Brokerages including HSBC, Jefferies, Nomura, Morgan Stanley, CLSA, and Goldman Sachs have released their latest research notes, outlining stock recommendations across sectors such as FMCG, defence, metals, auto, and IT services. Here’s a detailed look at key brokerage calls issued for the day.
Honasa Consumer (Mamaearth)
HSBC – Reduce | Target: Rs 264/share
HSBC maintained a ‘Reduce’ rating on Honasa Consumer, noting that while Mamaearth’s growth turned positive, emerging brands’ growth stayed stable at 20% YoY. The brokerage raised PAT estimates by 6% for FY27 and 5% for FY28 due to better margins, but maintained a 40x target P/E, as it expects only low double-digit growth.
Jefferies – Buy | Target: Rs 450/share
Jefferies, however, retained its ‘Buy’ rating, citing a Q2 turnaround with 17% volume-led growth and a notable margin surprise. The brokerage said Mamaearth is “back on the growth track”, driven by a strong offline strategy, which could help other brands in the portfolio perform better in coming quarters.
Container Corporation of India (CONCOR)
Jefferies – Buy | Target: Rs 660/share
Jefferies reported that EBITDA was 7% above estimates, aided by 80 bps YoY margin expansion despite muted volume growth. The margin expansion was supported by double stacking benefits and lower empty returns. Management indicated a 180 bps market share loss in H1FY26, while Western DFC connectivity to JNPT is now expected by March 2026 (vs December 2025 earlier).
Biocon
HSBC – Buy | Target: Rs 455/share
HSBC said Biocon’s structured debt settlement with Goldman Sachs and Kotak using QIP funds—and the planned settlement with Edelweiss by January 2026—would ease interest costs and allow focus on scaling its biosimilars business. The brokerage sees market share gains from new biosimilar launches as key to future growth.
UPL
HSBC – Buy | Target: Rs 850/share
HSBC expects sustained margin expansion and value unlocking through structural changes. The company is evaluating four verticals over the next 1–3 years, with Advanta (Seeds) leading readiness. UPL is targeting net debt/EBITDA of 1.6x–1.8x by FY26, aided by strong free cash flow. HSBC also ruled out any large inorganic acquisitions in the near term.
Info Edge
Nomura – Buy | Target: Rs 1,585/share
Nomura maintained a bullish stance, citing steady billing growth in real estate, along with consistent expansion in matrimony and education verticals. However, the brokerage noted that IT hiring remains subdued and could continue to weigh on near-term growth.
HSBC – Buy | Target: Rs 1,670/share
HSBC echoed optimism, saying that while macro and IT spending weakness persists, there are early signs of stabilization. Growth is expected to pick up to mid-teens in the medium term, supported by margin recovery and the company’s strong cash position.
Hindustan Aeronautics (HAL)
Nomura – Buy | Target: Rs 6,100/share
Nomura called Q2 a “mixed quarter” for HAL, with an execution beat but margin miss. PAT remained in line, supported by higher other income offsetting operational weakness. FY26 margin guidance remains intact, and the brokerage projects a 24% EPS CAGR for FY25–28, with a manufacturing book-to-bill ratio of 31x FY25 sales. The stock trades at 29x/23x FY27/28 EPS.
CLSA – Outperform | Target: Rs 5,436/share
CLSA said HAL’s Q2 PAT was ahead of estimates, driven by engine deliveries and treasury income, though margins were hit by non-cash liquidated damages that may reverse once deliveries accelerate in H2FY26. The brokerage highlighted HAL’s $4.5 billion cash pile (up 55% YoY) and a healthy $54 billion order pipeline, calling the GE engine co-production deal a key long-term catalyst.
Morgan Stanley – Equal-weight | Target: Rs 5,092/share
Morgan Stanley flagged an operational miss, with adjusted revenue, EBITDA, and PAT growth at +2%, -10%, and +7% versus estimates. The EBITDA miss was attributed to higher provisions at 7.8% of revenue, though the PAT beat was driven by Rs 890 crore in other income.
Tata Steel
Morgan Stanley – Overweight | Target: Rs 200/share
Morgan Stanley said standalone EBITDA exceeded estimates due to strong cost control, while consolidated EBITDA was 6% ahead of expectations. The company achieved 94% of planned savings in H1FY26, though net debt rose due to FX impact. Consolidated PAT stood at Rs 3,520 crore, above estimates of Rs 2,960 crore.
Jefferies – Buy | Target: Rs 200/share
Jefferies noted EBITDA outperformance led by strong results in India and the Netherlands, offset by continued weakness in the UK. Standalone volumes rose 9% YoY with a 5 mtpa capacity ramp-up, and pre-exceptional PBT grew 47% QoQ.
CLSA – Hold | Target: Rs 170/share
CLSA said consolidated adjusted EBITDA was largely in line, as lower realizations were offset by lower costs. European profitability remained flat QoQ, and net debt increased Rs 2,200 crore to Rs 87,000 crore. Tata achieved Rs 5,450 crore in cost savings in H1FY26 vs its Rs 11,500 crore 12–18 month guidance.
Asian Paints
Jefferies – Buy | Target Raised to Rs 3,300/share
Jefferies upgraded its target price, citing double-digit domestic volume growth and market share gains led by brand investments and regional activations. It added that despite intense competition, Asian Paints’ long-term brand relationships remain a major strength.
HSBC – Buy | Target Raised to Rs 3,050/share
HSBC said Q2FY26 reflected broad-based 10.9% volume growth and a 6% revenue increase, led by strong retail decorative recovery. The brokerage lifted FY27 EPS estimates by 10%, maintaining a bullish outlook on margin expansion.
Goldman Sachs – Sell | Target: Rs 2,500/share
Goldman Sachs retained its ‘Sell’ rating, stating that sustaining high growth in H2 could be challenging. While gross margins have improved, competitive pressures could cap EBITDA margins at 18–20%, with management maintaining a mid-single-digit revenue growth guidance for FY26.
Ashok Leyland
Nomura – Buy | Target: Rs 174/share
Nomura said Q2 was slightly ahead of estimates and highlighted a stronger upcycle ahead, projecting margin expansion to mid-teens over the next two years.
Morgan Stanley – Overweight | Target: Rs 160/share
Morgan Stanley said performance was broadly in line, with a strong margin profile driven by rising non-truck revenue. The management guided for stronger growth in H2FY26 compared to H1.
HSBC – Hold | Target: Rs 145/share
HSBC expects the domestic CV industry to grow at a 5–6% CAGR (FY25–FY28), with Ashok Leyland tracking industry growth. The brokerage added that GST cuts are less favorable for AL’s customer mix and called valuations not undemanding at 12x FY27 EV/EBITDA.
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.
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