Top Brokerage Calls: Targets Set for Axis Bank, PB Fintech, Meesho, and 5 Other Key Stocks
Trading sentiment on Indian equity bourses was shaped by a flurry of fresh research notes released by prominent domestic and global institutional brokerages on Friday. Research desks at HSBC, Nomura, CLSA, and Motilal Oswal issued actionable guidance and revised price projections across eight high-volume stocks spanning digital consumer platforms, financial lenders, and healthcare diagnostics. While banking and lending counters attracted steady accumulation ratings following recent corrections, fintech aggregators and high-valuation digital platforms faced target downgrades amid regulatory tightening.
HSBC and Motilal Oswal Take Cautious View on PB Fintech
Policybazaar parent PB Fintech remained under intense scrutiny after both HSBC and Motilal Oswal reined in their projections over IRDAI’s proposed cap on distribution commissions. HSBC downgraded the stock to 'Hold', sharply reducing its target price from ₹2,100 to ₹1,150 while trimming projected earnings per share for FY28 and FY29 by 56 percent and 17 percent, respectively. Motilal Oswal maintained a 'Neutral' stance with a parallel target of ₹1,150, estimating that the regulatory overhaul could trigger a 30 percent contraction in online insurance distribution revenue and up to a 46 percent drop in net profits unless mitigated by stringent administrative cost controls.
Nomura Urges 'Reduce' on Meesho Over Sky-High Valuation Metrics
Global brokerage Nomura initiated coverage on e-commerce major Meesho with a 'Reduce' recommendation and a price target of ₹167 per share. While the investment firm acknowledged Meesho’s capital-light, asset-less business model, improved operational cash flows, and rapid AI deployment targeting India’s massive tier-two and rural shopping demographic, it flagged severe valuation premiums. Nomura noted that Meesho trades at a substantial premium compared to listed domestic peers like Eternal and Swiggy, while facing rising threats from established mega-retailers and aggressive quick-commerce competitors expanding into low-cost non-grocery verticals.
CarTrade Secures 'Buy' Call on Aggressive Used-Vehicle Expansion
Nomura issued a bullish 'Buy' rating on CarTrade Tech with a price target set at ₹3,340, projecting accelerated long-term platform monetization. The brokerage highlighted that the auto portal currently hosts over 3.4 million used vehicles and is methodically executing a roadmap to scale its inventory pool toward 10 million units over the medium term. Furthermore, CarTrade’s strategic preparation to launch trading platforms for used non-automotive consumer assets is expected to unlock diversified, high-margin revenue streams as the platform solidifies its digital marketplace footprint.
Dr Lal PathLabs Backed to Expand Advanced Diagnostics Via Acquisition
Diagnostics leader Dr Lal PathLabs received an upbeat 'Buy' endorsement from Nomura with a target price of ₹2,150 following an agreement to acquire a 70 percent majority stake in SN Genelab for ₹168 crore. The founder, Dr. Salil Waniyawala, will retain the remaining 30 percent equity to oversee operational continuity. Operating state-of-the-art testing hubs headquartered in Surat with satellite units in Ahmedabad, Dubai, and Ras Al Khaimah, SN Genelab clocked ₹58 crore in revenue with an operating margin of roughly 30 percent in FY26. Nomura remarked that the strategic buyout significantly enhances Dr Lal PathLabs’ higher-margin genomic and specialized diagnostics portfolio across western India and Gulf markets.
HSBC Remains Bullish on Banks Despite Insurance Commission Headwinds
Analyzing the impact of proposed insurance distribution cuts across bank branches, HSBC affirmed that commercial lenders possess the scale and cross-selling power to offset lower intermediary fees. The bank estimated that reduced insurance distribution margins would marginally dent Return on Assets (RoA) by 0 to 7 basis points for commercial banks and 3 to 18 basis points for non-banking financial companies (NBFCs) by FY28, with net effects likely cushioned by operational savings and diversified fee streams. Capitalizing on recent valuation pullbacks, HSBC reiterated 'Buy' recommendations on Axis Bank, IDFC First Bank, Bajaj Finance, and Ujjivan Small Finance Bank.
CLSA Retains 'Outperform' Stance on Shriram Finance with ₹1,200 Target
Global brokerage CLSA reiterated its 'Outperform' rating on retail non-banking giant Shriram Finance with a target price of ₹1,200, projecting robust balance sheet growth in the second half of fiscal year 2027. Management forecasts resilient volume momentum in its core used commercial vehicle book, alongside selective loan book diversification into new vehicle financing and higher-ticket SME lending. CLSA noted that the non-bank lender's borrowing costs could ease by 5 to 10 basis points quarterly over the next eight to ten quarters, while improving freight operator cash flows are expected to bolster credit recovery rates and reduce gross credit costs.
