1 Tata Group, 1 SBI Group & 1 Maharatna PSU Stock To BUY/SELL/ACCUMULATE This Week

The Nifty 50 and Sensex hit new all-time highs during the previous week as they maintained their upward trajectory for a second straight week. Momentum was also demonstrated by the Bank Nifty index, which took 11 weeks to hit a record record high of 54,066.10. In the meanwhile, the Sensex and Nifty 50 reached record highs of 84,694.46 and 25,849.25, respectively, and ended the week at 84,544.31 and 25,790.95, respectively. The U.S. Federal Reserve's move to reduce its key benchmark rate for the first time in four years contributed to driving this upward trend in the domestic market despite cautious buying activity seen by FIIs & DIIs. As the September F&O expiry draws near, traders should remain conscious and prepared in response to market movements. That being said, amid upcoming US macroeconomic data, top Indian broking firms have chosen SBI Cards, Tata Motors, and GAIL (India) to buy, sell or accumulate this week.

SBI Cards Share Price Target

"Amid rising hopes of a policy rate cut in CY25, we believe SBI Cards with its fixed rate asset portfolio and higher share of borrowings maturing in less than 1 year, could benefit on the margins front which has stabilized after a prolonged contraction cycle. However, asset quality has deteriorated meaningfully with GNPA/Stage 2 pool already rising to 3.1%/6.2% of loans in 1QFY25 from 2.4%/5.3% a year ago. Our industry level channel checks suggest that the overall stress build-up in the card business remains elevated, which coupled with the regulatory salvo on unsecured loans could hurt business growth," Emkay Research said.

"This has already reflected in SBIC's slower card acquisition (less than 1mn in 1Q) and thus the continued loss in CIF/spend market share. Factoring slower growth and higher charge off amid rising NPAs, we expect SBIC to report sub-optimal RoAs at 3.6-4%. Given the lower Tier I capital (16.8%) following the increase in RWA by RBI, SBIC also needs to raise capital sooner than later. We reiterate REDUCE on the stock with a TP of Rs700/share, implying 3.7x Sep-26E ABV," said the research analysts of Emkay Research.

Tata Motors Share Price Target

"We upgrade TTMT to BUY from Add, keeping our SoTP-based TP unchanged at Rs1,175/sh (incl. roll-over to Sep-26E). TTMT stock price has corrected 16% from its peak, amid outlook downgrade at peer BMW (incl. due to muted China demand), and slowness in domestic CVs/PVs (incl. rising discounts/price cuts). We highlight that: i) for JLR, China is a relatively smaller market (~24% vs ~32% for BMW), while profitability and debt outlook are largely intact; ii) India CV outlook is improving, with margins likely to see strong increase led by healthy fleet operator profitability, sustained pricing discipline; iii) new launches, lower inventory would help outperformance vs a weak PV industry. TTMT's B/S is healthier now, with valuations least demanding among OEMs. We trim FY26E/27E EPS by ~2.5% (5%/11% revenue/PBT CAGR)," recommended research analysts of Emkay Research.

GAIL Share Price Target

"Our BUY recommendation for GAIL with a target price of INR 260 is based on (1) an increase in gas transmission volume to 144mmscmd by FY26E (two-year CAGR of 9%), supported by completion of major pipelines in eastern and southern India and stabilising LNG prices, (2) continued robust profitability in the gas trading segment, and (3) expectation of improvement in earnings from the petchem segment. At the current price, GAIL is trading at 11.6x Mar-26E EPS, only 1% premium to its five-year average despite the stronger volume growth outlook in its core business of gas transmission. Adjusting for the value of its investments, we estimate the GAIL stock is trading at an inexpensive 8.8X FY26E earnings. We reiterate our BUY rating on GAIL with a revised target price of INR 260/sh," said HDFC Securities in a note.

"Our revised SOTP of INR 260/sh (from INR 248/sh) is based on 12x Mar-26E EV/EBITDA for the natural gas, LPG transmission and domestic gas marketing business (because of improving visibility on strong transmission volume growth), 4x EV/EBITDA for non-domestic gas marketing business, 6x EV/e for the petchem and LPG/LHC businesses, and INR 51 for investments. The stock is currently trading at 11.6x Mar-26E EPS and 8.9x EV/EBITDA," the brokerage further added.

"GAIL is currently trading at ~8.9x FY26E EV/EBITDA and ~11.6x FY26E PE. The company's focus on capacity expansion, commissioning of key pipelines and high entry barriers opens avenues for stronger growth prospects. Additionally, despite aggressive capex plans over the next 2-3 years, we expect the company's net D/E to remain at comfortable levels. We reiterate a BUY rating with a revised target price of INR 260. Growth in gas transmission volumes, improving petchem EBITDA, and the rise in CGD volumes remain the key upside drivers," the research analysts of HDFC Securities recommended.

Nifty Prediction

"Nifty has been consistently hitting fresh all-time highs for the past two weeks and gave a strong closing at 25,790.95, forming a strong bullish candle on the weekly charts. This indicates robust buying interest, with bulls firmly in control. The momentum is likely to continue, with Nifty potentially advancing towards 26,200. Immediate support is seen at 25,500, with a cushion at 25,200, which remains a key level to watch," said Ms. Palka Arora Chopra, Director of Master Capital Services Ltd.

Bank Nifty Prediction

"The Nifty Bank Index reached a fresh all-time high of 54,066.10, forming a strong bullish candle on the weekly charts and closing above previous highs. This signals fresh momentum, primarily driven by private-sector banks. The index will likely continue its upward trajectory toward 55,000, with minor resistance at 54,300. On the downside, immediate support is at 53,200, and a breakdown below this level could push the index toward 52,500," predicted Ms. Palka Arora Chopra.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.