Brokerage Views: Axis Bank, Wipro, Infosys Get Rating Calls Post Earnings; Manappuram Faces Downgrades

Brokerages have issued their ratings for Axis Bank, Infosys Ltd., Wipro Ltd. and Tata Chemicals Ltd. among others after they reported their September quarter earnings. Manappuram Finance Ltd. faces downgrades after the RBI imposed restrictions on subsidiary Asirvad Microfinance that could hurt earnings.

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 Friday.

Bernstein

• Maintain 'outperform' with price target of Rs 1,250, likely upside of 11%

• Good set of numbers but low quality beat.

• Sequential improvement in credit costs.

• Tight cost control and non interest income aided numbers.

• Weak loan growth.

• Slowdown in operational expenditure led to 1.8% return on assets.

Nuvama

• Maintain 'buy' with target price of Rs 1,335, implying a potential upside of 18% over the previous close.

• Low growth as well as liquidity coverage ratio.

• Asset quality and core net interest margin improved.

• Slippage declined and recoveries also improved.

• Values the lender at two times the fiscal 2026 price-to-book value.

Jefferies

• Downgrade stock to 'hold' with target price to Rs 167, a potential downside of 5.6%.

• RBI restrictions on subsidiary Asirvad Microfinance to hurt earnings.

• Asirvad accounts for 27% of consolidated assets under management.

• Parent may have to infuse capital if subsidiary’s net worth is eroded.

• Remedial measures and removal of restrictions could take six months.

• Cut earnings-per-share by 11-19% over the next three years.

Morgan Stanley

• Downgrade to 'equal weight' with target price of Rs 170, compared to Rs 262 earlier, potential downside of 4%.

• RBI embargo to hurt profit materially for longer.

• Short tenured loan book to shrink rapidly.

• Credit costs already elevated, funding costs could rise.

• Cut consolidated earnings forecasts by 20% for current year and 30% across fiscal 2026 and 2-27.

• Value at one time the FY27 standalone book value estimate.

JP Morgan

• Downgrade to 'underweight'.

• RBI bars fresh disbursement starting Oct 21.

• Likely to impact funding costs.

• Capital infusion required to be key risk.

• Could take six months like in the case of IIFL.

• Asirvad is 27% of Manappuram's book.

• Risk of asset impairment is higher in this book.

• Credit rating likely to get impacted.

Morgan Stanley

• Rated 'overweight' with target price of Rs 2,150, an upside of 9%.

• Double-digit sequential rise in the small deal could drive improvement in conversion of TCV to revenue.

• Net addition sequentially for first time in last six quarters supports expectations of continued volume growth.

• Second quarter revenue slightly missed expectations; stock correction possible.

• Constant currency revenue grew 3.1%, above consensus but below some estimates.

• Organic CC growth of 2.3% was strong compared to peers.

• EBIT margin fell short of estimates while FCF margin remains strong.

• Infosys revised this year's guidance from 0.7% to 0.3% QoQ; outlook may be conservative.

• Small deal pipeline shows double-digit growth, which may improve revenue conversion.

• Key concerns are -- weak large deal wins (TCV of $2.4 billion), limited discretionary spending outside financial services and deferred wage hikes may affect margins.

• EPS estimates for three years lowered by 2.5%-3.4%.

• Current year revenue growth estimate trimmed to 4.7%.

Bernstein

• Maintain 'outperform' with target price of Rs 2,270 from the earlier Rs 2,100, a potential upside 15%.

• Revenue was a beat, margins in line.

• Continue to see upcycle in largecaps.

• Infosys expected to be growth leader driven by improved macro and BFSI.

• The company maintained leadership with 2.3% sequential organic growth.

• It grew ahead of rivals TCS and HCLTech.

Macquarie

• Maintain 'outperform' with target price of Rs 670, a potential upside of 26%.

• Revenue and margins beat estimates, while profits in line.

• Large total contract value was highest won in a quarter.

• Revenue was broad based across clients.

• Would have hoped for better revenue guidance in December quarter given strong deal wins.

• Management attributed muted growth due to furloughs.

• Continue to expect an improvement in growth helped by improved competitiveness.

• Expects pickup in demand in calendar year 2025.

Bernstein

• Maintain 'underperform' with target price of Rs 460, likely downside of 13%.

• Guidance was underwhelming, revenue growth lagged peers and limited visibility of catchup.

• Reported in line quarter and total bookings were in line with large deals.

• Executed well on margins.

• Relative performance against large peers continues to be weak.

Kotak Securities

• Maintain 'sell' rating with target price of Rs 500 from Rs 460 earlier, a likely downside of 4.3%.

• Reported revenue towards upper end of guidance, slight beat on margins, healthy large deal TCV.

• Downbeat guidance for third quarter is disappointing.

• Is consistent underperformer in the past with several failed turnaround attempts.

• Current attempt has begun on a reasonable note amid demand headwinds, senior management attrition.

• Stay cautious on turnaround outcome, noting still subpar performance and risks involved.

• Expect more prudent capital allocation going forward, a positive.

• Rated 'underweight' with target price of Rs 881, a potential downside of 18%.

• Second quarter earnings in line but slightly below estimates.

• Indian margins suffered from adverse weather; US on target, Kenya exceeded expectations.

• Basic chemistry Ebitda per ton fell 10% sequentially.

• Rising Chinese production may limit margin growth despite balanced market.

• Weather issues cut Mithapur output by 30,000 tons of soda ash and 40,000 tons of salt.

• Weak container glass and lithium carbonate demand offset by strong solar glass; Indian demand stable.

Citi

• Maintain 'neutral' rating with target price of Rs 1,950, a potential 9% upside.

• Trim three year EPS estimates by 3-10%,

• See margins and profitability pressure on account of relatively slow growth in Switchgear.

• Seek better entry point/valuation as current valuation of 65 times.

Jefferies

• Rate 'hold' with target price of Rs 1,870, a potential upside of 5%.

• Cut three year EPS estimates by 4-5%.

• Over next three years, pencil in sales and net profit CAGR of 14% and 19% respectively.

• Estimate operating profit margin revival to 10.9% by fiscal 2027 compared to 9.9% in the previous year, driven by better Lloyd profitability.