Stock Recommendations Today: IndiGo, GCPL, Mankind Pharma, ICICI Bank, Shriram Finance On Brokerages’ Radar Sai Aravindh NDTV Profit

InterGlobe Aviation Ltd., Godrej Consumer Products Ltd.,  Mankind Pharma Ltd., Torrent Pharmaceuticals Ltd., Shriram Finance Ltd. and ICICI Bank Ltd. are among the top companies on brokerages’ radar on Monday.

Analysts have changed their outlook on these companies after they released their third-quarter earnings last week. Meanwhile, Morgan Stanley initiated coverage on Vishal Mega Mart Ltd. and International Gemological Institute Ltd.

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

UBS on IndiGo

• Retain a ‘buy’ rating on the stock and raise the target price to Rs 5,400 apiece from Rs 5,300, implying a potential upside of 2% from the previous close.

• Delivered a strong performance, although impacted by foreign exchange-related challenges. The outlook remains robust.

• Demand in the third quarter was strong, and costs were in line, but sharp appreciation of the US Dollar affected results.

• Plans for significant aircraft additions and is taking proactive measures to mitigate forex risks.

Goldman Sachs On IndiGo

• Retain a ‘buy’ rating on the stock and lower the target price to Rs 4,650 apiece from Rs 4,800, implying a potential downside of 3% from the previous close.

• Third-quarter operational performance exceeded expectations, driven by a positive near-term demand outlook.

• Believe IndiGo’s competitive positioning continues to strengthen.

• Reduce earnings per share estimates for fiscal years ending March 2026 and March 2027 to account for forex-related impacts.

Macquarie On Godrej Consumer

• Retain a ‘neutral’ rating on the stock and lower the target price to Rs 1,125 apiece from Rs 1,260, implying a potential downside of 11% from the previous close.

• Expect volumes to recover, but margins are likely to remain weak.

• Project a sequential uptick in volume growth in the fourth quarter of the fiscal year ending March 2025, from 0% in the third quarter.

• Anticipate soap volumes to gradually normalise to 7-8% levels by the first quarter of the fiscal year ending March 2026.

• Forecast India’s fourth-quarter Ebitda margin to remain flat quarter-on-quarter, as palm derivatives used in soap production have not seen a similar decline as palm oil prices.

Jefferies On Godrej Consumer

• Retain a ‘buy’ rating on the stock and lower the target price to Rs 1,400 apiece from Rs 1,425, implying a potential downside of 2% from the previous close.

• The worst of challenges appears to be over, but the recovery is expected to remain gradual.

• Pressure in urban demand, which is likely to affect performance in the next quarter, despite expectations of sequential improvement.

• Reduce earnings per share estimates by 2-4%; Godrej Consumer Products remains among top picks.

Jefferies On Mankind Pharma

• Retain a ‘buy’ rating on the stock and lower the target price to Rs 3,300 apiece from earlier Rs 3,370, implying a potential downside of 2% from the previous close.

• Mixed trends in the third quarter of the fiscal year ending March 2025, with organic growth driven by exports and over-the-counter products.

• Integration and restructuring activities impacted third-quarter growth.

• Growth in biopharmaceuticals and vaccines (BSV) was affected due to challenges in the prescription medicines division.

• Strong growth in the consumer healthcare segment.

• The company is laying a foundation for stronger performance in the fiscal year ending March 2026.

BofA on Mankind Pharma

• Retain an ‘underperform’ rating on the stock and lower the target price to Rs 2,250 apiece from Rs 2,340, reflecting muted domestic prescription growth offset by lower selling, general, and administrative expenses.

• Observe a focus on monitoring the organic domestic growth trajectory and the execution of biosimilars and vaccines.

• Highlight the importance of biosimilars and vaccines execution in determining future valuations.

Jefferies On Torrent Pharma

• Retain a ‘buy’ rating on the stock and lower the target price to Rs 3,970 apiece from the earlier Rs 4,130, implying a potential downside of 4% from the previous close.

• Steady performance in the India business but weak export growth in the third quarter of the fiscal year ending March 2025.

• Attribute weak export performance to currency depreciation in Brazil.

• Expect the India business to witness steady growth supported by GLP-1 drug launches starting the calendar year 2026.

• Anticipate export growth to remain weak in the near term, leading to a 3-4% reduction in Ebitda estimates for the fiscal years through March 2027.

BofA on Torrent Pharma

• Retain a ‘neutral’ rating on the stock with a target price of Rs 3,400 apiece.

• A marginal miss in performance due to one-off disruptions but margin expansion remains on track.

• Levers in place to support growth momentum going forward.

Bernstein On ICICI Bank

• Retain a ‘market-perform’ rating on the stock with a target price of Rs 1,440 apiece, implying a neutral outlook from the previous close.

• A very strong quarterly performance, with the return on assets remaining at 2.4%.

• Attribute the stellar return on assets to effective cost control and pristine asset quality.

• Growth was slightly below consensus estimates but much higher current account savings account growth.

Citi On Shriram Finance

• Retain a ‘buy’ rating on the stock with a target price of Rs 720 apiece, implying a positive outlook.

• Broader concerns over asset quality weakness have been mitigated, with a rise in stage 3 and stage 2 loans as well as credit costs contained.

• A 26 basis points contraction in net interest margins quarter-on-quarter due to an excess liquidity drag.

• Project assets under management growth of 15-18%, credit costs of 2.1-2.2%, and net interest margins of 9-9.1% over the fiscal years through March 2027.

HSBC On Shriram Finance

• Retain a ‘buy’ rating on the stock with a target price of Rs 745 apiece, reflecting a constructive outlook.

• A solid third-quarter performance with healthy growth and expansion in lending spreads.

• Contained asset quality and credit costs were key highlights.

Goldman Sachs On Laurus Labs

• Retain a ‘sell’ rating on the stock and raise the target price to Rs 475 apiece from Rs 425, implying limited valuation appeal.

• Note that the third-quarter performance was in line, driven by a pick-up in contract development and manufacturing organisation activity and encouraging margin improvement.

• Raise fiscal year 2025 earnings per share estimates by 25% to reflect the third-quarter beat.

CLSA On DLF

• Retain an ‘outperform’ rating on the stock with a target price of Rs 975 apiece, reflecting strong performance potential.

• Record-high quarterly presales of Rs 12,000 crore, driven by the newly launched luxury project, The Dahlias.

• Strong cash flows and fiscal year 2025 guidance has been achieved within the first nine months.

• Focus on new launches over the next 15 months.

Citi on AU Small Finance Bank

• Retain a ‘neutral’ rating on the stock with a target price of Rs 625 apiece, reflecting a cautious stance.

• Continued stress in microfinance institutions and credit cards, leading to an increase in credit cost guidance.

• Confident in sustaining cost of funds at 7.1-7.15% and maintain net interest margin guidance.

• Revise credit growth guidance to 20%, reflecting a more cautious approach to unsecured lending.

Investec On JSW Steel

• Retain a ‘buy’ rating on the stock with a target price of Rs 1,100 apiece, reflecting operational outperformance.

• A preferred ferrous play with management confident about maintaining a net debt to Ebitda ratio below 3.75x.

• Management’s optimism about potential tariff barriers being implemented.

• The company has strong positioning in mining profitability.

Morgan Stanley On Vishal Mega Mart

• Initiate coverage with an ‘overweight’ rating and a target price of Rs 161 apiece.

• Vishal Mega Mart has defendable growth strategy compared to peers, given its scale, market tiering, product offerings, consumer captivity, and profitable business model.

• Prefer Vishal Mega Mart over D-Mart in the near term on more defendable position in value retail across tier-2 and below markets.

• Project Vishal to deliver 20% revenue and 27% profit after tax compound annual growth rate over fiscal years 2024-2029.

Morgan Stanley On International Gemological Institute

• Initiate coverage with an ‘overweight’ rating and a target price of Rs 617 apiece, reflecting potential opportunities in the certification business.

• The growing market for lab-grown diamonds a significant growth driver, despite the proof of concept still being in progress.

• High barriers to entry the key moat for IGI’s business.

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