Titagarh Rail Systems Ltd., UltraTech Cement Ltd., and Bharti Airtel Ltd., are among top stocks on brokerages’ radar on Thursday.

The focus today is on financials and quick service restraunts. Multiple analysts have done a deep dive into the financial sector.

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

Morgan Stanley On Titagarh Rail Systems

  • Maintained ‘overweight’ rating and cut target price to Rs 1,090 apiece from Rs 1,300.

  • Near-term execution challenges affect the revenue trajectory.

  • Titagarh Rail Systems is a beneficiary of robust rail capital expenditure, but ordering so far remains subdued.

  • Inadequate wheel sets from Indian Railways constrain third quarter offtake.

  • Execution in Vande Bharat delayed nine months by a change in car design plan.

Morgan Stanley On India Strategy

Why foreign portfolio investor flows matter:

  • FPI flows matter because of what they can do to macro conditions.

  • Incessant exits can cause a persistent negative balance of payments with concomitant effect on macro stability, earnings, and share prices.

  • Share prices are likely troughing, as is growth and that could spur a reversal in FPI sentiment.

  • Data show FPI flows do not have predictive power over share prices.

  • Overseas investor bids or offers are not more forceful than other flow cohorts.

  • The macro climate depends on FPI flows, especially when they become outsized.

  • Foreign investors have made strong equity returns in the long run.

Macquarie On Financials

  • Reserve Bank of India getting more accommodative: Relaxing risk weighted assets.

  • The biggest message: a more accommodative Reserve Bank of India which bodes well.

  • This is good for the financial sector to re-rate and reiterate brokerage’s bullish view, it said.

  • Unsecured loan growth has also come down from 25% to 10% during this period.

  • In due course of time, Reserve Bank of India is likely to eventually reduce risk weighted assets even on these loans.

  • Banks should see 20-250 basis points positive impact on common equity tier 1.

  • IndusInd Bank and Bandhan Bank being the biggest beneficiaries owing to their higher microfinance institution exposures.

  • Banks almost fund 50% of fund requirements for Non-Banking Financial Companies.

  • Relaxation in risk weighted assets for bank loans to Non-Banking Financial Companies will ease credit flow.

  • Also expect some reductions in interest rates on a selective basis for well-rated Non-Banking Financial Companies.

JPMorgan On Quick Service Restaurants

  • Over fiscal 2026, expect same store sales growth comps to gravitate towards mid-single digits.

  • Sees mid teen revenue growth aided by healthy count of new store additions.

  • Companies to further strengthen their delivery and digital capabilities to compete more effectively.

  • Benefits from the consumption boost announced in the budget could be a potential tailwind.

  • Innovation intensity to remain firm. Chicken and coffee in focus.

  • Margin expansion to be gradual.

  • Against this backdrop, we prefer relative laggards with higher absolute upside.

  • Reiterated ‘overweight’ rating on Sapphire Foods India, Devyani International and Westlife FoodWorld.

  • Has a ‘neutral’ rating on Jubilant FoodWorks.

CLSA On Financials

  • After a lot of regulatory tightening in 2023 and 2024, there has been a change in the stance of the Reserve Bank of India.

  • Now, the Reserve Bank of India has reduced risk-weights on microfinance as well as on bank loans to Non-Banking Financial Companies.

  • Clearly, good things are happening for the banking sector in a meaningful way.

  • Biggest beneficiary of the microfinance institution risk-weight reduction is Bandhan Bank.

Morgan Stanley On Financials

  • Risk weight tweaks, more regulatory easing under way.

  • Reserve Bank of India has restored risk weights on bank loans to Non-Banking Financial Companies and reduced them on microfinance institution loans to consumers.

  • Business microfinance institution loans can stay at 75% if regulatory conditions are met.

  • Expect common equity tier 1 to increase 10-80 basis points for banks covered.

  • Mid-sized private banks and State Owned Enterprise banks should get higher benefit.

Macquarie On UltraTech Cement

  • Maintained ‘outperform’ rating with a target price of Rs 12,961 apiece.

  • Higher return on equity; but capital allocation uncertainty rises.

  • Raised uncertainty around UltraTech Cement’s capital allocation and debt reduction plans.

  • Capital expenditure will increase further in the medium term.

  • Construction and woodworking distribution channel is different versus cement with strong brands.

  • This implies investment towards branding and channel access.

  • Will need construction and woodworking product level approvals, implying revenue ramp up beyond December 2026 will be gradual.

  • Foray raises medium term uncertainty around cement growth and capital allocation, including other opportunities.

Morgan Stanley On Bharti Airtel

  • Maintained ‘equal-weight’ rating with a target price of Rs 1,650 apiece.

  • In bilateral discussions to combine Tata Group’s direct to home business and its own direct to home business.

  • Such events have binary outcomes and could swing in either direction.

  • It would imply consolidation and will strengthen Bharti Airtel’s industry positioning.

  • Consolidation of four-player market that has been seeing subscriber losses for the last several years is a positive.

  • Strengthens Bharti Airtel’s playbook of bundling multiple services and increase stickiness of customers.

  • Direct to home is a small part of overall core India business in terms of contribution to revenue, Ebitda and sum of the parts.

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