Stock Recommendations Today: HUL, HDFC Bank, BPCL, Persistent Systems on brokerage’s radar

Brokerage firms have reacted to the third quarter financial results of Hindustan Unilever Ltd, HDFC Bank Ltd, Bharat Petroleum Corporation Ltd and Persistent Systems Ltd.

Analysts have maintained Hindustan Unilever’s ratings, however, cut the target price amid demand concerns. He remained positive about HDFC Bank.

BPCL also saw a cut in target price due to weak results.

NDTV Profit takes a look at what analysts are saying about different stocks and sectors. Here are the analysts’ calls to keep an eye on Thursday:

Brokerage on Hindustan Unilever

macquarie

• Maintain ‘Outperform’ rating and reduce target price to Rs 2,800 from Rs 3,250.

• Third quarter results are coming but remain cautious about the near-term outlook.

• While remaining cautious on near-term demand, Macquarie does not expect further declines beyond the flat volumes seen in the third quarter.

• The acquisition of the minimalist brand has brought positive changes in the beauty segment.

• Gradual pace of demand recovery drives down EPS and target price.

• Believe me, the worst phase of volume weakness is now behind us.

ubs

• Maintain ‘Neutral’ rating but reduce target price to Rs 2,700 from Rs 2,800.

• Poor performance continues.

• Revenue growth is broadly in line, but weak product mix impacts underlying volume growth.

• Home care increased on a volume basis, while price increases impacted personal care.

• Demand is expected to remain soft in the near future.

Goldman Sachs

• Maintain ‘Neutral’ rating but reduce target price to Rs 2,480 from Rs 2,650.

• Third quarter results reflect a weak near-term growth outlook.

• The urban recession has worsened, with small packs continuing to decline.

• Management has lowered its near-term outlook from a “stable demand environment” to a “moderate consumption environment.”

• Soap volumes declined due to higher price increases and grammar cuts.

City

• Maintain ‘Buy’ rating but reduce target price to Rs 2,850 from Rs 3,400.

• The slowing demand trend weighs on the near-term growth outlook.

• The acquisition of Minimalist, an active-based brand, could serve as an incremental growth driver.

• Cut FY25-27E earnings estimates by 2-6% as we lower revenue growth estimates.

Brokerage on HDFC Bank

macquarie

• Maintain ‘Outperform’ rating with target price of Rs 2,300.

• Q3 PAT in line with expectations; Good results despite challenging macro environment.

• Marginal increase in credit costs due to higher agricultural slippages.

• Outperformance rating supported by potential for improvement in ROA over the next two years, driven by NIM expansion.

BofA

• Maintain ‘Buy’ rating with target price of Rs 2,020.

• Third quarter results showed no surprises; The LDR finish line is probably only three quarters away.

• More hits from failures in performance.

• The asset quality performance provides a sigh of relief for the sector as a whole.

Bernstein

• Maintain ‘Outperform’ rating with target price of Rs 2,300, indicating an upside of 38%.

• A healthy set of numbers that met expectations were reported along with results and comments.

• A strong quarter and signs of better quarters to come.

• There is no sign of asset quality stress, which remains a concern for many peers.

• OPEX growth remained slow and is likely to remain so.

• Despite various adverse conditions, NIM remained within a limited range.

• The bank is expected to return to mid-teens EPS growth in fiscal 2026.

• Healthy NII growth despite slow credit growth.

• PBT growth of 12% adds confidence in a return to mid-teens EPS growth trajectory in the coming quarters.

Wealth

• ‘Accumulate’ rating with target price of Rs 1,950, indicating an upside of 19%.

• Reported in-line profitability metrics with sequentially stable NIM.

• Credit costs at 50 bps and slippages at 1.4% were in line, and better than peers.

• Considering the earnings decline, lower growth and slightly better opex.

• Improvement in trade growth is expected to be a major trigger going forward.

City

• Maintain ‘Buy’ rating with target price of Rs 2,080.

• Confidence in credit quality and operational efficiency.

• The management plans to accelerate growth under comfortable conditions.

• NIM contraction remained limited at 3 bps quarter-on-quarter.

• Management emphasized confidence in resilient quality and was more creative about pursuing growth.

Brokerage on BPCL

Jefferies

• Maintain ‘Buy’ rating but reduce target price to Rs 370 from Rs 410.

• Ebitda was 11% below consensus due to weak refining and marketing performance.

• The refining outlook for 2025 is more positive, with refinery closures likely to drive demand.

• Marketing margins have declined but remain above normal levels.

• LPG deficit is expected to continue, relief from government remains uncertain.

• Raise FY2025 earnings estimates based on higher marketing margin run-rate.

City

• Maintain ‘Buy’ rating with target price of Rs 390.

• The third quarter performance is not as good as expected, but the outlook remains positive and valuations are attractive.

• Refining improved sequentially, although still below estimates.

• In the main marketing performance line; Inventory loss was a drag on results.

Brokerage on Persistent System

Nomura

• Maintain ‘Neutral’ rating with target price of Rs 6,200.

• Third quarter revenue broadly in line with expectations.

• Resilient growth driven by strong execution.

• The deal’s victory was a good one; Strong execution is expected to support industry-leading growth.

• The promise of margin improvement was fulfilled.

• Neutral on the stock due to rich valuations.

Nuwama

• Maintain ‘Buy’ rating and increase target price to Rs 7,000 from Rs 6,350, offering an upside of 24%.

• Good results once again came in the third quarter.

• Reversal of provisions boosted EBIT margins.

• Continued to lead the industry with 19.8% year-on-year growth in the quarter.

• FY 2031 guidance requires a CAGR of around 24% from FY 2025-2031.

• At 50x FY26E PE, the stock appears expensive, but this is justified given its healthy growth profile (25% earnings CAGR over FY24–27E).

mk

• Upgrade to ‘Reduce’ rating with target price of Rs 5,300, suggesting a downside of 6%.

• The third quarter was slightly better than expected.

• Unlike previous quarters, growth was broad based.

• The management is confident about the pace of growth.

• However, the slow growth in TTM TCV/ACV raises some concerns.

Morgan Stanley on Sai Life Sciences

• Initiate ‘Overweight’ rating with target price of Rs 841.

• SAI, being one of India’s largest integrated CRDMOs, is well positioned for growth.

• Provides one-stop solution for discovery, development and manufacturing.

• Specialized onshore and offshore distribution platforms should enable industry-wide growth.

• Be confident that early investment in the platform will drive faster growth compared to peers along with operating leverage benefits.

Brokerage on Pidilite Industries

macquarie

• Maintain ‘Underperform’ rating with target price of Rs 2,600.

• Third quarter EBITDA performance was broadly in line with expectations.

• Healthy volume-led growth in both consumer markets and business-to-business segments.

• Disappointed by the change in outlook commentary, moving from optimistic on demand to cautiously optimistic.

Goldman Sachs

• Maintain ‘Buy’ rating with target price of Rs 3,560.

• Accelerated volume and revenue growth despite tough consumption environment.

• Gross margin expansion was offset by an increase in advertising expenses.

Brokerage on Polycab

City

• Maintain ‘Buy’ rating with target price of Rs 8,600.

• Third-quarter results show strong margins while revenue growth of 20% year-over-year was 2% below Citi estimates.

• As per the 5-year plan, the growth guidance for Wires & Cables is 1.5 times the industry growth.

• Polycab remains a top choice in the consumer durables/electrical sector.

macquarie

• Maintain ‘Outperform’ rating with target price of Rs 7,928.

• C&W’s revenue grew 12%, and margin surprised earnings.

• The FMEG segment witnessed strong growth of 43% on a low base with margin improvement.

• Rest assured, the worst of margin pressure has passed and a gradual improvement is expected in the coming quarters.

• The strategic outlook suggests around 15% revenue CAGR over FY 2025-2030.

City On Go Digit General Insurance

• Maintain ‘Buy’ rating but increase target price to Rs 460 from Rs 450.

• Solid income growth with further improvement in underwriting to net earned premium ratio.

• The net expense claims ratio could rise surprisingly in the fourth quarter.

• With growth dependent on competitive pressure, employer-employee profitability improves.

City on Nuvama and Cams

Start trading the pair: NUVAMA – ‘Overweight’ and CAMS – ‘Underweight’

Why positive on Nuvma?

• Nuvama’s wealth management businesses are likely to see continued momentum in fresh inflows.

• The deal pipeline in investment banking remains strong, providing improved visibility on the first half of calendar year 2025 revenue trajectory.

• Asset servicing revenues are unlikely to decline – a major concern expressed by many investors.

Why negative on CAMS?

• On the other hand, the resilience of retail MF flows is likely to be tested in the next few months amid continued weakness in equity markets.

• Non-MF revenue growth for CAMS is likely to decelerate as the pace of overall capital markets activity slows, raising concerns about the survival of the current prosperity.

CLSA on pharma sector

Aurobindo Pharma – Upgrade to ‘Outperform’ from ‘Hold’ but reduce target price to Rs 1,400 from Rs 1,540.

Growth drivers: Commercialization of Pen-G plant in 2025 and Vizag, expansion of China plant, launch of biosimilars from FY 2026 and steady price decline in US generics.

Dr Reddy’s – Downgrade to ‘Underperform’ from ‘Hold’ and reduce target price to Rs 1,090 from Rs 1,140.

Earnings are expected to decline at a 10% CAGR over FY2025-27 due to gRevlimid discontinuation due to margin erosion in FY2027.

Read more about the markets by NDTV Profit. (TagstoTranslate)Persistent Systems Limited(T)Bharat Petroleum Corporation Limited(T)HDFC Bank Limited(T)Hindustan Unilever Limited(T)HUL(T)BPCL