Brokerages’ Top Stock Picks for Today
The Indian stock market is abuzz with activity, and top brokerages have shared their insights on the stocks to watch. In this article, we will delve into the details of the top stock picks, including NMDC Ltd, Titan Company, Tata Steel Ltd, Maruti Suzuki India Ltd, and Urban Company.
NMDC Cuts Iron Ore Prices, A Surprise to Brokerages
NMDC Ltd has cut iron ore prices by 9% and fines prices by 10%, which has come as a surprise to brokerages. Morgan Stanley had expected domestic iron ore prices to be stable or rise somewhat in the near term. However, this move is seen as incrementally positive for JSW Steel and Jindal Steel, given their partial dependency on external iron ore.
UBS Upgrades NMDC to Buy, Hikes Target Price
UBS Global Research has upgraded NMDC Ltd to Buy from Neutral, with a target price hike to Rs 4,700 from Rs 3,600. The brokerage believes that the company’s earnings rebound will lead to a rise in multiples towards the five-year average.
Titan: A Structural Winner, Says UBS
UBS Global Research believes that Titan Company is a structural winner, with a competitive value proposition. The lab-grown diamonds threat is manageable, and the brokerage expects the company’s earnings to rebound, leading to a rise in multiples.
Urban Company: A Large Addressable Market
Urban Company has a large addressable market in online home services, supported by competitive moats and an experienced founding team. Morgan Stanley has initiated an Underweight rating, given that growth is already priced in. However, the brokerage expects the company’s core India consumer services to grow at a healthy CAGR of 18-22% over the financial year 2025-2028.
Tata Steel: Poised for Sustainable Growth
Tata Steel Ltd is poised for sustainable growth and margin upside, according to Nomura. The company has a strong growth in India and a turnaround in Europe, with improving macros suggesting significant upside potential. The brokerage has initiated coverage with a Buy rating and a target price of Rs 215.
Maruti Suzuki: Recovery in First-Time Buyers and Rural Areas
Maruti Suzuki India Ltd is expected to see a recovery in first-time buyers and rural areas, with a good response to the new SUV launch. Morgan Stanley believes that the company will announce price increases for 2026 models in end-November, leading to a margin expansion in the third quarter and a benefit from pricing recovery in the fourth quarter.
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