Stock Recommendations for Thursday: Leading Companies to Consider
Goldman Sachs has upgraded Maruti Suzuki to a “buy” rating, raising the target price to Rs 18,900. This decision comes as analysts anticipate a resurgence in the entry-level car market following recent GST cuts and price adjustments. The upgrade also reflects optimism surrounding the launch of new models after a hiatus of 2.5 years, including the Victoris SUV and eVitara. In addition, favorable conditions related to the pay commission and a lower CO2 risk compared to competitors ahead of the CAFE 3 regulations in FY28 have contributed to this positive outlook.
Renewable Energy Growth for CESC
Nuvama has also upgraded CESC to a “buy” rating, setting a target price of Rs 200. Analysts highlight the company’s robust plans for renewable energy (RE) growth, which aim to double its profit after tax (PAT) to Rs 2,800 crore between FY25 and FY30. This ambitious goal is expected to be driven by significant expansions in its RE capacity and a new solar manufacturing initiative slated for completion by FY28. While the current market price reflects recent tariff increases and resource adequacy recovery, analysts believe that the strong pipeline for renewable energy projects and the solar manufacturing initiative are undervalued. Additionally, a potential win in the Uttar Pradesh discom sector could provide further growth opportunities for CESC.
UPL’s Steady Outlook Amid Deleveraging
Antique Stock Broking has maintained its “buy” rating on UPL, raising the target price from Rs 730 to Rs 760. Analysts emphasize that deleveraging remains a crucial factor for the stock’s re-rating. They anticipate that divestments, if executed, could offer additional upside. The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) margin is projected to gradually increase to 22%-23% in the medium term. Management forecasts revenue and EBITDA growth of 4%-8% and 10%-14%, respectively, on an annualized basis for FY26. The projected net debt for FY26 stands at Rs 13,000 crore, decreasing to Rs 10,500 crore by FY27, which is expected to improve the debt-equity and net debt/EBITDA ratios.
Swiggy’s Strategic Moves and IndusInd Bank’s Challenges
Morgan Stanley has given Swiggy an “overweight” rating with a target price of Rs 450. The analysts noted that Swiggy’s board has approved the sale of its stake in Rapido for Rs 2,400 crore, which is expected to strengthen its balance sheet. Furthermore, the board has also approved the transfer of Swiggy’s Instamart business into a wholly owned subsidiary through a slump sale. This strategic move aims to create a more efficient and focused entity for the quick commerce sector.
Conversely, Citigroup has issued a “sell” recommendation for IndusInd Bank, setting a target price of Rs 765. Following the appointment of a new CEO and CFO, the bank is concentrating on filling executive director positions. Analysts predict that forward flows, particularly in the microfinance sector, will keep slippages high, although a stabilization is anticipated in the latter half of FY26. They also note that the bank’s credit costs will depend on the timing of accelerated write-offs, which could be amortized over the fiscal year or recognized as one-time impairments. While weak demand in vehicle finance and a decline in microfinance are expected, growth in other retail segments and a resurgence in corporate lending may offset these challenges. Efforts are underway to manage operational expenditure growth effectively.
Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.
Follow Us on Twitter, Instagram, Facebook, & LinkedIn
