Stock Recommendations Today: SBI, Kotak Mahindra Bank, DMart, Marico On Brokerages’ Radar NDTV Profit Research NDTV Profit

State Bank of India is drawing strong interest from brokerages after its March quarter earnings beat expectations, thanks to treasury gains and resilient asset quality—even as margin pressures linger. Kotak Mahindra Bank Ltd. also remains under the spotlight, with mixed reviews post-earnings as analysts weigh asset quality gains against weaker-than-expected growth and margin trends.

In the consumer space, Avenue Supermarts Ltd. is facing tough questions after a surprise miss on margins amid intensifying competition and operating cost pressures, while Marico Ltd. has earned cautious praise for its steady core business and promising new growth segments.

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

Brokerages On State Bank of India

Citi

• Retained a ‘buy’ rating on the stock and raised target price to Rs 920 apiece from Rs 905.

• Net interest margins held steady, though pressure is likely ahead.

• Earnings were boosted by one-off gains.

• Slippages remained steady quarter-on-quarter, supported by aggressive write-offs of Rs 10,000 crore.

• Core credit cost stood at 39 basis points, while other provisions and investment depreciation lifted overall provisioning.

• Flat net interest margins came as a positive surprise.

Investec

• Retained a ‘buy’ rating on the stock and raised target price to Rs 920 apiece from Rs 870.

• Net interest income was in line with estimates, with high treasury gains supporting return on assets delivery of 1.1%.

• Loan growth was softer due to large prepayments.

• Asset quality remains strong.

• Return on assets moderation was led by lower net interest margins and weaker non-core income.

• Valuation at 1 time fiscal 2027 estimated book value is inexpensive for 15% to 16% return on equity.

On Kotak Mahindra Bank

Citi

• Retained a ‘buy’ rating on the stock with a target price of Rs 2,525 apiece.

• Reported net interest margins expanded, but calculated margins declined.

• Slippages moderated, reflecting relative resilience.

• Credit cost came in at 87 basis points as coverage was raised.

• Advances grew 14% year-on-year and 3% quarter-on-quarter, dragged by microfinance, credit cards, and credit substitutes.

• Return on assets trajectory depends on growth and credit cost.

Nuvama

• Downgraded to ‘hold’ from ‘buy’ and target price raised to Rs 2,350 apiece from earlier Rs 2,040.

• Net interest income and growth both undershot expectations, though asset quality improved.

• Core pre-provision operating profit remained flat due to net interest margin and growth misses, though other income was high.

• Kotak Mahindra Bank is better placed on growth and margins than peers.

• Stock has rallied 20% since third quarter earnings; valuations appear rich.

Investec

• Retained a ‘buy’ rating on the stock and raised target price to Rs 2,535 apiece from Rs 2,300.

• Topline performance was soft, but asset quality was strong.

• Multiple levers remain in place to defend net interest margins.

• Loan growth was soft, led by a sequential decline in corporate lending.

• Still delivered a best-in-class earnings per share compound annual growth rate of 14% over fiscals 2025 to 2027.

On Avenue Supermarts

Citi 

• Retained a ‘sell’ rating on the stock and lowered target price to Rs 3,250 apiece from Rs 3,350.

• Ebitda and adjusted profit after tax missed Citi estimates by 5% and 8% respectively, due to margin contraction.

• Fourth quarter saw pressure on gross margins and operating expenditure from rising competition.

• Ebitda growth has lagged revenue growth in 10 of the last 11 quarters, likely due to rising quick commerce rivalry.

• Expects Avenue Supermarts to move from a net cash to net debt position over the next two to three years.

• Awaiting better entry point as risk-reward appears unfavourable.

Jefferies

• Retained a ‘hold’ rating on the stock and lowered target price to Rs 4,100 apiece from Rs 4,225.

• Margins contracted to a low of 6.8%, which came as a major negative surprise.

• Management attributed this to competition in fast-moving consumer goods and higher wages and service investments.

• Store additions picked up pace during the fourth quarter and the fiscal.

• Chief Executive Officer designate will take 4 to 5 months to formally assume charge.

• Current CEO plans to focus more on store expansions and e-commerce scaling.

• Earnings per share estimates cut by 4% to 7%.

On Marico

Jefferies

• Retained a ‘buy’ rating on the stock and raised target price to Rs 800 apiece from Rs 780.

• Quarter outcome was reasonable.

• India volume growth was impressive despite weak macroeconomic conditions.

• International performance was also strong.

• Ebitda margin remained under pressure due to gross margin compression and higher advertising and promotion spends.

• Management outlook is reasonably positive across core and new growth portfolios.

Goldman Sachs

• Retained a ‘buy’ rating on the stock and raised target price to Rs 780 apiece from Rs 750.

• Fourth quarter was strong, driven by high-growth businesses.

• Soft volume growth in core brands was offset by better-than-expected gains in new segments.

• Commendable performance from new businesses, which are driving growth.

• High visibility of double-digit revenue growth in fiscal 2026.

• Margins likely to recover, but only in the later part of the fiscal.

Macquarie

• Retained an ‘outperform’ rating on the stock and raised target price to Rs 790 apiece from Rs 780.

• Fourth quarter was in line; conditions were favourable for Parachute.

• Smaller brands facing supply-chain issues amid flat copra costs and 8% to 9% price hikes, which supports Parachute.

• Continued recovery seen in value-added hair oils.

• Management remains confident on food segment; raised outlook for digital brands through fiscal 2027.

• Raised earnings per share and target price on constructive commentary and in-line Ebitda.

Bank of America On Q4 Earnings

• Quarter was better than expected.

• Nifty index – 61% of market capitalisation reported – tracking a 3% beat so far.

• Nifty earnings rose 9% year-on-year, led by financials, while staples remained muted.

• NSE 200 also tracking a 4% earnings beat.

• Nifty has seen earnings per share downgrades of 2% to 3% for fiscals 2026 and 2027.

• Nifty earnings growth for fiscal 2026 now seen at 13%, down from 15% in third quarter estimates.

Citi On JSW Steel

• Retained a ‘sell’ rating on the stock with a target price of Rs 715 apiece.

• Supreme Court has ordered liquidation proceedings against Bhushan Power and Steel.

• Analysis suggests a market capitalisation impact of $3.5 billion, which may be offset by recovered amount.

• Uncertainty is likely to remain an overhang.

• Banks had taken provisioning releases against Bhushan exposure in the fourth quarter of fiscal 2021.

• Recovered amount needs to be weighed against potential liquidation value to assess net impact.

Yes Securities On Oil And Gas Sector

• OPEC+ is set to gradually increase crude output from June 2025.

• A fall in global crude prices may lift refining margins.

• Improved marketing profitability expected for Hindustan Petroleum, Bharat Petroleum and Indian Oil.

• This could hurt upstream players such as ONGC and Oil India Ltd.

• Top sector picks are Hindustan Petroleum > Bharat Petroleum > Chennai Petroleum.

Macquarie On City Union Bank

• Retained an ‘outperform’ rating on the stock with a target price of Rs 220 apiece.

• Loan growth shows early signs of stability.

• Fourth quarter profit after tax was in line; return on assets remains stable at around 1.5%.

• Targeting 14% to 15% loan growth with stable margins.

• Provision coverage ratio goal has been met.

• Expects return on assets to sustain at current levels.

HSBC On Two-Wheeler Sector

• Credit tightening is hurting growth momentum.

• Two-wheeler demand is improving in rural and semi-urban areas.

• However, lack of easy financing remains a headwind.

• Most financiers are becoming more conservative on two-wheeler loans, impacting sales in the budget segment.

• Bajaj Auto Ltd. is among the most impacted, both due to industry-wide credit tightening and company-specific issues.

HSBC On Godrej Properties

• Retained a ‘buy’ rating on the stock with a target price of Rs 3,500 apiece.

• Fourth quarter pre-sales beat all guidance metrics.

• Strong cash flows support the company’s superior business model.

• Expects continued strong sales on a high base, which should translate into strong cash flows.

Jefferies On Nuvoco Vistas

• Retained a ‘hold’ rating on the stock with a target price of Rs 380 apiece.

• Fourth quarter was strong, delivering highest-ever volumes and Ebitda, driven by firm pricing in the East region.

• Company is pursuing next phase of expansion through Vadraj acquisition.

• Expects large cash outflows related to the transaction.

Morgan Stanley Strategy Note

• India is likely to outperform in a global bear market but underperform in a bull market.

• Global uncertainty offers a long-term buying opportunity in India, but will require patience.

• Expect rewards to follow in time.

• Prefer domestic cyclicals over defensives and export-oriented sectors.

• Overweight on financials, consumer discretionary, and industrials.

• Underweight on energy, materials, utilities and healthcare.

• Expect a stock-picking market instead of one driven by macro themes, as seen since the pandemic.

• Capitalisation agnostic in current approach.

. 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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