Brokerages express a broadly constructive outlook on Indian banks, consumer goods, and defence stocks after recent quarterly results reinforce sector confidence, with some analysts highlighting resilient growth and strategic opportunities.
Brokerages on Tuesday took a broadly constructive view of several Indian names across banking, consumer goods, retail, defence and internet commerce, with the latest quarterly business updates from lenders helping to reinforce optimism about the sector.
Goldman Sachs kept a positive stance on Axis Bank, saying strong fee-related inflows helped the lender repay expensive deposits and that loan growth remained steady. The bank’s recent results appear to support that tone: Axis Bank reported a 10% rise in net profit to ₹5,864 crore for the quarter, alongside 19% growth in net interest income and a net interest margin of 4.11%. Asset quality also improved, with gross bad loans and net bad loans falling further, a combination that has helped reassure analysts about the direction of the franchise.
Kotak Mahindra Bank also drew upbeat commentary. Goldman Sachs lifted its target price on the lender, citing stronger-than-expected loan growth and healthy deposit mobilisation, while Citi pointed to advances rising nearly 25% from a year earlier and said the momentum in corporate banking, SME, loan-against-property and microfinance had lifted balance-sheet growth. Bernstein, meanwhile, said HDFC Bank’s leadership transition appeared to be on track and argued that a period of greater management stability could ease governance concerns.
Outside banking, analysts remained selective. Goldman Sachs stayed bullish on Godrej Consumer, saying the company delivered strong revenue growth despite cost pressures. JPMorgan said Marico was one of the better-positioned staples names, pointing to double-digit domestic volume growth and a likely mid-20s rise in EBITDA. Trent, however, split opinion: Citi stayed cautious, warning about weaker sales per square foot and competitive pressure, while Morgan Stanley was more positive after a stronger-than-expected revenue performance. In defence, Kotak Securities upgraded Bharat Electronics to Add, highlighting a strong order pipeline that includes major programmes such as AMCA, Project Kusha and P75I/NGC, though it also flagged execution and margin risks further out.
Among other calls, Goldman Sachs maintained a neutral view on IDFC First Bank and RBL Bank, saying both still face valuation and profitability questions despite improving trends. Jefferies said non-banking financial companies remain attractive in risk-reward terms, but warned that rate-hike worries have weighed on valuations and that asset quality and monsoon trends deserve close attention. On the internet commerce side, Jefferies turned constructive on Meesho, citing management’s longer-term growth ambitions and better logistics efficiency as support for sustained profitable expansion.
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