Recent stock updates reflect divergent views across financials and specialty chemicals. While Motilal Oswal is cautious on Bajaj Finance due to MSME headwinds and limited valuation upside, it acknowledges the company’s stable core performance and strong return metrics.
In contrast, Antique is upbeat on Canara Bank, citing strong other income and sustained return ratios, leading it to raise earnings estimates and the target price.
Meanwhile, Nuvama sees tailwinds for SRF, supported by a capex revival and continued strength in its specialty chemicals business, prompting a higher target price and a positive growth outlook.
Brokerage Recommendations Snapshot
Motilal Oswal on Bajaj Finance: Neutral | Target Price: Rs 1,000
Motilal Oswal has maintained a ‘Neutral’ rating on Bajaj Finance with a target of Rs 1,000. The brokerage noted that while the company’s core performance remains steady, challenges in the MSME segment persist.
Credit costs are expected to stay below the guided upper limit, offering some comfort. PAT estimates for FY26 and FY27 remain largely unchanged. The firm projects a 24% CAGR in AUM and a 25% CAGR in PAT over FY25–27, with estimated RoA of ~4.1% and RoE of ~21% by FY27.
Antique on Canara Bank: Buy | Target Price: Rs 140 (from Rs 135) | LTP: Rs 113 | Upside: 23%
Antique has reiterated a ‘Buy’ rating on Canara Bank, raising its target to Rs 140, implying a 23% upside from the current market price of Rs 113.
Despite a miss on Net Interest Income (NII), the bank delivered a PAT beat, driven by strong other income. RoA remains above 1% and is expected to sustain in FY26–27. Antique revised its earnings estimates upward by 11% for FY26 and 3% for FY27.
Nuvama on SRF: Buy | Target Price: Rs 3,622 (from Rs 3,393) | LTP: Rs 3,144 | Upside: 15%
Nuvama has reaffirmed a ‘Buy’ rating on SRF and raised its target price to Rs 3,622, indicating a 15% upside.
The bullish outlook is supported by signs of a capex revival and strong performance in specialty chemicals. The BOPP segment also remains strategically important. SRF has planned capex of Rs 2,400–2,500 crore for FY26E and maintains a 20% growth guidance for its chemicals business amid improving demand sentiment.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of The Economic Times)
