Brokerages | Business Upturn

Morgan Stanley sees TVS Motor rising 31% in a month — here’s the buyback play behind the call

Aditya Bhagchandani — Wed, 20 May 2026 04:09:45 +0000

TVS Motor Company has a price target of ₹4,327 from Morgan Stanley, implying upside of roughly 31% from the May 18 closing price of ₹3,291, as the brokerage issued a tactical buy idea on Tuesday citing a stock repurchase plan as the primary near-term catalyst.

Why Morgan Stanley turned tactically bullish on TVS Motor

The stock has corrected approximately 8% over the past week against a flat Nifty, weighed down by investor concerns around rising investment in subsidiaries — specifically, a potential acquisition of a 4.9% stake in Jana Small Finance Bank. Morgan Stanley’s equity analyst Binay Singh argues the selloff is overdone. The brokerage assigns a 70–80% probability to the scenario playing out as expected, rating TVS Motor Overweight with an Attractive industry view on India autos and shared mobility.

The trigger is a stock repurchase plan. Morgan Stanley believes the buyback, combined with the company’s track record and upcoming catalysts, is sufficient to push the stock above the broader market over the next 30 days.

TVS Motor volume momentum is outpacing the industry

On the ground, TVS is running ahead of its two-wheeler peers. For the first 19 days of May, industry wholesale volumes are up 6% year-on-year; TVS has clocked 9.5% growth over the same period. Morgan Stanley expects full-month May wholesale to expand around 16% year-on-year, a sharp acceleration from the 7% growth recorded in April, as supply normalization flows through the channel.

Valuation case: Why TVS deserves a premium over Bajaj and Eicher

On core ex-subsidiary EV/EBITDA using Bloomberg consensus estimates, TVS currently trades at 16.5x FY28, versus Bajaj Auto at 16x and Eicher Motors at 19x. Morgan Stanley’s view is that TVS should command a premium over Bajaj given its broader product portfolio, demonstrated market share gains, and headroom on margins — making the current discount to Eicher an additional argument for re-rating.

This article is for informational purposes only and does not constitute investment advice. Please consult a qualified financial advisor before making any investment decisions.

Eternal Zomato: Macquarie Underperform ₹190 target; Blinkit at $9-15bn implied but QC competition risk remains high

Aditya Bhagchandani — Mon, 18 May 2026 05:26:51 +0000

Macquarie Equity Research has maintained its Underperform rating on Eternal Limited — the listed entity housing Zomato food delivery and Blinkit quick commerce — while cutting its target price 5% to ₹190 from ₹200 in its May 15, 2026 comparative note on Eternal and Swiggy titled “Head-to-Head: Eternal vs Swiggy (v.3) — Field of Dreams or Pyrrhic land grab?”

The target cut is modest relative to the 21% reduction applied to Swiggy, reflecting Macquarie’s relative preference for Blinkit over Instamart within the competitive quick commerce framework. But the maintained Underperform rating — and the structural arguments underpinning it — signal that the brokerage does not view the current valuation as adequately discounting the competitive risks ahead.

The Blinkit valuation debate

The central question for Eternal’s investment case is what Blinkit is worth. Macquarie estimates the implied valuation for Blinkit at $9-15 billion based on a bottom-up framework — taking the consensus overall Eternal valuation and subtracting the brokerage’s estimated value of Zomato’s food delivery business, leaving the residual as the implied Blinkit ascription. This range — $9-15 billion — is meaningful and the brokerage acknowledges that Blinkit’s underlying economics in mature cities are genuinely solid.

Blinkit’s own disclosures indicate that larger, more mature cities including Delhi NCR are approaching 5-6% steady-state adjusted EBITDA margins, with strong customer retention, improving throughput per store, and expanding wallet share even under elevated competitive conditions. Macquarie agrees these numbers are real and that the mature-market unit economics are encouraging.

The disagreement is with the extrapolation. Macquarie argues that the consensus is taking Blinkit’s best-performing city economics and applying them across the entire store network — assuming that all newer and smaller-city stores will converge to similar economics simply as a function of time and store maturation. The brokerage’s framework treats quick commerce as a physical inventory turn retail business with a delivery cost obligation — not a platform business like food delivery — and argues that micro-market dynamics matter in ways that city-level averages obscure. A store in a dense South Delhi neighbourhood and a store in a Tier 2 city expansion have fundamentally different economics, and the path from current portfolio-level losses to portfolio-level profitability is not linear.

Three structural concerns

Macquarie identifies three structural headwinds that it believes the consensus underweights.

The first is competitive intensity duration. The brokerage explicitly disagrees with the market’s view that quick commerce competition will resolve in quarters — it expects rising and persistent competitive pressure for years across multiple dimensions. Horizontal platforms — Amazon Now, Flipkart Minutes — are investing in fast delivery infrastructure that does not require building a dedicated dark store network from scratch, giving them a structural cost advantage in customer acquisition. BigBasket, with its existing grocery fulfilment infrastructure and Tata Group backing, has the strongest latent ability to close the loyalty loop through Tata Neu cashbacks and rewards — a capability that pure-play quick commerce operators like Blinkit and Instamart struggle to replicate without a wider ecosystem.

The second is the Zepto listing risk. Zepto’s IPO is expected in 2026, and Macquarie flags that its public listing will bring additional visibility and institutional investor attention to the competitive dynamics — potentially accelerating growth investment and marketing spend in a way that is negative for the economics of all existing players.

The third is the near-term growth driver shift. The past two years of gross order value growth in quick commerce have been driven primarily by store expansion and higher average order values. The next phase requires productivity improvement at existing stores — higher throughput per square foot, better inventory turns, and reduced wastage — which is a harder operational challenge than opening new dark stores in untapped pin codes.

Food delivery: take-rates near a peak

In the food delivery segment, Macquarie sees the Zomato-Swiggy duopoly holding but maintains its below-consensus growth forecasts — low-to-mid-teens gross order value growth versus the consensus approximately 20% assumption. The brokerage considers current take-rates at approximately 25% of order value as high and views Zomato’s food delivery margins as near a peak, limiting the upside from further take-rate expansion.

Swiggy trails Zomato by approximately 200 basis points on adjusted EBITDA margin at scale, though contribution margin economics per order are broadly similar between the two. Within the pair, Macquarie maintains a stronger relative probability of success for Blinkit over Instamart — making Eternal the less concerning of the two Underperform positions — but not a conviction sufficient to upgrade to Neutral or better.

At ₹190 target against a current trading level that reflects ongoing market debate about Blinkit’s long-term value, Macquarie’s position is that even Eternal’s relatively stronger quick commerce asset is priced in a way that does not leave adequate margin of safety for the competitive risks ahead.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a SEBI-registered financial advisor before making investment decisions.

Motilal Oswal says buy PN Gadgil Jewellers at ₹715 — here is the case for 25% upside despite the gold duty hit

Aditya Bhagchandani — Mon, 18 May 2026 04:40:19 +0000

P N Gadgil Jewellers Limited delivered a revenue beat of extraordinary scale in Q4FY26 — consolidated revenue of ₹3,540 crore against Motilal Oswal’s estimate of ₹2,950 crore, a 20% beat — but missed sharply on margins, with gross margin contracting 230 basis points year on year to 9.7% against an estimate of 14.7%. Motilal Oswal has reiterated its Buy rating with a target price of ₹715, even as it trimmed EPS estimates by 3% for FY27 and 1% for FY28 and acknowledged that the gold customs duty hike from 6% to 15% implemented on May 13 will moderate near-term demand.

The revenue beat

Consolidated revenue grew 123% year on year driven by same-store sales growth of 86% — one of the strongest SSSG numbers reported by any organised jeweller in recent quarters. Retail revenue grew 102% year on year, franchisee revenue increased 132%, and e-commerce sales rose 67%. The standout contributor was bar and coin sales, which surged over 200% to ₹1,400 crore — a reflection of the surge in retail gold buying ahead of the government’s import duty hike. Customer footfalls increased 10% with a conversion rate of 93%. PNGJL added 12 stores during the quarter, taking total store count to 78 across 36 cities — comprising 48 company-owned company-operated, 17 franchisee-owned company-operated, and 13 LiteStyle format stores.

The margin miss

The revenue beat came at a cost. Gross margin contracted sharply to 9.7% from the estimated 14.7% — a 500 basis point miss against estimates and a 230 basis point contraction year on year. Motilal Oswal attributed the miss to three factors: a higher gold bar and coin mix, which compressed margins by 150 basis points as bullion products carry significantly lower value-addition than jewellery; lower studded jewellery contribution, which compressed margins by 30 basis points; and elevated promotional discounts during Foundation Day and Gratitude Day campaigns, which compressed margins by 50 basis points. EBITDA margin consequently fell 210 basis points year on year to 3.8%. Management maintained FY27 PAT margin guidance of approximately 4%, while Motilal Oswal modelled PAT margins of approximately 3.5% for FY27 and FY28.

The gold duty hike impact

The government’s midnight notification on May 12 raising gold import duty to 15% from 6% is the central risk factor for FY27 jewellery demand. Management acknowledged that the duty hike could moderate bullion demand — the very product that drove the 200%+ bar and coin growth in Q4FY26 — and could accelerate old gold exchange trends as consumers increasingly use existing jewellery as a trade-in rather than buying at elevated prices with higher duty. PNGJL is responding through its ‘Suvarna Swarajya’ initiative, which targets increasing old gold contribution from approximately 40% of sales currently to 50% — a structurally margin-accretive shift since old gold exchange transactions carry lower commodity cost exposure. The company is also planning to increase its gold price hedging ratio to 75-80% from approximately 60% in FY26 to reduce margin volatility from gold price swings.

FY27 outlook and store expansion

Management guided FY27 revenue of ₹13,500 crore — approximately 3.8 times FY26’s quarterly run rate — supported by strong SSSG and continued store expansion. The company plans to add 25 stores in FY27, primarily 5 COCO and 20 FOCO format stores, with the majority of expansion outside Maharashtra. The geographic diversification beyond Maharashtra is significant — make-to-order jewellery contribution outside Maharashtra currently stands at approximately 22% versus 30-35% overall, indicating room for mix improvement in new markets over time. Franchisee margins are structurally lower at 2.5-3%, which will continue to weigh on consolidated margins as the FOCO expansion accelerates.

The QIP resolution remains valid until August 2026 but management indicated no immediate capital requirement as internal accruals are sufficient for current growth plans.

Motilal Oswal models revenue, EBITDA, and adjusted PAT CAGR of 17%, 13%, and 10% respectively over FY26-28, with the EBITDA-to-PAT CAGR gap reflecting the margin compression from franchisee mix and gold duty headwinds. The ₹715 target price implies approximately 24.9% upside from the stock’s post-selloff levels near ₹573.90 on May 15.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a SEBI-registered financial advisor before making investment decisions.

Top Q4 results today, May 8: SBI, Titan, Bank of Baroda, Hyundai Motor India, Swiggy among key companies to announce earnings

Aman Shukla — Fri, 08 May 2026 02:54:51 +0000

Several major companies listed on the Indian stock market are scheduled to announce their January–March quarter (Q4 FY26) earnings on Friday, May 8, either during market hours or after the closing bell. A total of 45 companies are set to release their quarterly financial results, making it a key earnings day for investors and traders.

Among the prominent names announcing Q4 FY26 results today are State Bank of India, Bank of Baroda, Titan Company Limited, Hyundai Motor India Limited, Swiggy Ltd, Tata Consumer Products, and Kalyan Jewellers India.

The earnings announcements are expected to provide insights into sector-wise performance trends across banking, automobiles, FMCG, infrastructure, healthcare, retail, and technology segments during the fourth quarter of FY26.

Full List of Companies Announcing Q4 FY26 Results on May 8

3i Infotech Limited
ABB India Limited
Advance Agrolife Limited
Aeroflex Neu Limited
Amrutanjan Health Care Limited
Archidply Industries Limited
Arisinfra Solutions Limited
Artemis Medicare Services Limited
Aditya Vision Limited
Bajaj Healthcare Limited
Balkrishna Industries Limited
Bank of Baroda
Bank of India
Bombay Dyeing & Manufacturing Company Limited
Cera Sanitaryware Limited
Cholamandalam Financial Holdings Limited
CreditAccess Grameen Ltd
GNA Axles Limited
Grindwell Norton Limited
Hyundai Motor India Limited
Indian Motor Parts and Accessories Ltd
Inspirisys Solutions Ltd
Intellect Design Arena Limited
IRM Energy Limited
JSW Infrastructure Limited
Kalyan Jewellers India
Kalyani Steels Ltd
Lagnam Spintex
Lloyds Enterprises
Vedant Fashions
Muthoot Capital Services Limited
Niva Bupa Health Insurance Company Limited
Oberoi Realty Limited
Orient Electric Limited
Rain Industries Limited
Shree Renuka Sugars Limited
Sasken Technologies Limited
State Bank of India
Shipping Corporation of India Limited
Swiggy Ltd
Tata Consumer Products
Tips Films Ltd
Titan Company Limited
Ujjivan Small Finance Bank Limited
Urban Company Limited

Market participants are expected to closely monitor management commentary, margin trends, revenue growth, profitability, asset quality in banks, and demand outlook across sectors as the Q4 earnings season continues.

UBS slashes SRF target to ₹2,300 and cuts earnings by 13% — here’s what’s going wrong for the chemicals giant

Markets Desk — Mon, 27 Apr 2026 04:46:48 +0000

Global brokerage UBS maintained its Sell rating on SRF Limited while cutting its target price to ₹2,300 from ₹2,400, and slashing earnings per share estimates by 11–13% — a significant downward revision that reflects a deteriorating outlook across two of the company’s most important business segments. The brokerage’s note, titled “Challenging environment continues,” paints a cautious picture for SRF heading into FY27.

The first concern is refrigerants. UBS flagged that refrigerant prices are now close to their peak, implying limited upside from the current cycle and a higher risk of a mean-reversion in pricing over the coming quarters. SRF has been a significant beneficiary of the global refrigerant upcycle driven by the HFC-to-HFO transition and supply tightness — but UBS believes that tailwind is now largely priced in, and the margin expansion from refrigerant operations is unlikely to sustain at current levels.

The second concern is agrochemicals. UBS highlighted uncertain demand in the global agchem space, noting that while rising farm input prices have provided some offset to the sluggish demand environment, higher crop prices have only partially compensated. Global agchem inventory destocking — a theme that has weighed on Indian specialty chemical exporters for over two years — continues to create an unpredictable demand picture for SRF’s chemicals business.

The third and more complex headwind flagged by UBS is the Iran conflict. The brokerage noted the impact of the Iran war on the chemical space is complex — elevated crude and energy prices raise input costs for chemical manufacturers, while supply chain disruptions and freight cost inflation through the Strait of Hormuz route add further margin pressure. For a company like SRF, which has global export exposure in both fluorochemicals and specialty chemicals, these geopolitical variables add a layer of uncertainty that is difficult to model with precision.

UBS’s revised target price of ₹2,300 implies meaningful downside from current levels. Meanwhile, shares of SRF were trading at ₹2,520 — up 1% in early trade on Monday — suggesting the market has not fully priced in the brokerage’s bearish thesis, and that the stock continues to trade at a premium to UBS’s fair value estimate.

Stocks to watch on brokerages today, April 22: HCL Tech, Persistent Systems, Nestlé India, 360 One in focus

Aman Shukla — Wed, 22 Apr 2026 03:37:23 +0000

A fresh set of brokerage reports has highlighted several stocks likely to remain in focus on April 22, 2026, with mixed sentiment across sectors such as IT, FMCG, pharma, and wealth management.

While firms like 360 One and Nestlé India saw strong optimism from analysts, concerns around HCL Technologies and Persistent Systems continue to weigh on sentiment.

Here’s a detailed look at the key stocks to watch today based on brokerage calls:

Tata Elxsi: Weak Q4 Performance Keeps Pressure On

Brokerage firm Morgan Stanley has maintained an ‘Underweight’ rating on Tata Elxsi, cutting the target price to ₹4,200 from ₹5,350.

The company reported a weak Q4, with revenue growth missing estimates due to softness in the healthcare segment. Although margins came in better than consensus, EBIT fell short of expectations.

Management has indicated recovery hopes by FY27, but growth projections have been lowered, signaling limited near-term upside.

Eris Lifesciences: Regulatory Observations in Focus

Macquarie has retained an ‘Outperform’ rating on Eris Lifesciences with a target price of ₹1,680.

The company’s manufacturing units were inspected by European regulators, resulting in procedural observations related to GMP compliance.

While the issues are not critical, achieving EU GMP certification remains crucial for the company’s export ambitions and CDMO strategy.

360 One: Strong Performance Drives Bullish Outlook

Brokerages remain upbeat on 360 One Wealth:

Citi has reiterated a ‘Buy’ rating with a target price of ₹1,525, highlighting strong profit growth and resilient performance despite a challenging market environment.

Jefferies has also maintained a ‘Buy’ rating, expecting sustained growth driven by strong inflows, transaction revenues, and synergies from acquisitions.

The company’s diversified multi-asset model continues to support stable growth momentum.

HCL Technologies: Weak Guidance Weighs on Sentiment

Multiple brokerages have turned cautious on HCL Technologies following a disappointing Q4 performance:

Citi, HSBC, JPMorgan, and CLSA have all flagged weak revenue growth, soft deal wins, and cautious FY27 guidance.

Key concerns include reduced discretionary spending in telecom, cancellation of SAP projects, and limited visibility on demand recovery.

Although some brokerages like Nomura maintain a ‘Buy’ stance, overall sentiment remains weak in the near term.

Persistent Systems: Mixed Signals Keep Analysts Divided

Persistent Systems delivered a mixed Q4, leading to divergent brokerage views:

CLSA and JPMorgan remain constructive, citing strong deal momentum and revenue visibility.

However, Citi has maintained a ‘Sell’ rating, pointing to high valuations and margin pressures.

The company continues to face headwinds from AI-led deflation and rising software costs, even as growth remains strong.

Nestlé India: Strong Growth Impresses Analysts

Nestlé India posted a strong quarter, attracting positive commentary from brokerages:

HSBC highlighted robust revenue growth and margin expansion despite higher advertising spends.

Nomura has maintained a ‘Buy’ rating, calling it a “blowout quarter” driven by strong volume growth and pricing mix.

However, some analysts remain cautious on valuations, given the stock’s premium multiples.

Cyient DLM: Growth Recovery Expected

JPMorgan remains optimistic on Cyient DLM with an ‘Overweight’ rating, expecting a sharp recovery in FY27 driven by easing headwinds and improved execution.

Macquarie, however, has taken a more cautious stance, citing delays in converting a strong order book into revenue.

Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.

Stocks to watch on brokerages today, April 16: Aurobindo Pharma, Adani Enterprises, HAL, ICICI Lombard in focus

Aman Shukla — Thu, 16 Apr 2026 03:16:42 +0000

Brokerage firms have shared fresh views on several key Indian stocks on April 16, highlighting developments across pharmaceuticals, infrastructure, cement, retail, insurance, NBFCs and defence. Stocks like Aurobindo Pharma, Adani Enterprises, Nuvoco Vistas, Trent, ICICI Lombard, HDB Financial Services, and Hindustan Aeronautics Limited are expected to remain in focus based on upgrades, target price changes, and sectoral tailwinds.

Aurobindo Pharma

Macquarie has maintained an “Outperform” rating on Aurobindo Pharma with a target price of ₹1050. The brokerage highlighted that the company’s subsidiary, TheraNym Biologics, has expanded its contract manufacturing agreement with Merck.

As part of the deal, a greenfield biologics manufacturing facility with 60,000-litre capacity will be set up, involving an investment of $150–175 million. While the agreement reinforces Aurobindo’s biologics capabilities, meaningful financial gains are expected only after 3–4 years.

Adani Enterprises

Jefferies has reiterated a “Buy” rating on Adani Enterprises, though it has cut the target price to ₹2600 from ₹2750.

The brokerage noted that airport traffic softness is affecting near-term growth, delaying the ramp-up of Navi Mumbai International Airport. However, non-aeronautical revenues and real estate monetisation remain strong.

The company’s new energy business continues to benefit from energy security trends, with solar capacity expansion at Mundra expected to support EBITDA from FY27. Meanwhile, copper and road businesses are also expected to scale up.

Nuvoco Vistas

Multiple brokerages remain bullish on Nuvoco Vistas after a strong Q4FY26 performance.

HSBC (TP ₹420), Nomura (TP ₹470), and Jefferies (TP ₹410) have all maintained “Buy” ratings.

The company reported strong volumes, revenue and EBITDA, supported by better realisations. Price hikes across trade and non-trade segments are expected to offset rising input costs.

However, near-term pressure from fuel, packaging and gypsum costs may impact margins for the next 1–2 quarters. The company has also approved a 1.5 MTPA bulk cement terminal at Viramgam, strengthening its expansion strategy.

Trent

HSBC has maintained a “Buy” rating on Trent, but reduced the target price to ₹4800 from ₹5300.

The brokerage expects continued store expansion, particularly for Zudio, with around 200 new stores planned. While productivity moderation is a concern, sustained growth of 18–20% remains a key trigger for the stock.

ICICI Lombard

Brokerages are divided on ICICI Lombard after its Q4FY26 results.

Goldman Sachs has a “Neutral” rating with a target price of ₹1965, noting strong premium growth and improvement in combined ratio.

On the other hand, HSBC remains bullish with a “Buy” rating and a higher target price of ₹2200, citing continued growth momentum and potential upside from IFRS implementation.

HDB Financial Services

Nomura has a “Neutral” stance on HDB Financial Services with a target price of ₹740, highlighting improving asset quality and stable cost of funds.

Meanwhile, Jefferies is more optimistic, assigning a “Buy” rating with a target price of ₹845. The brokerage expects strong earnings growth driven by improving credit costs, stable margins, and a pickup in loan growth.

HAL

Citi has maintained a “Buy” rating on Hindustan Aeronautics Limited with a target price of ₹5560.

The brokerage highlighted a key agreement between HAL and GE Aerospace for the co-production of F414 engines in India. These engines are expected to power Tejas Mk2 and early AMCA Mk1 aircraft.

While execution timelines remain a watch factor, the development is seen as a strong medium-term positive.

Renewable energy stocks

Jefferies expects India’s renewable energy capacity to reach 359 GW between FY25 and FY30, driven by energy security concerns and government push.

Stocks like JSW Energy and NTPC are preferred picks in the power space, while Premier Energies and Emmvee stand out in the solar PV segment due to strong balance sheets and robust order books.

Stocks To Buy Today: Motilal Oswal sees 23% upside in MTAR Tech shares from current levels, expects 90% PAT CAGR

Markets Desk — Thu, 16 Apr 2026 03:05:31 +0000

MTAR Technologies is back in focus after Motilal Oswal significantly upgraded its earnings outlook, citing a sharp ramp-up in orders and strong positioning in the global clean energy and AI-linked power ecosystem.

In its latest report, the brokerage has raised its target price on MTAR Tech to ₹6,000, valuing the company at 50x FY28E earnings, while projecting a robust 90% CAGR in profit after tax (PAT) between FY26 and FY28.

A key trigger behind the bullish stance is the expansion of Bloom Energy’s order from 1.2GW to 2.8GW by Oracle, which is expected to act as a major growth catalyst for MTAR. The report highlights that this translates into an incremental revenue opportunity of ₹14,000–17,000 crore for MTAR over the next few years, equivalent to nearly 1.6–1.8 times its FY26 revenue base.

Motilal Oswal noted that MTAR holds a dominant position in the fuel cell supply chain, manufacturing critical “hot box assemblies” — a core component of Bloom Energy’s fuel cells. The company currently commands a 60–70% wallet share with Bloom, supported by a long-standing relationship of over a decade. This positioning makes MTAR a key enabler of the global shift toward alternative energy solutions, particularly in powering energy-intensive technologies like artificial intelligence.

Reflecting the strong order visibility, the brokerage has sharply revised its estimates upward. Revenue forecasts have been raised by 11% for FY27 and 22% for FY28, while PAT estimates have been increased by 14% and 25% for the respective years.

Over the three-year period from FY25 to FY28, Motilal Oswal expects MTAR to deliver a 49% CAGR in revenue, 65% CAGR in EBITDA, and 90% CAGR in PAT, indicating a steep earnings trajectory. Return on equity is also projected to improve significantly from 7.5% in FY25 to 29.9% by FY28.

However, the report flags working capital as a key risk, noting that rapid order execution could lead to higher cash being tied up in inventory and receivables. The brokerage said effective management of advance payments and supplier credit will be crucial in mitigating this risk.

Overall, the brokerage remains constructive on MTAR Tech, driven by strong order visibility, strategic positioning in the clean energy value chain, and accelerating earnings growth outlook.

Axis Capital bets big on capital market stocks; sees strong upside in KFin, CAMS, CDSL, NSDL

Markets Desk — Thu, 16 Apr 2026 01:40:15 +0000

Axis Capital has initiated coverage on India’s capital market infrastructure space, highlighting strong earnings visibility, structural growth drivers, and improving valuations across key players including registrars and transfer agents (RTAs) and depositories.

In its latest note, the brokerage said market infrastructure and utility players offer a compelling play on India’s capital markets, supported by stable growth, high entry barriers, strong operating leverage, and emerging business opportunities.

Axis Capital has initiated with a ‘buy’ rating on KFin Technologies and Computer Age Management Services (CAMS), while assigning an ‘add’ rating to Central Depository Services (CDSL) and National Securities Depository Ltd (NSDL).

The brokerage has set target prices of ₹1,200 for KFin, ₹850 for CAMS, ₹1,425 for CDSL, and ₹1,000 for NSDL.

The report notes that exchanges, depositories, and RTAs benefit from India’s expanding capital market ecosystem, with increasing retail participation, rising mutual fund penetration, and long-term nominal GDP growth supporting transaction volumes.

Axis Capital expects earnings growth of 15–22% CAGR for depositories and RTAs over FY26–FY28, driven by diversified revenue streams and operating leverage in low-cost models.

The brokerage highlighted that depositories such as CDSL and NSDL are seeing stable revenue growth increasingly driven by transaction-based and issuer-led income streams, rather than solely demat account additions. CDSL, in particular, has outperformed NSDL in recent years, aided by strong retail market share gains.

Meanwhile, RTAs are seen as better positioned within the capital market infrastructure space, given their lower regulatory risks and more stable business models. KFin is expected to benefit from strong international growth and increasing assets under management (AUM) from mutual fund clients, while CAMS is likely to maintain stability through its dominant domestic presence and growing non-mutual fund businesses.

On valuations, Axis Capital noted that stocks in the space have corrected in recent months due to moderation in growth expectations and regulatory concerns. However, this has made valuations more attractive, with RTAs and depositories now trading at lower forward multiples compared to historical averages.

The brokerage believes earnings growth visibility has stabilised and expects the sector to deliver consistent compounding over the medium term, supported by structural tailwinds and operating efficiency gains.

Overall, Axis Capital remains constructive on the capital market infrastructure theme, preferring RTAs over depositories due to better earnings visibility, lower regulatory risks, and favourable risk-reward at current valuations.

Bernstein bullish on power sector; sees strong opportunities in thermal, nuclear and grid-linked plays

Markets Desk — Wed, 25 Mar 2026 01:06:29 +0000

Power sector stocks are likely to remain in focus after global brokerage Bernstein initiated coverage on key players, highlighting strong structural opportunities in India’s energy landscape.

Bernstein has initiated coverage on Adani Power, JSW Energy and Tata Power with an “outperform” rating, assigning target prices of ₹177, ₹575 and ₹443 respectively. On the other hand, the brokerage has initiated coverage on NTPC Green with an “underperform” rating and a target price of ₹80.

The brokerage noted that India’s energy security has faced back-to-back challenges, first due to disruptions in Russian oil supplies and more recently amid the ongoing Iran conflict. These developments have reinforced the urgency of strengthening domestic energy capabilities.

Bernstein highlighted that while India remains resource-poor in oil and gas, it is well-positioned in coal and solar, making electrification a key long-term solution. The brokerage believes that policy focus will increasingly shift towards accelerating thermal and nuclear capacity, alongside strengthening renewable energy, storage infrastructure and grid networks.

According to the report, the most attractive opportunities lie in thermal, nuclear, storage and grid-linked segments, rather than purely renewable-focused plays. It also prefers diversified energy companies with strong balance sheets, better access to capital and presence across the value chain.

The brokerage’s initiation comes at a time when the power sector is gaining traction amid rising demand, policy push and evolving global energy dynamics.

Top stocks to buy/sell/hold today as per brokerages: L&T, InterGlobe Aviation, CG Power, Coforge, ICICI Bank in focus

Markets Desk — Mon, 23 Mar 2026 02:13:54 +0000

Brokerages remain active with fresh updates across sectors, with several stocks seeing upgrades, reiterations, and target price revisions. Stocks such as L&T, InterGlobe Aviation, CG Power, Coforge, ICICI Bank, and Max Healthcare are among the key names in focus today based on latest brokerage commentary.

Larsen & Toubro: Macquarie reiterates an outperform rating with a target price of ₹4,910, noting that 95% of project sites remain operational despite geopolitical tensions, with only a small portion temporarily stalled. The brokerage adds that the stock has corrected over 22% in the past month, offering attractive valuation comfort at current levels.

InterGlobe Aviation: Goldman Sachs maintains a buy rating with a target price of ₹5,200, highlighting that rising oil prices could reshape the aviation sector dynamics. While near-term earnings may be impacted, the brokerage believes balance sheet strength and cost control will be key differentiators going ahead.

CG Power: UBS reiterates a buy rating and raises the target price to ₹900 from ₹840, citing an inflection point in business with improving domestic demand and strong positioning in the power segment. The brokerage also highlights robust cash position and better export visibility as key positives.

Coforge: UBS initiates coverage with a neutral rating and a target price of ₹1,240, stating that while growth visibility remains strong, concerns around acquisitions and relatively weaker positioning in GenAI balance the risk-reward. In contrast, Motilal Oswal maintains a buy rating with a target price of ₹1,880, citing attractive valuations after sharp correction and limited downside from current levels.

ICICI Bank: Motilal Oswal reiterates a buy call with a target price of ₹1,750, highlighting healthy loan growth, stable margins, and robust asset quality. The brokerage expects operating leverage and steady credit costs to support profitability over the medium term.

Max Healthcare: HSBC upgrades the stock to buy and raises the target price to ₹1,125 from ₹1,060, citing strong growth visibility driven by capacity expansion, improving occupancy, and scale benefits from brownfield additions.

ITC: Morgan Stanley maintains an equal-weight rating with a target price of ₹346, pointing to uncertainty arising from sharp tax increases and their potential impact on volumes and profitability in the near term.

Grasim Industries: Morgan Stanley maintains an overweight rating with a target price of ₹3,865, highlighting strong execution in paints, expansion in high-value cellulose products, and growth potential in chemicals and B2B platforms.

Paytm: Jefferies maintains a buy rating but cuts the target price to ₹1,350 from ₹1,400, citing higher sensitivity to contribution margins. The brokerage, however, remains positive on revenue growth and margin expansion driven by operating leverage.

Sun Pharma and Torrent Pharma: CLSA and Macquarie highlight strong growth potential in the semaglutide segment, with both brokerages indicating that these companies are well positioned to capture incremental demand following sharp price reductions and market expansion.

HDFC Bank: HSBC maintains a buy rating but cuts the target price to ₹990 from ₹1,070, noting that recent management developments could lead to short-term valuation pressure, although core fundamentals remain intact.

Star Health: Jefferies reiterates a buy call with a target price of ₹660, highlighting improving loss ratios, pricing discipline, and strong earnings growth visibility over FY26–28.

Kalyan Jewellers: Motilal Oswal maintains a buy rating with a target price of ₹550, citing resilient domestic demand, improving margins, and continued store expansion despite near-term geopolitical risks in the MENA region.

Premier Energies: DAM Capital reiterates a buy call with a target price of ₹1,295, noting strong technological capabilities, execution strength, and ability to ramp up production faster than peers.

Allied Blenders: Nuvama maintains a buy rating with a target price of ₹670, expecting recovery in volumes, continued premiumisation, and margin expansion supported by favourable raw material trends.

ASK Automotive: CLSA maintains an outperform rating with a target price of ₹640, highlighting strong growth visibility driven by Honda’s capacity expansion and rising content per vehicle, especially in electric two-wheelers.

Disclaimer: The above views are those of respective brokerages and not of the publication. This article is for informational purposes only and does not constitute investment advice.

Should you buy, hold, or sell Westlife Foodworld shares? Explained

Aditya Bhagchandani — Wed, 11 Mar 2026 04:32:07 +0000

Wednesday, March 11

Shares of Westlife Foodworld were trading around Rs 465.80, down 1.68% in early trade on Wednesday on the National Stock Exchange of India.

The stock is in focus after brokerage Goldman Sachs maintained a ‘Neutral’ rating on Westlife Foodworld while assessing the outlook for India’s quick-service restaurant (QSR) sector.

Goldman Sachs view on QSR demand

Goldman Sachs noted that same-store sales growth (SSSG) momentum is gradually improving across the sector. The brokerage expects fourth-quarter SSSSG for QSR players to converge closer to Domino’s, indicating a gradual recovery in consumer demand.

The brokerage also highlighted that SSSSG momentum is improving for KFC franchisees and Westlife, suggesting improving traction in restaurant sales.

Value-driven offers supporting recovery

Promotional pricing and value offers are playing an important role in bringing customers back to dine-in channels. Goldman Sachs noted that such strategies are helping restaurant chains increase transaction volumes.

For instance, the KFC Krisper meal priced at Rs 999 has reportedly helped boost customer traffic and transaction counts across the sector.

Seasonal factors supporting sales

The brokerage also pointed out that the shift in Ramzan timing this year could create a favourable base for restaurant sales in March.

However, Goldman Sachs cautioned that geopolitical disruptions remain a risk for the sector, as any uncertainty in the macro environment could impact discretionary consumer spending.

Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.

Should you buy, hold, or sell Devyani International shares? Here’s what Goldman Sachs says

Aditya Bhagchandani — Wed, 11 Mar 2026 04:29:50 +0000

Wednesday, March 11

Shares of Devyani International were trading around Rs 110.91, up 0.29% in early trade on Wednesday on the National Stock Exchange of India.

The stock is in focus after brokerage Goldman Sachs maintained a ‘Buy’ rating on Devyani International while retaining a ‘Neutral’ rating on Jubilant FoodWorks and Westlife Foodworld.

Brokerage positive on Devyani International

Goldman Sachs expects improving demand trends across the quick-service restaurant (QSR) sector, particularly for KFC franchise operators like Devyani International.

The brokerage noted that same-store sales growth (SSSG) momentum is improving for KFC franchisees and Westlife Foodworld.

According to the brokerage, fourth-quarter SSSSG for the QSR sector is likely to converge closer to Domino’s, indicating a gradual recovery in consumer demand.

Value offers boosting demand

Goldman Sachs highlighted that value-driven meal offers are supporting dine-in recovery across restaurant chains.

For example, the KFC Krisper meal priced at Rs 999 has reportedly helped drive higher customer transactions.

A low base from last year is also expected to support stronger same-store sales growth in the near term.

Seasonal tailwinds for March

The brokerage also pointed out that the shift in Ramzan timing is creating a more favourable base for restaurants during March, which could support improved sales momentum for the quarter.

However, Goldman Sachs cautioned that geopolitical disruptions remain a risk for the restaurant sector, as any economic uncertainty or consumer slowdown could affect discretionary spending.

Brokerage calls today, March 6: Nomura bullish on Reliance, Jefferies backs Shriram Finance and Navin Fluorine, UBS flags risks for banks

News Desk — Fri, 06 Mar 2026 03:31:41 +0000

Brokerage firms have shared fresh sectoral insights and stock-specific calls across multiple industries, highlighting stable demand in real estate, improving trends in pharmaceuticals, potential windfall gains for refining companies, and continued optimism in sectors such as cement, banking and IT services despite global uncertainties.

Nomura said demand in India’s residential real estate market remains stable even amid an uncertain macroeconomic environment. According to the brokerage, demand has been resilient for projects offered by top branded developers in key markets such as Bengaluru, Mumbai and the National Capital Region. However, it noted that resilience is largely visible in projects that are priced appropriately. Based on these trends, Nomura believes the real estate cycle is currently in a mature phase rather than entering a slowdown, and developers remain on track to meet or potentially beat their guidance.

In the pharmaceutical sector, Nomura highlighted strong prescription and sales trends in January based on IQVIA data. Excluding gRevlimid, trailing three-month sales growth for January 2026 increased the most for Zydus Lifesciences and Lupin on both month-on-month and quarter-on-quarter bases. Both companies gained market share in gMyrbetriq and also benefited from demand for seasonal products. Lupin additionally recorded a material increase in market share in gSpiriva and gRisperdal Consta. Nomura also noted that Zydus has filed for first-to-file sole exclusivity for gBrukinsa tablets, a product with peak sales potential of about $8 billion. Lupin has filed ANDAs for gEmrosi and gNeffy, which have peak sales potential of $300 million and $500 million respectively.

In the oil and gas sector, Nomura said aviation turbine fuel and diesel crack spreads surged sharply due to severe supply disruptions from Middle East exporters, refinery outages and China’s ban on exports of diesel and gasoline. Aviation fuel prices have risen to more than double previous record highs, while Singapore gross refining margins jumped to around $30 per barrel from $3.4 per barrel last week. Nomura believes refining companies could report windfall profits in the upcoming quarter and sees Reliance Industries as a key beneficiary. However, for oil marketing companies the gains from higher refining margins could be offset by significantly higher fuel marketing losses, which are currently estimated at about ₹20 per litre.

Brokerages also shared mixed views on the cement sector. Nomura’s dealer checks indicate near-term pricing remains muted as companies push volumes toward the end of the financial year. Across India, trade prices may see modest improvement in March 2026, while fourth-quarter trends indicate muted growth overall. Regional dynamics remain varied, with southern markets seeing firmer prices and eastern markets expected to witness moderate increases. Nomura continues to prefer Ultratech Cement, Dalmia Bharat, Ambuja Cements, Shree Cement and Nuvoco. Separately, Nuvama said cement demand improved in February and is expected to remain healthy through March, supported by housing and construction activity. The brokerage highlighted price hikes of ₹5–₹10 per bag across North, West and Central regions, though some increases in East and South were later rolled back. Nuvama remains positive on the sector and identifies JK Cement as its top pick, while noting that rising pet coke prices and geopolitical volatility remain key risks.

CLSA highlighted developments in the infrastructure sector, noting that founders of IRB Infrastructure and NCC have purchased small stakes in their respective companies. The brokerage said insider buying is generally seen as a sign of confidence in the business outlook. IRB’s tolling business has delivered 11% year-to-date growth and the company has announced a five-year plan to become net debt free by FY30 while expanding its asset base by 75% over the next three years. NCC’s third-quarter performance was affected by prolonged monsoons and slower project execution, but its order backlog rose 43% year-on-year, improving visibility. CLSA expects execution and margins to start improving from the fourth quarter of FY26.

In the tyre industry, CLSA warned that the ongoing geopolitical conflict in the Middle East has led to a 15–20% spike in key raw-material costs, posing a profitability risk for tyre manufacturers. About 45% of tyre raw materials are linked to crude oil while another 45% comes from natural rubber, making the sector highly sensitive to commodity price movements and currency depreciation. If Brent crude remains near $80 per barrel and domestic rubber prices stay around ₹220 per kilogram, CLSA estimates a potential 400 basis-point hit to gross margins in FY27 even after assuming price hikes.

HSBC also flagged rising cost pressures in the paints sector, noting that cost inflation has returned after nearly four years. While historical cycles suggest companies may pass on costs through price increases, the brokerage believes the competitive landscape has evolved significantly. HSBC maintained Hold ratings on Asian Paints and Berger Paints while cutting target prices to ₹2,600 and ₹500 respectively.

UBS highlighted risks to the banking sector from a potential energy-driven inflation shock. According to the brokerage, if oil prices rise by less than $10 per barrel the impact on bank earnings could range between +1% and –3%, but a larger increase of $20–30 per barrel could lead to a 4–8% earnings decline. UBS said mid-sized private banks and state-owned banks are more sensitive to such shocks than large private lenders, while identifying Axis Bank and Kotak Mahindra Bank as preferred picks and maintaining buy ratings on ICICI Bank, HDFC Bank, Bank of Baroda and Canara Bank.

Nuvama remained constructive on the IT services sector over the medium to long term, stating that generative artificial intelligence disruption is likely to follow patterns seen in previous technology cycles. The brokerage believes large enterprises will depend on IT services companies for deployment, integration and scaling of generative AI solutions, while AI-led services may command higher billing rates and expand the industry’s total addressable market over time.

Among stock-specific calls, Jefferies maintained a buy rating on Shriram Finance with a target price of ₹1,220, stating that interactions with management indicate commercial vehicle demand remains healthy and the company continues to guide for 18–20% AUM growth over FY27–28. Jefferies also reiterated a buy rating on Navin Fluorine with a target price of ₹7,800, citing strong growth levers in CDMO, data-centre cooling solutions and specialty chemicals. The brokerage maintained a hold rating on Infosys with a target price of ₹1,290, noting that demand remains steady while the company expects generative AI investments to remain margin neutral and free cash flow conversion to stay above 100% in FY26.

Elsewhere, Macquarie upgraded Nykaa with a target price of ₹210 while noting that strong growth in the company’s own beauty brands, particularly the Dot & Key skincare portfolio, has driven performance. JPMorgan maintained a neutral rating on InterGlobe Aviation with a target price of ₹4,630, citing rising fuel costs and slowing air traffic growth, while UBS maintained a buy rating on the airline with a revised target price of ₹5,480 despite near-term headwinds from crude prices and currency movements.

In consumer and industrial coverage, Citi initiated coverage on Orkla India with a buy rating and a target price of ₹750, highlighting strong category tailwinds in spices and packaged foods. Nuvama maintained a buy rating on Polycab with a target price of ₹9,630 citing strong demand in cables and wires, while also maintaining a buy call on Tata Consumer with a target price of ₹1,500 as the company transitions into a multi-category food and beverage player. Motilal Oswal maintained buy ratings on Crompton Greaves and Delhivery with target prices of ₹3,350 and ₹580 respectively, citing growth opportunities across multiple business segments.

Meanwhile, HSBC maintained a buy recommendation on Maruti Suzuki with a target price of ₹17,400, stating that demand remains resilient even as commodity costs create margin pressures. Goldman Sachs maintained a sell rating on Gland Pharma with a target price of ₹1,525, noting that its growth outlook assumes conservative improvement in GLP-1 volumes while the company aims to increase the contribution of its CDMO business over the medium term.

Disclaimer: The views and recommendations expressed above are those of individual brokerages and analysts and do not represent the views of this publication. Investors should consult certified financial advisors before making investment decisions.

Brokerages bullish on Lenskart, Suzlon and Tata Consumer; upgrade Marico while Godrej Consumer downgraded

News Desk — Wed, 04 Mar 2026 03:37:47 +0000

Brokerage houses issued a series of recommendations across several Indian companies and sectors, with positive views emerging on stocks such as Lenskart, Suzlon, Tata Consumer, Reliance Industries and Adani Energy, while a few downgrades were also seen in select names.

Goldman Sachs initiated coverage on Lenskart with a buy rating and a target price of ₹635 per share, signalling a positive stance on the company. The brokerage also maintained a buy rating on Tata Consumer, assigning a target price of ₹1,425 per share.

Motilal Oswal maintained its buy rating on Suzlon with a target price of ₹66 per share. The brokerage also reiterated its buy call on LG Electronics, raising the target price to ₹1,860 per share.

JP Morgan maintained an overweight rating on Premier Energy with a target price of ₹915 per share. The brokerage also maintained an overweight stance on Groww with a target price of ₹210 per share, and on Shadow Fax with a target price of ₹180 per share.

JM Financial reiterated its buy recommendation on Adani Energy, assigning a target price of ₹1,199 per share.

CLSA maintained an outperform rating on Reliance Industries with a target price of ₹1,800 per share.

Morgan Stanley upgraded Marico to overweight and raised the target price to ₹934 per share. The brokerage also upgraded Nestlé to equal weight, with the target price increased to ₹1,370 per share, while maintaining an overweight stance on Cyient with a target price of ₹1,500 per share. In addition, Morgan Stanley maintained an equal weight rating on Delhivery, raising the target price to ₹470 per share.

JP Morgan upgraded Dalmia Bharat to neutral with a target price of ₹2,215 per share.

In the defence sector, Goldman Sachs highlighted that the Ministry of Defence has signed orders worth ₹50.8 billion for the acquisition of six Advanced Light Helicopters (ALH) Mk-III in the maritime role. The brokerage retained buy ratings on Solar Industries, Bharat Electronics and PTC Industries.

Jefferies noted that the India auto industry recorded double-digit wholesale and registration growth across segments in February, estimating that industry wholesales rose 31–38% year-on-year for two-wheelers, trucks and tractors, and around 10% for passenger vehicles.

Citi, after meeting distributors across FMCG categories in Lucknow, highlighted Britannia, Godrej Consumer Products and Varun Beverages as top buys, while ITC, Colgate India and United Breweries were identified as top sells.

On the macro front, Citi said fiscal intervention to stabilise retail fuel prices could allow the Reserve Bank of India to prioritise growth over inflation. Jefferies added that recent developments could have immediate negative implications for oil marketing companies, travel and hospitality companies and rate-sensitive stocks, while the defence sector could see positive momentum.

JP Morgan noted that the Middle East conflict could have implications for Indian metals and mining stocks, while CLSA warned that prolonged tensions in the region could keep crude oil prices elevated for a longer period.

Citi also highlighted risks in the oil and gas segment, stating that among city gas distribution companies, Gujarat Gas could face higher risk due to its dependence on both Qatar and spot LNG supplies. Kotak Institutional Equities added that the Iran-US conflict could increase macro and market headwinds for India.

Among other stock-specific calls, HSBC maintained a reduce rating on DMart with a target price of ₹3,500 per share. Kotak maintained a buy rating on Swiggy, cutting the target price to ₹400 per share, and also retained a buy rating on Eternal, lowering the target price to ₹375 per share.

Macquarie maintained an outperform rating on Larsen & Toubro with a target price of ₹4,910 per share, while CLSA also maintained an outperform stance with a target price of ₹4,842 per share.

Kotak maintained a sell rating on GAIL with a target price of ₹145 per share.

In the aviation sector, HSBC cautioned that apart from direct losses due to flight cancellations, any sharp rise in oil prices could also impact airline profitability.

Meanwhile, Morgan Stanley downgraded Godrej Consumer Products to equal weight and cut the target price to ₹1,159 per share.

Disclaimer: The information provided in this article is for informational purposes only and reflects brokerage views and market updates based on the inputs available. It should not be construed as investment advice or a recommendation to buy or sell any securities. Readers are advised to conduct their own research or consult a qualified financial advisor before making any investment decisions.

UltraTech Cement share in focus as CLSA sees ~16% upside, flags strong demand tailwinds

Arunika Jain — Tue, 03 Feb 2026 03:13:44 +0000

Shares of UltraTech Cement are in focus after CLSA reiterated a High Conviction Outperform rating on the stock with a target price of ₹14,500, citing strong demand visibility and long-term growth drivers.

Following a management meeting, CLSA highlighted strong demand tailwinds across segments. The brokerage said that demand strength, combined with ongoing industry consolidation, is likely to support a low single-digit price increase over the medium term.

CLSA noted that UltraTech expects to deliver industry-leading volume growth, supported by its capacity expansion pipeline. The brokerage also pointed to expected profitability improvement driven by cost-savings initiatives.

Over the longer term, CLSA sees mid-teens earnings CAGR over FY26–FY30, alongside improvement in return on capital employed (ROCE) and strong free cash flow generation.

At the current market price of ₹12,543.00, CLSA’s target price of ₹14,500 implies an upside of around 16%.

Disclaimer: This article is based solely on brokerage commentary and numerical inputs provided by the user. The views expressed are those of CLSA and do not constitute investment advice or recommendations by the publication.

Dr Lal PathLabs share in focus as CLSA sees ~17% upside on volume-led growth

Arunika Jain — Tue, 03 Feb 2026 03:12:57 +0000

Shares of Dr Lal PathLabs are in focus after CLSA maintained an Outperform rating on the stock with a target price of ₹1,660, citing steady performance and visibility on volume-led growth.

CLSA said the company’s revenue was in line with consensus, driven primarily by growth in sample volumes. The brokerage noted that EBITDA margin came in marginally higher than estimates, supported by an improved product and geographic mix.

The brokerage added that the company expects organic growth of 11–12% going forward, largely driven by volumes, with no price hikes expected over the next few quarters.

Based on this outlook, CLSA expects sample volumes to grow at a compound annual growth rate of around 10%, while realisations are seen growing at approximately 2% CAGR over FY25–FY28.

At the current market price of ₹1,425.10, CLSA’s target price of ₹1,660 implies an upside of around 17%.

Disclaimer: This article is based solely on brokerage commentary. The views expressed are those of CLSA and do not constitute investment advice or recommendations by the publication.

LIC Housing Finance share in focus as CLSA sees ~21% upside despite weak loan growth

Arunika Jain — Tue, 03 Feb 2026 03:11:53 +0000

Shares of LIC Housing Finance are in focus after CLSA maintained an Outperform rating on the stock while cutting its target price to ₹600, citing a steady quarterly performance alongside challenges on the loan growth front.

CLSA said the company reported a net profit of ₹13.8 billion, slightly ahead of expectations, supported by better net interest income and controlled credit costs. The brokerage noted that net interest margin improved to around 2.7% during the quarter and is expected to remain near current levels.

However, CLSA highlighted that loan growth remained weak at 1% quarter-on-quarter and 5% year-on-year, as the company continues to face strong competition from banks in the retail mortgage segment.

The brokerage added that management is taking steps to revive growth, including hiring a consultant, reshaping its marketing strategy, and increasing focus on the self-employed and affordable housing segments.

At the current market price of ₹497.45, CLSA’s target price of ₹600 implies an upside of around 21%.

Disclaimer: This article is based solely on brokerage commentary. The views expressed are those of CLSA and do not constitute investment advice or recommendations by the publication.

Financial stocks: Shriram Finance, SBI Life, AB Capital, and Bajaj Finance in focus as Morgan Stanley flags bond yield pressure, asset quality improvement

Arunika Jain — Tue, 03 Feb 2026 03:10:45 +0000

Financial stocks are in focus after Morgan Stanley highlighted that a recent spike in bond yields has dampened market expectations of another repo rate cut, weighing on sector sentiment.

According to the brokerage, the direction of interest rates remains a bigger driver of sentiment than actual earnings performance. Morgan Stanley noted that stocks have once again fallen sharply amid rising yields, reinforcing the sensitivity of financial stocks to rate movements.

However, the brokerage pointed to a key positive development emerging from 3QFY26 results, stating that asset quality has improved across its entire coverage universe for the first time in two years, without exception. Morgan Stanley described this as a more durable indicator compared with short-term rate fluctuations.

The brokerage added that the improvement in asset quality provides a strong setup for non-banking financial companies (NBFCs) to drive loan growth, which is already running stronger than the broader system, in line with the prevailing environment.

Within the sector, Morgan Stanley said its preferred large and mid-cap financials, rated Overweight, include Shriram Finance, SBI Life, AB Capital, and Bajaj Finance. Among small-cap names offering growth and deep value, the brokerage highlighted Aptus Value Housing Finance and PNB Housing Finance, both rated Overweight.

Disclaimer: This article is based solely on brokerage commentary. The views expressed are those of Morgan Stanley and do not constitute investment advice or recommendations by the publication.

Nomura stays bullish on Ather Energy, sees ~33% upside after strong Q3

Arunika Jain — Tue, 03 Feb 2026 03:08:36 +0000

Shares of Ather Energy are in focus after Nomura reiterated a positive view on the stock, citing continued strong operating performance and margin improvement.

Nomura maintained a Buy rating on Ather Energy with a target price of ₹812. The brokerage said the company’s impressive performance continues, with the Pro Pack driving both margins and market share. Nomura reiterated that Ather remains its top two-wheeler pick for 3QFY26.

The brokerage highlighted that EBITDA margin stood at -7.6%, significantly better than its estimate of -12.4%, supported by stronger gross margins during the quarter.

At the current market price of ₹610.00, Nomura’s target price of ₹812 implies an upside of around 33%.

Disclaimer: This article is based solely on brokerage commentary. The views expressed are those of Nomura and do not constitute investment advice or recommendations by the publication.

GAIL share in focus as Nomura sees ~30% upside, CLSA sees ~15% upside from current level

Arunika Jain — Tue, 03 Feb 2026 03:06:12 +0000

Shares of GAIL (India) are in focus after brokerages maintained positive views on the stock despite a softer third-quarter performance, pointing to improving transmission volumes and tariff-related developments.

Nomura maintained a Buy rating on GAIL with a target price of ₹209. The brokerage said the company reported a soft third quarter due to weakness in gas marketing. However, Nomura believes earnings are likely to bottom out in the third quarter as gas transmission volumes have started to recover. The brokerage also highlighted that higher transmission tariffs from the fourth quarter onwards are expected to support performance.

CLSA retained an Outperform rating on the stock with a target price of ₹185. The brokerage said core EBIT for 3QFY26 was a significant miss, driven by weak gas trading and petrochemical performance, even as gas transmission volumes were slightly ahead of estimates. CLSA noted that management has guided for a further 7–8% increase in transmission volumes in FY27.

CLSA added that GAIL has filed for a review of its recently announced transmission tariff hike, though the brokerage said there is uncertainty around when the regulator may take up the review. Factoring in lower gas trading profits and the lower-than-expected tariff hike, CLSA cut its EPS estimates by 11–21%.

At the current market price of ₹160.55, Nomura’s target price implies an upside of around 30%, while CLSA’s target price suggests an upside of approximately 15%.

Disclaimer: This article is based solely on brokerage commentary. The views expressed are those of the respective brokerages and do not constitute investment advice or recommendations by the publication.

Hyundai Motor India share in focus as CLSA sees ~29% upside, Nomura sees ~22% upside

Arunika Jain — Tue, 03 Feb 2026 03:05:09 +0000

Shares of Hyundai Motor India (HMIL) are in focus after brokerages maintained positive views on the stock despite margin pressure in the third quarter, citing volume growth drivers and upcoming catalysts.

CLSA maintained an Outperform rating on Hyundai Motor India with a target price of ₹2,853. The brokerage said the company’s 3QFY26 EBITDA margin came in at 11.2%, which was 130 basis points below its estimate and declined 268 bps quarter-on-quarter. CLSA attributed the margin compression to higher fixed costs linked to the new plant, raw material cost inflation, and a weaker product mix due to a lower export share.

However, CLSA noted that margin pressure was partly offset by lower discounts, which fell to 2.6% of average selling price from 3.2% in the previous quarter. The brokerage said the company remains optimistic on volume growth, driven by GST rate cuts, new product interventions, continued export growth, and improved capacity.

Nomura reiterated a Buy rating on the stock with a target price of ₹2,698. The brokerage said margins were slightly lower in the third quarter but highlighted that a new model cycle from the second half of FY27 remains a key catalyst. Nomura also cited the upcoming model launches and a CEO change as potential drivers for outperformance.

At the current market price of ₹2,208.80, CLSA’s target price implies an upside of around 29%, while Nomura’s target price suggests an upside of approximately 22%.

Indus Towers share in focus as UBS flags mixed quarter, maintains Neutral

Arunika Jain — Tue, 03 Feb 2026 03:03:55 +0000

Shares of Indus Towers are in focus after UBS maintained a Neutral rating on the stock with a target price of ₹495, citing a mixed quarterly performance marked by weaker-than-expected revenues but stronger profitability.

UBS said consolidated revenues declined 0.5% quarter-on-quarter, though they rose 8% year-on-year. Core rental revenues increased 0.6% QoQ and 9.5% YoY, but both metrics were around 1.5–2% below the brokerage’s estimates.

Despite softer revenues, profitability came in stronger than expected. EBITDA excluding provision reversals rose 2% QoQ and 13.5% YoY, coming in 0.5% above UBS estimates. The improvement was driven primarily by lower power and fuel expenses, according to the brokerage.

Profit after tax stood at ₹17.8 billion, which was 1.6% above UBS expectations, supported by effective cost control during the quarter.

UBS described the overall performance as mixed, with margins and earnings resilience offsetting the revenue miss.

Disclaimer: This article is based solely on brokerage commentary. The views expressed are those of UBS and do not constitute investment advice or recommendations by the publication.

PB Fintech share in focus as Citi, Bernstein see ~43–44% upside; Morgan Stanley flags ~11% downside

Arunika Jain — Tue, 03 Feb 2026 03:02:16 +0000

Shares of PB Fintech are in focus after multiple brokerages issued divergent views on the stock following its third-quarter performance, while highlighting regulatory developments, fund-raising plans and potential overseas acquisitions.

Citigroup maintained a Buy rating on PB Fintech with a target price of ₹2,225. The brokerage said a robust third quarter underpins the company’s strong and niche positioning. Citi noted that incremental regulatory changes aimed at modifying commission realisation mechanisms or marginally reducing commission pools are unlikely to materially alter business dynamics. Management has also highlighted interest in inorganic international expansion, with a board meeting scheduled on February 5, 2026, to consider fund raising. Citi added that management has indicated any planned acquisition is likely to be EPS accretive and involve a performing entity.

Bernstein maintained an Outperform rating with a target price of ₹2,210, stating that while the company reported a good Q3, investor focus remains on potential M&A activity and fund-raising plans. The brokerage said PB Fintech confirmed plans to seek board and shareholder approvals for a fund raise and a possible overseas acquisition. Bernstein noted that favourable volume and margin outcomes helped offset take-rate compression during the quarter, though discussions suggested commission regulations are likely, with no clarity on the extent of curbs. The brokerage expects wide dispersion in investor sentiment, keeping the stock volatile.

Morgan Stanley, however, maintained an Underweight rating with a target price of ₹1,370. The brokerage said contribution and adjusted EBITDA beat forecasts due to strong cost control, while new protection premium growth benefited from GST tailwinds. Despite this, Morgan Stanley stayed underweight citing expensive valuation amid uncertainties around potential commission regulation, fund raising and international acquisitions.

CLSA reiterated an Outperform rating with a target price of ₹2,050, highlighting a strong Q3FY26 performance. The brokerage said PAT of around ₹1.9 billion came in 20% ahead of estimates, driven by robust 45% YoY premium growth and only a marginal decline in take rates despite the GST 2.0 impact. Growth was broad-based, led by a 79% YoY rise in new health premiums, while lending disbursals increased 17% QoQ. CLSA said margins remained healthy, supported by stable core contributions and improvement in new initiatives. Management is evaluating international inorganic opportunities and plans to seek approvals to raise funds via a QIP.

At the current market price of ₹1,545.00, Citi’s target price implies an upside of around 44%, Bernstein’s target suggests an upside of roughly 43%, and CLSA’s target indicates an upside of about 33%. In contrast, Morgan Stanley’s target price implies a downside of approximately 11%.

UPL share in focus as Investec sees ~39% upside, Kotak flags ~10% downside from current levels

Arunika Jain — Tue, 03 Feb 2026 03:00:40 +0000

Shares of UPL are in focus after brokerages offered divergent views on the stock following its third-quarter performance, even as both raised their respective target prices.

Kotak Institutional Equities maintained a Sell rating on UPL while raising its target price to ₹630. The brokerage said the company’s Q3 performance was ahead of estimates at the operating level, but below-the-line items disappointed. Kotak noted that UPL has retained its FY2026 EBITDA growth guidance of 12–16%, leading the brokerage to make only modest revisions to its FY2026–28 estimates.

In contrast, Investec reiterated a Buy rating on the stock and raised its target price to ₹975. The brokerage said Q3 EBITDA stood at ₹24.3 billion, up 13% year-on-year, and came in 12% ahead of estimates, driven by stronger revenues and margins. Investec highlighted strong double-digit growth in Europe and the rest of the world, while other geographies delivered mid-single digit growth.

Growth in the Americas was muted at 3% YoY, which Investec attributed to the deferral of around $30 million of shipments in anticipation of a trade deal. To offset potential tariff impact, the company has implemented price increases and is reworking its supply chain by shifting from importing formulated products to importing technicals, which are tariff-exempt.

Investec said management sounded confident of delivering growth in the fourth quarter despite a stiff base and expects net debt-to-EBITDA levels to decline to 1.6–1.8x in FY26E, compared with 2.1x in FY25.

At the current market price of ₹699.65, Kotak Institutional Equities’ target price of ₹630 implies a downside of around 10%, while Investec’s target price of ₹975 implies an upside of around 39%.

Stocks to watch on brokerages today: UPL, PB Fintech, Hyundai, GAIL, Ultratech in focus

Arunika Jain — Tue, 03 Feb 2026 02:57:31 +0000

Brokerage commentary remained active across sectors on Tuesday, with earnings reactions, target price revisions and management commentary keeping several stocks in focus.

Shares of UPL are likely to be closely tracked after mixed views from brokerages. Kotak Institutional Equities maintained a Sell rating on the stock while raising its target price to ₹630. The brokerage said the company’s third-quarter performance was ahead of estimates, although below-the-line items disappointed. Kotak retained its FY2026 EBITDA growth guidance of 12–16% and made only modest revisions to its FY2026–28 estimates. In contrast, Investec reiterated a Buy rating on UPL and raised its target price to ₹975, noting that Q3 EBITDA of ₹24.3 billion was 12% ahead of estimates, driven by stronger revenues and margins. Investec highlighted strong double-digit growth in Europe and the rest of the world, while growth in the Americas was muted at 3% year-on-year due to deferred shipments. Management’s confidence in fourth-quarter growth and a decline in net debt to EBITDA in FY26 was also flagged.

Indus Towers is also in focus after UBS maintained a Neutral rating with a target price of ₹495. The brokerage described the quarter as mixed, with revenues coming in below expectations but EBITDA and profit supported by solid cost control. Consolidated revenues declined 0.5% quarter-on-quarter, while EBITDA excluding provision reversals rose 2% QoQ and profit after tax of ₹17.8 billion was slightly ahead of estimates.

Shares of PB Fintech are likely to see heightened activity amid multiple brokerage views. Citi maintained a Buy rating with a target price of ₹2,225, citing a robust third quarter and strong niche positioning. The brokerage said incremental regulatory changes are unlikely to materially alter business dynamics and highlighted management’s interest in international expansion, with a board meeting scheduled on February 5, 2026, to raise funds. Bernstein maintained an Outperform rating with a target price of ₹2,210, focusing on potential M&A and fund-raising plans, while cautioning that regulatory discussions around commissions could keep investor sentiment volatile. Morgan Stanley, however, maintained an Underweight rating with a target price of ₹1,370, citing valuation concerns amid regulatory and fund-raising uncertainties. CLSA retained an Outperform rating with a target price of ₹2,050, highlighting strong premium growth, healthy margins and management’s plans to pursue international opportunities through a potential QIP.

Hyundai Motor India remains in focus after CLSA and Nomura commented on its quarterly performance. CLSA maintained an Outperform rating with a target price of ₹2,853, noting margin pressure due to higher fixed costs, raw material inflation and a weaker product mix, partly offset by lower discounts. The brokerage said the company is optimistic on volume growth supported by GST rate cuts, new products and export growth. Nomura reiterated a Buy rating with a target price of ₹2,698, citing a new model cycle from the second half of FY27 and a leadership transition as key catalysts.

Ather Energy is also being tracked after Nomura reiterated a Buy rating with a target price of ₹812, highlighting continued strong performance, margin improvement driven by the Pro Pack and its position as a top two-wheeler pick for the quarter.

Shares of GAIL are in focus following contrasting brokerage views. Nomura maintained a Buy rating with a target price of ₹209, stating that earnings are likely to bottom out in the third quarter as transmission volumes recover and tariffs increase from the fourth quarter. CLSA retained an Outperform rating with a lower target price of ₹185, flagging weak gas trading and petrochemical performance and cutting EPS estimates to factor in lower profitability.

In the financials space, Morgan Stanley said rising bond yields have weighed on sentiment, though third-quarter results showed broad-based improvement in asset quality across coverage. The brokerage reiterated its preference for Shriram Finance, SBI Life, AB Capital and Bajaj Finance among large and mid-caps, while also highlighting Aptus Value Housing and PNB Housing Finance among small-cap names.

LIC Housing Finance remains in focus after CLSA maintained an Outperform rating but cut its target price to ₹600. The brokerage noted a steady quarter supported by better net interest income and controlled credit costs, though loan growth remained weak amid strong competition.

Dr Lal PathLabs is also on the radar after CLSA retained an Outperform rating with a target price of ₹1,660, citing stable margins, volume-led growth and expectations of double-digit organic growth without near-term price hikes.

Finally, Ultratech Cement remains a high-conviction pick for CLSA, which reiterated its Outperform rating with a target price of ₹14,500. The brokerage highlighted strong demand tailwinds, industry consolidation, expected price increases, and management’s confidence in industry-leading volume growth and profitability improvement.

Disclaimer: This article is based solely on brokerage reports and commentary provided by the user. The views expressed are those of the respective brokerages and do not constitute investment advice or recommendations by the publication.

Healthcare stocks in focus as CLSA flags strong FY27 budget push, limited pharma upside

Arunika Jain — Mon, 02 Feb 2026 03:03:56 +0000

Healthcare stocks were in focus after CLSA highlighted a strong budgetary push for the sector in FY27, while noting that the upside for pharmaceutical companies remains limited.

According to CLSA, healthcare allocation has increased 33% year-on-year in FY27, reflecting a significant policy focus on the sector. The brokerage said the government’s emphasis spans medical tourism, biopharma development, expansion of the talent pool, and healthcare infrastructure creation.

CLSA noted that customs duty cuts are positive for multinational pharmaceutical companies, improving cost structures and competitiveness. However, the brokerage said the benefits for Indian pharmaceutical manufacturers are likely to remain limited despite the broader budgetary support.

Within the healthcare space, CLSA highlighted that large hospital chains are expected to emerge as the key beneficiaries of the increased allocation and policy focus.

Disclaimer: This article is based solely on brokerage inputs provided by the user. The views expressed are those of the brokerage and do not constitute investment advice or recommendations by the publication.

Real estate stocks DLF, Embassy REIT gain attention as CLSA flags long-term positives

Arunika Jain — Mon, 02 Feb 2026 03:02:16 +0000

Real estate stocks were in focus after CLSA said the push towards data centres and global capability centres (GCCs) is likely to offset concerns related to Minimum Alternate Tax (MAT), with long-term positives outweighing the mid-term impact.

CLSA noted that tax clarity and easing of compliance norms are supportive for annuity-focused real estate developers. The brokerage added that the tax holiday extended till 2047 for foreign data centre companies is a key positive for the sector and provides long-term visibility for developers aligned with this theme.

However, CLSA flagged that restrictions on MAT credit remain a near-term negative for the real estate space. Despite this, the brokerage believes that structural drivers linked to data centres and GCC-led demand provide stronger long-term support, outweighing the mid-term impact of MAT-related issues.

Within the sector, CLSA identified DLF and Embassy REIT as its top picks.

Disclaimer: This article is based solely on brokerage inputs provided by the user. The views expressed are those of the brokerage and do not constitute investment advice or recommendations by the publication.

BSE, Groww, Nuvama stocks in focus as Jefferies and Bernstein flag STT hike sentiment impact

Arunika Jain — Mon, 02 Feb 2026 02:57:30 +0000

Global brokerage Jefferies said the recent hike in Securities Transaction Tax (STT) appears largely manageable and is being viewed more as a sentiment negative rather than a structural concern for capital markets.

According to Jefferies, industry checks suggest that the STT increase could result in around a 5% impact on trading volumes. The brokerage noted that a 5% drop in average daily turnover or orders could translate into an estimated 4% earnings impact for platforms such as BSE and Groww.

Separately, Bernstein assessed the budget impact across capital markets and insurance, stating that derivatives are likely to bear the brunt of the changes, while insurance remains a non-event.

Bernstein said higher STT is likely to soften sentiment across the derivatives value chain. The brokerage added that higher frequency trading profitability may compress, which could hurt Nuvama due to a reduced profit pool.

On the insurance side, Bernstein noted that there were no major policy or tax changes announced, and there was no mention of commission reforms. As a result, the brokerage said the budget impact remains neutral for PB Fintech.

Bernstein added that investor focus is now likely to shift towards the IRDAI consultation paper in the coming months.

Disclaimer: This article is based solely on the brokerage inputs provided. The views expressed are those of the respective brokerages and do not constitute investment advice or recommendations by the publication.

Angel One, Groww stocks in focus as Citigroup flags STT hike as near-term sentiment overhang

Arunika Jain — Mon, 02 Feb 2026 02:55:35 +0000

Global brokerage Citigroup said the recent increase in Securities Transaction Tax (STT) is likely to act as a near-term sentiment overhang for the capital markets segment, though the longer-term behavioural impact is expected to remain limited.

According to Citigroup, STT on futures has been raised to 0.05%, while STT on options premium and exercise has been increased to 0.15%. These changes will come into effect from April 2026.

The brokerage noted that the tax hike could lead to a marginal decline in futures and options (F&O) trading volumes in the near term. However, Citigroup said past instances of STT hikes have had a muted impact on overall options turnover, suggesting limited long-term changes in trading behaviour.

On the stock front, Citigroup highlighted that Angel One and Groww could face mild topline pressure due to their relatively higher exposure to F&O trading. In contrast, the brokerage noted that the impact is expected to be minimal for other players such as Nuvama.

Disclaimer: This article is based solely on the brokerage inputs provided. The views expressed are those of the brokerage and do not constitute investment advice or recommendations by the publication.

Capital goods stocks Siemens Energy, L&T, HAL in focus as Jefferies sees sharp capex reversal

Arunika Jain — Mon, 02 Feb 2026 02:53:48 +0000

Global brokerage Jefferies said the capital expenditure narrative has swung back sharply in FY27, marking a clear reversal from FY26, which was tilted more towards consumption.

According to Jefferies, spending priorities have shifted decisively towards capital expenditure in FY27, with road and rail capex rising in the range of 8–11% year-on-year compared with flat growth in FY26. Defence capital expenditure has emerged as a standout, recording an 18% YoY increase.

The brokerage also highlighted a sharp reduction in allocations for new initiatives under the Ministry of Finance. Jefferies noted that the allocation for these initiatives has been cut by 94%, reflecting rationalisation in budgetary priorities.

Overall capital expenditure is estimated to be up 12% YoY in FY27, Jefferies said. Excluding allocations related to the Ministry of Finance and BSNL, overall capex growth stands higher at around 13%.

On the sector front, Jefferies identified Siemens Energy, Hitachi Energy, Hindustan Aeronautics (HAL), Bharat Electronics (BEL), KEI Industries and Larsen & Toubro (L&T) as its top picks within the capital goods space.

Capital goods stocks in focus as Citi flags re-acceleration in government capex growth

Arunika Jain — Mon, 02 Feb 2026 02:52:16 +0000

Global brokerage Citigroup highlighted a re-acceleration in capital expenditure growth across key government ministries, pointing to improving trends in rail, road and defence spending compared with FY26.

According to Citigroup, defence has emerged as the fastest-growing capital expenditure segment, supported by a broader pickup in central government spending. The brokerage noted that FY27 central government capex is projected at ₹12.2 lakh crore, reflecting an 11.5% year-on-year increase.

Citigroup also highlighted that public sector undertaking (PSU) capital expenditure is estimated at ₹4.8 lakh crore in FY27, broadly in line with an 11–12% growth range.

Looking beyond the near term, Citigroup pointed to medium-term positives including announcements related to high-speed rail and dedicated freight corridors, alongside a push to develop the data centre ecosystem.

The brokerage further noted that manufacturing scale-up in electronics and industrial segments remains a key structural theme underpinning capital goods demand.

Defence stocks in focus as Goldman Sachs flags positive FY27 budget surprise, capital spend jumps

Arunika Jain — Mon, 02 Feb 2026 02:50:49 +0000

Global brokerage Goldman Sachs highlighted a positive surprise in India’s FY27 defence budget, noting higher-than-estimated allocations and strong execution trends in the current year, which could have direct implications for defence-linked stocks.

According to Goldman Sachs, the overall defence budget for FY27 has been set at ₹7.85 lakh crore, reflecting a 7% year-on-year increase and coming in ahead of its estimate of ₹7.75 lakh crore. The brokerage also pointed out that FY26 defence spending is tracking 8% higher than the Budget Estimate, indicating strong execution on the ground.

A key highlight flagged by Goldman Sachs is the sharp rise in capital procurement. FY27 capital procurement spending is projected at ₹2.19 lakh crore, marking an 18% YoY increase and significantly exceeding the brokerage’s estimate of ₹1.97 lakh crore.

Spending on other equipment such as missiles, ammunition, radar systems and electronics has emerged as another standout. Goldman Sachs noted that allocations for this segment have risen 62% YoY to ₹82,200 crore, making it one of the most notable components of the budget.

On the stock front, Goldman Sachs said the direct beneficiaries of higher defence spending include Solar Industries, Bharat Electronics (BEL) and Bharat Dynamics. The brokerage also highlighted trickle-down opportunities in companies such as Astra Microwave and Data Patterns.

In the aerospace segment, Goldman Sachs noted that the basic customs duty (BCD) exemption is a positive development for companies including PTC Industries and Azad Engineering.

J.P. Morgan initiates coverage on Polycab India with ‘Overweight’ rating, sees 16% upside potential

Markets Desk — Sat, 10 Jan 2026 06:37:28 +0000

J.P. Morgan has initiated coverage on Polycab India, assigning an Overweight rating and projecting a 16% upside from current levels, citing strong near-term growth prospects driven by India’s electrification and energy transition push.

In its sector initiation note on cables and wires (C&W), JPMorgan described the segment as a key beneficiary of structural trends such as power grid expansion, renewable energy integration, and rising electricity demand, positioning large, organized players like Polycab as “picks and shovels” to the electrification theme.

Strong near-term growth outlook

JPMorgan expects Polycab to deliver higher near-term growth compared to peers, supported by its scale, wide product portfolio, and strong presence across cables and wires. The brokerage noted that rising copper prices could lead to near-term earnings upgrades, with FY27 earnings for the sector estimated to be 8–12% above consensus.

Polycab’s diversified exposure and leadership position in the organized market are expected to support volume growth as electrification-related capex accelerates across power, infrastructure, and industrial segments.

Margin normalization risks flagged

However, JPMorgan flagged potential margin pressure over the medium term. The brokerage pointed out that Polycab currently enjoys an EBIT margin advantage of around 450 basis points over the top five peers, despite having a higher share of cables in its mix.

According to the report, this margin superiority could normalize as competition intensifies, particularly with the expected entry of large conglomerates into the higher-margin, organized wires segment. JPMorgan also noted that Polycab’s planned capex cycle to maintain capacity leadership in cables could weigh on returns in the near term.

Valuation and risk-reward

JPMorgan highlighted that Polycab is currently trading at around a 10% valuation discount to KEI Industries, which it believes balances the risks from rising competition and margin normalization. As a result, the brokerage said the risk-reward profile for Polycab remains attractive, even as competitive intensity increases across the sector.

While JPMorgan structurally prefers KEI Industries for its cleaner exposure to cables, higher export mix, and potential margin improvement, it maintained an Overweight stance on Polycab, citing strong growth visibility and its positioning as a key beneficiary of India’s ongoing electrification cycle.

J.P. Morgan initiates coverage on KEI Industries with ‘Overweight’ rating, sees 21% upside potential

Aditya Bhagchandani — Sat, 10 Jan 2026 06:33:17 +0000

J.P. Morgan has initiated coverage on India’s cables and wires (C&W) sector, highlighting KEI Industries and Polycab India as its preferred picks amid a structural electrification and energy transition cycle.

In its initiation note, the global brokerage described cables and wires companies as “picks and shovels” beneficiaries of India’s electrification push, citing rising power demand, grid expansion, renewable energy integration, and energy transition-led capex as key structural drivers.

KEI Industries: Preferred pick with 21% upside

KEI Industries has been assigned an Overweight rating, with JPMorgan projecting a 21% upside from current levels. The brokerage believes KEI is better positioned than peers due to its higher exposure to cables, which account for around 65–70% of its revenue mix.

JPMorgan highlighted KEI’s cleaner play on the cables and wires segment, stronger export presence, and higher Extra High Voltage (EHV) exposure. It also expects margin improvement as recently commissioned capacities ramp up over the next few quarters. The brokerage estimates earnings growth of around 20–25% over the next three years, supported by volume growth and operating leverage.

Polycab India: Strong near-term growth, competition risks ahead

Polycab India has also been initiated with an Overweight rating, with JPMorgan seeing a 16% upside potential. The brokerage expects Polycab to deliver stronger near-term growth compared to peers but flagged risks to its margin superiority as competition intensifies.

According to the report, Polycab’s EBIT margins, which are around 450 basis points higher than the top five peers, could normalize over time as new entrants target the organized wires segment and as Polycab enters a fresh capex cycle to defend market share in cables.

Copper prices and capacity expansion key drivers

JPMorgan noted that rising copper prices could lead to near-term earnings upgrades across the sector, estimating FY27 earnings to be 8–12% above consensus. However, it cautioned that the entry of large conglomerates into the wires segment could create a capacity shock, putting pressure on industry margins and returns over the medium term.

Despite these risks, the brokerage sees KEI and Polycab as relatively better placed due to their scale, product mix, and earnings visibility. While Polycab is expected to grow faster in the near term, JPMorgan said it slightly prefers KEI on a structural basis, though valuations make the risk-reward profile similar for both stocks.

PowerGrid, NTPC to benefit while L&T will be impacted negatively if Chinese companies can bid for govt contracts

Markets Desk — Fri, 09 Jan 2026 02:30:11 +0000

Bernstein has assessed recent media reports suggesting that India may ease restrictions on Chinese companies bidding for government contracts and believes that any such move is unlikely to be unconditional or across the board. The brokerage said it would be surprised if the government were to fully remove Rule 144 without safeguards, although some form of relaxation appears increasingly likely.

According to Bernstein’s industry checks, any easing of restrictions is more likely to be segment-specific or accompanied by eligibility requirements for Chinese firms, rather than a blanket removal. The brokerage added that the push for change may be coming not only from the Ministry of Power, but also from other departments such as the Ministry of Steel, reflecting cost pressures and execution challenges in large infrastructure projects.

Bernstein believes that if the policy change materialises, equipment manufacturers—particularly multinational players—are likely to be more affected than construction-heavy EPC companies. Increased competition in equipment supply could put pressure on pricing and margins, especially in commoditised categories.

In the case of Larsen & Toubro, Bernstein expects the impact to be negative but limited, given the company’s diversified business mix, execution capabilities and strong balance sheet. The brokerage emphasised that construction-led players are better positioned to absorb incremental competition than pure-play equipment suppliers.

Importantly, Bernstein pointed out that the key beneficiaries of any relaxation would be asset owners, particularly state-owned utilities such as Power Grid Corporation of India and NTPC. Greater competition could help expedite project execution and lower costs, especially for competitively bid projects.

Bernstein concluded that while the policy shift could alter sector dynamics, the net benefit may accrue more to project owners than to contractors, with equipment suppliers facing the most pressure if competition intensifies.

Disclaimer: The views and recommendations above are those of Bernstein. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.

L&T, Afcons Infra and BHEL could face higher competition if China curbs ease while, says Jefferies

Markets Desk — Fri, 09 Jan 2026 02:28:04 +0000

Jefferies has highlighted potential implications for the Indian industrials sector following media reports suggesting that India could ease restrictions on Chinese companies bidding for government contracts, restrictions that have largely been in place since 2020. The brokerage said that while the development could alter competitive dynamics in select segments, the impact would vary meaningfully across sub-sectors and companies.

According to Jefferies, the defence segment is likely to see the lowest impact, given the strategic and security-sensitive nature of defence procurement. The brokerage added that companies such as Cummins India could also face relatively limited disruption, as their positioning and customer relationships provide some insulation.

In contrast, Jefferies believes that engineering and EPC-heavy players such as Larsen & Toubro, Afcons Infrastructure and BHEL are likely to see the highest impact if Chinese participation is relaxed, due to increased competition in government-led infrastructure and power projects. This could exert pressure on pricing and order inflows in certain project categories.

The brokerage also flagged potential impact on equipment manufacturers such as ABB India and CG Power, which could face stiffer competition in select tenders.

However, Jefferies noted that the transmission and distribution (T&D) segment may see only limited impact, citing national security priorities attached to the power grid. Companies such as Siemens Energy and Hitachi Energy are expected to remain relatively insulated, given the strategic importance of grid infrastructure.

Overall, Jefferies said that while the possible easing of restrictions introduces an element of uncertainty, the actual impact will depend on the scope, conditions and pace of any policy change.

Disclaimer: The views and recommendations above are those of Jefferies. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.

HSBC flags upside risk for Tata Steel Netherlands amid CBAM rollout

Markets Desk — Thu, 08 Jan 2026 02:21:32 +0000

HSBC has maintained its buy rating on Tata Steel with a target price of ₹215 per share, citing improving structural tailwinds in Europe following the implementation of the Carbon Border Adjustment Mechanism (CBAM). The brokerage believes Tata Steel’s European footprint positions it well to benefit from the evolving regulatory landscape.

HSBC noted that European steel companies have rallied sharply over the past six months, driven by clearer visibility on CBAM implementation. The brokerage expects European steel prices to move higher, which could result in upside risks to Tata Steel Netherlands’ earnings estimates.

The firm highlighted that Tata Steel’s 7 million tonne European footprint offers meaningful exposure to this improving pricing environment. Against this backdrop, HSBC finds Tata Steel’s recent underperformance surprising, particularly when compared with the strong rally seen in European peers.

HSBC believes that as CBAM-driven pricing benefits start reflecting more clearly in earnings, Tata Steel could see a re-rating, supported by improving realisations and operating leverage in its European operations.

Disclaimer: The views and recommendations above are those of HSBC. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.

Moderation across verticals dents Info Edge Q3 billings, says Nomura

Markets Desk — Thu, 08 Jan 2026 02:20:59 +0000

Nomura has maintained its buy rating on Info Edge with a target price of ₹1,585 per share, even as Q3FY26 billings came in slightly below expectations across multiple verticals. The brokerage noted that while growth moderated, the company continues to deliver double-digit expansion.

Nomura highlighted that Naukri billings in Q3 were marginally below expectations, reflecting a softer hiring environment. In the real estate vertical, 99acres billings grew 14.4% year-on-year, compared with Nomura’s expectation of 17% growth, while education and matrimony verticals reported billings growth of 13.7% YoY, below the estimated 20% growth.

Overall, total billings rose 11.8% YoY, trailing Nomura’s expectation of 13.6% growth, indicating some broad-based moderation across segments. Despite this, the brokerage remains constructive on Info Edge’s medium-term prospects, supported by its leadership positions, diversified digital portfolio and strong cash generation.

Nomura believes the near-term slowdown does not materially alter the long-term investment thesis, and continues to view Info Edge as a high-quality digital franchise with sustained growth potential.

Disclaimer: The views and recommendations above are those of Nomura. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.

HSBC sees valuation comfort in Info Edge despite Q3 moderation

Markets Desk — Thu, 08 Jan 2026 02:09:37 +0000

HSBC has maintained its buy rating on Info Edge with a target price of ₹1,625 per share, even as it flagged some moderation in near-term growth trends. The brokerage believes the company’s core businesses remain well positioned, with valuations offering comfort relative to long-term growth prospects.

According to HSBC, billings growth in Q3 remained steady at 12% for the overall business, while the recruitment segment recorded 11% year-on-year billings growth. While this performance reflects stable demand conditions, the brokerage expects some moderation in reported revenue growth during the quarter, making management commentary a key monitorable.

HSBC highlighted that despite near-term growth normalisation, Info Edge’s core business valuation looks attractive, particularly given its strong market positions across recruitment, real estate and other digital verticals. The brokerage remains constructive on the company’s long-term trajectory, supported by high-margin platforms, strong brand equity and optionality from non-core investments.

Overall, HSBC believes that while growth may not accelerate sharply in the immediate term, Info Edge’s structural strengths and valuation comfort continue to support its buy stance.

Disclaimer: The views and recommendations above are those of HSBC. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.

HSBC raises target price for UPL shares to Rs 925 as Advanta seen unlocking long-term value

Markets Desk — Thu, 08 Jan 2026 02:08:52 +0000

HSBC has maintained its buy rating on UPL and raised its target price to ₹925 per share from ₹850, citing growing confidence in the long-term value creation potential of its seeds subsidiary, Advanta. The brokerage believes Advanta has emerged as a structurally strong platform within UPL’s portfolio, with consistent execution and superior growth metrics relative to peers.

According to HSBC, Advanta has delivered an impressive revenue and EBITDA CAGR over the past five years, materially outperforming other seed companies both in India and globally. The brokerage highlighted that Advanta’s differentiated product portfolio, strong presence in key geographies and disciplined execution have enabled it to build a resilient and scalable growth model.

HSBC noted that media reports suggesting UPL is exploring capital market options for Advanta could act as a meaningful catalyst. Any potential monetisation or listing of the seeds business could help unlock value for shareholders while also supporting debt reduction at the parent level, thereby strengthening UPL’s balance sheet.

The brokerage added that key growth drivers for Advanta remain firmly in place, supporting sustained value creation over the medium to long term. Given Advanta’s consistent outperformance and the optionality around capital market actions, HSBC believes the risk-reward for UPL remains attractive at current levels.

Disclaimer: The views and recommendations above are those of HSBC. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.

Titan share price: Nomura maintains Buy call with Rs 4,500 target price after strong Q3 business update

Markets Desk — Wed, 07 Jan 2026 03:02:53 +0000

Nomura has maintained its buy rating on Titan Company with a target price of ₹4,500 per share, following a significant beat in Q3FY26 performance, led by a sharp acceleration in jewellery sales. The brokerage believes Titan’s execution continues to exceed expectations, reinforcing confidence in its long-term growth trajectory.

Nomura highlighted that consolidated sales growth excluding bullion came in at around 40% YoY, materially above its estimates. The outperformance was driven largely by the jewellery segment, where domestic jewellery sales, including CaratLane, grew approximately 41% YoY, compared with Nomura’s earlier expectation of 25–30% growth.

The brokerage noted that growth was broad-based across formats and brands, reflecting strong festive demand, premiumisation and Titan’s ability to gain share in a fragmented market. Watches and Eyecare businesses delivered in-line performance, while emerging businesses, particularly fashion accessories, continued to post strong growth, adding to the overall momentum.

Nomura believes Titan’s strong brand equity, disciplined expansion strategy and ability to navigate volatility in gold prices position it well for sustained growth. The brokerage remains constructive on the stock, supported by consistent execution, leadership in organised jewellery and steady scaling of adjacent lifestyle categories.

Disclaimer: The views and recommendations above are those of Nomura. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.

Titan share price today: Citi stays neutral with Rs 4,125 target despite sharp jewellery outperformance

Markets Desk — Wed, 07 Jan 2026 03:01:37 +0000

Citi has maintained its neutral rating on Titan Company with a target price of ₹4,125 per share, even as the company delivered a significant upside surprise in its domestic jewellery business during Q3FY26. The brokerage acknowledged that reported growth far exceeded expectations but remains cautious on sustainability and mix-related dynamics.

Standalone domestic jewellery revenue (excluding bullion) grew 40% year-on-year, sharply above Citi’s estimate of 25%, supported by low-thirties like-for-like (LFL) growth during the quarter. Citi noted that gold prices were up nearly 55% YoY, which materially boosted reported revenue through higher ASPs.

Management commentary indicated that jewellery revenue growth was driven primarily by a substantial increase in average selling prices, while buyer growth remained broadly flat. Citi highlighted that gold coin sales doubled YoY, while plain gold jewellery grew in the late-thirties, outperforming studded jewellery growth in the mid-twenties. The brokerage estimates a 200–250 bps YoY decline in the studded jewellery mix, reflecting a shift in consumer preference amid rising gold prices.

On the expansion front, Tanishq added 10 stores in India and two international stores during the quarter, while CaratLane delivered strong 42% YoY growth, reinforcing its role as a key growth driver. Other segments reported steady performance, with Watches & Wearables growing 13% YoY, EyeCare up 16%, and Emerging Businesses rising 14%. Consolidated consumer business revenue growth excluding bullion stood at 40% YoY.

Despite the strong topline performance, Citi remains neutral on the stock, citing concerns around buyer growth trends, jewellery mix shifts and valuation comfort after the sharp rally.

Disclaimer: The views and recommendations above are those of Citi. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.

Goldman Sachs raises target price for Titan shares to Rs 4,850 as jewellery-led growth accelerates sharply

Markets Desk — Wed, 07 Jan 2026 03:00:49 +0000

Goldman Sachs has maintained its buy rating on Titan Company and raised its target price to ₹4,850 per share, citing a sharp acceleration in revenue growth during the December quarter driven primarily by the jewellery segment. The brokerage highlighted that Titan delivered one of its strongest quarterly growth performances in recent years, underscoring the resilience of branded jewellery demand despite elevated gold prices.

According to Goldman Sachs, jewellery revenue growth surged to 41% year-on-year in Q3FY26, a significant step-up from 18% YoY growth recorded in 1HFY26. The acceleration was broad-based, with strong contributions across plain gold, studded jewellery and coins, reflecting sustained festive demand, higher ticket sizes and strong brand traction across formats.

While jewellery margins are expected to moderate on a year-on-year basis due to an adverse mix, Goldman Sachs believes this will be more than offset by very strong EBIT growth, driven by operating leverage from higher volumes and robust revenue momentum. The brokerage noted that the sharp increase in average selling prices (ASPs) has played a key role in driving topline growth, even as consumer demand remained resilient.

Beyond jewellery, Goldman Sachs highlighted that watches, eyewear and Titan’s international business also delivered strong growth during the quarter, reinforcing the company’s diversified growth profile. The brokerage remains constructive on Titan’s medium-term outlook, supported by continued premiumisation, store expansion and sustained brand leadership across lifestyle categories.

Disclaimer: The views and recommendations above are those of Goldman Sachs. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.

Nuvama expects 42% upside in this solar and grid-connected pump maker, advises to Buy the stock

Markets Desk — Wed, 07 Jan 2026 02:58:07 +0000

Nuvama has initiated coverage on Oswal Pumps with a buy rating and a target price of ₹720 per share, citing the company’s strong positioning at the intersection of agriculture and solar energy. The brokerage believes Oswal Pumps is well placed to benefit from the increasing integration of renewable energy solutions within India’s agricultural ecosystem.

Nuvama highlighted Oswal Pumps’ strong expertise in pump technology, combined with its in-house solar module manufacturing capabilities, as a key differentiator. This integrated model offers meaningful lifecycle benefits to both farmers and government programmes by improving efficiency, lowering operating costs and enhancing system reliability.

The brokerage expects Oswal Pumps to deliver revenue, EBITDA and PAT CAGRs of 21%, 13% and 11%, respectively, over FY26–28E, even after factoring in a high base effect. Growth over FY24–26E has already been strong, with revenue, EBITDA and PAT CAGRs of 66%, 86% and 95%, respectively. Nuvama has also conservatively built in a modest delay in the PM-KUSUM 2.0 scheme while assessing the company’s medium-term outlook.

Despite these conservative assumptions, Nuvama believes Oswal Pumps’ structural growth drivers remain intact, supported by policy tailwinds, rising adoption of solar-powered irrigation and the company’s integrated manufacturing capabilities.

Disclaimer: The views and recommendations above are those of Nuvama. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.

Jefferies says Buy Reliance Industries with a target price of Rs 1,830 on the stock

Markets Desk — Wed, 07 Jan 2026 02:56:07 +0000

Jefferies has maintained its buy rating on Reliance Industries with a target price of ₹1,830 per share, highlighting the company’s strong earnings recovery and multiple medium-term catalysts. The brokerage noted that Reliance outperformed the Nifty by 19% in CY25, driven by the restoration of double-digit consolidated EBITDA growth after a relatively weak FY25.

According to Jefferies, the recovery in earnings momentum has been broad-based, with the operating environment stabilising across key segments. The brokerage believes the next phase of upside will be driven by a combination of tariff hikes in telecom, a potential listing of Jio by mid-CY26, and a return to mid-teens growth in the retail business in FY27.

Jefferies projects 13% consolidated EBITDA growth in FY27, with Jio expected to do the heavy lifting, supported by improving average revenue per user (ARPU) and operating leverage. The brokerage also pointed to FMCG, new energy initiatives and data centre partnerships as additional optionalities that could contribute to earnings and valuation upside over the medium term.

With earnings drag from weaker refining and petrochemicals largely behind, Jefferies believes Reliance’s risk-reward remains favourable, supported by improving growth visibility across its consumer-facing and digital businesses.

Disclaimer: The views and recommendations above are those of Jefferies. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.

Stocks To Buy: Nomura advises to Buy IDFC First Bank shares for a 25% upside in stock price

Markets Desk — Wed, 07 Jan 2026 02:54:58 +0000

Nomura has initiated coverage on IDFC First Bank with a buy rating and a target price of ₹105 per share, citing the bank’s transition from a prolonged investment and balance-sheet rebuilding phase to one of sustained and broad-based profitability. The brokerage believes the structural transformation undertaken over the past few years is now beginning to translate into visible earnings momentum and improving return ratios.

Nomura highlighted that IDFC First Bank has built a strong liabilities franchise, with CASA ratio at around 50% as of 1HFY26, alongside a sharp reduction in reliance on borrowings, which now account for just 13% of the funding mix, compared with 32% in FY22. This marks a decisive shift away from its earlier wholesale-led model towards a granular, retail-focused balance sheet, improving funding stability and reducing cost of funds.

Growth visibility remains robust, according to the brokerage, with Nomura forecasting loan and deposit CAGRs of 20% and 22%, respectively, over FY26–28F. The bank’s fee-income profile, exceeding 2% of average assets, is also highlighted as superior to most peers, providing an additional earnings buffer and supporting profitability through cycles.

Nomura expects a sharp improvement in operating performance over the next few years, projecting a 39% core pre-provision operating profit (PPOP) CAGR over FY26–28F. This acceleration is expected to be driven by a 50 basis point moderation in cost-to-assets, alongside a 14 basis point improvement in net interest margins (NIMs) as the liability mix continues to strengthen. In addition, a 35 basis point decline in credit costs is anticipated as the loan book seasons and asset quality stabilises.

These factors together are expected to lift return on assets (RoA) to 1.2% and return on equity (RoE) to 11.8% by FY28F, from 0.6% and 5.4% in FY26F, respectively. Nomura believes this sharp improvement will translate into a sector-leading EPS CAGR of 67% over FY26–28F, underpinning its positive stance on the stock.

Disclaimer: The views and recommendations above are those of Nomura. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.

Stocks To Buy: Motilal Oswal advises to Buy Groww shares and expects 19% upside in stock from current levels

Markets Desk — Tue, 06 Jan 2026 02:53:50 +0000

Motilal Oswal Financial Services (MOFSL) has initiated coverage on Groww with a buy rating and a target price of ₹185 per share, implying an upside of around 19% from current levels. The brokerage highlighted Groww’s rapid scale-up into India’s largest retail broking platform and expects the next phase of growth to be driven by improving earnings quality and diversification beyond pure broking revenues.

Groww has emerged as the largest retail broking platform in India within just four years, commanding a 26.8% share of NSE active clients, materially ahead of peers. What began as a zero-revenue mutual fund distribution platform has evolved into a full-stack investing ecosystem, spanning equities, derivatives, commodities, margin trading facility (MTF), credit products, and wealth management. The platform currently serves 14.8 million active users, underpinned by strong organic customer acquisition.

MOFSL believes the key transformation underway is a structural improvement in earnings durability. The brokerage noted that Groww is consciously reducing its reliance on volatile broking revenues by scaling higher-quality and more predictable income streams such as MTF, commodities, loan-against-shares (LAS), loan-against-mutual-funds (LAMF), and wealth management. As a result, broking’s contribution to revenues is expected to decline from 85% in FY25 to around 67% by FY28, even as absolute broking revenues continue to grow.

Motilal Oswal highlighted several structural advantages that differentiate Groww within India’s competitive fintech landscape. The platform enjoys over 80% organic customer acquisition, resulting in a low customer acquisition cost and quick payback periods. Its fully in-house technology stack enables rapid feature deployment and keeps cost-to-serve structurally low. Combined with a fixed-cost-heavy operating model, this provides strong operating leverage, which should increasingly reflect in profitability as revenues scale.

The brokerage outlined multiple growth levers that are expected to unlock the next phase of expansion. Groww’s MTF book stands at ₹17 billion, still at an early stage with roughly 2% market share, but offers high-yield potential with around 15% ARPU uplift. Commodities trading provides incremental broking growth without incremental acquisition costs, while credit offerings monetise over ₹30 billion of assets already on the platform. In wealth management, Groww’s affluent client base—about 0.3 million users holding nearly 33% of platform assets—offers significant monetisation potential, with the Fisdom acquisition accelerating scale and capability in this segment. MOFSL expects these non-broking businesses to drive more resilient and less cyclical earnings over time.

On the financial front, Motilal Oswal forecasts a 25% revenue CAGR, 30% EBITDA CAGR and 30% PAT CAGR over FY25–28E. EBITDA margins are projected to expand from 59% to around 66% by FY28, supported by strong operating leverage and disciplined cost management. Contribution margins are expected to approach 90%, reinforcing Groww’s scalability and profitability profile.

From a valuation perspective, Groww trades at around 22x FY28E P/E, which MOFSL views as attractive relative to global peers such as Robinhood, which trades closer to 40x forward earnings. As the revenue mix shifts towards credit and wealth, the brokerage expects improved earnings durability to support a valuation re-rating.

Disclaimer: The views and recommendations above are those of Motilal Oswal Financial Services. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.

Citi reiterates its Sell call on Trent stock after Q3 business update, says revenue growth continues to moderate

Markets Desk — Tue, 06 Jan 2026 02:50:19 +0000

Citi has maintained its sell rating on Trent with a target price of ₹4,350 per share, even as reported revenue growth came in marginally ahead of expectations, citing ongoing concerns around store productivity and revenue density.

The brokerage noted that standalone revenue grew 16.9% YoY, slightly above its estimate of 15.3%, though this marked a moderation from the stronger growth rates of 19.8% in 1Q and 17.1% in 2Q. Citi attributed the better-than-expected topline largely to higher store additions, rather than improvements in like-for-like performance.

During the quarter, Westside and Zudio added a net 17 and 48 stores respectively, compared with Citi’s estimate of 18 and 40 stores. On a year-to-date basis, Westside and Zudio have added 30 and 89 stores, versus 16 and 220 additions in FY25, underscoring the accelerated expansion strategy currently underway.

However, Citi flagged continued pressure on average revenue per square foot, which declined 15.7% YoY, broadly in line with its estimate. The brokerage noted that productivity metrics have remained under strain across recent quarters, with revenue per square foot declines of 13.9% in 1Q and 15.5% in 2Q. In 3Q, revenue density was impacted by an early festive season, which shifted demand timing, even as comparisons benefited from a relatively weak base in the prior year.

Citi said that while aggressive store additions are supporting headline growth, declining revenue density raises questions around the sustainability of returns, particularly as newer stores take time to mature. As a result, the brokerage remains cautious on valuation and earnings visibility, maintaining its sell stance on the stock.

Disclaimer: The views and recommendations above are those of Citi. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.

Citi bullish on L&T Finance as retail disbursements surge across segments

Markets Desk — Tue, 06 Jan 2026 02:43:01 +0000

Citi has maintained its buy rating on L&T Finance with a target price of ₹330 per share, citing strong momentum in retail disbursements and improving business mix that continues to support profitability and return ratios.

The brokerage noted that retail disbursements excluding gold loans rose to ₹213 billion, marking a robust 40% year-on-year and 19% quarter-on-quarter growth. Including gold loan disbursements of ₹14 billion, overall retail disbursements were up 43% sequentially, driving 21% YoY growth in retail AUM to ₹1.11 trillion. As a result, the share of retail AUM has improved to over 98%, underscoring L&T Finance’s continued pivot towards a granular and diversified retail franchise.

Citi highlighted healthy traction across multiple retail verticals. Microfinance institution (MFI) disbursements rose 7% QoQ and 47% YoY to ₹67.4 billion, while urban finance disbursements jumped 19% QoQ and 48% YoY. Farmer finance also saw a sharp acceleration, with disbursements up 68% QoQ and 11% YoY, reflecting seasonal momentum and deeper penetration. SME finance disbursements grew 24% YoY and 6% QoQ, indicating steady recovery in small business credit demand.

From a profitability perspective, Citi said it is building in credit costs of 2.65–2.70%, factoring in a balanced risk outlook across segments. Despite this, the brokerage expects return on assets to remain healthy at around 2.4%, supported by operating leverage, scale benefits, and the increasing dominance of retail assets.

Citi concluded that L&T Finance’s sustained retail-led growth, improving asset mix and stable profitability outlook reinforce its constructive stance on the stock.

Disclaimer: The views and recommendations above are those of Citi. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.