Jefferies maintained its ‘hold’ rating on Eternal with a target price of Rs 255. Analysts feel that the company’s recent decision to cap foreign holding at 49% which is perhaps to protect from potential regulatory risks even while quick commerce models confirm the current laws.They feel the move will result in a cut in weightage by MSCI. They are unsure about what will happen if foreign shareholding goes past the new cap in the interim period.
UBS has a ‘buy’ rating on HDFC Bank with a target price of Rs 2,250. Analysts feel during the Jan-March quarter, there was a slight beat on net profit while net interest margin (NIM) expansion was positive, deposit traction was healthy. The bank also showed a modest loan growth. They are more confident on the growth outlook given improved system liquidity.
Macquarie has given an ‘outperformer’ rating on ICICI Bank with a target price of Rs 1,670. Analysts said the lender’s Jan-March net profit beat was driven by higher NIMs and lower credit costs. However, loan growth was lower than expected.
HSBC has given a ‘buy’ rating on Infosys with the target price of Rs 1,700. Analysts feel although there was a sharp miss on revenues in Jan-March quarter, FY26 growth guidance is quite optimistic in the light of current environment. They said that the consensus estimates are at the low to mid-point of the company’s guidance, with an onus of proof on April-June performance to drive further confidence.
Morgan Stanley has an ‘underweight’ rating on Tata Elxsi with the target price cut to Rs 4,660. Analysts said Jan-March numbers missed with low expectations. They feel the company’s auto division may see some deal ramp ups but the media division appears soft despite deal wins and macro is not supportive. With weak exit revenue, earnings downgrade cycle could continue, and in the context of high valuation, the stock could continue to underperform.
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