Today in the stock market, all eyes will be on IT, FMCG and wealth management stocks. Many big brokerage houses have released new reports on HCLTech, Persistent Systems, Nestlé, 360 One and Cyient DLM. HCLTech has suffered the biggest blow, as many brokerages have reduced their target prices for this stock. In contrast, confidence in Persistent Systems, Nestlé and 360 One appears to be intact. For investors, these reports may dictate the direction of trading activity today.
Why is concern increasing about HCLTech?
HSBC has maintained ‘Hold’ rating on HCLTech, but reduced its target price to ₹1,480 from ₹1,560. The brokerage said that the company’s fourth quarter performance was weak, due to which it became necessary to cut the growth guidance for FY 2027.
JP Morgan maintained ‘Neutral’ rating, but reduced its target price to ₹1,370 from ₹1,419. According to the report, the company’s revenue, margin and earnings per share (EPS) all remained below expectations. These results were impacted by budget cuts by US telecom companies and the cancellation of SAP projects.
Citi also issued a ‘Neutral’ call and set a target price of ₹1,385. The brokerage said the company’s deal bookings, revenue and outlook all fell short of expectations. As a result, the stock may remain under pressure in the near future.
However, Nomura has maintained its ‘Buy’ advisory but has reduced its target price to ₹1,600 from ₹1,700. CLSA gave an ‘Outperform’ rating, but acknowledged that the quarterly results were disappointing.
InCred has taken the most bearish stance; He downgraded HCLTech to ‘Reduce’ and cut its target price to ₹1,275 from ₹1,616.
Why trust persistent systems?
While on one hand HCLTech is clearly under pressure, on the other hand brokerage confidence in Persistent Systems remains strong. CLSA has maintained ‘Outperform’ call, and set a target price of ₹6,520. The firm says that despite difficulties like AI deflation and pressure in the SaaS sector, the company has performed stable.
HSBC has issued a ‘Hold’ call with a target price of ₹5,755. JP Morgan has given ‘overweight’ rating with a target of ₹5,900, and calls the company the fastest growing firm in the next three years.
Nomura has maintained ‘Neutral’ rating, and set a target price of ₹5,200.
Nestlé India surprised
Positive opinions have also emerged about FMCG giant Nestlé.
HSBC has issued a ‘Hold’ call with a target price of ₹1,410. The brokerage said the company’s revenue grew 23%, which was above expectations.
Nomura recommends ‘buy’ with a target price of ₹1,500. Volume growth remained strong, and operating margins improved despite increased advertising spend, according to the report.
Bullish trend on 360 ONE
There have also been good reports about wealth management firm 360 ONE.
Citi recommends ‘buy’ with a target price of ₹1,525. The company’s performance has been described as strong despite difficult market conditions.
Jefferies has also given ‘buy’ advice while setting a target price of ₹ 1,300. The firm said that the company’s earnings exceeded expectations.
What is your opinion on Cyient DLM?
JP Morgan has issued an ‘overweight’ call on Cyient DLM, with a target price of ₹400. Fourth-quarter results were mixed: While revenues declined, margins improved. Around 20% growth is estimated for financial year 2027.
What signal does this give to investors?
HCLTech may face some pressure in today’s trading session, while Persistent, Nestlé, 360 ONE and Cyient DLM may see an uptick in prices. It is clear from the brokerage report that the market is now paying less attention to the current results and more to the future growth story.