Brokerage Rating Today | Latest View on Auto, AMC, Cement

Brokerage Rating Today: Margin Risk in Auto, Investment Opportunity in AMC, Brokerage Ratings Released Amid Market Volatility

Amid volatility in the stock market, global brokerage houses have released ratings and guidance on several Indian companies and sectors. Know whose targets were cut, and who received buy or sell recommendations.

After five consecutive days of gains, the stock market is trading in the red during the early trading session on Thursday (April 09). Meanwhile, several global brokerage houses have issued their ratings and target prices on multiple sectors and stocks. JP Morgan remains bullish on companies in the energy and power equipment sector, while Bank of America (BofA) has warned of rising costs in the cement sector due to the war in West Asia. Apart from this, brokerages have a mixed view on insurance, wealth management, and AMC. Find out which stocks are worth betting on and where it’s time to exit.

Margin Risk in Auto Sector — Full View of JP Morgan and BofA

According to JP Morgan, rising commodity prices may start impacting the auto and auto equipment sector from the first quarter of FY2027 or later.

Up to 16% EPS Cut — Which Auto Stocks Are Still Overweight

Based on its coverage of the auto sector, JP Morgan has cut FY27 EPS estimates by 2% to 16%. Since the conflict began, the Nifty Auto Index has declined by 9%.

Some stocks in the Nifty Auto have fallen back to pre-GST cut levels. From a valuation perspective, this could present a buying opportunity. However, some fund managers believe real buying will begin only when the direction of commodities becomes clear.

JP Morgan has cut target prices of several auto component companies, indicating that pressure on OEMs will directly impact component manufacturers.

Bank of America Securities considers two-wheelers as a defensive bet in the auto sector, where exports and crude prices could benefit Africa markets and EV business. Valuation (21X PE) in this segment also remains reasonable.

Brokerage View on Auto Sector

Insurance and Wealth Management — Mixed View, But Some Names Strong

Brokerages have a mixed outlook on insurance and wealth management companies. According to HSBC and CLSA, life insurance companies have been the most impacted in terms of top-line growth and earnings, followed by asset management companies (AMC).

Dual Impact in AMC, Investment Opportunity in Wealth Management — Bernstein’s View

Due to the market decline caused by the war, asset management companies (AMCs) have faced a dual impact. Meanwhile, Bernstein has recommended buying wealth management companies.

According to Bernstein, recovery will be faster in wealth management companies compared to AMC. 360 One, Nuvama Wealth, and Anand Rathi have remained strong in this space. Additionally, non-life and general insurance companies are in a relatively better position in this environment.

However, it is unclear how fast the market recovery will be — it largely depends on how quickly global trade tensions ease.

CLSA is bullish on ICICI Pru AMC. According to the brokerage, India’s mutual fund industry has grown at a CAGR of 20% over the past decade, reaching an AUM of ₹82 trillion. ICICI Pru AMC’s 13% stable market share and large actively managed equity AUM make it stand out in the sector.

Brokerage Ratings and Targets for Insurance and AMC

Rising Costs Impact Cement Sector — BofA Issues Warning

According to Bank of America, fuel and freight costs are rising in the cement sector. The brokerage estimates that costs may increase by ₹200 to ₹250 per metric ton. In such a scenario, companies will have to raise prices.

On hotel stocks, Goldman Sachs says that a decline in foreign tourist arrivals and rising domestic airfares may impact hotel demand in the coming period.

On banking stocks, brokerages believe that with the RBI keeping the repo rate stable, the worst phase of pressure on banks’ Net Interest Margin (NIM) is largely behind.

Cement Sector Stocks

Frequently Asked Questions

Which auto stocks is JP Morgan bullish on today?

JP Morgan has maintained an Overweight rating on TVS Motors, Hero MotoCorp, Maruti Suzuki, M&M, and Eicher Motors. Their target prices have been revised, but the buy recommendation remains intact. Apollo Tyres has been downgraded from Overweight to Neutral — if you hold this stock, you should review your target.

Is it right to invest in AMC stocks now?

Due to the market decline, AMC has faced dual pressure — AUM has fallen and new inflows have slowed. Both CLSA and HSBC have come with Buy ratings on ICICI Pru AMC, with targets of Rs. 3500–3600. Wealth management companies like 360 One and Nuvama are currently in a better position than AMC in this environment.

How much impact will rising costs have on cement companies?

According to BofA, costs may increase by Rs. 200–250 per metric ton. This will directly impact margins until companies raise prices. Ambuja, UltraTech, and Dalmia Bharat remain on Buy — but Shree Cement is rated Underperform, so caution is advised there.

Why is the two-wheeler segment being called a defensive bet?

According to BofA Securities, two-wheelers are reasonably valued at 21X PE and can benefit from Africa exports and EV growth. Falling crude prices reduce input costs. Bajaj Auto has been upgraded to Buy by BofA with a new target of Rs. 10,700.

How long will NIM pressure remain in banking stocks?

Brokerages estimate that after the RBI kept the repo rate stable, the worst phase of NIM pressure is largely behind. However, the pace of full recovery will depend on future RBI policy — for now, being selective in the banking sector is a smarter approach.