The biggest stock downgrades and upgrades this year

Over the past year leading up to the March quarter, several companies witnessed notable shifts in analyst ratings, both upwards and downwards, as per Analyst Tracker.

Among the notable upgrades, Tech Mahindra stood out, garnering 21 buy calls, 10 hold calls, and 14 sell calls, compared to 14 buy calls, 12 hold calls, and 7 sell calls in Q4FY23. Mirae Asset analysts highlighted the company’s three-year strategic roadmap, emphasizing improved profitability and higher RoCE. They upgraded their recommendation on the stock from “hold” to “add.”

TCS also saw increased analyst favor, with 28 buy calls compared to 22 buy calls in the previous year. JP Morgan analysts see TCS as a cross-cycle champion poised to benefit from cost optimization and digital transformation deals, with room for margin growth and an anticipated 4% increase in earnings.

Hindustan Unilever experienced a surge in upgrades as well. BNP Paribas noted margin improvement driving earnings growth despite near-term growth prospects appearing muted. They maintained a neutral rating on the stock.

Conversely, UPL faced downgrades due to disappointing Q3 results, with persistent losses and margin pressure cited as concerns by analysts at Nuvama and DAM Capital.

Similarly, Tata Motors witnessed downgrades with limited upside seen by MOSL analysts due to the stock’s price already factoring in positive triggers.

Despite some downgrades, analysts generally remain positive on Nestle India, citing resilient performance, rural penetration efforts, and innovation focus as drivers for long-term sustainable growth.

Overall, these shifts in analyst sentiment reflect the nuanced evaluation of various companies’ performance, strategies, and market conditions over the past year.