Stock Recommendations Today: Axis Bank, HUL, Nestle, ACC On Brokerages’ Radar NDTV Profit Research NDTV Profit

Axis Bank Ltd., Hindustan Unilever Ltd., and Nestle India Ltd. were among the key stocks in focus in Friday’s brokerage notes, following their January-March quarter results.

Analysts flagged improving profitability at Axis Bank despite weak growth, while Hindustan Unilever’s management pivot toward volume-led growth raised concerns about short-term margin compression.

Nestle India’s margin beat also drew mixed reactions, with some brokerages questioning its sustainability amid muted volume trends.

NDTV Profit tracks what analysts are saying about various stocks and sectors. Here are the key brokerage calls to watch on Friday.

On Axis Bank

Bernstein

• Retained an ‘outperform’ rating on the stock and a target price of Rs 1,300 apiece.

• Noted a clear improvement despite still weak growth.

• Says lower credit cost has lifted return on equity to 17%.

• Growth remains tepid, but there is an improvement in the liability mix.

Macquarie

• Retained an ‘outperform’ rating on the stock and a target price of Rs 1,440 apiece.

• All eyes will be on the loan growth trajectory.

• Net profit was in line, as high operating expenses and low treasury income were offset by higher net interest margin and lower provisions.

• Credit cost was lower than expected and gross non-performing assets declined by 18 basis points sequentially.

• Expects the current liquidity environment to support both deposit and loan growth.

Jefferies On HUL

• Retained a ‘buy’ rating on the stock and a target price of Rs 2,950 apiece.

• The company has made a significant strategy shift by prioritising growth over margins.

• This implies near-term margin pain, with the new margin band 100 basis points lower than in the past.

• This change led to a 4% correction in the share price, triggered by concerns among ‘short-sighted’ investors and analysts.

On Nestle

Macquarie

• Retained a ‘neutral’ rating on the stock and a target price of Rs 2,375 apiece.

• Says lower other expenses led to a fourth-quarter Ebitda beat.

• Reduced marketing spends drove the margin beat.

• Brokerage does not expect fourth-quarter margin performance to sustain.

• Sees limited upside at current valuations due to lack of major volume growth and little room for margin expansion.

Jefferies

• Retained a ‘hold’ rating on the stock and a target price of Rs 2,350 apiece.

• Fourth-quarter performance was a slight miss.

• Gross margin missed estimates, while volume growth remained weak but broadly in line with industry trends.

• Input cost inflation trends remain mixed.

• Cut earnings per share estimate by 3%.

On ACC

Nomura

• Retained a ‘reduce’ rating on the stock and a target price of Rs 1,920 apiece.

• Highlighted significant recovery in unitary Ebitda.

• Strong volumes and improved realisations have driven the Ebitda recovery.

Citi

• Retained a ‘buy’ rating on the stock and raised target price to Rs 2,500 apiece from Rs 2,350.

• Fourth-quarter Ebitda was ahead of estimates, driven by strong volumes.

• Brokerage awaits commentary after Ambuja Cements’ results.

• Most upcoming capacity expansion is likely to be at Ambuja.

• Any merger with Ambuja should have a swap ratio favouring it, the brokerage said.

• ACC should benefit from group-wide cost efficiencies and valuations remain inexpensive, it said.

UBS

• Retained a ‘buy’ rating on the stock and a target price of Rs 2,250 apiece.

• Fourth-quarter performance was a beat, with a robust rebound after a weak third quarter, according to the brokerage.

• Sustained volume growth and margin improvement to reassure investors.

• Stronger pricing and better cost control may lead to upward revision in margin estimates, it said.

Macquarie On Tech Mahindra

• Retained an ‘underperform’ rating on the stock and a target price of Rs 1,050 apiece.

• While deal wins were encouraging, revenue and margin missed estimates.

• Fourth-quarter revenue and margin was supported by seasonal strength in Comviva, which may reverse in the first quarter of fiscal 2026.

• Management clarified that fiscal 2027 margin target assumed normal industry growth rates, not current headwinds.

• The company will struggle to achieve its 15.0% earnings before interest and tax margin target by fiscal 2027, the brokerage said.

UBS On SBI Life Insurance

• Retained a ‘buy’ rating on the stock and raised target price to Rs 1,915 apiece from Rs 1,880.

• Fourth-quarter value of new business beat estimates, according to brokerage.

• Annual premium equivalent rose 9% year-on-year, while value of new business rose 7% in fiscal 2025, it noted.

• Growth in the bancassurance channel has stabilised, although a change in product mix has weighed on agency growth, it said.

On SBI Cards

Macquarie

• Retained an ‘outperform’ rating on the stock and a target price of Rs 1,000 apiece.

• Credit cost has finally declined, it said.

• Credit cost was in line, while net profit beat estimates on the back of higher net interest margin and lower operating expenses.

• Management expects net interest margin to remain stable in fiscal 2026.

Morgan Stanley

• Retained an ‘equal-weight’ rating on the stock and raised target price to Rs 775 apiece from Rs 685.

• Fourth-quarter earnings were in line with consensus.

• Bad loan formation and credit costs declined significantly quarter-on-quarter.

• Reiterated that the direction of credit costs was downward.

• The normalised level of credit cost and the timeline to reach it remains uncertain, the brokerage said.

Citi On L&T Technology Services

• Retained a ‘sell’ rating on the stock and cut target price to Rs 3,800 apiece from Rs 4,105.

• Fourth-quarter performance was disappointing and revenue guidance was weaker than expected.

• Uncertain macro environment led to delayed ramp-ups in some large deals, according to brokerage.

• Signing of a few large deals was pushed to the quarter-end.

• Fiscal 2026 guidance for double-digit revenue growth was below expectations.

• Margin trajectory will need to be closely monitored.

Bank of America On Autos

• Delhi’s proposed road tax waiver for hybrid vehicles is a step forward, according to brokerage.

• While Delhi contributes 5% of passenger vehicle sales, the move alone may not materially boost hybrid adoption.

• However, Delhi is seen as a progressive state in green mobility and could set a precedent for others.

• More hybrid models are needed for broader adoption, it said.

• The proposal is a positive for Maruti Suzuki, according to BofA.

Morgan Stanley On Aavas Financiers

• Retained an ‘equal-weight’ rating on the stock and a target price of Rs 1,780 apiece.

• Fourth-quarter pre-provision operating profit missed estimates, while net profit was in line.

• Management expects over 20% growth in disbursements and loans in fiscal 2026.

• Targets assets under management of Rs 50,000 crore over the next five years.

• Current valuations appear full, according to brokerage.

Morgan Stanley On Mphasis

• Retained an ‘equal-weight’ rating on the stock and a target price of Rs 2,570 apiece.

• Fourth-quarter results were in line with brokerage’s expectations in a weak demand environment.

• Earnings before interest and tax margin came in at 15.3%, better than the street’s forecast, it said.

• New deal wins in the fourth quarter totalled $390 million, broadly in line with expectations.

• Mphasis continues to see strong growth in its deal pipeline, the brokerage said.

Jefferies On Syngene International

• Retained a ‘hold’ rating on the stock and cut target price to Rs 650 apiece from earlier Rs 860.

• Fourth-quarter earnings missed estimates and fiscal 2026 guidance is subdued.

• Fiscal 2026 margin guidance implies an Ebitda decline of 11–12%.

• Lower sales outlook for Librela and higher operating costs from new capacity will weigh on performance.

• Cut fiscal 2026 and 2027 Ebitda estimates by 28% and 27%, respectively.

Morgan Stanley On Macrotech Developers

• Retained an ‘equal-weight’ rating on the stock and a target price of Rs 1,230 apiece.

• Fiscal 2026 guidance was bullish but valuations limit upside.

• Company has guided for Rs 21,000 crore of pre-sales in fiscal 2026 and Rs 50,000 crore by fiscal 2031.

• Implied price-to-earnings multiple is 31 times, which is expensive compared to peers due to the company’s large land bank in Palava.

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