Stocks to watch on brokerages today, July 3: Bajaj Finance, Marico, Bank of Baroda, Tata Consumer, Avenue Supermarts, PNB, HUL and more

Several domestic and global brokerage firms have released fresh views on companies across banking, financial services, FMCG, retail, and oil marketing sectors following business updates and quarterly expectations.

Among the key stocks in focus are Bajaj Finance, Marico, Bank of Baroda, Tata Consumer, Avenue Supermarts (DMart), Punjab National Bank (PNB), Hindustan Unilever (HUL), Titan, Bajaj Housing Finance, M&M Finance, Vishal Mega Mart, Jubilant FoodWorksand oil marketing companies.

Citi on Oil Marketing Companies (OMCs)

Citi said the national service obligation borne by oil marketing companies is likely to be reflected in their Q1 FY27 earnings. The brokerage estimates a combined net loss of more than Rs 30,000 crorewhich could result in a 7-15% erosion in net worth.

It believes the government may continue with a pause in excise duty changes and retail fuel price revisions, similar to previous periods, allowing OMCs to recover losses over time. Citi said the sector offers a favourable risk-reward profile over the coming months.

Citi on Consumer Sector

Citi expects Indian consumer staples companies to post another quarter of improving performance in Q1 despite recent pricing actions.

The brokerage expects volume growth to remain resilient even after 2-5% price hikeswhile easing commodity costs could reduce the need for further price increases in the coming quarters.

Preferred picks:

• Tata Consumer
• Godrej Consumer Products
• Britannia Industries

Less preferred:

• ITC
• Colgate-Palmolive India
• United Breweries

Citi on Bank of Baroda

Citi maintained a Buy rating on Bank of Baroda with a target price of Rs 340.

The brokerage noted seasonal contraction in advances and deposits during Q1 and highlighted the settlement related to NMC Holding. It expects the bank may record an additional impact from the settlement in Q1 FY27 and forecasts return on assets to remain below 1% amid moderation in net interest margins and treasury gains.

Morgan Stanley on Marico

Morgan Stanley maintained an Overweight rating on Marico with a target price of Rs 934.

The brokerage expects better-than-anticipated revenue growth in Q1 and said management remains optimistic on consumption trends. EBITDA growth, inflation, and the impact of the monsoon remain key factors to monitor.

Morgan Stanley on Bank of India

Morgan Stanley maintained an Underweight rating on Bank of India with a target price of Rs 115while noting strong balance sheet growth in the initial Q1 update.

Morgan Stanley on HUL

Morgan Stanley maintained an Equal-weight rating on Hindustan Unilever (HUL) with a target price of Rs 2,480.

The brokerage expects Q1 top-line growth to be stronger than anticipated, supported by pricing actions taken to offset inflation.

Morgan Stanley on Tata Consumer

Morgan Stanley maintained an Overweight rating on Tata Consumer Products with a target price of Rs 1,351.

The brokerage expects India business growth to remain steady, forecasting 12% revenue growth in Q1 and EBITDA margins of 13.9%.

Morgan Stanley on Titan

Morgan Stanley maintained an Overweight rating on Titan with a target price of Rs 5,182.

It expects strong jewellery revenue growth in Q1, driven by domestic brands including Tanishq, Miaand Zoyasupported by higher gold prices.

Morgan Stanley on Britannia

Morgan Stanley maintained an Equal-weight rating on Britannia Industries with a target price of Rs 5,848.

The brokerage expects sequential improvement in Q1 performance but said dual pricing in the market may continue to affect growth trends.

Citi on Bajaj Housing Finance

Citi maintained a Sell rating on Bajaj Housing Finance with a target price of Rs 88.

The brokerage noted AUM growth of 24.2% year-on-year but said portfolio yields may remain under pressure because of lower acquisition pricing.

Citi on Punjab National Bank (PNB)

Citi maintained a Sell rating on Punjab National Bank (PNB) with a target price of Rs 103.

The brokerage noted loan and deposit growth below the banking system average and expects return on assets to remain around 0.8-0.85% during Q1.

Citi on Bajaj Finance

Citi maintained a Buy rating on Bajaj Finance with a target price of Rs 1,120.

It highlighted AUM growth of 23.9% year-on-year and sequential improvement in customer additions and loan growth.

Avenue Supermarts (DMart): Mixed Brokerage Views

Brokerages issued differing opinions after the company’s Q1 business update.

• Citi: Maintain Selltarget price Rs 3,650citing concerns over same-store sales growth and competition from quick commerce.
• Morgan Stanley: Maintain Overweighttarget price Rs 5,083while noting weaker-than-expected revenue growth.
• Macquarie: Maintain Underperformtarget price Rs 3,100citing slower sales growth and store additions.
• Goldman Sachs: Maintain Selltarget price Rs 4,000highlighting slower revenue growth.
• HSBC: Maintain Reducetarget price Rs 3,870after revenue growth missed estimates.
• UBS: Maintain Buytarget price Rs 5,500although it described the quarter as weaker than expected.

Lens card

Morgan Stanley maintained an Overweight rating on Lens card with a target price of Rs 576expecting continued revenue growth and improvement in EBITDA margins.

Marico Receives Broad Brokerage Support

Several brokerages retained positive ratings on Marico after its Q1 update.

• JPMorgan: Overweight, target price Rs 900
• Macquarie: Outperform, target price Rs 890
• Goldman Sachs: Buy, target price Rs 900
• HSBC: Buy, raised target price to Rs 1,000 from Rs 950

Brokerages highlighted stronger volume growth, improving EBITDA outlook, and continued momentum across core and diversified product portfolios.

M&M Finance

Brokerages maintained mixed views on Mahindra & Mahindra Financial Services (M&M Finance).

• Morgan Stanley: Equal-weight, target price Rs 325
• Citi: Buy, target price Rs 380
• Jefferies: Hold, target price Rs 325

While Citi pointed to improving disbursements and stable asset quality, other brokerages remained cautious about overall earnings outlook.

Vishal Mega Mart

Morgan Stanley maintained an Overweight rating on Vishal Mega Mart with a target price of Rs 146expecting continued revenue growth, double-digit same-store sales growth, and easing margin pressures from lower crude prices.

UBS and Morgan Stanley on PNB

• UBS: Neutral, target price Rs 122
• Morgan Stanley: Underweight, target price Rs 88

Both brokerages noted that loan and deposit growth remained below the broader banking system’s pace.

Morgan Stanley on Jubilant FoodWorks

Morgan Stanley maintained an Equal-weight rating on Jubilant FoodWorks with a target price of Rs 486.

The brokerage expects sequential improvement in growth but believes near-term catalysts remain limited.

Jefferies on Bajaj Finance

Jefferies maintained a Buy rating on Bajaj Finance with a target price of Rs 1,210.

The brokerage highlighted the company’s strongest quarterly AUM growth in four quarters, supported by healthy core lending trends and stronger demand for consumer durable loans.