Mumbai: Brokerage firms have released fresh recommendations on several frontline stocks ahead of the trading session, with Marico, Bajaj Finance, Tata Consumer Products, Bank of Baroda and Titan emerging among their preferred picks. At the same time, analysts remained cautious on stocks such as Avenue Supermarts (DMart), Punjab National Bank (PNB), Bajaj Housing Finance and Britannia Industries due to valuation concerns, slower growth or margin pressures.

The latest brokerage notes cover companies across the FMCG, banking, financial services and retail sectors, providing investors with key insights into earnings expectations, business trends and target prices.

Marico remains a favourite across brokerages

Marico attracted the strongest positive sentiment, with multiple global brokerages reiterating bullish recommendations after the company’s pre-quarter business update.

Morgan Stanley maintained an ‘Overweight’ rating with a target price of Rs 934, highlighting better-than-expected top-line growth and management’s optimism on consumption trends.

JPMorgan retained its ‘Overweight’ rating with a target of Rs 900, expecting high single-digit volume growth supported by portfolio diversification and investments in its core business.

Macquarie also maintained an ‘Outperform’ recommendation with a target price of Rs 890, while Goldman Sachs reiterated its ‘Buy’ rating with a target of Rs 900, citing double-digit volume growth and improving margins.

HSBC remained the most optimistic, raising its target price to Rs 1,000 from Rs 950 while maintaining a ‘Buy’ recommendation, driven by accelerating volume growth and strong operating profit expectations.

Avenue Supermarts receives mixed reviews

Brokerages were divided on Avenue Supermarts, the operator of DMart stores, after the company’s first-quarter business update.

Citi maintained a ‘Sell’ rating with a target price of Rs 3,650, citing risks from quick-commerce competition and concerns over same-store sales growth.

Macquarie, Goldman Sachs and HSBC also retained negative recommendations due to disappointing revenue growth and weaker-than-expected store additions.

However, Morgan Stanley and UBS continued to back the stock with positive ratings, although both acknowledged that quarterly growth was weaker than expected and could weigh on near-term performance.

Banking stocks see selective optimism

Among public sector banks, Citi retained a ‘Buy’ rating on Bank of Baroda with a target price of Rs 340, despite expecting some pressure on profitability following settlement-related payments.

On Punjab National Bank, however, brokerages remained cautious.

Citi maintained a ‘Sell’ rating with a target price of Rs 103, while Morgan Stanley retained an ‘Underweight’ stance with a target of Rs 88, citing slower loan and deposit growth compared with the broader banking system.

UBS adopted a relatively neutral approach with a target price of Rs 122.

Morgan Stanley also maintained an ‘Underweight’ rating on Bank of India, despite acknowledging healthy balance-sheet growth during the quarter.

Bajaj Finance continues to attract positive outlook

Bajaj Finance remained one of the preferred financial stocks among brokerages.

Citi and Morgan Stanley both maintained positive recommendations with target prices of Rs 1,120, highlighting strong assets under management (AUM) growth and improving customer additions.

Jefferies remained even more optimistic with a ‘Buy’ rating and a target price of Rs 1,210, expecting stronger consumer durable loan demand and improving margins.

Meanwhile, Bajaj Housing Finance continued to face cautious commentary.

Citi retained its ‘Sell’ rating with a target price of Rs 88, pointing to pressure on portfolio yields and elevated operating costs.

Consumer sector remains in focus

Morgan Stanley expects Hindustan Unilever (HUL) to deliver stronger-than-expected revenue growth during the first quarter, maintaining an ‘Equal-weight’ recommendation with a target price of Rs 2,480.

The brokerage also reiterated an ‘Overweight’ rating on Tata Consumer Products, with a target price of Rs 1,351, expecting around 12 per cent revenue growth and improving EBITDA margins.

Titan also remained one of Morgan Stanley’s preferred discretionary picks, supported by robust jewellery demand and favourable valuations.

On the other hand, Britannia continued to face near-term concerns over revenue growth and pricing pressures, prompting Morgan Stanley to maintain an ‘Equal-weight’ recommendation while expecting the stock to underperform in the short term.

Positive outlook for select retail and finance companies

Morgan Stanley reiterated its positive stance on Lenskart, forecasting continued strong revenue growth and margin expansion.

The brokerage also remained optimistic on Vishal Mega Mart, citing healthy same-store sales growth, aggressive store expansion and easing crude oil prices that could support margins.

For M&M Finance, opinions were mixed.

Citi maintained a ‘Buy’ recommendation with a target price of Rs 380, supported by stable asset quality and healthy liquidity.

Morgan Stanley remained cautious with an ‘Equal-weight’ rating, while Jefferies retained a ‘Hold’ recommendation.

Jubilant FoodWorks also received a cautious outlook from Morgan Stanley despite expectations of sequential improvement in growth.

Sector view

Citi expects India’s consumer staples sector to continue delivering healthy volume growth despite recent price increases. The brokerage prefers food and beverage companies over home and personal care businesses, identifying Tata Consumer Products, Godrej Consumer Products and Britannia Industries among its preferred picks.

On the oil marketing sector, Citi believes public sector oil marketing companies offer an attractive risk-reward profile despite expecting significant first-quarter losses due to national service obligations. The brokerage expects the government to continue supporting the sector through stable fuel pricing and excise duty policies.

Conclusion

The latest brokerage updates indicate that investors continue to favour quality companies with strong earnings visibility, particularly in the FMCG and financial sectors. Marico, Bajaj Finance, Tata Consumer Products and Titan remain among the top recommendations, while concerns over valuations, slowing growth and competitive pressures have kept analysts cautious on Avenue Supermarts, Punjab National Bank and Bajaj Housing Finance. Investors will now closely monitor the upcoming first-quarter earnings season to assess whether these expectations translate into actual performance.