Cummins Inc.

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Somewhat Bullish +35

Stock Picks Today: Infosys, Delhivery, Sagility, Bharat Electronics And More On Brokerages' Radar

AI-generated analysis

πŸ“ˆ Global brokerages are updating their views on Indian equities including L&T, Infosys, Delhivery, and the capital goods sector amidst macro risk assessments.

⚠️ Jefferies warns that a month of no Middle East work could reduce L&T's annual EPS by 6-8% due to currency volatility and AI concerns.

🏭 NTPC and JSW Energy are favored for upside potential driven by power demand revival and strong execution.

πŸ’» Citi maintains a Neutral rating on Infosys with a target price of Rs 1,395 following its acquisition of Optimum Healthcare IT and Stratus.

πŸ’° Analysts estimate the acquisitions could add approximately 1.6% to Infosys's annual revenue but warn of integration risks.

πŸ”’ MS expects InfoSys's deals to be neutral or slightly dilutive to earnings with a target price of Rs 1,760.

🟒 Nomura retains a Buy rating on Infosys citing that $560 million in acquisitions could boost FY27 revenue growth by ~225 basis points.

⚠️ Citi cautions the IT sector against rising macro headwinds into early FY27 with expected subdued growth for the fourth consecutive year.

🏦 Jefferies sees improving Q4 trends in banks but notes prolonged conflict could impact net interest margins and asset quality.

πŸ”§ Sagility is recommended as a Buy by both Jefferies and Nomura due to structural demand from US healthcare payers and AI-led workflows.

πŸ’‰ Pharma analysts highlight that GLP-1 launches are accelerating with over 40 brands expected, favoring established players like Sun Pharma and Lupin.

πŸ“‰ GS India has downgraded the broader market strategy to Market-weight due to higher energy prices weakening the macro outlook.

⚑ UBS maintains a Buy on Delhivery as headwinds recede and focus shifts to profitable growth with limited funding competition.

πŸ›οΈ Consumer durables are expected to see second-round price hikes from April, with strong summer demand critical for sustaining growth.

🎯 Kotak India Strategy has added mid-cap picks like Coforge and Eureka Forbes while reducing weight on Reliance in its portfolio.

🌏 Jefferies adjusted its Greed & Fear portfolio by introducing HSBC weightings and removing HDFC Bank exposure.

Bullish Signals
  • Nomura maintains a Buy rating on Infosys with a target price of Rs 1,810, highlighting that $560 million in acquisitions could add ~225 bps to FY27 revenue growth and strengthen capabilities in life sciences and healthcare.
  • Citi's target price for Infosys is set at Rs 1,395 following the acquisition of Optimum Healthcare IT and Stratus, which may add ~1.6% to revenues annually through increased M&A activity.
  • Jefferies maintains a Buy rating on Sagility with a target price of Rs 53, confident of sustaining double-digit growth driven by US payer pressure, AI-led workflow solutions, and outcome-based pricing.
  • Nomura projects an ~20% EPS CAGR for Sagility over FY26–28 based on structural demand from US healthcare payers and strong execution.
  • Citi identifies L&T Technology Services' divestment of SWC as positive for margins and reducing revenue volatility, with the market cap adding ~1.5–2% post-exit.
  • UBS maintains a Buy rating on Delhivery with a target price of Rs 600, noting that headwinds are largely behind and focus is shifting to profitable growth with margin expansion potential in the part-truckload segment.
  • Jefferies highlights favorable risk-reward in banks with Nifty Bank valuations near lows, while Q4 trends are expected to improve with stable results despite prolonged conflict risks.
  • Nomura expects a second round of price hikes of 7–12% on consumer durables from April, allowing companies to pass on cost inflation gradually while sustaining growth through strong summer demand.
Risk Factors
  • Infosys faces significant integration risks due to the mixed historical track record of Indian IT firms in managing M&A activities, with acquisitions expected to add 1.6% to revenue but potentially dilute earnings.
  • Analysts project only a slow and uneven recovery for the IT sector into early FY27, with Q4FY26 revenue growth estimated at -1% to +1% quarter-on-quarter due to rising macro headwinds.
  • L&T Technology Services' SWC business underperformed expectations and dragged on margins, though the divestment is expected to be neutral on overall EPS after a haircut.
  • Jefferies warns that prolonged conflicts could negatively impact bank Net Interest Margins (NIMs), growth, and asset quality within the banking sector.
  • GS India has downgraded India to Market-weight due to higher-for-longer energy prices weakening the macro outlook, cutting earnings growth forecasts by 9 percentage points over two years.
  • Supply shortages are visible in the pharma GLP-1 theme despite high demand for Semaglutide, with strict prescribing norms favoring only established players.
  • Delhivery faces margin expansion potential but remains constrained by limited competition due to funding constraints, indicating potential liquidity headwinds.
  • Consumer durable growth is contingent on seasonal strength following price hikes of 7–12% expected from April, creating vulnerability to demand fluctuations.
Full Analysis
Top brokerages have released fresh investment views on a range of Indian equities, highlighting Infosys, Delhivery, Sagility, and L&T as key stocks under scrutiny. Analysts are closely assessing macro risks, artificial intelligence trends, and evolving earnings dynamics. Regarding capital goods, Jefferies notes that one month of no work in the Middle East could impact Larsen & Toubro's (L&T) annual EPS by 6–8 percent, though they expect power demand revival to drive upside for NTPC and JSW Energy. In the energy transition sector, margin expansion is expected to support growth for Siemens Energy and Hitachi Energy, while Cummins sees visible 21 percent earnings per share compound annual growth rate (CAGR) over fiscal years 2025–28. In the technology space, multiple brokerage views on Infosys are presented. Citi maintains a neutral stance with a target price of Rs 1,395, anticipating that acquisitions of Optimum Healthcare IT and Stratus could add approximately 1.6 percent to annual revenues but noting integration risks. Morgan Stanley (MS) holds an equal-weight rating with a target price of Rs 1,760, estimating the deal contributes roughly 1.2 percent of FY27 revenues, while Nomura maintains a Buy rating with a target price of Rs 1,810, citing that acquisitions worth $560 million could add about 225 basis points to FY27 revenue growth. MS also highlights Infosys and HCL Tech as preferred large-cap IT picks amid risks of macro headwinds rising into early fiscal year 2027. Brokerage recommendations extend to Sagility, where Jefferies maintains a Buy rating with a target price of Rs 53 and Nomura echoes this with a target price of Rs 55, both expecting structural demand from US healthcare payers to support growth. Sagility's analysts predict an earnings per share CAGR of roughly 20 percent over FY26–28. For L&T Technology Services, MS maintains an equal-weight rating with a target price of Rs 4,420 following the divestment of the SWC business, which is seen as slightly positive for market cap, while JPMorgan holds a neutral view with a target price of Rs 3,500. GS India downgraded its strategy on India to market-weight, citing higher-for-longer energy prices and lowered the Nifty 12-month target to 25,900, while Jefferies updated its Greed & Fear portfolio by introducing HSBC with 4 percent weight and removing HDFC Bank.