Brokerage firms have released fresh research notes on key Indian stocks post Q4FY25 earnings. Life Insurance Corporation of India (LIC), Aurobindo Pharma, and Info Edge are among the most discussed, with analysts offering mixed views based on performance, guidance, and valuation trends.
LIC: Mixed reactions amid margin gains and APE concerns
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Goldman Sachs has maintained a Neutral rating with a target price of ₹880, citing a 4% APE miss and weak individual/group business performance. The VNB margin stood at 18.7%, up 77 bps vs estimates. Management expects continued focus on non-par products and medium-term margin improvement.
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Motilal Oswal retained a Buy rating with a target of ₹1,050, noting VNB margin expansion despite a decline in APE. The brokerage cut its VNB margin estimate by 50 bps each for FY26/FY27.
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Macquarie gave an Outperform rating with a target of ₹1,215, highlighting the increasing non-par mix and lower cost ratios as supportive of margins, even as VNB growth fell.
Aurobindo Pharma: Divergent views on outlook and valuation
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Citi maintained a Sell call, lowering its target to ₹1,100, citing a miss on EBITDA (excluding Revlimid contribution) and underwhelming US growth commentary. EPS estimates for FY26-27 were cut by 8%.
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Goldman Sachs upgraded the stock to a Buy with a target of ₹1,275, appreciating the company’s efforts to maintain margins and deliver topline growth despite Revlimid’s impact. They see current valuations as attractive.
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CLSA maintained an Outperform rating with a target of ₹1,400, noting the company’s highest-ever revenue and EBITDA in Q4. However, it trimmed FY26-27 estimates due to guidance and a temporary plant shutdown.
- UBS retained a Sell rating with a target of ₹1,200.
Info Edge: Positive long-term outlook with margin trade-offs
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Citi kept a Buy rating, though trimmed the target to ₹1,675. The Q4 EBITDA missed estimates due to higher ad spends. However, management remains optimistic about diversified revenue streams and client growth.
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Nomura echoed similar sentiment, maintaining a Buy with a target of ₹1,670. Recruitment, real estate, matrimony, and education businesses continued to expand, but near-term PBT margins may be under pressure.
- JP Morgan also maintained a Buy on the stock.
Other key brokerage actions
- TTK Prestige: CLSA downgraded to Hold, cutting the target to ₹620 due to weak Q4 results and a significant drop in EBITDA margin. Strategic investments are expected to pay off in the long term.
- Afcons Infra: Nomura maintained a Buy but reduced the target to ₹560, citing a weak quarter but strong FY26 guidance. EPS estimates were trimmed by 1%.
- KEC International: Nomura also retained a Buy with a target of ₹985, acknowledging a soft Q4 but strong order pipeline and an expected 36% EPS CAGR over FY25-28.
- IndusInd Bank: JP Morgan downgraded the stock to Reduce with a revised target of ₹660 vs ₹770.
- Federal Bank: JP Morgan downgraded to Neutral with a target of ₹210.
- Aarti Industries: UBS upgraded to Buy and raised the target to ₹625.
- Fortis: Nomura maintained Buy and increased target to ₹820 from ₹700.
- IDFC First Bank: JP Morgan upgraded to Neutral with a target of ₹63.
Disclaimer: The views and recommendations expressed above are those of the respective brokerage firms. Business Upturn does not endorse or offer any investment advice.