Top Brokerages Highlight Axis Bank, Allied Blenders, and L&T: Price Targets and Sector Insights
Indian equity markets opened Friday on a neutral note, breaking the eight-day losing streak as traders digested the first signals of the October series. Top global and domestic brokerages have released their latest reports, offering actionable insights for traders. Key companies under focus include Axis Bank, Allied Blenders, L&T, and Kotak Mahindra Bank, while sectoral research emphasizes banking, automobiles, and real estate trends.
Brokerages Bullish on Axis Bank
Morgan Stanley on Axis Bank (CMP Rs 1,160): Maintains overweight rating, raising target to Rs 1,450 from Rs 1,325. Strategic initiatives from the past year are expected to drive growth over 2-3 years. Axis Bank’s P/BV remains 30-40 per cent below peers HDFC and ICICI Bank, highlighting potential valuation upside.
Jefferies raises target on Allied Blenders
Jefferies on Allied Blenders (CMP Rs 530): Buy rating maintained, target Rs 620. Backward integration is on track with PET bottle manufacturing and malt distillery projects. A single malt launch in the next 4-5 years could improve margins by 300 basis points during FY25-28.
Goldman Sachs maintains 'neutral' on L&T; raises target
Goldman Sachs on L&T (CMP Rs 4,187): Maintains neutral, target Rs 3,540.
Morgan Stanley Bullish on Kotak Mahindra Bank; maintains 'overweight'
Morgan Stanley on Kotak Mahindra Bank (CMP Rs 2,063): Overweight maintained, target Rs 2,600. Bank expected to outperform the industry in the near term, with strong exposure to segments benefiting from macro recovery and stable margins.
Brokerages Sector Insights
Automobiles (JPMorgan): September data shows mixed trends. Maruti struggled in wholesale but retail was steady, Hero lags in retail, while M&M excelled in PV and tractor segments. Two-wheeler wholesale and retail performance remained balanced.
Banking (Jefferies): RBI’s decision to hold rates favors private banks, while slightly impacting NBFCs and smaller lenders. ECL transition starting April 2027 may partially mitigate risks. Positive outlook maintained for HDFC, Axis, ICICI, and SBI.
Real Estate (Morgan Stanley): Q2 remains healthy despite seasonality. Top five developers expected to achieve Rs 11,000 crore in pre-sales, a 44 per cent YoY jump. H1 FY26 has already met 55 per cent of annual targets. Godrej and DLF outperform expectations; Lodha and Oberoi may lag.
