Brokerage Views: Jefferies Downgrades BSE, CLSA On HDFC AMC, And More

Jefferies has downgraded BSE Ltd.'s stock as its sees valuation stretched, which fails to capture risks from higher impact of regulatory changes in derivatives trading on overall market, it said.

While, HDFC Asset Management Co. received an upgrade from CLSA on growth expectations. The brokerage prefers AMCs over life insurance firms in the near-term.

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

Jefferies On BSE

Downgraded to 'underperform' but target price raised to Rs 3,500 apiece from Rs 2,850 per share earlier, implying a potential downside of 27% over the previous close.
BSE is up nearly 100% post release of SEBI's new F&O framework led by expectations of market share gains.
Assumes 25% hit to overall market volumes.
BSE's valuation at price-to-earnings ratio of 40 times the fiscal 2026 estimate implies its market share rising from 13% in the second quarter to 30-35%.
Valuation implies 40-50% share in weekly contracts.
Valuation appears stretched and fails to capture risks from higher impact on overall market.
It sees risk-reward turning unfavourable.

Also Read: Jefferies Downgrades BSE To 'Underperform', Sees 27% Downside

Brokerages On HDFC AMC

CLSA

Upgraded stock from 'hold' to 'outperform' with target price of Rs 4,920 per share, a potential upside of 8%.
Lifted earnings per share estimate by 5-9% over the next two years.
Yield moderation to be at softer pace, the brokerage said.
Assets under management growth ahead of expectations.
Expects tax rates to normalise in the next quarter.
Prefers AMCs over life insurance companies for the near term.
Value at 35.5 times the September 2026 PE.

Citi

Has a 'sell' rating, with a target price of Rs 3,600 per share, compared to Rs 3,125 earlier, a potential downside of 21%.
Core profit before tax was more than 45% on a yearly basis and 2% above Citi estimate.
Favourable shift towards high-yielding actively managed equity-oriented mix.
Market share trends have stabilised.
Expects stabilisation in earnings trajectory over medium-term and rollover to September 2026 estimate.

Also Read: HDFC AMC, Nippon Life Get 'Buy' From Nomura As Brokerage Sees Strong Growth

UBS On KEI Industries

Maintained 'buy' rating with target price of Rs 6,150 per share, a potential 31.2% upside.
Second quarter meets consensus on topline but Ebitda miss by 8%.
Gross margins declined 150 bps on a yearly basis, driving 8% Ebitda growth.
Expects Rs 2,000 crore fundraise to be used for ongoing capex at Sanand plant.
Key downside risk includes slower than expected transmission and distribution capex.

Also Read: KEI Industries Q2 Results: Profit Up 11%, Misses Estimates

Goldman Sachs On India Industrials

Most indicators were weak but showed improvement on a monthly basis.
Container volumes, air traffic and engineering exports grew steadily.
Coal offtake and petrol, diesel demand showed flattish to low single digit growth.
New capex intention picked-up in second quarter resulting in the first half of the fiscal being flat on a yearly basis.

Nomura On Aditya Birla Real Estate

Initiated 'buy' rating, with a target price of Rs 3,700 apiece, a potential upside of 29.5%.
Sees long-term visibility with development of 40-acre prime Worli land parcel.
Expects cumulative pre-sales of Rs 40,000 crore at 40% Ebitda margins over its lifetime in Worli.
Cumulative project pipeline gross development value of 90,000 crore, sees 87% pre-sales growth this year.
The company has ingredients to be among top real estate players in India, the brokerage said.
Expects real estate segment to be OCF positive from this year.
Key risks include weaker than expected execution, real estate cycle downside.

Also Read: Mumbai Project By Aditya Birla Group’s Real Estate Arm Secures Rs 5,400 Crore Sales

Citi On Prudent Corporate

Initiated coverage with a 'buy' call and a target price of Rs 3,050 per share, a potential upside of 17%.
Niche and dominant B2B2C model with 20% market share of existing MFDs.
Dominant model allows for elevated bargaining power with AMCs.
Constructive factors: rising MFD vintage, franchise expansion, high untapped market, focus on cross-sell.
Preferred plays are 360 One, Prudent and Nuvama.

Brokerages On HDFC Life

Jefferies

Retained 'buy' with target price of Rs 850 apiece, a likely upside of 19%.
Second quarter results in line with estimates.
Improved premium mix should have lifted margins further.
Impact of new regulations manageable.
Lower VNB estimates marginally.
Expects 16% CAGR on premiums and 15% on value of new business in three years.
Values company at 2.6 times the December 2026 price-to-embedded value

Citi

Has an 'overweight' rating, with target price of Rs 820 per share, compared to Rs 735 earlier, a potential upside of 15%.
Reported 200 bps decline on a yearly basis in VNB margin in the second quarter due to change in mix.
Decline of 100 bps margins due to deferral of non-par repricing.
Expects VNB margins to be better in the second half, compared to first half of the fiscal.
Brokerage raised VNB multiple to 20 times from 18 times. Lagged benefit of agent additions is likely to play out.

Also Read: HDFC Life Insurance Q2 Results: Net Profit Rises 15%, Misses Estimates