Bharti Airtel, ITC & more: Top stocks to watch on February 25

Citigroup has a buy recommendation on Bharti Airtel with the target price at Rs 2,380. Analysts feel the group’s expansion into the NBFC sector, anchored by a planned Rs 20,000 crore capital infusion over the next few years is a natural adjacency to develop its next growth engine and diversify its portfolio.

Over the past two years, Bharti has built a strong lending service provider model by integrating technology, data, and customer insights. It now intends to integrate this capability with its NBFC and scale the business using its balance sheet. Given Bharti’s strong free cash flow (FCF) generation and upcoming rights issue payment, this foray should not materially weigh on leverage or cash flows. That said, analysts feel that achieving optimal capital utilisation with efficient risk-adjusted returns and meaningful scale typically takes a few years for lending platforms.CLSA has an outperform rating on ITC with the target price cut to Rs 367 from Rs 485. Analysts said the recently increased indirect tax on cigarettes increased considerably in Feb 2026, with replacement of compensation cess by GST and excise duties. They believe ITC will need price increases of 33% to be neutral on earnings before interest and taxes (EBIT) per cigarette, which would drag volumes and cigarette division EBIT in FY27.

Expect a recovery in FY28 after assuming no further tax increases, as suggested by ITC’s historical record in passing on these tax increases.Kotak Institutional Equities has downgraded ABB India to reduce with the target price at Rs 5,750. Analysts said that the company reported a decent Oct-Dec 2025 quarter on execution, with margins taking support from one-off mark-to-market gains. Key positives were the growing relevance of emerging/high-growth segments and parts of the 52% salience to core sectors showing traction.

Operating at the lower end of the guided profit after tax (PAT) margin range, ABB expects slow improvement in margin as it battles high-cost inventory (QCO) and raw material headwinds.

With a one-year forward price-to-earnings (P/E) of 63X, stock appears to be baking in all optimism for the start of a private capex cycle.Morgan Stanley has an underweight rating on Urban Company with the target price at Rs 120. Analysts said that the company’s Instahelp vertical has crossed the 50k daily bookings mark.

Competition remains a key risk but consistent scaling up and improving unit economics should alleviate this concern. The management has provided an outlook to achieve consolidated adjusted EBITDA breakeven by the third quarter of fiscal 2028 (Q3F28).

Analysts think it is achievable and is a conservative estimate given the company’s strength in core segments. They also feel investments in Instahelp will be a function of the external environment.Jefferies has a buy on Eternal with the target price at Rs 480. Analysts said the company’s CFO struck a confident tone about the medium term. Its food delivery business is expected to sustain a growth rate of about 20% with modest margin expansion. Quick commerce total addressable market remains attractive, though competition remains intense, warranting some caution. The management said Blinkit will stay rational, posing some risk to growth even as margin confidence remains high.

The management clarified about Deepinder’s move as the company’s vice chairman and ruled out stake sale or any window-dressing of profits.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)