Stock Recommendations Today: Tata Motors, SBI, Vodafone Idea On Brokerages’ Radar NDTV Profit Desk NDTV Profit

Tata Motors Ltd., State Bank of India and Vodafone Idea Ltd. were among top companies on brokerages’ radar on Friday.

Further, Jefferies expects reciprocal tariff announcements to have no incremental adverse impact on large exporting sectors that include IT services, pharma and autos.

In addition, JPMorgan would like to be lighter in IT positioning as it expects financial year 2026 to be a complete washout.

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

JPMorgan On Indian IT

• JPMorgan raised concerns about the Indian IT sector, questioning when it will bottom out.

• There is an increasing risk that financial year 2026 could be a weak year.

• Top-tier IT companies such as Tata Consultancy Services Ltd., Infosys Ltd., and HCL Technologies Ltd. are returning most of their free cash flow and PAT to shareholders.

• Dividend and FCF yields suggest the sector may be approaching bottom valuations, with current prices 6–14% away from the bottom.

• Leading midcaps like Persistent Systems Ltd. and Coforge Ltd. are 25% and 13% away from their potential bottom, respectively.

• JPMorgan recommends looking for buying opportunities in tier 1 names sooner.

• For midcaps, they advise waiting until earnings season, as valuations are likely to be sensitive to any negative commentary from TCS or Infosys.

• Despite the potential opportunities, JPMorgan maintains a cautious stance on IT sector positioning.

BofA On India Strategy

• BofA acknowledged that India’s economy is relatively better positioned, but the market faces additional risks.

• It maintained a cautious stance and prefers domestic rate-sensitive sectors over global cyclicals.

• Favoured sectors include financials, real estate, and autos (excluding Tata Motors), over IT, metals, energy, and pharma.

Jefferies’ India Strategy

• Jefferies spoke to over 20 companies regarding the tariff announcement.

• The general consensus is that the current tariff levels are unsustainable and likely to be negotiated.

• US consumers and OEMs are expected to bear part of the increased cost.

• Supply chain relocation to low-tariff regions is feasible only for large producers, making it difficult for Indian firms.

• Relocating production to the US requires policy stability and long-term confidence.

Brokerages On Trump Tariff

Jefferies

• Jefferies sees the reciprocal tariff announcements as a relief for markets.

• They do not expect any incremental adverse impact on major exporting sectors such as IT services, pharmaceuticals, and automobiles.

• The 27% tariff on India is considered reasonable from a relative standpoint.

• The larger concern is the weakening US economic outlook, which is a negative for IT services and other exporters.

• Jefferies suggests buying the dip, especially in the pharma sector.

• The key risk to this strategy is a prolonged global risk-off sentiment.

Morgan Stanley

• The reciprocal tariffs pose downside risks to growth, estimating a 30-60 bps reduction in the financial year 2026 GDP growth estimate of 6.5%.

• Despite this, they expect monetary policy to remain supportive of growth.

• Morgan Stanley anticipates a shift in policy stance to ‘accommodative’, with a potential 25 bps rate cut in April.

Macquarie On Power Financiers

• Macquarie maintains ‘outperform’ ratings on both REC (target price: Rs 700) and PFC (target price: Rs 660).

• The structural story remains intact, with stable loan growth and strong asset quality.

• Negative credit costs are expected to sustain, supporting high ROEs.

• No major downgrades to GNPAs are expected in fourth quarter.

• REC and PFC are expected to grow at 14% and 12% YoY, respectively.

UBS On IndusInd Bank

• UBS maintained a ‘sell’ rating and lowered the target price to Rs 600 from Rs 770.

• It foresees a very challenging year ahead, with poor visibility and multiple overhangs that could drive further de-rating.

• Key signposts include deposit inflows, the appointment of a new CEO, and the findings of the external auditor report.

• EPS estimates are cut by 14% for financial year 2026 and 15% for financial year 2027, due to expectations of lower margins and higher credit costs.

UBS On Bank Of Baroda

• UBS upgraded the stock to ‘buy’ from ‘neutral’ and raised the target price to Rs 290 from Rs 270.

• The upgrade was driven by a stable outlook and attractive valuations.

• The brokerage expects the bank’s net interest margins to face less pressure, compared to private sector peers.

• They view the bank’s valuations as undemanding and believe credit costs will remain under control.

UBS On SBI

• UBS upgraded SBI to ‘neutral’ from ‘sell’ and increased the target price to Rs 840 from Rs 760.

• The upgrade reflects a balanced risk-reward profile, with sustaining NIMs seen as a key factor for potential re-rating.

• EPS estimates are raised by 3–5%, though UBS sees limited upside in the core PPOP-to-assets ratio.

• Corporate asset quality is expected to remain stable, helping maintain low credit costs.

UBS On PVR Inox

• UBS maintained a ‘buy’ rating, but cut the target price sharply to Rs 1,350 from Rs 2,000.

• The company’s core thesis of theatrical experiences trumping at-home entertainment is taking longer to materialise.

• Issues like mall traffic, parking, and additional costs are deterring footfalls.

• Inertia among consumers is higher than expected.

• Despite significant estimate cuts, the current stock price and valuation still offer an attractive opportunity.

• UBS anticipates recovery in financial year 2026, supported by a strong content pipeline.

Macquarie On Vodafone Idea

• Macquarie maintained an ‘underperform’ rating and cut the target price to Rs 6.5 from Rs 7.

• It described the company’s situation as “more bandage, more dilution”.

• The government’s conversion of dues into equity reiterates support for a three-player market.

• Macquarie had anticipated deadline extensions instead of dilution.

• With Vodafone Idea’s FCF generation still weak, they maintain a cautious outlook.

Brokerages On HDFC Bank

Macquarie

• Macquarie maintained an ‘outperform’ rating, with a target price of Rs 2,300.

• The main concern remains slower-than-expected deposit growth.

• Loan growth is in line, driven by commercial and rural banking.

• Margins are expected to improve gradually over the near to medium term.

Morgan Stanley

• Morgan Stanley maintained an ‘overweight’ rating with a target price of Rs 1,975.

• The bank continues to demonstrate strong deposit growth and an improving loan-to-deposit ratio.

• Market participants will closely watch margin performance in the upcoming results.

• The outlook for growth and margins remains a key factor.

CLSA On Tata Motors

• CLSA downgraded Tata Motors to ‘outperform’ from ‘high conviction outperform’ and cut the target price to Rs 765 from Rs 930.

• Fiscal 2026 is expected to be a year of demand normalisation in the US, driven by higher tariffs.

• JLR’s US volume may be impacted due to demand elasticity.

• Despite this, JLR is expected to remain FCF positive in financial year 2026, although capex might be reduced.

• The demerger aligns with the expected bottoming of the CV downcycle.

HSBC On Ventive Hospitality

• HSBC initiated coverage on Ventive Hospitality with a ‘buy’ rating and a target price of Rs 854.

• The company is rapidly catching up with its industry peers after a period of underperformance.

• It owns 11 hotels across India and the Maldives, along with four annuity assets in Pune.

• Although underperformance was a past concern, the company is showing signs of recovery.

• HSBC highlights the company’s strong balance sheet and healthy free cash flows as key strengths.

• Risks include a lack of growth and the possibility of continued underperformance.

Morgan Stanley On RBL Bank

• Morgan Stanley maintained an ‘underweight’ rating with a target price of Rs 150.

• RBL Bank has lost market share in deposits, although its loan growth is in line with the system.

• A shift toward retail lending is considered a positive development.

• MFI collection efficiency improved to 99% in March, though sustainability of this trend is yet to be seen.

Morgan Stanley On Aditya Birla Fashion

• Morgan Stanley maintained an ‘underweight’ rating with a target price of Rs 271.

• Management reaffirmed its commitment to organic growth over acquisitions.

• Profitability will be prioritised even if M&A opportunities arise.

• If this strategic shift is executed well, it could significantly re-rate the stock.

Brokerages On Bajaj Finance

Morgan Stanley

• Morgan Stanley maintained an ‘overweight’ rating with a target price of Rs 10,500.

• AUM grew 4.7% quarter-on-quarter and 26% year-on-year, in line with expectations.

• The company is on track to achieve ~25% AUM growth in financial year 2026.

• Adjusted for RBI-related restrictions, new loan disbursements grew 23% year-on-year.

• Investor focus will remain on credit costs, management commentary, and growth trajectory.

Citi

• Citi maintained a ‘buy’ rating with a target price of Rs 10,200.

• AUM grew 26.1%, slightly below Citi’s estimate of 27%.

• New loans declined due to a high base in third quarter.

• Deposit inflows continue to be strong.

Morgan Stanley On L&T Finance

• Morgan Stanley maintained an ‘underweight’ rating with a target price of Rs 105.

• Fourth quarter operational update shows moderating loan growth.

• Investors await further clarity on margins, credit costs, and asset quality.

• While long-term direction is positive, low ROE compared to cost of equity makes valuation unattractive.

Macquarie On Avenue Supermarts

• Macquarie maintained an ‘underperform’ rating with a target price of Rs 3,150.

• Fourth quarter sales growth was similar to third quarter levels, with a slight miss.

• The company added 50 new stores in fiscal 2025.

• Concerns around competition from quick commerce players remain unresolved.

Macquarie On Marico

• Macquarie maintained an ‘outperform’ rating with a target price of Rs 750.

• Pre-fourth quarter observations indicate a sequential uptick in volume growth.

• Market share gains are visible across all key product categories.

• The brokerage appreciates Marico’s reiteration of its double-digit sales growth target for financial year 2026.

Jefferies On Bandhan Bank

• Jefferies maintained a ‘buy’ rating with a target price of Rs 185.

• Loan growth has slowed due to reduced MFI disbursements, while non-MFI segments continue to perform well.

• MFI collections remain stable quarter-on-quarter, though still suboptimal.

• Bandhan Bank is better positioned to handle MFI-related stress, with sector trends supporting re-rating potential, Jefferies said.

. Read more on Markets by NDTV Profit.JPMorgan would like to be lighter in IT positioning as it expects financial year 2026 to be a complete washout.  Read MoreMarkets, Business, Notifications 

​NDTV Profit