Synopsis:
Aditya Birla Fashion & Retail Ltd, SBI Cards & Payment Services Ltd, and HCL Technologies Ltd are in focus after Morgan Stanley maintained target prices with Overweight, Underweight, and Equal-weight ratings respectively.
One of the leading brokerage firms, Morgan Stanley has given a new target price for stocks, reflecting its latest market outlook and sector analysis. This highlights the firm’s belief that companies have strong growth potential, driven by factors such as industry trends, technological advancements, and improving fundamentals, offering investors insights into potential opportunities.
Following are the list of stocks with new target price
1. Aditya Birla Fashion & Retail Ltd
Morgan Stanley has maintained its ‘Overweight’ rating on the stock with the target price of Rs. 131, with an upside of 43.59 percent from CMP of Rs. 91.23. Morgan Stanley stays positive on AB Fashion, believing the worst of Pantaloons’ performance is over.
They expect the company’s profitability to improve first, followed by growth, and foresee ABFRL becoming EBITDA positive (after rent) by FY28. They also see potential for a valuation increase with limited risk of downside.
With the market capitalization of Rs. 11,132.49 crore, the shares of Aditya Birla Fashion & Retail Ltd are trading at Rs. 91.23, down by 0.84 percent from its previous day’s close price of Rs. 92 per equity share.
Aditya Birla Fashion and Retail Limited, based in Mumbai, is an Indian fashion company that manufactures, distributes, and retails apparel, accessories, footwear, and home products. It operates mainly under Pantaloons and Ethnic & Others segments, offering a wide range of clothing including casual, formal, party, ethnic, athleisure, and sportswear, along with accessories and home textiles.
Its brands include Louis Philippe, Van Heusen, Allen Solly, Peter England, luxury labels like Ralph Lauren and Ted Baker, and ethnic brands like Sabyasachi and Tarun Tahiliani. Incorporated in 2007, it was formerly known as Pantaloons Fashion & Retail Limited and was renamed in 2016.
In Q1FY26, the company reported revenue of Rs. 1,831 cr, up 9.4 percent YoY from Rs. 1,674 cr in Q1FY25 and 6.5 percent QoQ from Rs. 1,719 cr in Q4FY25. However, it posted a net loss of Rs. 234 cr, higher than the Rs. 215 cr loss in Q1FY25 and significantly worse than the Rs. 24 cr loss in Q4FY25, indicating rising costs or margin pressures despite revenue growth.
2. SBI Cards & Payment Services Ltd
Morgan Stanley has maintained its ‘underweight’ rating on the stock with the target price of Rs. 710, with a downside of 19.46 percent from CMP of Rs. 881.60.Morgan Stanley maintains an underweight rating on SBI Cards.
In August 2025, SBI Card’s spending market share rose 50 bps MoM to 17.3 percent, while its credit cards remained steady at 19 percent. Monthly spending for SBI Cards increased 1.6 percent, compared with a 1.4 percent decline for the overall industry. The company could benefit from a rebound in corporate spending, which had fallen sharply last year due to regulatory changes.
With the market capitalization of Rs. 83,888.15 crore, the shares of SBI Cards & Payment Services Ltd is trading at Rs. 881.60, up by 1.32 percent from its previous day’s close price of Rs. 870.10 per equity share.
SBI Cards and Payment Services Limited, based in Gurugram, is a non-banking financial institution and a subsidiary of the State Bank of India that issues credit cards to both individual and corporate clients in India. Its products include corporate cards, travel cards, utility cards, purchase cards, and virtual cards, and it also provides insurance policies to its credit card customers. The company was established in 1998.
At the moment, the company’s P/E ratio is 44.5x higher as compared to its industry P/E 23.1x, and its ROE and ROCE are 14.8 percent and 10.4 percent respectively, and the D/E ratio of 3.26, indicates the company’s financial performance.
In Q1FY26, the company reported revenue of Rs. 4,877 cr, up 12 percent YoY from Rs. 4,359 cr in Q1FY25 and 4.4 percent QoQ from Rs. 4,674 cr in Q4FY25. Profit stood at Rs. 556 cr, down 6.4 percent YoY from Rs. 594 cr but up 4.1 percent QoQ from Rs. 534 cr, indicating healthy top-line growth despite a slight decline in yearly profitability.
Also read: IT stock jumps 8% after receiving ₹128 Cr orders for cloud based security solution
3. HCL Technologies Ltd
Morgan Stanley has maintained its ‘equal-weight’ rating on the stock with the target price of Rs. 1,680, with an upside of 16.38 percent from CMP of Rs. 1,443.50.Morgan Stanley maintains an equal-weight rating on HCL Tech.
The company announced a large deal win, after previously indicating that a few large deals would slip into Q2. This deal should boost confidence in Q2 total contract value (TCV) numbers. Management’s reaffirmation of its ability to retain scope in large deal renewals despite using AI platforms indicates an improvement in market share.
With the market capitalization of Rs. 3,91,717.56 crore, the shares of HCL Technologies Ltd is trading at Rs. 1,443.50, up by 0.96 percent from its previous day’s close price of Rs. 1,429.80 per equity share.
HCL Technologies Limited, founded in 1976 and based in Noida, India, provides IT and business services, engineering and R&D services, and software products. Its offerings include application development and management, digital and intelligent automation, data and AI services, cybersecurity, cloud and digital engineering, 5G and semiconductor solutions, and enterprise IT services. HCL also delivers solutions for supply chain, manufacturing, HR, finance, marketing, and customer experience, along with learning platforms like HCLTech Career Shaper. The company operates through IT & Business Services, Engineering & R&D Services, and HCL Software segments.
At the moment, the company’s P/E ratio is 22.9x lower as compared to its industry P/E 30x, and its ROE and ROCE are 25 percent and 31.6 percent respectively, and the D/E ratio of 0.09, indicates the company’s financial performance.
In Q1FY26, the company reported revenue of Rs. 30,349 cr, up 8.2 percent YoY from Rs. 28,057 cr in Q1FY25 and slightly higher than Q4FY25’s Rs. 30,246 cr, indicating stable sequential growth. Profit, however, declined to Rs. 3,844 cr, down 9.8 percent YoY from Rs. 4,259 cr and 10.8 percent QoQ from Rs. 4,309 cr, reflecting pressure on margins despite higher revenue.
Written by Akshay Sanghavi
In Shorts:- Morgan Stanley has maintained its Overweight, Underweight, and Equal-weight ratings on Aditya Birla Fashion & Retail Ltd, SBI Cards & Payment Services Ltd, and HCL Technologies Ltd, with target prices of Rs. 131, Rs. 710, and Rs. 1,680 respectively. The brokerage expects ABFRL to recover, SBI Cards to benefit from corporate spending, and HCL to maintain steady revenue with improving market share.
