Hot Stocks: Axis Capital upgrades Infosys; Investec reiterates sell on Wipro

Brokerage firm Investec reiterates its cautious stance on Wipro, citing limited downside but potential capital allocation improvements, Axis Capital upgrades Infosys, driven by growth stability and efficiency gains.

Meanwhile, Goldman Sachs maintains a bearish outlook on D-Mart, pointing to rising competitive pressures and limitations in market penetration.

We have collated a list of recommendations from top brokerage firms from ETNow and other sources:

Investec on Wipro: Reiterate Sell| Target Rs 290| LTP Rs 307| Downside 5%

Investec has reiterated its "Sell" rating on Wipro, setting a target price of Rs 290, which reflects a downside of approximately 5% from the current market price of Rs 307.

The brokerage anticipates an improved capital allocation strategy and enhanced shareholder payouts from the company.

Given that Wipro holds a significant cash reserve of $6.1 billion, Investec believes that the company’s new capital allocation policy is likely to align with industry peers.

While the stock may face limited downsides from its current levels, the emphasis remains on the potential benefits of the revised policy framework.

Axis Capital on Infosys: Upgrade Infosys to ADD| Target Rs 2,050| LTP Rs 1948| Upside 5%

Axis Capital has upgraded Infosys to "ADD" from "REDUCE" and revised the target price to Rs 2,050, up from Rs 1,790, indicating an upside potential of 5% from the current market price of Rs 1,948.

The brokerage believes Infosys is poised to regain its Tier 1 growth mantle by FY26. It has raised the target Price-to-Earnings Ratio (PER) to 26x, up from the previous 23x.

The company's margins have shown stability, despite the ramp-up of large deals, driven by execution-related efficiencies under Project Maximus.

Goldman Sachs on D-Mart: Sell| Target Rs 3,425| LTP Rs 3816| Downside 10%

Goldman Sachs has maintained its "Sell" rating on D-Mart, lowering the target price to Rs 3,425 from Rs 4,000, reflecting a downside of 10% from the current market price of Rs 3,816.

The brokerage highlights that D-Mart's competitive moat is under increasing pressure, leading to a downward revision of earnings estimates for FY25, FY26, and FY27 by 4.2%, 6.2%, and 6.1%, respectively.

Additionally, the price discount offered by D-Mart on a basket of grocery products has widened from approximately 15% over MRP in July 2024 to around 25% over MRP in December 2024.

Goldman Sachs also notes that D-Mart lacks a competitive advantage in the fresh food category in urban areas and faces limitations in addressing large segments of India's grocery market.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)