A series of fresh brokerage reports on Monday, 8 July, spotlighted key sectoral shifts and stock-specific developments across pharmaceuticals, banking, autos, and consumer segments. Divi’s Laboratories and Siemens Energy emerged as notable upgrades, while Titan and export-focused pharma names saw mixed commentary.
Divi’s Labs: HSBC upgrades to buy on peptide-led growth
HSBC upgraded Divi’s Laboratories to Buy and raised its target price to ₹7,900 from ₹5,020, citing a strong medium-term growth outlook led by peptide APIs like tirzepatide and rising opportunities in contrast media. The brokerage estimates revenue potential of ~$450 million from peptides and ~$260 million from contrast media by 2030. It has baked in a 23% EPS CAGR over FY25–28E. The upgrade reflects confidence in Divi’s high-quality execution and specialty API portfolio.
Pharma sector: Macquarie turns cautious on exports
Macquarie downgraded Aurobindo Pharma to Underperform and Dr Reddy’s to Neutral, citing the end of the limited competition period for gRevlimid as a key overhang. Target prices were slashed to ₹1,010 (from ₹1,700) for Aurobindo and to ₹1,190 (from ₹1,450) for Dr Reddy’s.
While maintaining Outperform ratings on Cipla, Zydus and Lupin, Macquarie cut target prices for all three. It reiterated a positive stance on Sun Pharma (TP ₹2,135), citing its low exposure to the U.S. generics space.
Separately, Nomura noted that India’s pharmaceutical market grew 8% YoY in June, led by acute therapies. IPCA and Sun Pharma posted 12% growth, followed by Torrent, Dr Reddy’s, and Glenmark at 11%.
Titan: Mixed outlook as buyer growth lags
Jefferies retained a Buy on Titan with a TP of ₹4,000 but flagged that domestic jewellery growth remained steady though below expectations. The brokerage cut FY26–28 EPS estimates by 2%, citing weak buyer growth and lower studded jewellery mix.
Citi maintained a Neutral with a TP of ₹3,800, noting 17% YoY growth in standalone jewellery sales (ex-bullion) in Q1FY26, driven entirely by ticket size, with flat buyer volumes. CLSA stayed Outperform with a higher TP of ₹4,326, highlighting 20% YoY consumer business growth, while Morgan Stanley retained Overweight but termed the jewellery performance a “big miss,” with revenue growth at 17% YoY versus expectations of 28%.
Kotak Mahindra Bank: Solid growth impresses
Morgan Stanley maintained an Overweight on Kotak Mahindra Bank, with a TP of ₹2,650, after a strong Q1FY26 operational update. The bank reported 13% YoY and 5% QoQ average deposit growth, though CASA momentum was slower.
Jefferies echoed a bullish view, retaining its Buy call and setting a TP of ₹2,550, citing 14% YoY and 4% QoQ loan growth and stable retail deposits.
Tata Motors: MS cautious on JLR margins
Morgan Stanley maintained Equal-weight on Tata Motors with a TP of ₹715. The brokerage expects sharp mix improvements and price hikes to partly offset U.S. tariff headwinds for Jaguar Land Rover (JLR). JLR’s Q1 EBITDA margin is forecast at 11.4%, though India margins may fall 350 bps YoY.
Siemens Energy: Target raised on growth momentum
Motilal Oswal reiterated a Buy on Siemens Energy, raising its TP to ₹3,300. The company reported better-than-expected Q2FY25 results, with margins at 19.1% and 24% QoQ revenue growth. MOSL expects revenue and profit CAGR of 27% and 29% respectively over FY25–27, supported by planned capacity expansion in transmission.
Jefferies initiated coverage with a Buy and a TP of ₹3,500, forecasting 50% EPS CAGR and 30% revenue CAGR over FY24–27. It expects operating leverage to drive 460 bps margin expansion by FY27.
Macrotech Developers: Nomura stays bullish
Nomura reiterated its Buy call on Macrotech Developers with a TP of ₹1,450. While Q1 pre-sales growth of 10% YoY was below the company’s full-year guidance of 20%, the firm achieved ₹22,700 crore in business development—over 90% of its FY26 target—thus strengthening its launch pipeline.
Zydus Life: Jefferies positive on margin resilience
Jefferies retained a Buy on Zydus Lifesciences with a TP of ₹1,150. Management reaffirmed FY26 revenue growth in double digits and margin guidance above 26%. Jefferies said the company is well-positioned versus peers to absorb the decline in Revlimid sales and expects continued growth from both U.S. and ex-U.S. markets.
Adani Power: Jefferies sees upside on expansion and cash flows
Jefferies maintained a Buy on Adani Power with a TP of ₹690, citing the company’s strong capacity addition pipeline and improved balance sheet. Payments from Bangladesh have eased investor concerns, and EBITDA is expected to double by FY30. The brokerage sees potential for an upside surprise in long-term targets, especially versus NTPC.
Disclaimer: All stock views and target prices mentioned are those of the respective brokerages. This article is for informational purposes only and does not constitute investment advice.
