Brokerage Views: HSBC On Varun Beverages, Morgan Stanley On IT And More

Varun Beverages Ltd. and information stocks will be in focus during the session on Monday, as brokerages have initiated calls for these companies.

HSBC initiated coverage on Varun Beverages Ltd. with a 'buy'. Morgan Stanley said that investor positioning is overweight on the information technology sector and is at a premium to last five-year averages.

NDTV Profit tracks what the brokerages are putting out on stocks and sectors. Here are all the top calls from analysts you need to know about on Monday.

HSBC On Varun Beverages

HSBC initiated coverage with a 'buy' with a target price of Rs 780 per share, implying an upside of 28% from the previous close.
India’s bottling race is about to intensify.
Disruptive digital market development models for driving sales coming to India with artificial intelligence.
Varun Beverages can become the largest and most disruptive PepsiCo bottler.
Plans to add three lakh to four lakh outlets per year to drive higher soft drink per capita consumption.
Outlet addition and digital market development models remain the near-term growth drive.
Risk is not keeping pace with the leader’s new requisite market development tools and culture.

Also Read: Stock Market Today: All You Need To Know Going Into Trade On Sept. 30

Morgan Stanley On IT

Global IT names have been sending mixed signals.
Investor positioning is overweight; valuations are at a premium to last five-year-averages.
Multiples will stay afloat as long as the revenue upgrade cycle continues.
Infosys Ltd.: Overweight, to better position from recovery in discretionary spending.
Tata Consultancy Services Ltd.: Overweight, has limited near-term visibility but good order book and margin improvement potential.
LTIMindtree Ltd.: Overweight, leveraged to short-cycle work with gradual margin recovery.
HCL Technologies Ltd.: Equalweight, decent revenue growth and margin improvement potential, but priced in.
Tech Mahindra Ltd.: Equalweight, risk-reward balanced after outperformance year-to-date.
Wipro Ltd.: Underweight, growth/margin lagging peers; price to earnings discount likely to be elevated versus peers.
Cyient Ltd.: Underweight, risks to medium-term growth guidance and slower margin recovery.
Mphasis Ltd.: Equalweight, potential recovery plays as portfolio-specific issues bottom out, but valuations are not inexpensive.
L&T Technology Services Ltd.: Underweight, healthy growth expectation in fiscal 2025 but softer than peers Ebit growth at premium valuations.
Tata Elxsi Ltd.: Underweight, decent growth momentum but high expectations and lofty valuations.
Coforge Ltd.: Overweight, demonstrating scalability attributes.

Also Read: Stock Market Today: Nifty, Sensex Record Worst Day In Nearly Two Months As RIL, ICICI Bank Weigh

Jefferies On NTPC

Maintained 'buy' on NTPC Ltd. with a target price of Rs 485 per share, implying a 12% upside from the previous close.
NTPC Green IPO to potentially add 5-11% upside for NTPC.
NTPC Green's capacity to grow 4.6 times by fiscal 2027-28.
NTPC Green to yet make meaningful foray into energy storage.
NTPC standalone maintains 16 GW of renewable capacity by fiscal 2026-27.

Also Read: NTPC Green Energy Listing Could See Market Cap At 7.5 Times The IPO Size