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Stocks to watch on brokerages today: Bharti Airtel, Polycab, Chola, SFBs in focus as RBI and Accenture updates drive sentiment
By News Desk Published on June 23, 2025, 08:25 IST
Brokerages issued fresh insights across sectors on June 23, placing spotlight on financials, IT, telecom, and select FMCG names. Here's a look at the top commentary:
Small Finance Banks (SFBs): RBI tweak seen as structural positive
Morgan Stanley and Citi both highlighted the Reserve Bank of India's revision in Priority Sector Lending (PSL) norms for Small Finance Banks (SFBs), effective FY26. The central bank reduced the PSL target to 60% of Adjusted Net Bank Credit (ANBC) or Credit Equivalent of Off-Balance Sheet Exposure (CEOBE), whichever is higher. Morgan Stanley called the move a 'structural positive' that boosts long-term growth potential and portfolio flexibility. Citi noted this relaxation will help SFBs diversify and scale non-PSL portfolios, especially those less reliant on the microfinance segment.
IT Sector: Accenture results prompt mixed read-through
HSBC flagged Accenture's Q3FY25 slowdown as a modest negative read for Indian IT, citing a YoY 7% drop in deal wins and tighter full-year growth guidance of 6–7%. In contrast, CLSA maintained a constructive view, noting Accenture's market share gains in Gen AI, cloud, and digital. CLSA reiterated a bullish stance on Indian IT, with Infosys, Tech Mahindra, and Persistent Systems as top picks.
Jefferies upbeat on Bharti Airtel, Chola, Kfin Tech, Polycab Bharti Airtel : Jefferies maintained a Buy rating with a target of ₹2,350 per share, citing a strong growth runway, low competition, and the potential for valuation rerating.
Cholamandalam Investment : Despite short-term weakness, Jefferies sees a buying opportunity, forecasting expanding NIMs, flat credit costs, and improving profitability metrics over FY25–27. Target retained at ₹1,800.
Kfin Technologies : The brokerage expects 20% profit CAGR driven by synergies from the Assent acquisition, targeting global leadership in RTA-FA services. Target price is ₹1,460.
Polycab India: With a Buy call and ₹7,150 TP, Jefferies noted strong execution—26% EPS CAGR expected over FY25–28, backed by robust order book and improving FMEG margins.
UBS on Colgate: Buy maintained despite near-term softness
UBS maintained a Buy on Colgate-Palmolive with a ₹3,000 target. The brokerage said cyclical weakness offers a good entry point, adding that the structural growth story remains intact with high single-digit potential. The stock currently trades at 39x FY27 PE.
Nomura on autos: New ABS rule could dent 2W demand
Nomura flagged the government's new rule mandating ABS for all two-wheelers could impact demand by 2–4%. A price hike of ₹3,000 is likely, potentially hurting sales for companies like Hero MotoCorp, which could be most affected.
Disclaimer: The views and recommendations expressed above are those of the respective brokerage firms. They do not represent the views of this publication and are not investment advice. Investors are advised to consult with certified financial advisors before making any investment decisions.
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