Macquarie believes most of the leading microfinanciers have done aggressive write-offs and cleaned their books, and that stress is abating in the sector.

CLSA is positive on the industrial picture, and observes improvement in consumption metrics aided by pickup in imports, general insurance premium, retail loans.

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

Macqaurie On Financials

  • Early signals of stress abating in microfinance.

  • Most of the top MFIs have done aggressive write-offs and cleaned their books.

  • Fiscal 2026 delinquencies and credit costs should trend downwards.

  • MFI stress has moved to other loan categories like auto loans, business loans.

  • Some early signs of stress visible in Tamil Nadu, Karnataka.

  • Longer term growth to be subdued.

  • RBI’s reduction of qualifying assets for MFIs from 75% to 60% proves to be a welcome relief.

Jefferies On May Mutual Fund Data

  • Equity flows fall on higher redemptions, while SIPs remain stable.

  • Equity lumpsum net outflows were recorded at Rs 1,200 crore, marking the first fall since July 2023.

  • Net flows across key categories were lower, with large-caps seeing a 53% fall.

CLSA On India Strategy

  • Growth in April moderated on a monthly basis, but remained in-line with official estimates.

  • Encouraging growth in exports, diesel demand, logistics positive for industrial picture.

  • Consumption metrics improved, aided by pickup in imports, general insurance premium, retail loans.

  • Lower rural unemployment, rise in agri credit, and tractor sales paint good picture of rural economy.

  • Early data for May suggests some moderation in activity, especially in auto sales and property.

On Asian Paints

Investec

  • Investec maintains ‘sell’ rating on Asian Paints with a target price of Rs 2,080.

  • Believe Akzo Nobel’s decorative business sale is likely to further intensify competition.

  • Competition is posing multiple challenges for Asian Paints.

  • Return on capital employed has fallen sharply to the lowest levels in the last two decades.

  • Revenue per dealer declined for the second consecutive year in the financial year 2025.

  • International subsidiaries and the home decor segment are struggling.

  • Management expects intense competition to sustain.

Morgan Stanley

  • Morgan Stanley remains ‘underweight’ on Asian Paints with a target price of Rs 1,909 apiece.

  • Believes the share price will fall relative to the country index over the next 60 days.

  • Expects the de-rating in multiples to continue.

  • Forecasts Asian Paints to lose approximately 209 basis points of market share in the overall decorative paints segment over the financial years 2025–28.

  • Asian Paints currently trades at a discount to discretionary stocks such as Titan, and this discount is expected to continue.

Jefferies On Monthly Power Data

  • Top stock picks remain JSW Energy Ltd. and NTPC Ltd., with a ‘buy’ rating on Power Grid Corp.

  • May 2025 power demand and June generation so far declined due to high base and early monsoon.

  • Jefferies expects double-digit power demand growth from August-October 2025 on favourable base.

  • Overall demand is projected to rise 6% on an annual basis in fiscal 2026.

  • Renewable energy awards picked up in fiscal 2025, including more hybrid/storage bids.

  • Grid Controller cut June’s peak power demand target due to early monsoon and cooler temperatures.

DAM Capital On Bansal Wire Industries

  • Initiated coverage with a ‘buy’ rating and a target price of Rs 48, implying a potential upside of 24%.

  • Expects 35% Ebitda CAGR over fiscals 2025 to 2027, driven by 62% volume growth from new Dadri facility.

  • Company is venturing into high margin steel cords and other speciality products.

  • Company has over 3,000 SKUs and 5,000 customers.

  • End sector mix is diversified, with the top sector (auto) at 22%.

  • Expects revenue, Ebitda, and PAT to grow at a CAGR of 31%, 35%, 38% respectively, over fiscals 2025 to 2027.

  • Financial year 2026 is set to be a transition year, while fiscal 2027 will reflect margin normalisation.

BofA On Internet

  • Raised MakeMyTrip’s price target to $126 from $120, reiterating their ‘buy’ rating.

  • The March quarter performance was mixed, with most companies missing Ebitda estimates.

  • Overall outlook for the India internet sector is stable.

  • May 2025 data shows Blinkit surpassing Zepto in quick commerce.

  • Food delivery and beauty and personal care are showing healthy user growth.

  • Travel trends are stabilising.

  • Despite some EPS cuts, stock prices held steady.

Antique On Defence

  • Business outlook for domestic orders across defence remains strong.

  • Large-ticket orders are expected to materialise over the next couple of years.

  • The China-Pakistan-Turkey axis poses a unique challenge to India’s security.

  • The pricing environment has settled, and profitability is expected to be stable.

  • Revenue growth momentum is expected to stay intact over the financial years 2025 to 2027.

Top Picks:

  • Maintain ‘buy’ on Hindustan Aeronautics with a target price of Rs 6,545, indicating an upside of 31%.

  • Maintain ‘buy’ on Bharat Electronics with a target price of Rs 422, indicating an upside of 7%.

  • Maintain ‘buy’ on Mazagon Dock Shipbuilders with a target price of Rs 3,858, indicating an upside of 15%.

  • Maintain ‘buy’ on PTC Industries with a target price of Rs 19,639, indicating an upside of 36%.

CLSA On Consumer Durables

Hits:

  • Cooling products reported robust primary demand in anticipation of a strong summer

  • Cables & wires segment was helped by both higher volumes and commodity prices.

  • Lighting volumes recovered but price erosion continued

Misses:

  • Building materials growth was flat to negative.

  • Kitchen appliances were weak as well.

  • Most companies across sub-sectors reiterated a positive medium-term growth outlook.

  • Most companies highlighted near-term demand challenges and rising competition.

  • Prefers Havells given its more diversified exposure.

On AMCs

Morgan Stanley

  • Equity inflows (excluding exchange-traded funds) in India declined to Rs 21,600 crore in May 2025, down from Rs 25,600 crore in April 2025.

  • SIP flows reached a new high of Rs 26,700 crore in May 2025.

  • Non-SIP outflows increased to Rs 5,100 crore in May 2025.

  • Exchange-traded fund inflows significantly declined to Rs 5,200 crore in May 2025 from Rs 20,600 crore in April 2025.

  • Cash positions for equity funds rose to 5.9% by the end of April 2025.

  • Flexi-cap funds saw the highest inflows in May 2025, followed by small-cap funds.

  • Year-to-date 2025 domestic equity flows were Rs 2,00,000 crore, slightly up from the same period in 2024.

Nomura

  • Monthly equity mutual fund inflows moderated to Rs 24,200 crore in May 2025.

  • Inflows due to new fund offers increased to Rs 3,590 crore.

  • Systematic investment plan flows remained largely steady at Rs 26,700 crore.

  • The SIP stoppage ratio normalised after previous fluctuations.

  • The number of SIP accounts rose to approximately 8.6 crore.

  • Debt mutual fund schemes witnessed reduced inflows of Rs 20,700 crore.

  • Passive funds saw a decline in flows to Rs 5,500 crore.

Citi On Life Insurers

  • Growth picked up sequentially.

  • Axis Max Life and HDFC Life grew faster among listed life insurance companies.

  • Growth for ICICI Prudential Life was weak.

  • Tweak in cost of equity and value of new business multiple led to target price changes.

  • HDFC Life target price revised to Rs 935 from Rs 870 earlier.

  • ICICI Prudential Life target price revised to Rs 690 from Rs 650 earlier.

  • SBI Life target price revised to Rs 2,380 from Rs 2,150 earlier.

  • Life Insurance Corp. of India’s target price revised to Rs 1,320 from Rs 1,300 earlier.

HSBC On Strategy

  • Worries about earnings remain, even after the recent rally.

  • Earnings fared better than consensus expectations.

  • A sustained recovery in demand is still a few quarters away.

  • India Five: Godrej Consumer Products, UPL, GAIL (India), Ujjivan Small Finance Bank, and HDFC Life.

  • Godrej Consumer Products stands out for innovation capabilities and market share gains in the home insecticides business.

  • UPL is on course for recovery; surprises on growth, margins, and lower debt should drive further re-rating.

  • GAIL (India) is structurally well-placed to benefit from a rise in demand for clean energy.

  • GAIL (India): Potential gas tariff revision, more pipeline completions could be near-term catalysts.

  • Ujjivan Small Finance Bank and HDFC Life benefit from an easing rate environment.

Morgan Stanley On Kansai Nerolac

  • Morgan Stanley maintained ‘underweight’ rating on Kansai Nerolac Paints with a target price of Rs 212.

  • The share price is expected to fall relative to the country index over the next 60 days.

  • Indian paint companies are transitioning from a period of coordinated and disciplined double-digit value growth to a period of uncharted levels of hyper competition.

  • Expects the de-rating in multiples to continue.

  • Forecasts the top five players (excluding Birla Opus) to lose about 281 basis points of market share over the financial years 2025 to 2028.

  • The discount to discretionary stocks is expected to continue.

  • Rare earth elements could have negative implications on the auto paint business of Kansai Nerolac.

Jefferies On Hotels

  • India’s hotel universe delivered strong 26-27% Ebitda and profit after tax growth in the quarter ended March.

  • Jefferies expects healthy growth trends to continue in the financial year 2026.

  • Growth is expected from a mismatch in industry demand-supply and a strong exit run rate in the financial year 2025.

  • The hotel industry witnessed revenue per available room growth of 12% in the last fiscal.

  • Average room rate grew at 10% for the financial year 2025.

  • EIH, Chalet, and Samhi reported the strongest year-on-year growth with RevPAR for the quarter ending March at 21-22%.

  • Indian Hotels Co signed 74 hotels and had 26 openings in the last year.

. Read more on Markets by NDTV Profit.Here are the analyst calls to keep an eye out for on Wednesday.  Read MoreMarkets, Notifications 

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