Morgan Stanley overweight rating: Global brokerage firm Morgan Stanley has given its positive stance on several Indian companies across technology, financial services, consumer goods and metals, maintaining its ‘Overweight’ ratings and setting fresh target prices while highlighting strong growth prospects and improving operational performance.
Morgan Stanley’s top stock picks: ‘Overweight’ rating for these 9 stocks
Created with AI. Errors are possible1. Morgan Stanley on Pine Labs Share Price
Maintain Target Price at Rs 186
Morgan Stanley maintained its ‘Overweight’ rating on Pine Labs with a target price of Rs 186.
The brokerage maintained that management has reiterated its revenue growth outlook with flow and transaction services expected to grow 25-30 per cent, prepaid and issuing at 25 per cent and in-store payments to grow 13-15 per cent.
The brokerage said the company’s international business which is at around 15 per cent of total revenues is growing at 40 per cent year on year. It further said the affordability segment is expanding into non-electronics categories and seen growing 60 per cent year on year from a small base.
Morgan Stanley highlighted a 500-basis-point expansion in adjusted EBITDA margins and a cash balance of Rs 24.5 billion as of Q4FY26. It also noted strengthening competitive moats in offline payments as several new entrants exit the market due to unsustainable economics.
Incremental EBITDA margin is seen at 55 per cent of incremental contribution profit, it added.
2. Morgan Stanley on Mphasis Share Price
Maintain Target Price at Rs 2,730
Morgan Stanley retained its overweight recommendation on Mphasis, maintaining a target price of Rs Rs 2,730.
The management reiterated FY27 revenue growth guidance in the high-single to low-double-digit range, based on deals won in FY26 and strong pipeline.
The brokerage further noted that banking, financial service and insurance and insurance verticals remain on strong footing; while temporary softness in technology, media and telecom is expected to normalise over time.
It further said the company’s logistics and other verticals is expected to improve gradually. Client concerns around captive technology centres are being addressed and scaling of captive centres has not changed client relationships.
The brokerage also highlighted Mphasis Ltd’s AI-led transformation platform Tria repositions the company toward outcome-based enterprise transformation.
3. Morgan Stanley on TCS Share Price
Maintain target price at Rs 2,880
Morgan Stanley maintained an ‘Overweight’ rating on Tata Consultancy Services with a target price of Rs 2,880.
According to the brokerage, decision-making slowdowns that began in March 2026 have continued into the first quarter of FY27 across industries and geographies. However, the company reported no client-specific concerns.
The brokerage noted that TCS has started its wage hike cycle from April 2026, which could potentially impact margins by 150-200 basis points. Management expects to recover the margin impact over the course of the year through operational efficiencies.
Morgan Stanley also highlighted the company’s efforts to build strategic partnerships and centres of excellence with AI model developers while noting increasing client demand for productivity gains driven by artificial intelligence.
Hypervault data centre business secured anchor customer and is expected to generate high-teens returns on investment without being dilutive to consolidated return ratios.
4. Morgan Stanley on Tata Consumer Products Share Price
Maintain target price at Rs 1,351
Medium-term targets of double-digit revenue growth and faster profit growth reiterated
Tea and salt targets mid to high single digit revenue growth; growth businesses targeting 30% growth
Capital Foods and Organic India growth softer in FY26 due to weak exports; management confident of 30% growth going forward
Sampann growth accelerating at 40-69% in recent quarters driven by dry fruits and cold pressed oils
Tea commodity prices expected to remain benign; overall commodity basket seen as balanced
5. Morgan Stanley on HDFC Asset Management Company (AMC) Share Price
Maintain target price at Rs 2,975
Some softness in flows noted in May relative to March and April
Impact of new total expense ratio norms largely neutralised via commission rationalisation and cost optimisation
First private credit fund closed in Q4FY26 with IFC as anchor investor; two new GIFT City funds launched
Specialised investment fund approval received from regulator; initial product offerings expected to be simplified in nature
6. Morgan Stanley on HDFC Life Share Price
Maintain target price at Rs 745
Non-participating savings seeing pickup driven by improved product offerings and increased customer interest
New variable annuity product AGNI launched in Q4; expected to boost annuity premium growth in FY27 with better margins than overall business
IFRS transition expected to drive more rational market conduct and moderation in competitive intensity
Regulatory consultation paper on commission norms anticipated before draft and final norms are released
7. Morgan Stanley on JSW Steel Share Price
Maintain target price at Rs 1,330
Targeting 50 million tonnes of domestic crude steel capacity by 2030 expanding to 62 million tonnes by FY32
Raw material security improving; captive sources to cover around 50% of coking coal and iron ore requirements by end of decade
EBITDA per tonne maintained in range of INR 11,000-12,000; company confident of sustaining this supported by efficiency gains
Capex guidance of around INR 2.3 trillion by FY33 reiterated; majority to be funded by internal accruals; net debt to EBITDA target below 3 times
8. Morgan Stanley on Hindalco Industries Share Price
Maintain target price Rs 1,325
Captive power ramp-up to reduce overall power costs by around 30% implying around 12-13% reduction in total costs
Downstream capacity ramp-up to unlock premiumisation benefits of around USD 100 per tonne for copper and USD 120 per tonne for aluminium
China supply cap, Middle East supply disruption and falling inventories expected to support aluminium prices near term
Novelis EBITDA improvement expected from Q2FY27 as Oswego restarts; cash positive by Q4FY27
Insurance recoveries of 70-75% of overall fire losses expected; implies USD 1.2-1.3bn in total recoveries over FY27-28
9. Morgan Stanley on Jindal Steel Share Price
Maintain target price Rs 1,250
Strong reconstruction demand expected in Middle East in second half of FY27 assuming conflict does not linger
Q1FY27 costs moving up on higher coking coal and iron ore prices; margins still expected to improve quarter on quarter on strong steel prices
Cost savings from slurry pipelines and conveyor belts to flow from Q2FY27; expected to unlock Rs 750-1,000 per tonne
Once announced expansion complete; captive capabilities to reach 35-40% for iron ore, around 15% for coking coal and 100% for thermal coal
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
