HDFC Bank shares surged over 3% on Monday (July 6) following the company's strong Q1FY27 business update, with the stock touching an intraday high of ₹825.10 against the previous close of ₹801. As per ET Now, the bank's advances under management stood at approximately ₹31.27 lakh crore at the end of the quarter, up about 12.4% from a year earlier. The strong performance in advances and deposits has reinforced investor confidence in India's largest private-sector lender's growth trajectory.
Morgan Stanley maintains an Overweight rating on HDFC Bank with a target price of ₹1,025, citing a perceptible pickup in year-on-year growth in gross advances and managed assets in Q1. The brokerage believes the valuation looks attractive versus the stock's historical bands, with sustained gradual improvement in fundamental performance expected to drive outperformance. Morgan Stanley notes that the stock has underperformed the Sensex by 10% and the Bankex by 17% on a year-to-date basis, presenting a potential opportunity for investors. The target price implies an upside potential of more than 24% from the current market price.
Morgan Stanley maintains an Overweight rating on Nykaa with a target price of ₹321, highlighting strong preliminary Q1 results with fashion net revenue growth accelerating to near 50%. The brokerage expects consolidated GMV and NSV growth in the early 30% area year-on-year, with beauty continuing steady execution and faster fashion growth contributing to sequentially better performance. Nomura also maintains a Buy rating with a target price of ₹1,300, noting that GPCL is expected to track ahead of its guidance with margins improvement anticipated in coming quarters. Recent Q1 updates confirm sustained BPC growth with further acceleration in fashion, while beauty & personal care growth remains steady.
HSBC maintains a Buy rating on GCPL with a target price of ₹1,250, expecting high-teens consolidated revenue growth and positive FY27 outlook. The brokerage notes that Q1FY27 forecasts consolidated revenue/EBITDA/recurring PAT growth of 18%/16%/13% year-on-year. In the metals sector, HSBC remains Buy on HNDL and NALCO, viewing the fall in LME aluminium prices as excessive given physical markets remain in deficit. The firm expects HRC price increases post festivals and flat steel margins to remain strong. Recent Q1 updates show strong revenue performance with EBITDA growth along expectations, while the company expects to step up investments in new brands and launches.
According to reports from Citi, the effectiveness of government initiatives will need to be assessed over time, with investors remaining closely focused on the continuation of India's reforms momentum. Key areas being watched include power distribution, sustained initiatives to curtail imports/expand exports such as shipbuilding, expanding electronics manufacturing, defense and aerospace, and effective implementation of national missions towards energy security. Recent developments include the government granting a two-year exemption to four Chinese transformer players, which is expected to impact near-term volume growth but not long-term structural trends. The ongoing CEO reappointment process remains an important monitorable for banking stocks, while the effectiveness of reforms in areas like electronics manufacturing and defense sectors continues to be closely watched.
