Global brokerages issued fresh ratings and price targets on several large-cap and mid-cap Indian companies, highlighting emerging sector trends and stock-specific catalysts. While Reliance Industries, Tech Mahindra, and UPL received positive commentary, ABB and Tata Steel attracted cautious stances due to valuation and earnings concerns.
Citi maintains Buy on Reliance; eyes O2C gains and Jio triggers
Citi reiterated a Buy rating on Reliance Industries with a target price of ₹1,585, highlighting key near-term triggers including improved refining margins, stronger domestic retail fuel spreads, and better petrochemical realizations. The brokerage added that the upcoming AGM will be closely watched for updates on Jio’s potential listing, while longer-term triggers include better 5G monetization and declining net debt.
CLSA upgrades Tech Mahindra to high conviction Outperform
CLSA upgraded Tech Mahindra to a high conviction Outperform and raised its target price to ₹1,976, citing the company’s disciplined execution of its three-year turnaround plan. CLSA said the firm is on track to meet its FY27 targets of 15% EBIT margin, 30% ROCE, and peer-beating revenue growth. Macroeconomic tailwinds, including potential U.S. tax cuts and interest rate easing, are expected to further support a sector re-rating.
Jefferies positive on UPL; lifts target to ₹810
Jefferies reaffirmed its Buy call on UPL, raising the target price to ₹810. The firm reported strong 68% YoY growth in Q4 EBITDA, alongside a sharp improvement in its balance sheet. Net debt fell to $1.6 billion from $3 billion in the previous quarter. Despite a 35% YTD rally, UPL still trades at 13x FY26e P/E, which is 8% below its 10-year average, making valuations attractive.
Mixed views on Tata Steel from CLSA and Morgan Stanley
CLSA maintained a Hold rating on Tata Steel with a target price of ₹145, noting in-line EBITDA and improving profitability in India. It added that the translation of Tata’s ₹11,500 crore FY26 cost-saving plan into earnings and cash flows remains a key monitorable.
In contrast, Morgan Stanley kept its Underweight rating with a lower target of ₹125, citing a 3% EBITDA miss due to weak realizations. The firm flagged limited upside amid sectoral challenges despite a ₹3,000 crore QoQ reduction in net debt.
Brokerages differ on Hindalco outlook
CLSA reiterated an Outperform rating on Hindalco with a target price of ₹815, highlighting Novelis’ improved Q4 EBITDA per tonne ($494, +22% QoQ), robust beverage can demand, and strong cost-saving potential through FY28.
Citi also maintained a Buy rating with a target of ₹725, noting Novelis’ in-line EBITDA of $473 million and stable scrap pricing. While near-term margin visibility remains uncertain, Citi remains confident in the company’s long-term EBITDA guidance of $600/tonne.
HSBC upgrades IIFL Finance to Buy
HSBC upgraded IIFL Finance to Buy and raised the target price to ₹550 from ₹380, expecting earnings recovery supported by microfinance rebound, improved system liquidity, and lower funding costs. However, it flagged risks from rising competition in gold loans and elevated operating expenses.
Nomura cautious on ABB and Britannia
Nomura downgraded ABB to Reduce with a target price of ₹4,970, citing Q1CY25 results that missed consensus estimates across revenue, EBITDA, and PAT. Although order inflows were healthy, Nomura believes the current valuation leaves little room for further upside.
Meanwhile, it maintained a Neutral rating on Britannia with a target of ₹5,875, expecting 9% FY26 sales growth and margin recovery by Q2FY26. However, rich valuations at 49x FY27 EPS may limit the stock’s re-rating potential.
Disclaimer: This article is based solely on brokerage commentary and public disclosures. It is for informational purposes only and does not constitute investment advice. Business Upturn and the author do not recommend buying or selling any of the stocks mentioned.
