Stock Recommendations Today: Torrent Pharma, SBFC Finance, RBL Bank, Bharti Airtel On Brokerages’ Radar NDTV Profit Research NDTV Profit

Torrent Pharma Ltd., SBFC Finance Ltd., RBL Bank Ltd., Bharti Airtel Ltd. were among the top companies on brokerages’ radar on Monday.

Torrent Pharma’s mega purchase of JB Chemicals and Pharmaceuticals Ltd. is in line with the former’s inorganic expansion strategy and may complement its India product portfolio, according to Nomura.

Investec has initiated a ‘buy’ rating on SBFC Finance and cited its strong franchise in the secured MSME segment.

For JPMorgan, Tata Steel Ltd. is its most preferred stock in the metals counter, followed by Hindalco Industries Ltd and JSW Steel Ltd.

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

Brokerages On Torrent Pharma

Nomura

• Maintain ‘Neutral’ with a target price of Rs 3,580.

• Acquisition will not be a surprise to us, as inorganic expansion, particularly in India, has been a key strategy for Torrent.

• Investors are likely to take comfort that Torrent has been successful in past acquisitions, as they have been value accretive.

• In the case of JB, the India product portfolio is complementary to that of Torrent.

• Deal size will be much larger than what Torrent has executed in the past.

• The impact on Torrent’s earnings is likely to be significantly negative given rising interest charges and amortisation.

HSBC

• Maintain ‘Buy’ with a target price of Rs 3,775.

• The JB Pharma deal will boost Torrent’s standing in chronic therapies in India and also add international CDMOs capabilities.

• Believe this deal offers the next leg of growth for Torrent and we wait for deal closure.

• JB Pharma deal could be 3% accretive to FY27 EPS estimate for Torrent.

Investec On SBFC Finance

• Initiate ‘Buy’ with a target price of Rs 135.

• Strength in structure, growth restrained.

• Strong franchise in the secured MSME segment.

• Achieved 40% AUM CAGR over past five years with improving profitability and stable asset quality.

• Return on assets and asset quality metrics are not industry-leading, but they appear credible.

• Resilience stems from a leadership team who have seen various credit cycles.

• High employee attrition and low productivity are notable challenges.

• See AUM growth of 27% CAGR over the next three years with exit RoE of more than 15% in FY28.

• See challenges to scalability in MSME book (beyond Rs 20,000 crore) as employee productivity is low.

Jefferies India Strategy

• Equity supply to cap market upside.

• Sharp market rebound from March 2025 lows has triggered an equity supply response as expected.

• 75% driven by promoter/PE exits, May and June equity supply was $17 billion.

• While the domestic flows have halved, improved foreign flows have helped.

• With the supply pipeline remaining strong and valuations elevated, expect the broader index to move sideways.

• See several bottom-up opportunities and overweight Bharti Airtel, financials, cement, two-wheelers and select real estate.

Jefferies On Power Utilities

• MSEDCL is expected to lower tariffs for the FY26-30 regulatory period, based on its tariff order.

• FY26 reduction is between 1-10% and is primarily expected to benefit residential users.

• This is a combination of lower expected power procurement costs and lower distribution losses among other aspects.

• Regulatory earnings of distribution companies, including Adani Energy and Tata Power, should not be impacted.

Citi On RBL Bank

• Maintain ‘Buy’ with target price raised to Rs 285 from Rs 230.

• Expecting RoA trajectory improvement to 45-50 bps driven by the much-awaited normalization of credit cost.

• Stress in JGL/credit card is expected to further subside in the June quarter.

• Slippages to moderate to 4.5% versus 4.7% in the March quarter.

• Accelerated provisioning on JLG in Q4 and adequate provision in the cards portfolio to normalize credit cost to 2.2%.

• Repricing of floating-rate portfolio, mix change in favor of secured segments will lead to 28-30 bps net interest margin pressure.

• NIMs would bottom out sooner in the June quarter versus peers.

• Expect industry average loan growth of 9% YoY and 2% QoQ and deposits growth of 10% YoY and 1% QoQ.

JPMorgan On Internet And Telecom

• Prefer Coforge over Eternal (formerly Zomato) over Bharti Airtel.

• Coforge: The brokerage expects strong 21% organic constant currency revenue growth in FY26 on the back of Sabre and other large deals. Margins should continue to expand helped by operating leverage and lower ESOP costs.

• Eternal: Expects to surprise positively on quick commerce losses given slowing store adds for all three players. Competitive intensity is also declining as seen in declining paid ads downloads for Zepto.

• Airtel: Continue to like given expectations of a mid-teens Ebitda CAGR over the next three years, a rarity in mega-cap stocks. Capex intensity should come down going forward. Key catalysts will be continued deleveraging and rising dividends.

JPMorgan On Metals

• Indian metals stocks have traded choppy over the last six months.

• Investors have navigated through an uncertain phase of geopolitics and geoeconomics. Uncertainties persist.

• Risk-on sentiment has returned following the recent Israel-Iran ceasefire and positive commentary on potential flexibility of the July 9 US tariff deadline.

• The pecking order of top preference is Tata Steel over Hindalco Industries over JSW Steel.

• Least preferred picks are NMDC and Coal India.

Nomura On India Real Estate

• On the demand side, robust performance for new launches and on the supply side, projects getting RERA approvals timely.

• Expect June quarter pre-sales from DLF to be solid due to a strong response in Privana North, Gurugram.

• Expect Macrotech Developers’ Q1 pre-sales growth could be 13% YoY versus 20% annual growth guidance due to the lack of land sales and not a lot of launches this quarter.

• Aditya Birla Real Estate pre-sales would decline sequentially due to the absence of launches.

• Believe there was no holdup from the RERA front, as projects have reached the market within their expected timelines.

Nomura On India Consumer

• June quarter demand is expected to improve marginally, but margins may still be pressured.

• Rural demand to continue to show improvement, while urban demand may remain weak but stable.

• Expect the summer portfolio across companies to be impacted on the back of an early monsoon.

• Competitive intensity is moderate as companies are still coming out of margin pressure seen earlier due to high raw material prices.

• Margins still impacted and lower than historical levels, but will improve from September quarter.

CLSA On Uno Minda

• Initiate ‘Outperform’ with a target price of Rs 1,304.

• The company will be a growth machine, expected to triple earnings in three years.

• Set to deliver industry-beating growth with improving return on capital employed.

• Industry revival plus portfolio diversification to drive robust earnings growth.

• Could reinvest the bulk of FCF in M&A or fresh projects to scale up fast.

. Read more on Markets by NDTV Profit.For JPMorgan, Tata Steel Ltd. is its most preferred stock in the metals counter, followed by Hindalco Industries Ltd and JSW Steel Ltd.  Read MoreMarkets, Business, Notifications 

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