Brokerages have issued a mix of cautious and optimistic calls across metals, banking, IT, infrastructure, defence, and consumer sectors. Here is a clear, fact-based breakdown of the latest recommendations and what is driving them.
Hindalco – Kotak Institutional Equities
Kotak maintained a Sell rating with a target price of ₹800, citing pressure on the Novelis business.
Scrap spreads in the US have widened significantly, with scrap prices now around 47% of Midwest P1020, compared to 70% last year and a CY2025 average of 58%. This has been driven by higher LME aluminium prices and weaker scrap demand, especially from Novelis.
Despite industry tailwinds, Novelis is expected to see limited benefits due to plant outages and diversion of can sheet capacity toward auto. While margins appear to have bottomed in Q3FY26, production normalization is only expected from 2HFY27E.
The India business remains strong, but valuations are considered expensive.
IndusInd Bank – Citi
Citi has a Sell rating with a target price of ₹800, following management interaction.
The bank is repositioning its balance sheet to transition from stabilization to growth. It aims to reach system-level credit growth by FY27 and expand further into FY28–29.
Key focus areas include branch-led retail expansion under the “One IndusInd” strategy, leadership restructuring, and operational improvements. The bank is targeting 1% RoA by FY27, supported by margin expansion and cost efficiencies.
However, Citi expects moderate profitability, estimating RoA/RoE at 0.7%/6% for FY27E and 1.1%/9% for FY28E, indicating limited near-term upside.
Tech Mahindra – Citi
Citi reiterated a Sell rating with a target price of ₹1,260.
Management remains committed to achieving 15% EBIT margins by FY27E and delivering better-than-industry growth. However, macro uncertainty and evolving AI trends remain key risks.
The brokerage highlighted that the stock is trading at 18x FY27E earnings, which is at a premium to most large-cap IT peers. Sustained outperformance will depend on delivering superior growth, which remains uncertain.
IT Sector – CLSA
CLSA’s interactions with major IT companies indicate stable demand conditions.
There is no evidence of pricing pressure in contract renewals due to recent AI tools from companies like OpenAI and Anthropic. BFSI continues to be a strong vertical, while retail, auto, and healthcare remain relatively weak.
Some delay in client decision-making has been observed, partly due to AI adoption evaluation and geopolitical concerns in the Middle East. While direct exposure to the region is limited, broader macro risks remain.
Valuations for Indian IT services are now near their 10-year averages, making the sector relatively attractive.
CLSA preferences:
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Overweight: Persistent Systems, Coforge
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Neutral/Outperform: Infosys, TCS, Tech Mahindra, LTIM
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Hold: HCLTech, Wipro
Larsen & Toubro – Goldman Sachs
Goldman Sachs maintained a Buy rating with a target price of ₹4,420.
The stock has declined 18% since early March due to concerns around Middle East execution and potential capex slowdown. While near-term execution risks are acknowledged, the brokerage believes long-term order prospects remain intact.
Revenue estimates have been trimmed for Q4 and Q1FY27 due to slower execution. Order inflow expectations for FY27E have also been reduced.
Bharat Electronics (BEL) – Goldman Sachs
Goldman Sachs reiterated a Buy rating with a target price of ₹470.
The company secured an additional ₹10.1 billion order, taking FY26 inflows so far to ₹216.2 billion. With expected large orders in Q4, BEL is likely to meet its ₹270 billion order guidance for FY26.
Bharti Hexacom – Jefferies
Jefferies maintained a Buy rating (TP not specified).
The stock has declined 16% year-to-date due to concerns over delayed tariff hikes. The brokerage has cut revenue and EBITDA estimates by 7–11%, now factoring in a 15% tariff hike in December 2026.
Despite this, the risk-reward remains favourable, with potential upside significantly outweighing downside.
Max Healthcare – Jefferies
Jefferies maintained a Buy rating with a target price of ₹1,320.
Operational issues in the December quarter have been resolved, and expansion plans are progressing as expected. The company remains confident about demand in the Delhi-NCR region, citing under-penetration.
HDB Financial Services – Jefferies
Jefferies has a Buy rating with a target price of ₹900.
The company is seeing strong demand momentum, with expected AUM growth of 16–18% in FY27E. Asset quality is improving, with credit costs expected to decline.
RoA is projected to improve to 2.5% by FY28, supported by better collections and stable margins.
Mahindra & Mahindra – Nomura
Nomura maintained a Buy rating with a target price of ₹4,662.
Growth remains strong across segments:
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Passenger vehicles up 19% YTD
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LCVs up 17%
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Tractors up 23%
SUV demand and new launches are driving performance. The EV business is already EBITDA-positive, with margin support expected from PLI benefits starting FY27E.
Indian Hotels – Nomura
Nomura maintained a Buy rating but reduced the target price to ₹800.
The impact of geopolitical tensions on Q4FY26 is expected to be limited. The brokerage expects 13–14% EBITDA CAGR over FY26–FY28, supported by strong demand in luxury and corporate travel segments.
LG Electronics India – Nomura
Nomura has a Buy rating with a target price of ₹1,836.
Demand recovery is on track, and the company is passing on cost increases. Gas supply concerns are manageable in the near term, with plans to shift partially to PNG.
Margins are expected to improve steadily, though valuations remain relatively high at ~34x FY28E earnings.
PG Electroplast – Nuvama
Nuvama maintained a Buy rating with a revised target price of ₹780.
A disruption in LPG supply at the Supa facility is expected to impact Q4 significantly, with partial recovery in Q1. The company is exploring alternative fuel options.
Demand remains healthy, and long-term growth plans are intact, though earnings estimates have been revised downward for FY26 and FY27.