Top Brokerage Picks: HDFC Bank, ICICI Bank, Federal Bank and LTM Offer Up to 35%+ Upside
With markets swinging, brokerages are leaning towards banking stocks, while staying more cautious on IT.
Markets remain choppy, and investors keep asking the same question: where should the money go now? Several leading brokerages have issued fresh calls on select stocks. The picture is fairly clear. Banking stocks have more conviction, while IT calls come with a note of caution. Let’s go through them one by one.
HDFC Bank: Two brokerages see a buying opportunity in the dip
Two brokerages are bullish on the country’s largest private bank. PL Capital has a Buy rating with a target of ₹950, about 33.43% above the current price of around ₹712. Anand Rathi is more aggressive, with a target of ₹966, an upside of roughly 35.67%. The stock slipped about 2.31% after the bank’s Q2 results, in which net profit rose 4.7% year-on-year to ₹19,510 crore. Brokerages see the dip as an entry opportunity.
Anand Rathi has also added a caveat. Loan growth of 16.4% year-on-year trails rivals such as ICICI Bank, Axis Bank and Kotak Mahindra Bank, and margins and funding costs need watching. In short, valuations look attractive, but challenges remain.
ICICI Bank: Axis Direct’s top banking pick
Axis Direct has set a target of ₹1,865 on ICICI Bank, against a price of around ₹1,381. That works out to an upside of about 35.05%. The brokerage likes the bank’s core operating performance and strong margin profile, which it believes keep it ahead of sector peers.
Federal Bank: Steady run, 16% upside
Among midcap banks, Federal Bank has an Axis Securities (Axis Direct) Buy rating, with the target raised to ₹405 from ₹400. Against a price of around ₹349, that implies a potential gain of about 16.10%. The stock is in focus after Q2 results, with net profit up 45% year-on-year to ₹1,390 crore and bad loans at a decadal low.
IT: Caution on Tech Mahindra, confidence in LTM
IT calls carry a different tone. Deven Choksey has an ‘Accumulate’ rating on Tech Mahindra instead of a straight ‘Buy’, which means adding the stock gradually on dips. The stock trades at ₹1,779.10 and the target is ₹1,942, an upside of about 9.16%. The reason given is a slowdown in global IT spending.
Anand Rathi is more enthusiastic about LTM (LTIMindtree). It has a Buy rating with a target of ₹5,125, implying about 16.7% upside. AI revenue reached 13.4% of the mix in Q2, up 40% year-on-year, and management expects stronger growth in the second half of FY27 as deals ramp up. But order inflow softened to $1.26 billion from $1.68 billion in Q1, so the pace of acceleration still needs to be proven.
Anand Rathi Keeps Faith in LTM (LTI Mindtree); Targets Breakout Above ₹5,125
The picture at a glance
By target upside, HDFC Bank (up to 35.67%) and ICICI Bank (35.05%) lead, followed by LTM (about 16.7%) and Federal Bank (16.10%). Tech Mahindra has the least room, at about 9.16%.
What investors should keep in mind
First, target prices are brokerage estimates, not guarantees. They can change quickly if the market mood shifts. Second, share prices move every day, so the upside percentages will change too. Check the latest price before buying. Third, putting all your money in one sector can be risky, no matter how bullish brokerages are.
Disclaimer: This article is for informational purposes only and is not investment advice. Investing in the stock market is subject to risk. Please consult your financial advisor before investing in any stock.
