Brokerages’ Top Stock Picks for the Week
A host of global and domestic brokerages have released fresh views on Tata Motors (CV), Ashok Leyland, Shriram Finance Ltd., Varun Beverages Ltd., IKS Health Ltd. and Dixon Technologies Ltd. ahead of Monday’s session. They have also shared their outlook on the commercial vehicle cycle, the power sector and broader market positioning.
Nomura’s View on Tata Motors
Nomura initiates coverage with a Buy rating and a target price of Rs 481. The brokerage sees Tata Motors as a leading CV player and a key beneficiary of the ongoing upcycle. MHCV wholesale volumes are expected to grow 10% in FY26, 10% in FY27 and 5% in FY28. Export growth is expected to further support volume momentum. Valuations are seen as attractive at current levels.
Citi’s Outlook on Shriram Finance
Citi maintains a Buy rating with a target price of Rs 2,225. Street concerns persist around PB Fintech’s yields. Recent worries stem from the Insurance Amendment Bill and commission-related clauses. The regulator will have enhanced authority to set limits on commissions. Markets may be factoring a reversal to the older EOM regime. Citi sees a low probability of the regulator backtracking on the current democratized commission framework. Penalising efficient distributors runs counter to the regulator’s objective of improving insurance penetration.
Jefferies’ View on Power Sector
Jefferies notes that flat year-to-date power demand growth in FY26 is largely due to above-average monsoons. Historical periods such as FY08 and FY14 saw muted power demand despite strong GDP growth due to excess rainfall. Assuming normal weather conditions, demand growth is expected to rebound to around 6% from FY27 onwards. Power stocks have corrected sharply year-to-date and may have overreacted to weak CY25 demand trends. JSW Energy and NTPC remain Jefferies’ top picks in the sector.
Brokerages’ Views on Other Stocks
Morgan Stanley maintains an Underweight rating with a target price of Rs 11,563 on Dixon Technologies. Extension of IT hardware import norms has introduced uncertainty around growth visibility. IT hardware is expected to contribute around 7% of Dixon’s FY30 revenues. More favourable import norms could pose downside risks to these estimates.
Jefferies maintains a Buy rating and has raised the target price to Rs 1,060 from Rs 880 on Shriram Finance. The proposed capital infusion from MUFG Bank is seen as a structural positive. This is expected to strengthen long-term fundamentals, loan growth and business flexibility. Benefits are seen in cost of funds and potential credit rating upgrades.
Citi maintains a Buy rating and has raised the target price to Rs 1,110 from Rs 870 on Shriram Finance. MUFG’s proposed 20% stake is viewed as a strong vote of confidence. The investment addresses a key overhang and strengthens Tier-1 capital. The deal is book-value accretive and provides long-term capital visibility.
Avendus Spark initiates coverage with a Buy rating and a target price of Rs 2,020 on IKS Health. IKS Health is positioned as a platform-driven, outcome-led healthcare services play. The brokerage sees a differentiated value proposition for the company. IKS Health is well placed to gain market share over the medium to long term.
Conclusion
The Indian stock market is expected to remain volatile in the coming weeks, with various factors influencing the market trends. Investors should keep a close eye on the market developments and adjust their investment strategies accordingly. For more information on stock market news and investment tips, please visit our website.