Stock Recommendations Today: TCS, HAL, Consumer Stocks On Brokerages’ Radar NDTV Profit Desk NDTV Profit

Motilal Oswal initiated coverage on Hindustan Aeronautics Ltd. this Friday. Additionally, Jefferies initiated a ‘Buy’ rating for Aditya Birla Fashion and Retail Ltd.

Brokerages also cut their target price for Tata Consultancy Services Ltd. after they announced their results on Thursday, while maintaining their ratings. While Kotak pointed out that the results were weak, it said that the company will be more resilient.

NDTV Profit tracks what analysts are saying about stocks and sectors. Here are the key calls to watch out for this Friday.

Morgan Stanley On Mahanagar Gas

• Maintained an ‘overweight’ rating with a target price of Rs 1,789.

• CNG and PNG prices have increased in Mumbai.

• Despite higher prices, India’s natural gas consumption has remained resilient.

• City gas demand is outperforming expectations, comfortably absorbing the 6% price hikes implemented last quarter.

• MGL is well positioned to meet the rising mobility needs in Mumbai.

• The company is aggressively capturing a share in the 125 billion miles traveled annually.

• CNG retains a cost advantage over electric vehicles for four-wheeler conversions.

CLSA On Tyre

• Initiated a ‘High Conviction Outperform’ rating on Apollo Tyre with a target price of Rs 566.

• Initiated an ‘outperform’ rating on Ceat with a target price of Rs 3,493.

• Initiated an ‘outperform’ rating on MRF with a target price of Rs 1,28,599.

• The company is moving up the profitability curve.

• Drivers of margin revival are in place.

• Unit-level profitability and market mix are improving structurally.

• Valuation sensitivity is more linked to margin and free cash flow than revenue growth.

• Capital expenditure in the space is now focusing more on passenger car radial tyres versus truck and bus tyres.

• The space is driven by domestic demand, commodity correction, and favourable valuation.

Jefferies On Aditya Birla Fashion

• Initiates ‘buy’ with target price of Rs 315 per share.

• Decisively shifting focus to profitable growth with management taking tough steps to consolidate presence.

• Split of the company enables greater focus on identified lines of business.

• Should generate rising FCF, while residual ABFRL’s losses should shrink despite strong growth momentum.

Morgan Stanley On Consumer Stocks

• Godrej Consumer has been upgraded to ‘overweight’ from ‘equal-weight’; with a target price hike to Rs 1,431 from Rs 1,231.

• HUL has been upgraded to ‘equal-weight’ from ‘underweight’; with a target price hike to Rs 2,338 from Rs 2,073

• Dabur has been downgraded to ‘underweight’ from ‘equal-weight’; the company’s target price has been reduced to Rs 396 from Rs 475

• Maintained an ‘overweight’ rating on ITC and cut the target price to Rs 500 from Rs 578.

• Maintained an ‘overweight’ rating on Tata Consumer and hiked the target price to Rs 1,255 from Rs 1,235.

• Maintained an ‘overweight’ rating on Varun Beverages and hiked the target price to Rs 615 from Rs 608.

• Maintained an ‘equal-Weight’ rating on Britannia and hike the target price to Rs 5,511 from Rs 5,157.

• Maintained an ‘underweight’ rating on Nestle India Ltd. and hiked the target price to Rs 2,081 from Rs 2,033.

• Maintained an ‘equal-weight’ rating on Marico and hiked the target price to Rs 674 from Rs 625.

• Repositions staples preferences that are insulated from any reset.

• The current global backdrop creates domestic uncertainty, giving defensives an opportunity to shine.

• Believe opportunities should be selective and not broad-based.

• Competitive intensity may have waned, but incumbents are unlikely to revive historical growth algorithms.

• Any sharp rise in commodity prices could negatively impact earnings growth assumptions.

• Preferred picks are Godrej Consumer and Tata Consumer.

Brokerages On TCS

Kotak

• Kotak maintains a “Buy” rating on TCS but has reduced the target price to Rs 3,800 from Rs 3,900.

• The company posted a weak quarterly performance.

• TCS’s international business grew by 0.6% quarter-on-quarter, with relatively better growth in developed markets.

• The EBIT margin missed estimates by 70 basis points.

• A healthy deal Total Contract Value in the second half of the year offers some growth visibility for financial year 2026.

• Despite a narrower lead over peers, TCS is expected to remain more resilient.

Citi

• Citi maintains a “Sell” rating on TCS and lowers the target price to Rs 3,000 from Rs 3,210.

• The company delivered a weak fourth quarter, with EBIT coming in approximately 3% below estimates, primarily due to a lower EBIT margin.

• Management commentary suggests that uncertainty crept in during March, leading to decision-making delays and ramp-downs in some engagements.

• Sector-wide growth has been under pressure, and continued uncertainty is likely to make the environment even more challenging.

• In light of the sector challenges, Citi believes TCS’s valuations remain elevated.

Motilal Oswal on Hindustan Aeronautics

• MOSL has initiated coverage on HAL with a “Buy” rating and a target price of Rs 5,100.

• The company is seen as charting the next frontier in India’s defense sector.

• HAL is expected to benefit from positive industry tailwinds.

• It is transitioning from a licensed manufacturing model to an indigenized production approach.

• HAL is preparing for faster delivery timelines for the Tejas Mk1A aircraft starting financial year 2026.

• A strong order book and recent inflows support revenue visibility.

• The finalization of additional orders is likely to be the next key trigger.

• An execution ramp-up is anticipated from financial year 2026.

• The development of new and advanced platforms is expected to drive long-term growth.

Jefferies on Aditya Birla Fashion & Retail

Jefferies has initiated coverage on ABFRL with a “Buy” rating and a target price of Rs 315.

The company is decisively shifting its focus toward profitable growth, with management making strategic moves to consolidate operations.

The recent split of the company allows for a more targeted approach across its lines of business.

ABFRL is expected to generate increasing free cash flow, while the losses from its residual businesses are likely to shrink despite maintaining strong growth momentum.

. Read more on Markets by NDTV Profit.Jefferies initiated a ‘Buy’ rating for Aditya Birla Fashion and Retail. TCS sees target price cuts after Q4 results.  Read MoreMarkets, Business, Notifications 

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