Stock Picks Today: Lenskart, Groww, BSE, CDSL, United Spirits And More On Brokerages’ Radar
A host of global and domestic brokerages have released fresh views on Lenskart, Groww, BSE, CDSL, United Spirits, and more ahead of Friday’s session.
They have also shared their outlook on asset management companies’ stocks.
Initiate Outperform with target price of Rs 530
Eye-conic growth
Lenskart enjoys competitive edge in cost, design, and efficiency vs. peers.
Proven history of industry leading growth enhances outlook on market share gains from current 5% closer to over 40% seen in other countries
Improved supply chain utilisation should move EBITDA margin near 33% store-level margin and triple ROIC to 20%+ over FY26-28
Proven ability to exploit Indian market; Room for sustained growth
Maintain Add with target price of Rs 975
Moving steadily in the right direction
Asset quality trend is showing steady improvement
Loan growth likely to be slow; focus on maintaining its share of spends
Focus likely to shift toward revenue growth
India Gross FDI remains healthy even if the net figure remains dramatically lower as a result of continuing private equity exits
As reflected in so-called “repatriation flows”, and rising outbound direct investment by Indians
There has also been record foreign net selling of Indian equities this calendar year
One risk to the currency is if India continues to face 50% tariffs from the US
For this is likely to lead to a further increase in the trade deficit
Meanwhile if the decline in the rupee has make India more competitive, the reality is that the currency is still not that cheap on a long-term real effective exchange rate basis
While the real effective exchange rate has declined by about 11% from the peak reached in November 2024 and is now at a 11-year low
It is still 12% above the low reached in September 2013, based on BIS data
Another potential explanation for the renewed rupee weakness is that the RBI has turned unambiguously doveish
Maintain Buy with target price of Rs 1673
A clear growth mindset
Double digit P&A growth ambition maintained
Raw material stable; productivity and supply chain benefits to accrue
Multiple options for RCB review remain on the table
Maintain Equal-weight with target price of Rs 1680
Announced another acquisition of assets carved out by HPE in telecoms services
Believe the financial impact may not be significant for the company
Over the last few years, HCL has largely focused on organic growth with a tuck-in M&A strategy
Benefit of the same will reflect in a higher revenue scale in the TMT vertical and ER&D business unit
Believe the overall impact of this acquisition on net Income/EPS may not be material
Citi
Financial services grew 12% YoY cc – Indian IT companies have a sizeable exposure in these areas
Headcount up 0.6% QoQ and down 2% YoY – trends for large cap Indian IT continue to be similar.
Bookings +1.7% YoY for Accenture; trends for Indian IT need to be monitored
Expect FY26E to be the third consecutive low growth year for the industry
See gradual & limited recovery in FY27
Relative preference for Infosys, HCLT (both Neutral) among large caps over other large caps in Indian IT
Jefferies
Steady Growth Guidance Set to Weigh on Indian IT
Limited appetite for discretionary spending, despite a pickup in GenAI projects
This suggest that these projects are not driving a rise in IT services budgets
See downside risk to consensus expectations of growth acceleration in FY27 for Indian IT firms
This will limit PE expansion; maintain selective stance
Investec
No deterioration or improvement in demand
Accenture commentary suggests an ‘unchanged’ environment
Also not currently seeing any catalyst that suggests a revival in discretionary spending
The narrative for Indian IT is about reducing revenue leakages
Consequently increasing accretion from deals leading to potentially better growth
Don’t see this changing unless there is any new material uncertainty
Maintain Buy with target price of Rs 1635
Bidding Adieu to CY25 with Optimism
Expect Better Times Ahead
See market leadership in RAC, better margins in EPC, and improved volume traction in Voltas-Beko
At current valuations, risk/reward appears better
Initiate Buy with target price of Rs 2275
Expect to clock a 26% presales CAGR % over FY25-28
Leveraging brand legacy to drive 26% presales CAGR
Strong cash flow visibility backed by robust collections
Financials upcycle ahead with 69% CAGR revenues and margin expansion
Citi on Voltas
Maintain Buy with TP of Rs 1775
Market Share Gain Likely To Continue
Expect Q3 to remain weak although relatively better than Q2
Sustained market share gain bundled with margin improvement can drive re-rating
CAMS – Initiate Buy with target price of Rs 870
CDSL – Initiate Hold with target price of Rs 1450
BSE – Maintain Hold; Cut target price to Rs 2850 from Rs 2930
KFIN Tech – Maintain Buy; Cut target price to Rs 1300 from Rs 1460
Capital market infrastructure is a Rs 70,000 crore market comprising brokers, exchanges, depositories, and & Registry & Transfer Agents (RTAs)
See Groww and BSE outgrowing peers, at 28% in FY26-28
Groww and KFIN are well-placed to diversify, led by new products and adjacent markets
While regulatory risks are omnipresent, RTAs are at lower risk
Groww and CDSL could be beneficiaries of any action to deepen cash markets
Initiate Buy with target price of Rs 180
Groww-ing Up to Be Robinhood
Groww has become the largest broker in India
Product velocity a key driver of growth similar to Robinhood
Think Groww has several levers to drive 35% EPS CAGR over FY26-28
See 19% growth in broking business led by client vintage & mkt share gains
See 5x growth in new initiatives like margin trading facility & wealth mgmt.
See 700bps margin expansion
For more information on stock market news, visit our website.
Stay updated on the latest Nifty trends and Sensex updates.
Learn more about investing in Indian markets and Indian stock market analysis.