Stock Recommendations Today: Tata Power, Cyient, Indraprastha Gas, Bajaj Finance, NHPC On Brokerages’ Radar NDTV Profit Desk NDTV Profit

Tata Power Co., Cyient Ltd., Indraprastha Gas Ltd., Bajaj Finance Ltd., and NHPC Ltd. are among the top companies on brokerages’ radar on Thursday.

Chemicals, city gas distribution companies and banks are among the sectors analysts have done a deep dive into.

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

HSBC On Tata Power

• Retained a ‘hold’ rating on the stock and raised target price to Rs 345 apiece from earlier Rs 300.

• Improving execution amid weak macroeconomic conditions.

• Weak power demand, the pace of both power purchase agreement signing and power distribution company privatisation, and project execution drove stock correction.

• Tata Power is performing well in module and cell manufacturing and engineering, procurement, and construction turnaround, but renewable commissioning still needs to ramp up.

• Key risks include government approvals, competitive intensity, and coal availability.

Morgan Stanley On Chemicals

• Deepak Nitrite: Maintained ‘overweight’ rating; lowered target price to Rs 2,480 from Rs 3,000.

• PI Industries: Kept ‘equal weight’ rating; slashed target price to Rs 3,524 from Rs 4,310.

• SRF: Maintained ‘underweight’ rating; raised target price to Rs 1,870 from Rs 1,650.

• Navin Fluorine: Maintained ‘underweight’ rating; raised target price to Rs 3,242 from Rs 2,700.

• Tata Chemicals: Maintained ‘underweight’ rating; lowered target price to Rs 780 from Rs 879.

• The third quarter saw contrasting trends as fluorine and diversified chemicals outperformed commodity and agricultural chemicals.

• Fiscal year ending March 2026 beckons with harder plant runs, expanded capacity, and operating leverage versus the fiscal 2025.

• Agricultural chemicals recovery remains bumpy amid competitive pressures.

• Remains cautious on India’s chemical sector.

Morgan Stanley On Cyient

• Maintained ‘underweight’ rating with a target price of Rs 1,500 per share.

• Announced an external candidate as the new chief executive officer.

• The appointment of an external rather than an internal candidate, particularly one with a strong engineering services background, is a positive.

• This removes one of the key overhangs on the stock.

• Brokerage expects any strategic changes at the firm to be only gradual in nature.

• Investors will require improvement in execution on both revenue growth and margins to turn incrementally constructive on the stock.

Jefferies On Indraprastha Gas

• Maintained ‘buy’ rating with a target price of Rs 252.

• Low-cost liquefied natural gas feedstock sourcing improves margin and volume outlook.

• Decline in administered price mechanism gas availability is manageable.

• Rs 2 per kilogram hike is sufficient to protect margins.

• Management’s focus on volume growth is positive.

• New growth opportunities arise from the end of marketing exclusivity.

Citi On Indian Automobile Sector

• Expects heightened competition to put pressure on established Indian original equipment manufacturers.

• Tesla and BYD have access to proven technology and manufacturing processes.

• These advantages could offset the benefits that Indian original equipment manufacturers hold, such as extensive sales and service networks and strong supply chains.

• Too early to arrive at a definitive conclusion.

• The dominance that Indian original equipment manufacturers have enjoyed in internal combustion engine vehicles might not be as strong in the electric vehicle segment.

Citi On Gas Distribution Companies

• In recent days, both Indraprastha Gas Ltd. and Mahanagar Gas Ltd. have signaled a shift in their stance towards the regulator’s attempts at enforcing the end of marketing exclusivity.

• The declaration of a city gas distribution company’s areas as a common carrier is not a significant threat for the larger compressed natural gas-focused incumbent.

• Introduction of competition presents an opportunity for these companies to expand their geographic footprint, the brokerage said.

• Increased the possibility of mergers and acquisitions or entry into geographical areas of smaller players.

UBS On Bajaj Finance

• Maintained ‘sell’ rating and raised target price to Rs 6,800 apiece from earlier Rs 6,500, implying a potential downside from the previous close.

• Incremental unsecured underwriting for non-banking financial companies has been inferior.

• Margins and return on assets are expected to decline structurally.

• Market is pricing in 23% earnings per share compound annual growth rate over the next 10 years.

• Too much optimism is factored into consensus earnings per share estimates.

• Remains cautious as credit costs are expected to remain cyclically high.

Goldman Sachs On Banks

• Channel checks indicate a decline in collection efficiency in Karnataka.

• Moral hazard risks are beginning to emerge in Karnataka.

• The Karnataka ordinance could potentially be a precursor to the Banking Union Loan Act draft bill by the central government.

• Portfolio stress and an uncertain outlook are not adequately priced in.

• CreditAccess Grameen is the most impacted.

JPMorgan On Cyient

• Retained an ‘overweight’ rating on the stock and a target price of Rs 1,750 apiece.

• New external chief executive officer announcement a positive.

• He brings strong sales experience having run a $1.5 billion profit and loss portfolio at HCL, that should bode well for his new role at Cyient.

• He faces an unenviable turnaround task ahead.

• Three key issues to address:

  • Upgrade the portfolio from project-based deals to longer-term annuity deals.

  • Rework the guidance process to prevent missing guidance again or avoid providing guidance until the new chief executive officer has more confidence in the business outlook.

  • Scale up the auto engineering research and development practice via acquisitions, as it is a missing piece in the portfolio.

CLSA On NHPC

• Retained a ‘high conviction outperform’ rating on the stock and lowered target price to Rs 117 apiece from earlier Rs 120.

• Decadal green growth validated by fiscal 2024-2029 regulations.

• Gaining share in hydro and new, faster growth avenues emerge.

• Clean energy, green stock are set to deliver.

• The stock could double in four years.

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