Brokerage Radar: Quarterly results season is going on on Dalal Street. Quarterly results of many major companies including HDFC Bank and Hindustan Unilever have come. Brokerage firms are also suggesting investing strategies on the stock to investors based on these quarterly results. Today we are telling you about 7 such stocks, regarding which brokerage firms have released their reports. These companies include HDFC Bank, Persistent Systems, Hindustan Unilever, Polyback India and Dr Lal Pathlabs etc. Let us know what target prices the brokerage has set for these shares.
1. HDFC Bank
Brokerage firm CLSA has given a hold rating to this stock and has set a target price of Rs 1,785 per share for it. The brokerage said the company’s December quarter results were in line with expectations. Deposit growth remained stable. Loan growth remained limited and asset quality remained largely stable. Loan deposit ratio expected to reach 90% by FY27. Gross slippage was 0.20 basis points higher year-on-year, but overall performance was good.
Macquarie has given outperform rating to this stock and has set a target price of Rs 2,300 per share for it. The brokerage said the company’s December quarter performance was good despite tough macro conditions. A slight increase in credit cost was seen due to agri slippage. Growth in NIM is expected after things improve at the macro level.
HSBC has also advised to buy this stock, but has reduced its target price from Rs 2,130 to Rs 1,980. The brokerage said its December quarter results were in line with its expectations. There was a slight decline in NIM and asset quality. Lower estimates for loan growth could lead to a 4-5% cut in FY26-27 EPS.
2. Persistent Systems
Brokerage firm Nomura has given a neutral rating to this stock and has set a target price of Rs 6,200 per share for it. The brokerage said that despite 2 percent growth in EPS on an annual basis, the December quarter figures were good. Net operating income growth remained weak, but core fee income remained strong. The company may get back on track of 15% EPS growth in the coming quarters.
On the other hand, Citi has advised to sell this share and has kept its target price at Rs 5000 per share. The brokerage said the third quarter figures were good. Revenue was in line with expectations, while margins were better. Headcount grew 3% quarter-on-quarter/2.5% year-on-year, with utilization at an all-time high. FY2025/FY26 EPS have been reduced to 2-6%. Current valuation stands at 51x FY26 EPS.
Whereas HSBC has advised to hold this share and the target for this has been kept at Rs 5,650 per share. The brokerage says the company has successfully pivoted into non-healthcare sectors, which is a good position. Even in FY26, its growth may be more than the industry. However, current estimates for its share price already take into account both this growth and margin improvement.
3. Hindustan Unilever (HUL)
Brokerage firm CLSA has rated this stock as underperform and has set a target price of Rs 1924 for it. The brokerage said the December quarter was driven by weak growth and decline in UVG (unique volume growth) across three key segments. EPS cut is estimated to be 4-6% during FY25-27.
UBS has given a neutral rating to this stock and has set a target price of Rs 2,700 per share for it. The brokerage said revenue growth during the December quarter was in line with expectations, but UVG was impacted due to weak product mix. Demand likely to remain weak in the near future.
4. Polycab India
Brokerage firm Citi has advised to buy this stock and has kept a target price of Rs 8600 per share for it. The brokerage said revenue recorded 20% year-on-year growth, although this was below expectations. Losses in the FMEG business narrowed and EBITDA growth came in ahead of estimates. The wire and cable segment performed well with its margins improving.
5. Dr Lal Pathlabs
Brokerage firm CLSA has given outperform rating to this stock and has set a target price of Rs 3,240 for it. The brokerage said the company has shown consistent improvement in volume growth. Future prospects are bright with stable pricing and expansion plans. The stock has declined 22% from its October 2024 high, mostly due to a cautious outlook on margins. Margins expected to improve in the near term as new labs stabilise.
6. Aditya Birla Real Estate (AB Real Estate)
Brokerage firm Nomura has advised to buy this stock and has set a target price of Rs 2,700 per share for it. The brokerage said the management is confident of project launches worth ₹8,000 crore in Q4FY25. The company’s pre-sales target for FY26 is Rs 9,000-10,000 crore. EPS estimates for FY25 and FY26 have been cut by 30% and 22%, respectively, given weakness in the pulp and paper segments.
7. Varun Beverages
Brokerage firm HSBC has advised to buy this stock, but has reduced its target price to Rs 680, which was earlier Rs 770. The brokerage said the December quarter is typically a short season in India, but expansion in Africa is improving prospects. Competition is increasing in the industry, but the company’s strong national footprint and client network makes it a better contender.
Also read- HDFC Bank shares may see a rise of up to 38%! Brokerage positive after Q3 results, HSBC gives buy advice
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