Brokerage Views: Motilal Oswals Top Sector Picks, Citi On RIL And More

Equity markets are in focus as brokerages analyse the impact of the BJP's electoral victory in Maharashtra and recalibrate their outlook on key sectors.

Motilal Oswal highlights banking, financial services, real estate, and manufacturing as preferred investment themes while maintaining optimism on corporate earnings recovery in the second half of the fiscal year.

Meanwhile, Jefferies notes that the BJP's political stability could drive consumption and government spending. In contrast, Emkay Global has cut its Nifty target, citing concerns over stretched valuations and broader macroeconomic challenges.

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.

Also Read: Stock Market Live: Nifty Hovers Around 24,300; Sensex Rallies Over 1,000 Points

Motilal Oswal: Preferred Sectors and Stocks

Preferred sectors include banking and financial services, capital goods, real estate, manufacturing, consumer discretionary, information technology, and healthcare.
Preferred large-cap stocks: Mahindra & Mahindra, State Bank of India, Larsen & Toubro, Indian Hotels, ABB, Dixon, Bharti Airtel, Trent, Hindalco Industries, Titan, and HCL Technologies.
Preferred mid-cap stocks: Angel One, BSE, Amber Enterprises, IPCA Laboratories, Cummins, Page Industries, Godrej Properties, Coforge, JSW Energy, and Gravita.

Emkay on Nifty Target

Cuts Nifty target by 4% to 25,000 from 26,000 earlier, citing a weak earnings season in the second quarter of the fiscal year ending March 2025.
Expects recovery in consumption growth only by the fiscal year ending March 2026.
Notes that the weakening trend in second-quarter earnings is not alarming.
Believes markets will likely remain range-bound in the immediate future.
Maintains an 'overweight' stance on information technology and energy while remaining 'underweight' on financials and staples.

Also Read: Emkay Slashes Nifty Target To 25,000 But Sees Long-Term Resilience

Goldman Sachs on Construction Sector

Pipe sector stocks mirror polyvinyl chloride price trends.
Astral remains buy-rated with a target price of Rs 2,170 apiece, implying a 27% upside. Demonstrates pricing power, margin discipline, and potential for margin improvement in the second half of the fiscal year ending March 2025.
Prince Pipes is downgraded to 'neutral' with a target price of Rs 480 apiece, implying a 13% upside. Struggles with margin pressures and gradual demand recovery.

Citi on Reliance Industries

Upgrades the stock to 'buy' from 'neutral' and raises the target price to Rs 1,530 apiece from an earlier Rs 1,500, implying a potential upside of 21% from the previous close.
Expects improvement in refining margins due to reduced export competitiveness from China.
Notes that Jio is well-positioned to benefit from future tariff hikes and potential improvements in data pricing.
Anticipates softness in the retail segment for another few quarters.
Reduces average consolidated Ebitda estimates for fiscal years ending March 2025 through March 2027 by 1%.

Also Read: Citi Upgrades Reliance Industries To 'Buy' On Improved Risk-Reward

Jefferies on India Autos

Retains a 'buy' rating on Mahindra & Mahindra with a target price of Rs 3,700 apiece, implying a potential upside of 23% from the previous close.
Maintains a 'hold' rating on Maruti Suzuki with a target price of Rs 10,900 apiece, implying a downside of 2% from the previous close.
Believes Mahindra & Mahindra is a better investment case than Maruti Suzuki due to stronger industry demand tailwinds.
Notes that Mahindra & Mahindra is gaining market share across tractors, SUVs, and light commercial vehicles, while Maruti Suzuki is losing share.
Projects Mahindra & Mahindra to deliver 19% earnings growth over fiscal years ending March 2024 through March 2027, compared to 10% for Maruti Suzuki.

Motilal Oswal on Transport Corporation of India

Maintains a 'buy' rating on the stock and a target price of Rs 1,290 apiece, implying a potential upside of 22% from the previous close.
Expects a compound annual growth rate of 15%, 19%, and 18% in revenue, Ebitda, and profit after tax over the fiscal years ending March 2024 through March 2027.
Anticipates supply chain business revenue to grow at a compound annual rate of 16% over the same period.
Higher capacity utilisation and the addition of a new ship to boost growth.
A high proportion of less-than-truckload shipments and an extensive branch network to aid the freight business.

Jefferies on BJP's Maharashtra Win

Sees BJP's Maharashtra win providing political stability at the national level.
Expects a consumption boost and a pick-up in government spending in the second quarter of the fiscal year.
Projects government expenditure to rise by 15% and capital expenditure by 25% in the second half of the fiscal year ending March 2025.

Also Read: New Maharashtra Chief Minister's Swearing-In Ceremony Likely To Be Held On November 25

Motilal Oswal on State Elections

Believes the NDA alliance's victory in Maharashtra will lift market sentiment.
Expects the government to focus on spending now that elections are behind.
Anticipates poll results, rural spending recovery, and the wedding season to drive demand.
Projects corporate earnings to grow by 9% in the second half of the fiscal year compared to flat growth in the first half.
Notes that large-cap stocks are trading at reasonable valuations, while mid-cap and small-cap stocks remain expensive.

JM Financial on India Strategy

Notes that BJP and allies secured a landslide victory in Maharashtra.
Attributes the victory partly to the "Ladki Bahin" initiative, among other factors.
Believes markets could react positively to the results in Maharashtra and Uttar Pradesh.
Expresses concerns about the impact of state-level freebies on fiscal health.