Hyundai Motor Ltd., Kaynes Technologies Ltd., TVS Motor Ltd., Colgate-Palmolive India Ltd., Cipla Ltd. and Mahindra & Mahindra Financial Services Ltd. are among the top companies on brokerages’ radar on Wednesday.

Jefferies, in its India Strategy report, maintains a cautious view on the Union Budget, anticipating a slowdown in government capital expenditure. Bank of America and UBS have done a deep-dive on the impact of DeepSeek on Indian technology companies.

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:

Jefferies on Kaynes

  • Upgrade to a ‘buy’ rating from ‘hold’ and lower the target price to Rs 5,400 apiece from Rs 6,950 earlier.

  • Revenue missed estimates, but stock upgraded to ‘buy’ following a sharp correction.

  • Estimate earnings per share growth at a compound annual rate of 50% for the fiscal years through March 2027, driven by a strong order book.

  • Well-positioned to benefit from growth in the component ecosystem.

Jefferies On ITC

  • Retain a ‘buy’ rating on the stock and a target price of Rs 440 apiece.

  • With the Goods and Services Tax Compensation Cess pool earmarked to repay state debt until March 2026, the Union Budget on February 1, 2025, remains a key event for the tobacco business and ITC.

  • Incorporate a 5% effective tax increase, which would be a positive.

  • A double-digit effective tax increase would be a clear negative.

  • A tax hike between 5% and 9% would be challenging yet manageable, resulting in a modest earnings per share reduction.

  • Given slowing urban consumption, rational taxation would be beneficial.

Citi On Hyundai

  • Retain a ‘buy’ rating on the stock and lower the target price to Rs 2,050 apiece from the earlier Rs 2,250.

  • Third-quarter results below estimates, but demand could improve going forward.

  • Management expects growth in domestic demand, supported by rural recovery and government policies.

  • Should benefit from the launch of the Creta electric vehicle and new models after the Pune plant begins operations.

  • Lower earnings estimates for the fiscal years through March 2027, given elevated competition impacting volumes and margins.

Macquarie On Pharmaceuticals

  • Indian pharmaceutical stocks have reacted negatively to the United States President’s comments on potential tariffs on pharmaceutical products.

  • Aurobindo Pharma has the highest revenue exposure to the United States, while IPCA Laboratories has the least.

  • All covered companies sell generic medicines in the United States market.

  • Sun Pharmaceutical Industries also sells branded products such as Ilumya, Cequa, and Winlevi.

  • Believe tariffs on pharmaceutical products are impractical.

  • Recent correction in Sun Pharmaceutical Industries’ stock price appears overdone.

Jefferies On India Strategy

  • Investor meetings with over 60 participants across Asia and the United States highlight concerns about economic growth outlook, currency depreciation, and government capital expenditure.

  • Maintain a cautious view on the Union Budget, anticipating a slowdown in government capital expenditure.

  • Recent stock corrections already reflect these concerns.

  • The absence of negative surprises on taxation could provide relief.

  • Expect the Reserve Bank of India’s commentary on February 7, under the new governor, to be a more significant event, likely signaling a pro-growth stance.

  • Recommend adding rate-sensitive stocks ahead of the Feb. 7 meeting.

  • With market concerned about earnings downgrades, focus on price-to-earnings valuation has reduced.

  • The bond-equity yield gap indicator is now at long-term average levels.

  • Overweight on financials, information technology, telecom, two-wheelers, real estate, and power sectors.

Citi On Emami

  • Retain a ‘buy’ rating on the stock and lower the target price to Rs 750 apiece from the earlier Rs 920.

  • Reported a healthy winter portfolio performance despite headwinds.

  • Will monitor potential turnaround following rebranding as Smart & Handsome.

  • Remain positive on Emami’s medium-term growth potential.

  • Expect the business to be relatively less impacted by weakness in urban consumption.

CLSA On TVS Motor

  • Retain a ‘hold’ rating on the stock and lower the target price to Rs 2,511apiece from the earlier Rs 2,730.

  • Reported a margin beat, with gross margins remaining intact.

  • Effectively managed festive season sales and marketing costs to drive margin expansion.

  • Management expects growth momentum to continue in the fourth quarter of the fiscal year ending March 2025.

  • Company plans to expand its electric vehicle portfolio over the coming quarters.

Jefferies On Colgate-Palmolive India

  • Retain a ‘buy’ rating on the stock and lower the target price to Rs 3,250 apiece from the earlier Rs 3,330.

  • Reported revenue miss but beat estimates on margins.

  • Growth moderated to a multi-quarter low, primarily due to weak demand in urban India.

  • Margins exceeded expectations but declined year-on-year from a high base.

  • Margin declined mainly driven by lower advertising expenditure.

Goldman Sachs On CE Info Systems

  • Retain a ‘buy’ rating on the stock and a target price of Rs 2,500 apiece.

  • Reported 25% revenue growth, led by core mapping business.

  • Current Ebitda margin drag from business-to-consumer spending is expected to dissipate in the coming quarters.

  • Order backlog is more than three times its current revenue run rate.

  • See potential for an inflection in growth over the next few quarters.

Goldman Sachs On Bajaj Auto

  • Retain a ‘buy’ rating on the stock and raise the target price to Rs 10,800 apiece from Rs 10,700 earlier.

  • Third-quarter results in line with estimates.

  • Management expects the domestic two-wheeler market to grow between 6% and 8%.

  • Anticipate faster growth in the 125cc and above segments.

  • See export momentum ahead, along with opportunities in the electric rickshaw market.

Impact Of DeepSeek On Indian IT

Bank of America

  • Lower-cost artificial intelligence is beneficial for enterprise adoption.

  • Data investments could see increased linearity.

  • High-technology vertical could see increased engineering research and development budgets.

  • View this risk as still in preliminary stages, dependent on the successful scaling of artificial intelligence in enterprise environments.

UBS

  • Limited knowledge and data available to make a definitive assessment.

  • Consider DeepSeek positive for Indian information technology services.

  • Faster artificial intelligence development with lower costs could free up budgets.

  • Increased savings on artificial intelligence spending may result in higher investments in other areas.

  • Remain positive on the sector, expecting discretionary spending to recover in 2025.

  • Top buy picks include Infosys, Tata Consultancy Services, Wipro, and HCL Technologies.

JPMorgan On Exide Industries

  • Retain an ‘overweight’ rating on the stock and lower the target price to Rs 450 apiece from the earlier Rs 460.

  • Weak third-quarter results as expected, but sharp stock price correction appears excessive.

  • Auto aftermarket demand remains strong, while auto original equipment manufacturer and industrial segments face headwinds.

  • Lead prices remain supportive.

  • Lithium-ion cell manufacturing project is expected to be commercialised in the fiscal year ending March 2026.

Macquarie On Cipla

  • Retain an ‘outperform’ rating on the stock and a target price of Rs 1,875 apiece.

  • Ebitda beat driven by revenue outperformance and lower-than-expected operating expenses.

  • Raise earnings guidance for the fiscal year ending March 2025, though key product launches in the United States have been delayed.

  • View Cipla stock as offering an attractive risk-reward proposition.

CLSA On Tata Steel

  • Upgrade to a ‘hold’ rating from ‘underperform’ and lower the target price to Rs 125 apiece from the earlier Rs 135.

  • Third-quarter operational results largely in line with expectations.

  • Fourth-quarter guidance indicates improvement in domestic operations, though European business remains challenging.

  • Focus on expansion to continue.

  • Upgrade recommendation to ‘hold’ following stock underperformance.

HSBC On M&M Financial Services

  • Retain a ‘buy’ rating on the stock and raise the target price to Rs 320 apiece from earlier Rs 310.

  • Operating performance in line with expectations.

  • Reported a slight miss on operating profit, while net profit beat estimates due to the release of provisions under the expected credit loss model.

  • Operating trends are stabilising, though gross stage 3 assets increased slightly quarter-on-quarter.

HSBC On SBI Cards

  • Retain ‘reduce’ rating on the stock and lower the target price to Rs 560 apiece from Rs 580 earlier.

  • Asset quality outlook remains uncertain.

  • Growth outlook has weakened following third-quarter results.

  • Cut earnings per share estimates by 10.8% and 11.2% for the fiscal years ending March 2025 and March 2026, respectively, to reflect higher credit costs.

  • Improvement in asset quality remains elusive.

  • Asset quality and net interest margin outlook could be key levers for the stock.

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