desk
Share
News Topical, Digital Desk : Dalal Street was abuzz on Thursday with reports from several major brokerage houses offering fresh perspectives on several key stocks across sectors. These reports clearly indicate that the market still sees long-term potential in select companies, despite geopolitical risks and cost pressures persisting in the near term.
Adani Enterprises: A long-term bet, but patience is required
Jefferies has maintained a buy rating on Adani Enterprises, though the target has been reduced from Rs 2,750 to Rs 2,600. This doesn't mean the company is weak, but rather that it faces some challenges in the near term. Growth in the airport business may slow slightly due to slowing traffic. However, if you are a long-term investor, the company's new energy, solar, copper, and road businesses could become major growth engines.
Nuvoco Vistas: A strong bet in the cement sector.
Three major brokerages have issued a buy call on this company. This indicates the market has confidence in the company's business model and growth. The company ended FY26 on a strong note and shows the ability to increase prices. However, rising fuel and packaging costs are a near-term risk. If you want to bet on infrastructure and housing themes, this stock may be worth considering. Three brokerages have expressed confidence in Nuvoco Vistas. HSBC has set a target of ₹420, Nomura ₹470, and Jefferies ₹410. The brokerages note that the company ended FY26 on a strong note, with volumes, revenue, and EBITDA reaching five-year highs. Margins strengthened in the March quarter due to improved realizations. However, rising fuel, packaging, and gypsum costs may exert pressure over the next 1-2 quarters. The company has also approved a 1.5 MTPA cement terminal, which will support further expansion.
Trent: The retail growth story remains alive.
HSBC believes that Zudio's expansion is Trent's biggest strength. The addition of 200 new stores in FY26 shows that the company is currently in aggressive expansion mode. If you are looking for growth in the consumer and retail sectors, Trent could remain a high-valuation but high-growth stock. HSBC maintained a buy rating on Trent but lowered its target price from Rs 5,300 to Rs 4,800. The brokerage believes that the opening of approximately 200 new Zudio stores in FY26 provides strong FY27 growth visibility. 18-20% growth and limited competition remain key triggers for this stock.
ICICI Lombard: This company, in the stable and quality business insurance sector, is consistently showing strong premium growth. Margins are improving, and new accounting rules may also benefit from FY27. This stock could be attractive for investors seeking defensive and quality businesses. Goldman Sachs has a neutral rating on ICICI Lombard with a target of ₹1,965, while HSBC is more bullish and has a buy call with a target of ₹2,200. The company's premium growth and improved combined ratio are considered strong indicators. The implementation of IFRS in FY27 is expected to provide additional support to earnings per share (EPS).
HDB Financial: Low risk, high growth expectations The company's asset quality has improved, and loan growth is gradually returning to normal. Jefferies sees strong growth, although external risks such as West Asia tensions remain. This stock could be a good option for investors looking for the next growth play in the financial sector. Opinions on HDB Financial Services are slightly mixed. Nomura has a neutral rating with a target of ₹740 and said that asset quality issues are now largely behind them. The focus is now shifting to growth. Jefferies is more positive, issuing a buy call with a target price of ₹845. According to the brokerage, the company's PAT has increased by 42%, asset quality has improved, and AUM growth is expected to accelerate in the future.
HAL: A major player in India's defense theme.
The engine co-production agreement between HAL and GE is considered a major long-term positive. If you believe in India's defense manufacturing theme, HAL remains a key player in that theme. Citi reiterated its buy call on HAL with a target price of ₹5,560. The brokerage said the finalization of the technical agreement for F414 engine co-production between HAL and GE is a major positive. This will strengthen the Tejas Mk2 and AMCA programs. However, this is a medium-term positive, and execution risks remain.
Renewable Energy: The Next Big Theme
Jefferies believes that growing global energy security concerns could significantly benefit India's renewable sector. JSW Energy and NTPC could be major beneficiaries. If you want to invest in a future theme, this sector could remain in focus for the next several years. Jefferies also adopted a positive stance on the renewable energy sector. The brokerage says that geopolitical tensions are increasing global focus on energy security, which could lead to India's renewable energy capacity reaching 359 GW between FY25-30. The company lists JSW Energy and NTPC as top picks, while Premier Energies and Emmvee Photovoltaics are favorites in the solar value chain.
--Advertisement--
