Brokerages Share Fresh Views On Top Stocks
A host of global and domestic brokerages have released fresh views on ITC, Devyani International Limited, Dr Reddy’s Laboratories, and more ahead of Friday’s session.
They have also shared their outlook on capital goods, pharma, alongside broader their macro India strategy.
Nuvama on ITC
Nuvama downgrades ITC to Hold from Buy and cuts the target price to Rs 415 from Rs 534.
The brokerage flags a tough outlook for the cigarette industry.
The expected tax hike on cigarettes appears sharper than anticipated.
This is likely to prompt consensus downgrades to cigarette volume, EBITDA estimates, and valuation multiples.
DAM Capital on ITC
DAM Capital maintains a Buy rating and cuts the target price to Rs 440 from Rs 500.
A steep excise hike is expected to dent high-end cigarette volumes.
Sharp price hikes are likely to lead to volume de-growth.
The brokerage expects increased down-trading to lower-priced cigarette categories.
PhillipCapital on ITC
PhillipCapital downgrades ITC to Reduce from Buy and cuts the target price to Rs 348 from Rs 528.
The brokerage says cigarette excise hikes open a “Pandora’s box”.
It estimates a 23–50% price hike across cigarette categories post the new excise rates.
Macquarie on ITC
Macquarie maintains an Outperform rating with a target price of Rs 500.
Excise duty on filter cigarettes has been raised to Rs 2,100–8,500 per thousand sticks, depending on length.
The tax increase is steepest for longer cigarettes.
Emkay on ITC
Emkay downgrades ITC to Reduce from Add and cuts the target price to Rs 350 from Rs 475.
The brokerage describes the tax hike as a fiscal bombshell.
Cigarette excise hikes are expected to hurt industry volumes and ITC’s earnings.
B&K Securities on ITC
B&K Securities maintains a Buy rating and cuts the target price to Rs 504 from Rs 567.
Cigarette volume growth is clouded by the sharp proposed tax hike.
Tax rates have increased by 20–65%, far above expectations of 10–15%.
Motilal Oswal on ITC
Motilal Oswal downgrades ITC to Neutral from Buy and cuts the target price to Rs 400 from Rs 515.
The brokerage flags an unprecedented tax hike.
Valuation multiples are expected to reset.
Antique on ITC
Antique maintains a Buy rating and cuts the target price to Rs 445 from Rs 500.
The brokerage views the tax hike as a transient near-term pain.
It believes companies were broadly prepared, given prior focus on higher price points.
JPMorgan on ITC
JPMorgan downgrades ITC to Neutral from Overweight and cuts the target price to Rs 375 from Rs 475.
The downgrade follows a sharp increase in cigarette taxes.
The brokerage awaits clarity on finer details of the tax structure.
Antique on Devyani International
Antique maintains a Hold rating with a target price of Rs 142.
The merger is expected to unlock synergies.
KFC remains the primary profit driver.
Emkay on Devyani International
Emkay maintains a Buy rating with a target price of Rs 190.
Merger and brand negotiations are expected to deliver sizable scale and synergies.
The combined entity will have similar scale and growth prospects as Jubilant FoodWorks.
JPMorgan on Dr Reddy’s Laboratories
JPMorgan maintains an Underweight rating with a target price of Rs 1,170.
Regulatory setbacks continue for the company.
The latest setback does not impact near-term earnings.
Jefferies on Capital Goods Sector
Jefferies maintains a constructive stance on the capital goods sector.
Hitachi Energy is rated Buy with a target price of Rs 25,000.
Siemens Energy is rated Buy with a target price cut to Rs 3,700 from Rs 4,000.
Morgan Stanley on Indian Markets
Morgan Stanley expects earnings to beat expectations and the RBI to continue deregulation.
The brokerage sees scope for further government reforms and a potential US trade deal.
It remains overweight on lenders and discretionary consumption.
Citi on Indian Markets
Citi’s optimism for 2026 hinges on a recovery in financial sector earnings.
This is expected to be driven by bottoming NIMs and faster credit growth.
Consumer outlook is improving, aided by strong rural demand and urban policy stimulus.
Citi’s key India overweights include Banks, Telecom, Autos, Healthcare, and Defence.
The brokerage sets a December 2026 Nifty target of 28,500, implying 10% upside.