Top brokerages including CLSA, Morgan Stanley, Nomura and Nuvama have released fresh commentary on several Indian stocks following their Q4FY25 results. The reports highlight key upgrades, revised target prices, and outlook across sectors including manufacturing, defence, pharmaceuticals and capital goods.
CLSA raises Hindalco target to ₹850; sees strong India operations
CLSA has retained its Outperform rating on Hindalco and raised the target price to ₹850. The brokerage highlighted another strong quarterly performance in India, aided by higher metal prices, improved downstream margins, and cost control. While 1HFY26 profitability may taper due to rising costs and softening aluminium and alumina prices, CLSA noted the medium-term outlook remains robust. Expansion benefits from Novelis are expected to start flowing in by FY28, with debt expected to peak in FY27.
BEL remains a preferred pick; strong order pipeline supports upgrades
Morgan Stanley has maintained an Overweight rating on Bharat Electronics Limited (BEL) and raised the target price to ₹418, citing its strong execution track record, efficient supply chain, and visibility of order inflows. BEL has guided for 15–17.5% revenue CAGR over the next five years, with an EBITDA margin of 27% in FY26.
CLSA also upgraded BEL to Outperform with a higher target of ₹423. It said the slowdown in inflows seen in FY25 is now over and expects $6 billion worth of order wins in the next 15 months. Record EBITDA margins set the stage for 8–11% EPS growth through FY26–27.
Dixon Technologies sees multiple upgrades as smartphone volumes set to rise
CLSA called Dixon a High Conviction Outperform idea and raised its target price to ₹19,000. Smartphone production is expected to rise significantly from 6.5 million units in FY24 to over 60 million by FY27, driven by new customer additions and export demand. The brokerage expects 45% PAT CAGR over FY25–28.
Nomura also has a Buy rating with a revised target of ₹21,202, citing consistent margin expansion and successful ramp-up in the mobile segment. Morgan Stanley, while less aggressive, maintained an Equal-weight rating with a target of ₹8,696, pointing out revenue misses across all major categories in Q4, despite an EBITDA beat due to efficiency gains.
Mixed reactions on Gland Pharma and Zydus Lifesciences
Nomura retained a Neutral stance on Gland Pharma with a target of ₹1,570. Q4 EBITDA and PAT missed expectations due to higher employee expenses. While Cenexi performed better than expected, ex-Cenexi revenues were weak, especially in RoW markets. The company has guided for mid-teen revenue growth in FY26.
On Zydus Lifesciences, Nomura maintained a Buy call with a revised target of ₹1,140. The Q4 EBITDA miss was attributed to a lower contribution from gRevlimid. However, the company has issued strong guidance for FY26, including high single-digit growth in US revenue and improved vaccine sales. EBITDA margin is expected to exceed 26%.
Torrent Pharma receives mixed commentary
Nomura kept a Neutral rating on Torrent Pharma with a target of ₹3,580 after Q4 revenue and EBITDA came in slightly below estimates. One-time litigation costs impacted the PAT.
On the other hand, Nuvama maintained a Buy rating with a target of ₹3,760. It expects Torrent’s India and US markets to grow strongly, supported by sales force expansion and new launches including semaglutide. The brokerage highlighted improved product mix and earnings visibility over the next 3–5 years.
United Spirits (USL) and Siemens also on the radar
Nuvama has a Buy rating on USL with a target of ₹1,820. The company’s Q4 revenue rose 10.5% YoY, and EBITDA surged 39.5%, beating estimates. Cost controls and margin expansion supported the earnings.
For Siemens, Nuvama maintained a Hold rating with a target of ₹3,170. Q2FY25 revenue growth was muted at 2.6% YoY, but order inflows jumped 44% YoY to ₹53.1 billion, driven by metro and railway projects. Revival in Digital Industries (DI) margins remains a key medium-term trigger.
Disclaimer: This news article is for informational purposes only and does not constitute investment advice. Readers are advised to consult their financial advisors before making any investment decisions.
