Brokerages have issued fresh views on multiple stocks heading into today's trading session, with Citi maintaining Buy ratings on Havells with a target price of ₹1,500 and Jubilant Foods at ₹650. According to reports from NDTV Profit, JPMorgan continues to maintain an Overweight rating on Bajaj Finance with a target price of ₹1,080, while Goldman Sachs maintains a Buy rating on Varun Beverages at ₹600. The recommendations span across sectors including consumer durables, IT services, and financial services, with Goldman Sachs also maintaining Buy ratings on Nykaa at ₹400 and LG India at ₹350. BofA maintains underperform ratings on Voltas and Havells, expecting another round of price hikes for ACs that will drive topline growth but impact margins.
As reported by Citi, Havells maintains strong fundamentals with continued growth in cables & wires segment and disciplined pricing strategies despite competitive pressures. The company has demonstrated mid-teens revenue growth potential in the medium-term while expecting profit growth to outpace revenue expansion. According to the latest reports, room air conditioner demand has been mixed over the last 2-3 months, with fans showing better performance than ACs, and the company continues to prioritize margin discipline over aggressive pricing. The company is stepping up R&D/innovation and energy-transition investments while maintaining focus on protecting margins while broadly maintaining market share.
According to Citi's analysis, Jubilant Foods expects Domino's India LFL growth to remain in the 5-7% medium-term range despite recent quarterly deceleration. The company has implemented calibrated pricing actions to offset margin pressure from cost inflation, with management confident of achieving 200 basis points standalone margin expansion. As reported by NDTV Profit, the brokerage notes that Q4 deceleration was driven by high base, lower free-delivery threshold and weaker dine-in/takeaway, rather than demand weakness. Management remains confident of achieving 200 bps standalone margin expansion and expects dine-in recovery to take longer than delivery services, while Popeyes continues showing improving economics.
Multiple brokerages have highlighted concerns about the IT sector following Accenture's Q3 results, with Jefferies revising revenue growth guidance suggesting further growth moderation. According to Kotak Securities, the risk of higher AI deflation from sharp GenAI capability increase in software tasks poses additional headwinds to growth. As reported by NDTV Profit, the read-across from Accenture Q3: tough macro climate could continue in Q2 with implied Q4 growth outlook below estimates. The indirect impact of geopolitical conflict is expected to affect discretionary spending and product verticals, with growth moderation in existing services markets unlikely to recover soon. Accenture's results provide no solace to a sector beleaguered by multiple headwinds, with Indian IT services companies continuing to lack short-term triggers while their valuations seem close to trough.
LG India shows broadly healthy category demand across ACs, washing machines, and TVs with strong RAC sell-out performance in April and May, as reported by NDTV Profit. The company has taken price hikes ahead of most peers and remains focused on protecting margins while broadly maintaining market share. In the beverages sector, Goldman Sachs notes that Varun Beverages' alliance with Asahi Group could provide foothold in health-conscious consumer segments while potentially opening avenues for international expansion. Radico Khaitan expects further margin expansion, driven by an improved mix, gross margin expansion, and a stable raw material cost outlook, with premium brands and white spirits remaining key growth drivers.
