Stock Picks Today: Insights from Brokerages on Tech Mahindra, L&T Tech, Angel One, and ITC Hotels
Indian stock markets are always on the move, and investors are keen to stay updated on the latest developments. In this article, we will provide you with the insights from brokerages on Tech Mahindra, L&T Technology Services, Angel One, and ITC Hotels, including their views on Q1 earnings and stock performance.
Tech Mahindra: Analysts’ Views
Tech Mahindra Ltd., one of India’s leading IT services companies, was among the top companies on brokerages’ radar on Thursday. Analysts have shared their views on the June quarter earnings of the company, and here are some key highlights:
- Morgan Stanley maintained its ‘Underperform’ rating on Tech Mahindra, reducing its target price to Rs 1,555 from Rs 1,575. The brokerage firm expects the company to deliver strong deal wins, stability in top clients, and steady improvement in margins. However, it also noted significant concerns, such as the weak conversion of deals to revenue, a challenging outlook for verticals like manufacturing, and a weak macroeconomic environment.
- Macquarie maintained its ‘Underperform’ rating on Tech Mahindra, hiking its target price to Rs 1,110 from Rs 1,090. The brokerage firm noted that the company continues to lag behind its peers in growth across key verticals, and achieving a 15% EBIT margin and peer group average growth by FY27 remains a very challenging task.
- Jefferies maintained its ‘Underperform’ rating on Tech Mahindra, reducing its target price to Rs 1,400 from Rs 1,430. The brokerage firm reported a revenue miss, though profits were ahead of estimates. Revenue growth continues to be under pressure despite strong deal wins, and achieving 15% margins by FY27 would require a quarterly margin expansion of 75 basis points over the next seven quarters, which appears very optimistic given the expectation of 1-2 wage hike cycles and a challenging growth environment.
L&T Technology Services: Analysts’ Views
L&T Technology Services Ltd., another Indian IT services company, was also on brokerages’ radar on Thursday. Analysts have shared their views on the June quarter earnings of the company, and here are some key highlights:
- Morgan Stanley maintained its ‘Underperform’ rating on L&T Technology Services, reducing its target price to Rs 1,555 from Rs 1,575. The brokerage firm expects the company to deliver strong deal wins, stability in top clients, and steady improvement in margins. However, it also noted significant concerns, such as the weak conversion of deals to revenue, a challenging outlook for verticals like manufacturing, and a weak macroeconomic environment.
- Macquarie maintained its ‘Underperform’ rating on L&T Technology Services, hiking its target price to Rs 1,110 from Rs 1,090. The brokerage firm noted that the company continues to lag behind its peers in growth across key verticals, and achieving a 15% EBIT margin and peer group average growth by FY27 remains a very challenging task.
- Jefferies maintained its ‘Underperform’ rating on L&T Technology Services, reducing its target price to Rs 1,400 from Rs 1,430. The brokerage firm reported a revenue miss, though profits were ahead of estimates. Revenue growth continues to be under pressure despite strong deal wins, and achieving 15% margins by FY27 would require a quarterly margin expansion of 75 basis points over the next seven quarters, which appears very optimistic given the expectation of 1-2 wage hike cycles and a challenging growth environment.
Angel One: Analysts’ Views
Angel One Ltd., a leading Indian brokerage firm, was also on brokerages’ radar on Thursday. Analysts have shared their views on the June quarter earnings of the company, and here are some key highlights:
- Morgan Stanley maintained its ‘Underperform’ rating on Angel One, reducing its target price to Rs 4,015 from Rs 4,055. The brokerage firm reported a weak Q1, with revenues coming in lower while margins were in line with expectations. Management reiterated double-digit FY26 revenue growth, supported by a strong backlog orderbook and a healthy pipeline of deals.
- Macquarie maintained its ‘Outperform’ rating on Angel One, hiking its target price to Rs 270 from Rs 250. The brokerage firm noted that the company remains focused on scaling its capacity to over 20,000 keys (from the current 13,500) by 2030, largely through asset-light expansions. Ebitda estimates have been raised by approximately 4% for FY26-FY28.
ITC Hotels: Analysts’ Views
ITC Hotels Ltd., a leading Indian hospitality company, was also on brokerages’ radar on Thursday. Analysts have shared their views on the June quarter earnings of the company, and here are some key highlights:
- Morgan Stanley maintained its ‘Equal-weight’ rating on ITC Hotels, hiking its target price to Rs 4,500 from Rs 4,300. The brokerage firm reported a revenue miss, though profits were ahead of estimates. It has performed well on deal wins over the past three quarters and is optimistic about revenue conversion going forward. Margin recovery, however, is expected to be gradual.
- Macquarie maintained its ‘Outperform’ rating on ITC Hotels, hiking its target price to Rs 270 from Rs 250. The brokerage firm noted that the company’s results were in-line with its expectations, driven by an increase in Average Room Rate (ARR), higher occupancy, and effective cost controls. ITC Ratnadipa’s Revenue Per Available Room (RevPAR) nearly doubled from its launch, while maintaining stable occupancy.
Conclusion
In conclusion, the latest views from brokerages on Tech Mahindra, L&T Technology Services, Angel One, and ITC Hotels provide insights into the companies’ performance in the June quarter and their outlook for the future. While the brokerage firms have maintained their ratings and target prices on these companies, the views on their performance and outlook are mixed. Investors should carefully consider these views and do their own research before making any investment decisions.
Final Analysis
The analysis of the views from brokerages on Tech Mahindra, L&T Technology Services, Angel One, and ITC Hotels indicates that the companies’ performance in the June quarter was mixed. While some brokerage firms maintained their ratings and target prices on these companies, others reduced their target prices or maintained their ‘Underperform’ ratings. Investors should carefully consider these views and do their own research before making any investment decisions.
