growth moving forward.

Jefferies On Cement

• Ambuja: Maintained a ‘buy’ rating and increased the target price to Rs 725 from Rs 710 per share.

• ACC: Maintained a ‘buy’ rating and reduce the target price to Rs 2,655 from Rs 2,740 apiece.

• Ambuja is expected to benefit from the cement industry recovery in calendar year 2025, driven by volume growth and improved pricing.

• Recent mergers and acquisitions are expected to support a volume CAGR of approximately 15% over financial year 2024 to financial year 2027.

• Build cost savings of Rs 200-250 per ton, which will drive Ebitda per ton to over Rs 1,200 by financial year 2027, compared to Rs 780 in second quarter.

• Ambuja may focus more on stabilising its balance sheet and managing acquired capacities in the coming months.

• Ambuja remains one of Jefferies top picks in the cement sector.

Morgan Stanley On PNB Housing Finance

• Retained an ‘overweight’ rating with a target price of Rs 1,520 per share.

• Third quarter results were strong, with all key metrics on track to meet the management’s medium-term guidance.

• Retail loan growth and management commentary were encouraging.

• The Stage 2 ratio increased quarter-on-quarter, but management expects this to reverse in the fourth quarter.

• Rising system asset quality concerns improve the company’s relative positioning, strengthening our investment thesis.

• The stock presents a strong developing story, trading at 1.2 times financial year 2026 P/B, offering significant downside protection and upside potential.

Incred On Food Delivery

• Zomato: Initiated with an ‘add’ rating and a target price of Rs 270.

• Swiggy: Initiated with an ‘add’ rating and a target price of Rs 540.

• In a blue-sky scenario, both companies have a long runway for Monthly Transacting Users growth.

• The large opportunity in food delivery profitability is expected to support expansion in quick commerce.

• Both Zomato and Swiggy benefit from scale and platform advantages, with structural growth drivers in place.

• The quick commerce opportunity is large enough to accommodate several players in the market.

• Food delivery, as a cash cow, could help support the growth of the quick commerce business.

• Monetisation of advertising revenue could also aid in improving the take rate.

Jefferies On Dalmia Bharat

• Maintained a ‘buy’ rating with a target price of Rs 2,070 per share.

• Third quarter results show a miss due to weak volumes and higher costs.

• Realisations were slightly better, and unit Ebitda improved quarter-on-quarter.

Jefferies On Oberoi Realty

• Maintained a ‘hold’ rating and slashed the target price to Rs 2,030 from Rs 2,050 per share.

• Third quarter performance was impacted by the burden of high expectations.

• The company focused on pricing and margins, opting for higher realisations in most projects.

• A couple of new projects were added in MMR, and the bid for a large Western Mumbai project is being submitted.

• Sees limited near-term upside potential.

Citi On Concord Biotech

• Re-initiated a ‘neutral’ rating with a target price of Rs 2,330 per share.

• API growth slowed, but the formulation segment is helping fill the gap.

• New API segments are expected to drive growth in the coming years.

• A recovery in the API segment, which is the core business, is needed to support more constructive views on the stock.

Brokerages On Indiamart Intermesh

Nomura

• Downgraded to ‘reduce’ from ‘neutral’ and cut the target price to Rs 1,900 from Rs 3,150 per share.

• The company experienced an unexpected decline in its paying subscriber base.

• Low gross additions and high customer churn are expected to weigh on collections growth.

• The weak gross customer addition and persistent elevated churn levels are concerning.

• Financial year 2025-2027 PAT estimates have been cut by 4-13%.

Nuvama

• Retained ‘reduce’ rating and lowered the target price to Rs 1,970 from Rs 2,500 previously.

• The company reported an unexpected decline in paid subscribers.

• Margins remain elevated due to lower investment levels.

• Elevated churn in the silver category persists, despite efforts over the last six quarters.

• There are no meaningful signs of improvement in subscriber retention as of yet.

Citi On OMCs

• Expects the oil marketing companies to report strong third quarter earnings, which could be followed by an equally strong fourth quarter.

• Several recent factors are expected to offset each other in their impact.

• GRMs, marketing margins, and Russian crude discounts are three negative factors in the fourth quarter.

• These negatives could almost entirely be offset by two positive factors: higher inventory gains and LPG compensation.

• All three stocks have corrected by 5-10% over the last month and have underperformed their upstream peers.

• This presents an attractive buying opportunity for investors.

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