Brokerage firms are focusing on key stocks this week, highlighting the potential for gains in some and warning of challenges for others. Here’s a detailed look at the latest updates from 18 September on TCS, Adani Ports, Larsen & Toubro (L&T), Bajaj Auto, and LTIMindtree based on various brokerage ratings.
1. TCS: Outperform with Strong Growth Ahead
According to Macquarie, TCS (Tata Consultancy Services) continues to shine in the IT sector, outperforming Infosys in terms of expenditure. With cloud migration deals leaning in favor of TCS, the brokerage has set a target of ₹5,740 per share. Macquarie expects TCS to witness faster growth in FY26 and FY27, giving it an edge over its competitors.
2. Adani Ports: Buy on Growth Prospects
Jefferies has shown strong confidence in Adani Ports, giving a ‘Buy’ rating with a target of ₹1,910 per share. Double-digit volume growth is expected in FY25, with new port operations likely to boost performance in the second half. The company will also benefit from the Dedicated Freight Corridor at Mundra Port, driving further growth.
3. Larsen & Toubro (L&T): Buy on Capex Growth
Jefferies also recommends buying Larsen & Toubro (L&T), with a target price of ₹4,165 per share. The brokerage anticipates strong order flow and revenue growth despite some delays in government activities post-elections. L&T is expected to benefit from robust capital expenditure (capex) growth over the medium term.
4. Bajaj Auto: Underperform Amidst Competition
CLSA has given an ‘Underperform’ rating to Bajaj Auto with a target of ₹7,000 per share. While the recently launched Speed T4 motorcycle has generated interest, the increasing competition in the two-wheeler market, especially for bikes above 250cc, is a concern. Slow growth in this segment could continue to impact the company’s overall performance.
5. LTIMindtree: Sell on Margin Pressure
Citi has advised selling LTIMindtree, setting a target of ₹5,635 per share. The company’s revenue growth for the second quarter is expected to be similar to the first, but margin pressures and slow growth may weigh on its valuations. Cost-cutting measures might not be enough to offset these challenges in the near term.
While TCS, Adani Ports, and L&T show strong potential for investors, with buy ratings from major brokerage firms, Bajaj Auto and LTIMindtree may face hurdles in the near future. Investors should keep an eye on the broader market trends and specific growth catalysts that can impact these stocks.
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