Stock Recommendations Today: HUL, ITC, Trent, Dr. Agarwal’s Health On Brokerages’ Radar NDTV Profit Desk NDTV Profit

Hindustan Unilever Ltd. will be in sharp focus this week as its March quarter earnings are due Thursday, and brokerages are already turning their attention to the broader consumer space with a bullish lens. UBS is calling a potential rebound for the fast-moving consumer goods sector, with HUL among its top picks for a turnaround story after five years of portfolio-led underperformance. 

Goldman Sachs is echoing that optimism, flagging multiple tailwinds for the consumption theme—ranging from tax cuts and easing inflation to lower interest rates and pre-election stimulus. 

Meanwhile, Morgan Stanley’s Ridham Desai says India remains its top pick among emerging markets, citing macro stability, dovish policy, and improving terms of trade.

Kotak Securities has also initiated coverage on Dr. Agarwal’s Health Care Ltd. as it sees a strong runway for profitable growth, supported by acquisition-led expansion and a first-mover edge.

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

UBS On FMCG Sector

• The sector is ready for a rebound, according to brokerage. Calls it a ‘Goldilocks’ setup.

• Expects earnings to recover in the fiscal ending March 2026 with 13% growth after a weak fiscal 2025.

• Highlights potential income stimulus from tax cuts and the upcoming Eighth Pay Commission over the next three years.

• These could spark a demand revival and extend the earnings growth cycle.

• Valuations have corrected by as much as 35% since October.

• Sees the sector offering defensiveness in a low risk appetite market.

• Favours Avenue Supermarts Ltd. and Trent Ltd. for their resilient value retail model.

• Favours Hindustan Unilever Ltd. and Godrej Consumer Products Ltd. as turnaround stories with improving portfolios.

• Sees Colgate-Palmolive (India) Ltd. and Britannia Industries Ltd. at an inflection point with likely earnings revival by next year.

• Finds attractive value in ITC Ltd. after recent correction on tax concerns.

• Least prefers Asian Paints Ltd. due to uncertainty from a disruption cycle and Dabur India Ltd. over ongoing portfolio issues.

• Says Jubilant FoodWorks Ltd. has already priced in a rebound in same-store sales growth.

• Upgrades Hindustan Unilever to ‘buy’ from ‘neutral’; raises target price to Rs 2,800 apiece from Rs 2,700.

• Upgrades ITC to ‘buy’ from ‘neutral’; raises target price to Rs 490 apiece from Rs 470.

• Retains a ‘buy’ rating on Avenue Supermarts; lowers target price to Rs 5,200 apiece from earlier Rs 5,250.

• Upgrades Trent to ‘buy’ from ‘neutral’; raises target price to Rs 6,200 apiece from earlier Rs 4,650.

• Retains a ‘buy’ rating on Godrej Consumer Products; raises target price to Rs 1,500 apiece from Rs 1,450.

• Retains a ‘buy’ rating on Britannia Industries; raises target price to Rs 6,350 apiece from Rs 6,000.

• Upgrades Colgate-Palmolive to ‘buy’ from ‘sell’; raises target price to Rs 3,100 apiece from earlier Rs 2,240.

• Retains a ‘neutral’ rating on Titan Co.; lowers target price to Rs 3,500 apiece from Rs 3,900.

• Downgrades Marico to ‘neutral’ from ‘buy’; raises target price to Rs 770 apiece from earlier Rs 650.

• Downgrades Asian Paints to ‘sell’ from ‘buy’; lowers target price to Rs 2,100 apiece from Rs 3,650.

• Downgrades Dabur India to ‘sell’ from ‘neutral’; lowers target price to Rs 470 apiece from Rs 600.

• Downgrades Jubilant FoodWorks to ‘sell’ from ‘buy’; lowers target price to Rs 600 apiece from Rs 615.

Goldman Sachs On Consumer Sector

• Multiple catalysts are in place for a growth revival in the sector.

• Consumption has lagged behind gross domestic product growth due to several headwinds.

• Expects revival from fiscal ending March 2026, aided by tax cuts, lower food inflation and reduced interest rates.

• Sees the Eighth Pay Commission and key state elections as potential tailwinds in fiscal 2027.

• Lower input costs will aid margin expansion in fiscal 2026.

• A rising tide will lift all boats, but prefers companies with bottom-up growth drivers.

• Favours Godrej Consumer Products Ltd., Tata Consumer Products Ltd., Marico Ltd., Titan Co., Trent Ltd. and Pidilite Industries Ltd.

Morgan Stanley Strategy – Ridham Desai

• Continues to view India as its top emerging market pick.

• Notes India’s low beta is helping it outperform amid global equity volatility.

• Warns weak global markets could cap absolute returns for India.

• A global bull market may lead to relative underperformance for low-beta markets like India.

• India’s macro fundamentals remain strong with declining primary deficit, stable trade terms, and falling inflation volatility.

• Projects earnings growth in mid-to-high teens annually over next three to five years.

• Sees strong domestic capital availability and dovish Reserve Bank of India policy.

• Notes supportive technicals with orderly decline and strong retail participation.

• Highlights that foreign portfolio positioning is at its weakest since 2000.

• Early signs indicate foreign investors’ sentiment on India is improving.

• Adds that its proprietary sentiment indicator is in the buy zone.

CLSA On Financials

• Says new liquidity coverage ratio guidelines are positive for banking sector liquidity.

• Notes the Reserve Bank of India raised run-off rates for deposits by 2.5 percentage points versus 5 points suggested in the draft.

• Expects the guidelines to improve system-wide liquidity coverage ratio by 6 percentage points.

• Initial estimates suggest Rs 2.5 lakh crore will be available for redeployment.

• Sees the impact on profit after tax as modest, but views the move as sentimentally positive.

On RBI’s LCR Guidelines

Morgan Stanley 

• Views the final guidelines as materially more positive than the draft.

• Expects the rules to improve system-wide liquidity coverage ratio by 6 percentage points.

• Banks with a higher share of trust deposits will benefit most.

• Improvement could enable loan growth acceleration of 1–2% and margin expansion of 2–4 basis points.

• Although guidelines are effective April 1, 2026, expects partial earnings benefit in fiscal 2026.

Macquarie 

• Calls it a ‘liquidity bonanza’.

• Sees system liquidity supporting a 140–160 bps increase in credit growth.

• Estimates liquidity deployable could rise by Rs 2.5–Rs 3 lakh crore.

• Welcomes the move in the context of currently weak loan growth.

BofA On Asia GDP Outlook

• Downgrades growth forecast for Asia due to prolonged impact from tariff shocks.

• Tariff pause offered only temporary relief.

• Expects Asia’s growth to decelerate to below 4% in calendar year 2025.

• Notes the revised outlook depends on tariff trends.

• Sees India’s growth momentum modestly impacted by weak global demand.

• Cuts India’s gross domestic product growth estimate by 20 bps for fiscal 2026; keeps fiscal 2027 forecast unchanged.

Morgan Stanley On Steel Sector

• Says India’s safeguard duty on select steel imports was anticipated, but the timing was uncertain given global macro conditions.

• Sees the move as a positive development that removes months of policy overhang.

• Expects some near-term positive reaction in stocks but advises trimming positions.

• Notes that even post-duty, domestic steel prices are still at a 5% premium to import parity.

• Does not expect a lift in domestic steel prices from this move.

Kotak On Dr. Agarwal’s Health Care

• Initiates coverage with an ‘add’ rating and a target price of Rs 425 apiece.

• Company is focused on profitable growth.

• Expects return on invested capital to improve to around 12% in the fiscal ending March 2028.

• Projects robust compound annual growth rates of 23% for Ebitda and 27% for earnings per share over fiscals ending March 2024 to March 2028.

• Dr. Agarwal’s has an early-mover advantage over other organised players, the brokerage said.

• Acquisitions have been a key growth driver for the company.

Bank of America On Divi’s Laboratories

• Retained a ‘buy’ rating on the stock and a target price of Rs 6,800 apiece.

• The company has signed its second long-term deal with innovators.

• Contract services growth visibility is improving.

• Recommends buying the stock on visible earnings momentum.

. Read more on Markets by NDTV Profit.Here are all the top calls from analysts you need to know about on Tuesday.  Read MoreMarkets, Business, Notifications 

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