Buy, Sell or Hold: Elara Capital downgrades Swiggy; Morgan Stanley remains overweight on M&M

Following the release of their first-quarter FY27 results, leading brokerages have updated their outlook on major Indian stocks. Elara Capital has downgraded Swiggy to 'Accumulate' with a target price of Rs 350, citing the food delivery giant's continued delay in achieving consistent profitability. Conversely, Morgan Stanley has maintained an 'Overweight' rating on Mahindra & Mahindra (M&M), setting a target price of Rs 4,222, while Goldman Sachs has kept Tata Steel at 'Neutral' with a target of Rs 218.

This divergence in broker opinions highlights the contrasting performance of these large-cap companies. Investors are closely watching the progress of Swiggy's path to profitability, which remains a key hurdle for its valuation. Meanwhile, M&M's strong performance is likely driven by its robust tractor and SUV sales, whereas Goldman Sachs' neutral stance on Tata Steel suggests a wait-and-see approach regarding global steel demand and pricing trends.

For retail investors, this news underscores the importance of evaluating individual company fundamentals rather than following a single consensus. While M&M appears to have strong momentum, the downgrade of Swiggy serves as a reminder that growth stocks can face significant headwinds. Investors should monitor upcoming quarterly results and management commentary to understand if these broker views will hold or shift in the coming months.