Stock Recommendations Today: Swiggy, Yes Bank, Dr. Reddy’s, Aurobindo Pharma, BOI On Brokerages’ Radar NDTV Profit Research NDTV Profit

Swiggy Ltd. is in focus after UBS, Macquarie and Ambit weighed in on its March quarter earnings. While UBS maintains ‘buy’ expecting margins to improve on the back of increasing orders to newer dark stores, Macquarie remains bearish, as results continued to underscore the challenges for the platform.

Yes Bank Ltd. is on both Morgan Stanley and Investec’s radar as both brokerages offer a positive outlook on the transaction over a medium term period.

On the pharma front, brokerages are bullish on Dr. Reddy’s Labs and Aurobindo Pharma. BofA sees broad based growth supporting margins in store for Dr. Reddy’s, while Motilal Oswal has a ‘buy’ call on Aurobindo Pharma, owing to earnings upside potential and recent correction in the stock price.

NDTV Profit tracks what analysts are saying about various stocks and sectors. Here are the key brokerage calls to watch on Monday.

On Swiggy

UBS

• Maintained ‘buy’ with a target price of Rs 465.

• Overall results mixed with in-line food delivery.

• Greater than expected losses in quick commerce on the back of dark store expansion.

• Margins to improve as the orders per day for newer dark stores increase.

Macquarie

• Maintained ‘underperform’ with a target price of Rs 260.

• Q4 went from bad to worse, according to the brokerage.

• Results continued to underscore the challenges for the platform.

• Management now expects contribution margin breakeven in three to five quarters versus prior guidance of December 2025.

• Margin gap to Eternal continued to narrow, with adjusted Ebitda margin at 2.9% versus that of Eternal at 4.4%.

• Management guidance of improvement in Instamart’s profitability doesn’t adjust for rising competitive intensity.

• The shares could find support on expectations of an improvement from ‘bad to less bad’ in Instamart.

• Guarded as no near term positive economics in brokerage’s forecast horizon.

Ambit

• Maintained ‘sell’ and cut target price to Rs 292 from Rs 310.

• Earnings per share lower on food growth and higher quick commerce burn.

• Food delivery saw muted order growth, in-line margin progression.

• Lag across parameters in quick commerce continues.

• Less optimistic than street on quick commerce driven by view of restricted not unlimited total addressable market.

Motilal Oswal

• Maintained ‘neutral’ and cut target price to Rs 340 from Rs 380.

• Quick commerce continues to burn cash

• However, management indicates peak burn behind.

• Food delivery gross order value in line, but Instamart’s adjusted Ebitda misses estimate.

Morgan Stanley On Banks

• Stake sale in Yes Bank to SMBC is positive for Yes Bank over the medium term.

• For near term, brokerage maintained ‘underweight’ rating, given view of a gradual recovery in profitability.

• Relative lower CET 1 of 13.5% compared to private banks could also weigh on the growth outlook over the next few years.

• Stake sale in Yes Bank once concluded will help improve CET 1 by 12 basis points for SBI.

• For Federal Bank, the capital benefit would be eight basis points.

• For the remaining banks, estimate the potential gains to CET 1 would be less than five basis points.

Investec On SMBC Buying Stake In Yes Bank

• The $1.6 billion transaction marks the largest cross-border equity investment in the Indian banking sector.

• Stake sale does not involve any change in management control yet.

• Lower than the threshold required for a mandatory open offer, though any further transactions will be a key monitorable.

• Deal marks the second largest equity transaction in the mid-sized bank space after IDFC First.

• Remains to be seen if SMBC looks to increase its stake further in the bank.

• Yes Bank already has two private equity investors in Carlyle and Advent, which together hold 16% in the bank.

• Positive impact on SBI’s CET1 is limited to 11 basis points, which is not very significant.

• Important as SBI’s board has recently approved a Rs 25,000 crore equity capital raise in fiscal 2026.

BofA On Dr. Reddy’s Laboratories

• Maintained ‘buy’ with a target price of Rs 1,450 per share.

• Broad based growth supporting margins.

• Growth engine at work for post gRevlimid earnings.

• Reiterated confidence on 25% margins post gRevlimid.

• Tariff risk – focus on supply continuity.

Motilal Oswal On Aurobindo Pharma

• Upgraded to ‘buy’ from ‘neutral’, and hiked target price to Rs 1,360 from Rs 1,190.

• Diversification and differentiation backed by capacity

• PEN-G: From operational loss in fiscal 2025 to Ebitda contributor going forward.

• Generics: Work-in-progress on differentiated offerings

• Estimate CAGR of 10% in revenue, 13% in Ebidta, and 17% in profit after tax over fiscals 2025 to 2027.

• Buy owing to earnings upside potential and recent correction in the stock price.

Jefferies On IIFL Finance

• Maintained ‘buy’ and hiked target price to Rs 450 from Rs 425.

• Loan growth in line; gold loans rebound well.

• Margin dip on higher cost of funds.

• GNPA dip on a quarterly basis; stress in unsecured MSME & PL.

• Valuations are reasonable.

Nomura On Motherson Sumi Wiring India

• Maintained ‘buy’ with a target price of Rs 72.

• Start-up cost normalisation to drive growth.

• Greenfield projects ramping up well, and operating leverage to drive earnings.

• Limited capex intensity and improving profitability should drive return on equity improvement to 44% by fiscal 2027.

Jefferies On Navin Fluorine Inetrnational

• Maintained ‘buy’ and hiked targe price to Rs 5,280 from Rs 4,600.

• New product startups in agrochem and in CDMO provide strong visibility of earnings growth.

• New contract with Chemours provides interesting upside optionality.

• Projects 35% EPS CAGR over fiscals 2025 to 2027, despite the uncertain demand environment.

UBS On ABB India

• Maintained ‘neutral’ with target price of Rs 5,900.

• Order growth is in line with parent guidance.

• Order growth indicates weakness in short cycle industrial demand.

• Base order grew by 10%, revenue miss is negative but profitability remains strong at 18.4%.

• Weak orders and execution could limit upside.

Morgan Stanley On Bank Of India

• Maintained ‘underweight’ with a target price of Rs 100.

• Both asset quality and margin miss estimates.

• RoA was 1%, but over 50% of its contribution was driven by trading gains and recoveries from written off accounts.

• Expects RoA to moderate materially over the next few years.

• Bank of India is most exposed amongst SoE banks.

Morgan Stanley On Manappuram Finance

• Maintained ‘equal-weight’ with a target price of Rs 220.

• Management announced an initial set of strategic initiatives.

• Focus on secured loans (esp. gold loans) and rundown in MFI to 10% of consolidated AUM.

• Guided to gold loan growth of 20% on an annual basis in fiscal 2026.

• Expects the share price to be pegged to Bain’s open offer price.

. Read more on Markets by NDTV Profit.Here are all the top calls from analysts you need to know about on Monday.  Read MoreMarkets, Business, Notifications 

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