Brokerage firms have turned stock-specific and sector-selective in their latest updates, flagging valuation risks, policy tailwinds and macro uncertainties across equities. According to reports from ET Now, while some high-quality names face pressure from stretched assumptions and slowing cash flows, others are being backed for structural demand, favourable pricing dynamics and medium-term earnings recovery. These recommendations are based on recent order wins, earnings performance, management guidance, valuation comfort, sector demand trends and evolving policy frameworks. As per The Economic Times, brokerages exhibit selective optimism with clear divergence in views across sectors and stocks, with companies being differentiated by pricing power and growth visibility.
Emkay Global has initiated a 'sell' rating on Avenue Supermarts with a target price of ₹3,700. As reported by ET Now, the brokerage highlights that DMart has a low 1.5% market share and limited reach across retail segments. Key concerns include bill cuts per sqft declining 6%, causing flat revenue productivity, and capex per store increasing 60%, reducing return on invested capital to 13%. The report notes that quick commerce is gaining fast, already 1.5 times modern trade share in metros, which reduces store footfall and growth potential.
Nuvama maintains a 'hold' rating on Godrej Properties with a target price of ₹1,925. According to ET Now, while FY26 pre-sales grew 16%, Q4 pre-sales remained flat year-on-year, indicating a slowdown despite strong annual growth. Sales volumes grew only 5%, showing weaker demand in the housing market, though average selling prices increased 11% supporting revenue. Collections grew 17% but missed company guidance by around 5%, with operating cash flow rising just 5% and free cash flow remaining negative at ₹31 billion.
Goldman Sachs has emerged as the latest bullish voice on Solar Industries, maintaining a 'buy' rating with a target price of ₹18,900 - representing a 33% upside potential from current levels. As reported by ET Now, the brokerage highlights a sharp rise in explosives prices driven by a 44% jump in ammonium nitrate costs, with explosive costs for Coal India increasing by around 26%. Goldman Sachs believes higher input costs are aiding realisations, while sustained demand from mining activity and coal production supports a positive outlook with strong earnings visibility. Solar Industries, founded in 1995, operates as a global leader in industrial explosives, mining solutions, and defence ammunition, serving clients like Coal India and the Indian Defence sector across 82+ countries.
Morgan Stanley resumed coverage on UPL at 'equal weight' with a target price of ₹658, noting the company's strong recent outperformance with 2 to 2.5 times higher volume growth than peers over the last eight quarters. As reported by ET Now, the brokerage expects UPL to be well positioned for 3% to 6% volume growth and market share gains over FY27 to FY28. In the energy sector, Morgan Stanley maintains a constructive view on India Financials, expecting loan growth and asset quality trends to improve in Q3 and Q4, with valuation correction providing cushion despite earnings risks. Goldman Sachs has maintained a bullish stance on Solar Industries, driven by strong pricing tailwinds and robust demand visibility.
According to ET Now, the current market environment presents both opportunities and challenges across sectors. The brokerage notes that while some stocks face valuation pressures and slowing growth, others are positioned for structural demand recovery and earnings improvement. As per The Economic Times, structural growth themes remain strong, but companies are being differentiated by pricing power and growth visibility. The analysis suggests investors are reassessing positioning across sectors based on company-specific developments and broader macro factors, with the focus shifting toward quality companies with strong fundamentals and growth prospects.
