Big Targets Set for Axis Bank, Trent, STL, Marico, and Godrej Consumer
Indian equity markets opened Tuesday's session with a flurry of institutional brokerage updates across banking, telecom tech, retail, and consumer staples. Leading global brokerage Citi reaffirmed its bullish stance on private sector lender Axis Bank, maintaining a 'Buy' recommendation with an ambitious target price of ₹1,620 per share. Citi highlighted that the lender successfully mobilized $10.62 billion through Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits, accounting for over 7.4% of its overall deposit base and providing an aggressive liquidity cushion. The bank's overseas loan portfolio climbed to 3.5% of total advances—with leveraged corporate lending making up 43% of that book. Axis Bank's aggregate advances surged 22.7% year-on-year and 8.8% sequentially, while core domestic advances expanded 18.8% year-on-year, propelled by robust retail loan disbursements. Concurrently, Nomura initiated institutional coverage on optical solution provider Sterlite Technologies (STL) with a 'Buy' rating and a price target of ₹1,350 per share. Nomura projected a sharp turnaround for the optic fiber cable (OFC) player, estimating a compound annual growth rate (CAGR) of roughly 50% in revenues and 89% in EBITDA between FY26 and FY29, driven by an impending global supply crunch and exponential bandwidth demand from artificial intelligence data centers.
FMCG Giants Split Opinions: Brokerages Divided on Godrej Consumer and Marico
In the consumer goods segment, top research houses presented divergent perspectives on Godrej Consumer Products Limited (GCPL) and Marico. For GCPL, CLSA assigned an 'Underperform' rating with a target price of ₹743, forecasting double-digit standalone sales growth and near 10% volume expansion, though channel inventory corrections could trim 100 to 150 basis points off overall growth. Conversely, HSBC adopted a more balanced stance, reiterating a 'Hold' rating on GCPL with a target price of ₹990, noting that second-quarter adjusted revenues beat estimates while consolidated India volume growth remained between 5% and 10%, though raw material inflation poses a continuing margin risk. A similar split emerged on Marico: HSBC issued a 'Buy' rating with a target price of ₹1,020, welcoming Marico's strategic acquisition of an additional 24.09% stake in D2C nutrition brand Plix (Satiya Nutraceuticals) for ₹1,010 crore at approximately five times FY26 sales, with plans to absorb another 14.09% stake. In stark contrast, CLSA maintained an 'Underperform' rating on Marico with a target price of ₹703, cautioning that core Parachute coconut oil and Saffola edible oil volumes face structural slowdowns, relying primarily on price hikes to deliver modest 5% growth, even as value-added hair oils (VAHO) clock 20% expansion.
Trent Continues Retail Outperformance: HSBC Recommends Buy with ₹3,390 Target
Tata Group's retail sensation Trent Limited continued to draw unanimous institutional praise, with HSBC reiterating its high-conviction 'Buy' rating and setting a price target of ₹3,390 per share. Trent's standalone revenue surged 23% year-on-year during the second quarter, accelerating past the 19% growth delivered in the first quarter of FY2027 and outperforming the consensus estimate of 18%. The aggressive physical retail expansion showed no signs of tapering, as Trent added 10 new Westside lifestyle flagship stores and 17 rapid-fashion Zudio outlets during the quarter, cementing its dominant market position in tier-1 and tier-2 consumption hubs across India.
