Stock Recommendations Today: BEL, Sun Pharma, BSE, IT Sector On Brokerages’ Radar NDTV Profit Research NDTV Profit

Brokerages are positive on Bharat Electronics Ltd., with UBS upgrading the stock to ‘buy’ from ‘neutral’ and raising the target price to Rs 450 from Rs 320. UBS highlights significant order book acceleration expected between financial years 2025 and 2028.

Morgan Stanley maintained an ‘overweight’ rating on ITC Ltd. with a target price of Rs 500, citing strong topline growth across businesses and improved margins except in paper.

Goldman Sachs retained a ‘neutral’ rating on Bombay Stock Exchange, reflecting concerns over the impact of regulatory changes on derivatives market volumes.

NDTV Profit tracks what analysts are saying about various stocks and sectors. Here are the analyst calls to keep an eye out for on Friday.

UBS On Bharat Electronics

• Upgrade to ‘buy’ from ‘neutral’; hiked target price to Rs 450 from Rs 320.

• BEL’s competitive edge and growth prospects are improving significantly.

• The long-term order pipeline with faster revenue translation is underappreciated by the market.

• UBS prefers BEL over Hindustan Aeronautics Ltd. due to better expected earnings growth and a sharper ramp-up of the order book over the next three years.

On Sun Pharmaceutical Industries

Citi

• Maintained ‘buy’; hiked target price to Rs 2,210 from Rs 2,080.

• Soft guidance reflects regulatory uncertainty rather than business fundamentals.

• Margins for financial year 2026 may remain flat, with sharp expansion expected in the next financial year.

• Launches of Unloxcyt and Leqselvi, challenging incumbents like Pfizer and Regeneron, will be the real test for growth.

Macquarie

• Maintained ‘outperform’ with a target price of Rs 2,135.

• The quarter ended March showed a modest operating miss, and guidance for the current financial year is below consensus.

• Management guided for mid- to high-single-digit growth versus the 11% growth baked in by consensus.

Morgan Stanley On Grasim Industries

• Maintained ‘equal-weight’ with a target price of Rs 2,975.

• The quarter ended March 2025 showed weak core performance but good growth in paints.

• Both cellulose and chemicals businesses’ Ebitda were weaker than expected, while paints and B2B e-commerce Ebitda performed better.

• The paints business is ramping up fast, with decorative market share rising to high-single digits from mid-single digits in the previous quarter.

Morgan Stanley On Tata Power

• Maintained ‘overweight’ rating and hiked the target price to Rs 449 from Rs 425 per share.

• Steady growth is expected over the next few years despite some delays in renewable energy commissioning.

• Underlying net debt to Ebitda will peak at 3.6 times, providing significant headroom for growth.

• Ebitda and profit after tax compound annual growth rates of 15% and 14%, respectively, are expected over financial years 2025-28.

• Return on equity is expected to improve by 90 basis points to 13.8% by financial year 2028.

Macquarie On Tata Consultancy Services

• Maintained ‘outperform’ but cut target price to Rs 4,640 from Rs 4,770 per share.

• Margin improvement back to 26% is likely by the quarter ending March 2026.

• TCS has good margin upside from utilisation and is expected to be more competitive in deals as margin pressure eases.

• Downside protection comes from an estimated dividend yield of approximately 4.1% in fiscal 2026.

• TCS remains a Macquarie marquee buy idea.

JPMorgan On Container Corp

• Maintained ‘neutral’ with a target price of Rs 790.

• The quarter ended March showed a sharp miss across the board.

• Significant cuts to consensus estimates are expected due to weak revenue and Ebitda prints and sharp margin contraction.

• Volume growth missed guidance.

• Management commentary on guidance will be important to watch.

Nomura On Bajaj Auto

• Maintained ‘neutral’ with a target price of Rs 9,413.

• The KTM acquisition carries near-term risks, but has long-term upside potential.

• KTM requires a strong revival effort amid macroeconomic challenges in the European Union and tariffs in the United States.

• Rising wage costs have strained KTM over the past year, making a quick turnaround imperative to avoid increased funding needs that could strain Bajaj Auto’s net debt.

• Positively, Bajaj Auto gains access to a global brand, research and development, and technology, which could drive long-term volume growth.

Goldman Sachs On Honasa Consumer

• Maintained ‘neutral’ rating but hiked target price to Rs 275 from Rs 250.

• Sequential growth recovery was seen in the quarter under review.

• Mamaearth’s improving trends are driving growth recovery.

• Offline channel revamp is showing results.

• Honasa’s derma skin care brands continue to post strong growth.

• Ebitda margins are expected to recover, likely crossing financial year 2024 levels only by financial year 2027.

Morgan Stanley On SBI Cards

• Maintained ‘equal-weight’ rating with a target price of Rs 775.

• SBI Cards’ market share of spend decreased month-on-month to 16% in April 2025.

• April spends decreased 9.4% month-on-month for SBI Cards versus an 8.6% decrease for the industry.

• Market share in the number of credit cards in force was 19% as of April 2025.

Goldman Sachs On Colgate-Palmolive India

• Maintained ‘sell’ and cut target price to Rs 2,375 from Rs 2,630.

• Near-term growth headwinds are expected to continue in the first half of the current fiscal.

• Medium-term focus remains on premiumisation.

• Ebitda margins are likely to remain in the current range.

On ITC

Morgan Stanley

• Maintained ‘overweight’ with a target price of Rs 500.

• Overall performance beat expectations.

• Topline was ahead across businesses.

• Margins improved across businesses except paper.

• Growth was aided by portfolio and micro-market interventions, countering illicit trade, and focus on competitive belts.

• Cigarette earnings before interest and tax growth slowed due to inflation but was partly mitigated by an improved mix.

• Paper business was impacted by muted domestic demand, Chinese and Indonesian supplies, and a surge in wood prices.

Jefferies

• Maintained ‘buy’ but cut target price to Rs 535 from Rs 550.

• Broadly in-line outcome despite severe pressure in FMCG and paperboards.

• Cigarette volume growth of 5% was in line and appears strong.

• FMCG performance was affected mainly by tough macro conditions, resulting in sharp Ebit decline.

• Paperboards was also quite weak but offset by a strong agri segment.

Jefferies On ONGC

• Maintained ‘buy’ but cut target price to Rs 360 from Rs 375.

• The quarter ended March showed a small miss; valuation discounts weak crude prices.

• FY26 and FY27 consolidated earnings per share estimates were lowered by 13% and 14%, respectively, due to lower production and crude price estimates.

• Potential production growth in Mumbai High from the BP contract poses upside risk.

• The stock is the cheapest among global peers and adequately discounts the weak crude price environment.

Goldman Sachs On Bombay Stock Exchange

• Maintained ‘neutral’ with a target price of Rs 5,340.

• If the Securities and Exchange Board of India grants Tuesdays as expiry days for NSE index derivatives, Thursdays are expected to be expiry days for BSE index derivatives.

• Based on year-to-date trends, this switch in expiry days, if approved, could reduce BSE’s market share in index options premium by 3-4 percentage points.

• Monitoring will continue for details on the potential change in expiry days.

Bernstein On Indian IT Sector

• Infosys: Maintained ‘outperform’; hiked target price to Rs 1,760 from Rs 1,680.

• Tata Consultancy Services: Maintained ‘outperform’; hiked target price to Rs 3,910 from Rs 3,740.

• Tech Mahindra: Maintained ‘outperform’; raised target price to Rs 1,680 from Rs 1,480.

• Coforge: Maintained ‘outperform’; increased target price to Rs 9,530 from Rs 8,630.

• KPIT Technologies: Maintained ‘outperform’; cut target price to Rs 1,390 from Rs 1,400.

• L&T Technology Services: Maintained ‘underperform’; slashed target price to Rs 3,990 from Rs 4,150.

• Indian IT services are turning the corner with stable demand outlook and strongest growth in financial services.

• Deal activity is picking up.

• Top picks are Infosys and Coforge.

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