Stock Recommendations for July 31, 2025: Insights from Brokers on Buying or Selling

HSBC has launched its coverage of Ather Energy with a buy recommendation, setting a target price of Rs 450. Analysts highlight the company’s strong product quality and technological leadership as key factors that could enhance its market share, despite the challenges posed by a competitive industry. Meanwhile, UBS has reiterated its sell recommendation for Tata Motors, citing potential costs exceeding Euro 1.5 billion related to a possible acquisition of the Iveco Group’s commercial trucking business. In other news, Jefferies has raised its target price for L&T to Rs 4,230, reflecting positive earnings growth, while Morgan Stanley maintains an underweight rating on Asian Paints amid ongoing competitive pressures.

Ather Energy’s Growth Potential

HSBC’s recent endorsement of Ather Energy signals confidence in the electric vehicle manufacturer. The firm has set a target price of Rs 450, suggesting that the stock could see significant appreciation. Analysts believe that Ather’s commitment to high product quality and its leadership in technology will be crucial in navigating the competitive landscape of the electric vehicle market. Although electric vehicle penetration remains relatively low, experts argue that Ather’s performance will be driven more by its individual strengths than by overall industry growth. The company’s strategic focus on expanding its distribution network is expected to further bolster its market share, positioning it favorably against competitors.

Tata Motors Faces Challenges

UBS has maintained a sell recommendation for Tata Motors, with a target price set at Rs 690. Recent media reports suggest that Tata Motors may be on the verge of acquiring the commercial trucking business of the Iveco Group. If this transaction proceeds, it could cost Tata Motors over Euro 1.5 billion, including the mandatory open offer required by local regulations. Analysts express caution regarding this potential acquisition, highlighting the financial implications it may have on Tata Motors’ balance sheet. The company’s current market position and the challenges it faces in the automotive sector continue to raise concerns among investors.

Positive Outlook for L&T

Jefferies has upgraded its outlook on L&T, raising the target price to Rs 4,230. The analysts noted that L&T’s earnings before interest, taxes, depreciation, and amortization (EBITDA) for the April-June period exceeded expectations, growing by 7%. This positive performance is attributed to higher execution rates and a remarkable 33% annual increase in order flow, which positions the company well to meet its guidance. Furthermore, analysts are optimistic about the contributions from L&T’s hydrocarbon business, suggesting that this could lead to improved margins in the future. The overall sentiment around L&T remains strong, reflecting confidence in its operational capabilities.

Concerns for Asian Paints and Piramal Enterprises

Morgan Stanley has maintained an underweight rating on Asian Paints, setting a target price of Rs 1,909. Analysts indicate that while the company is focused on growth, the competitive intensity in the sector is likely to persist. They have observed early signs of demand recovery in urban markets, but anticipate that volume and value growth will remain in single digits in the near term. Additionally, CLSA has kept a hold rating on Piramal Enterprises, increasing the target price from Rs 1,030 to Rs 1,200. Although the company has shown steady business growth, analysts have identified emerging stress areas, particularly in MSME and small ticket loans against property. The mixed signals regarding Piramal’s operating profit and credit costs suggest that investors should remain vigilant.

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