Brokerage activity on April 7 reflects a mix of upgrades, sectoral tailwinds, and cautious outlooks amid geopolitical uncertainties. Retail, consumer staples, metals, and infrastructure names remained in focus.
Avenue Supermarts (DMart): Strong growth drives upgrades
Brokerages turned increasingly positive on DMart after a solid quarterly update.
CLSA maintained a high-conviction outperform rating with a target price of ₹6,583. The firm highlighted standalone revenue of ₹1,72,045 million, slightly ahead of estimates. Quarterly sales growth stood at 18.9% YoY, improving sequentially from 15.4% and 13.2% in the previous two quarters. Inflation also picked up, with CPI at 3% compared to 0.6% in Q3FY26, supporting value retail demand.
Store expansion remained aggressive, with 58 new additions in the quarter, taking the total store count to 500.
Morgan Stanley upgraded the stock to overweight and raised the target price to ₹5,188. It expects revenue growth to sustain at 19–20% in FY27–FY28, compared to ~16% in FY26. Higher inflation and faster store expansion are seen as key tailwinds, positioning DMart as a relatively defensive play within discretionary consumption.
NMDC: Iron ore price hike amid global cues
Morgan Stanley flagged a sharp increase in iron ore prices by NMDC, driven by multiple factors. Seaborne iron ore prices have risen to around $113/tonne, up ~8% since late February, partly due to Middle-East disruptions.
Domestic steel prices remain supported by demand and safeguard duties, while restocking activity continues to stay strong.
However, the brokerage cautioned that China’s steel supply reforms and increased shipments from Guinea’s Simandou project could weigh on global iron ore sentiment going forward. The evolving Middle-East situation remains a key variable.
Marico: Stable growth keeps outlook positive
HSBC retained a buy rating with a target price of ₹940, citing steady operational performance.
India business volumes grew in high single digits, while consolidated operating profit saw double-digit growth. Parachute continued to show resilience, value-added hair oils (VAHO) grew over 20% YoY, and the foods segment recovered with high-teen growth.
The brokerage continues to prefer Marico within the consumer staples space, supported by consistent execution and improving margins.
Adani Ports and Special Economic Zone: Volume growth offsets risks
Nomura maintained a buy rating with a target price of ₹1,850.
Cargo volumes rose 11% YoY in FY26 to 501 million tonnes, driven by strong container growth of 19%. While EBITDA estimates for FY26–27 were marginally cut by 1% due to war-related disruptions, overall growth visibility remains intact.
Revenue and EBITDA are expected to grow 14% and 13% YoY respectively in Q4FY26. The stock is seen trading at 11x FY28 EV/EBITDA.
Dabur: Mixed outlook amid global headwinds
Morgan Stanley maintained an underweight stance with a target price of ₹412.
Revenue growth for Q4 is expected to remain in mid-single digits, while EBITDA growth may slightly outpace revenue. Domestic demand showed sequential improvement, but geopolitical tensions impacted performance in the Middle-East region.
Management commentary points to gradual recovery in domestic demand, though external risks remain.
Cable & Wire Sector: Growth intact, margins under pressure
HSBC highlighted strong Q4 revenue growth driven by better realizations across the cable and wire segment. However, rising input costs and lower operating leverage are expected to weigh on profitability in the near term.
The brokerage retained:
- Buy on Polycab India (TP ₹8,500)
- Buy on R R Kabel (TP ₹1,610)
- Hold on KEI Industries (TP ₹3,950)
Middle-East disruptions remain a near-term concern, though the long-term structural growth story for the sector is unchanged.