CLSA on M&M
Recommendation: High Conviction O-P, Target: ₹4650
Farm EBIT margin came in at 16.8 percent down 176bps QoQ while auto EBIT margin came in at 7.7 percent up 58bps QoQ largely in line with estimates
M and M remains top auto pick backed by sustained UV market share gains driven by strong execution and upcoming launches strong traction in BEVs ongoing capacity expansion to support demand and attractive valuation
M and M is currently trading at a 15x FY28CL EPS vs a 10 year average PE of 17x with far superior fundamental execution
Farm segment contributes 30 percent of FY28CL EBIT and thus a swing in tractor volume would have a less than 2 percent impact on SOTP
Therefore believe weak sentiment driven by concern over tractor volume growth is overdone
CITI on M&M
Recommendation: Buy, Target: ₹4330 (Earlier Target: ₹4260)
2Q ahead of expectations driven by better EBITDA margins vs estimate
Mgmt outlook remains positive on UVs with volume growth expected to be boosted by capacity expansion and new launches
LCV demand outlook is also improving
However tractor volume growth guidance was lowered to flat YoY trends in FY27 vs 5 percent earlier given weak monsoons and low reservoir levels esp in Maharashtra and Karnataka
Earnings estimates increase modestly as pencil in input cost pressures and a weaker tractor outlook being the more profitable segment
Bernstein on M&M
Recommendation: O-P, Target: ₹4100
M and M next phase of growth will have to come with less help from tractor cycle
Monsoon risk highlighted at end of FY26 has showed up with weaker rainfall declining reservoir levels and pressure on farm incomes prompting mgmt to cut its FY27 tractor industry outlook to flattish
This quarter wider earnings base of M and M proved to be valuable
Standalone EBIT ex Other income grew just 2 percent YoY while consolidated EBIT ex Other income grew 19 percent
Contributions from businesses beyond standalone Auto and Farm franchises are helping group sustain growth as its core businesses navigate a tougher environment
Jefferies on Mahindra & Mahindra
Recommendation: Buy, Target: ₹4000
New SUV and EV launches in 1HCY27 support 12 percent auto volume CAGR through FY29
Expects tractor volumes to decline 3 percent in FY27 and 6 percent in FY28
Cuts FY27 to 29 EPS by 3 to 4 percent but expects 17 percent core EPS CAGR over FY27 to 29
Goldman Sachs on Mahindra & Mahindra
Recommendation: Buy, Target: ₹3850 (Earlier Target: ₹3700)
SUV growth expected in mid to high teens during 2HFY27
Cuts FY27 tractor volume guidance to flat from 5 percent growth
Lower commodity costs and pricing support margins hikes FY27 to 29 EPS by 3 to 4 percent
CITI on Bharat Forge
Recommendation: Sell, Target: ₹1270 (Earlier Target: ₹1210)
2Q above estimates with encouraging beat in autos segment for both domestic and exports markets
Mgmt outlook is positive with healthy growth expected in 2HFY27 across segments
Mgmt reiterated its guidance of 20 to 25 percent YoY revenue growth in Indian manufacturing operations in FY27
In a positive development ATAG gun order has received Bulk Production Clearance BPC with revenue recognition expected from 1QFY28
Acknowledge revenue and profit growth in standalone business and increase estimates slightly over FY28 to 29 boosted by the ATAG order with FY27 broadly unchanged
However overseas subs continue to disappoint with net losses expanding QoQ and prevent us from being more constructive
Valuations provide little room for error
UBS on Bharat Forge
Recommendation: Sell, Target: ₹1510
Q2FY27 adjusted consolidated EBITDA grew 9 percent YoY and was 5 percent ahead of UBSe
EBITDA growth lagged revenue growth of 21 percent as margins contracted 180bps reflecting commodity inflation and a lag in cost recoveries from customers
Management expects H2 to be stronger than H1 retaining its 20 to 25 percent revenue growth guidance for India manufacturing with EBITDA growth expected to track or slightly outpace revenue growth as customer recoveries kick in
Co also received long awaited Bulk Production Clearance for ATAGS with production ramp up ahead of revenue recognition from Q1FY28
Defence order book stands at Rs106 to 110bn including ATAGS with management expecting strong order book accretion in H2
Goldman Sachs on Bharat Forge
Recommendation: Neutral, Target: ₹1850 (Earlier Target: ₹1950)
ATAGS revenue starts Q1FY28 and aerospace orders exceed US$100 mn
India manufacturing margins could improve 200 to 250 bps through cost recovery
European restructuring and new forging capacity support recovery cuts FY27 to 29 EPS by 4 to 6 percent
Jefferies on Bharat Forge
Recommendation: Buy, Target: ₹2150 (Earlier Target: ₹2500)
ATAGS deliveries expected from Q1FY28 and defence order book at Rs 110 bn
Expects 35 percent export growth in 2HFY27 and 27 percent EPS CAGR through FY29
Cuts FY27 to 29 EPS by 5 to 12 percent amid subsidiary weakness and defence delays
Kotak on Bharat Forge
Recommendation: Sell, Target: ₹1500
US CV recovery defence execution and aerospace support revenue growth
ATAGS revenue expected from Q1FY28 and defence growth accelerates from FY28
Cuts FY27 EBITDA estimates by 7 percent as expensive valuations and execution risks persist
CITI on Bharti Airtel
Recommendation: Buy, Target: ₹2230
Delivered a robust 2Q with India mobile revenue and EBITDA growing 3.4 percent and 3.8 percent qoq both 1 percent ahead of estimates
This performance came despite elevated churn on account of premiumisation initiative taken during quarter withdrawal of Rs299 plan with stronger than expected ARPU accretion offsetting lower net subscriber additions
Enterprise segment too reported a strong quarter with Airtel Business revenue and EBITDA growing 11 percent and 15 percent yoy
Overall India ex Indus revenue and EBITDA grew 11 percent and 12 percent yoy
Consolidated EBITDA at Rs352bn up 5 percent qoq was 1.5 percent ahead of estimates
Capex and FCF generation were steady although net debt rose 6 percent qoq on account of the dividend payout during the quarter
CLSA on Bharti Airtel
Recommendation: O-P, Target: ₹2765
2QFY27 consolidated revenue and Ebitda of Rs609bn and Rs349bn were up 4 to 5 percent QoQ and 17 to 18 percent YoY ahead of estimates with positive surprise led by its India and Africa operations
India mobile revenue and Ebitda were up 3 to 4 percent QoQ and 10 to 11 percent YoY
Bharti had its highest ever postpaid net additions and Arpu reached Rs271 up 3 percent QoQ and it is now 24 percent higher than sector leader
Also Bharti 2QFY27 consolidated FCF was high Rs190bn or US$2bn after leases and Capex while gearing was low at 1.2x
HSBC on Bharti Airtel
Recommendation: Buy, Target: ₹2500
Premiumisation and rising 4G and 5G penetration support further ARPU growth
Postpaid additions and home broadband expansion strengthen recurring revenues
Data centre expansion offers another growth avenue alongside sustained network investment
CLSA on Hindalco
Recommendation: O-P, Target: ₹1240
Novelis adj Ebitda per t of US$553 was below estimate despite a US$39m US$43 per t benefit from Oswego insurance recoveries
Oswego production normalised although this resulted in higher tariff costs US$85 per t while South Korea strike had an approx US$20 per t impact
Strike has since been resolved although a similar impact is expected by Novelis in 3QFY27 while tariff headwinds should taper to near zero by 4QFY27 as onshore production increases
Bay Minette remains on track for commercial shipments from 1QFY28 with full utilisation expected within two years
Novelis expects positive FCF and deleveraging from 4QFY27 supported by tapering capex and further insurance recoveries
JPM on Hindalco
Recommendation: OW, Target: ₹1165
Novelis posted an in line 2Q with Adj EBITDA excl insurance recovery growing 11 percent YoY to $469mn
Net debt to EBITDA increased QoQ to 4.7x vs 1Q at 4.5x but management reiterated that 4QFY27 will see a decline to 4x and a return to positive free cash flow capex slowdown WC release
Bay Minette commissioning remains on track with first coil produced in Sep 2026
Oswego fire insurance recovery is also progressing with 1H at $519mn and guidance is for $900mn by end FY27 and a total of $1.3bn by next year
Novelis is still navigating tariff headwinds with 2Q seeing a $78mn impact led by an increase in Canadian shipments from Kingston to meet customer requirements at US Oswego where supply chain is gradually normalizing
This will ease by end FY27 as Novelis shifts more production to US
Novelis also announced the departure of its CFO effective mid Jan 2027 and co is yet to announce a replacement
HSBC on Hindalco – Novelis
Recommendation: Buy, Target: ₹1430
Oswego resumes normal production reducing operational disruption
Bay Minette commercial shipments expected from Q1FY28
Novelis targets positive free cash flow and lower leverage from Q4FY27
Jefferies on Hindalco – Novelis
Recommendation: Hold, Target: ₹1140
Oswego operations normalised though weaker customer demand remains a concern
Korean labour disruptions and softer volumes pose near term operating risks
Rising Novelis net debt of US$8.5 bn remains a key financial concern
JPM on Abott India
Recommendation: Neutral, Target: ₹30800
2Q revenue EBITDA PAT grew 11 percent 13 percent 9 percent YoY with revenue modestly ahead of estimates EBITDA broadly in line and PAT missing on lower other income and higher finance costs
Key positive was continued inflection in Abbott own portfolio ex Novo up 17 percent YoY which helped offset the ongoing phase out of legacy Novo insulin brands and 35 percent decline in Rybelsus in 1H
This mix shift supported margin improvement with EBITDA margin up 50bps YoY to 29.1 percent even as overall growth lagged the broader market IPM up 14.7 percent
Increased FY28 to 29 revenue estimates by 4 to 5 percent to reflect improved visibility on the own portfolio trajectory but remain mindful that limited traction in Abbott Semaglutide injectable franchise amid intensifying GLP 1 competition keeps near term catalysts constrained
Nuvama on Adani Ports & SEZ
Recommendation: Buy, Target: ₹2170
Evos acquisition expected to contribute immediately to EBITDA after closure
Higher value fuels and improved utilisation could lift RoCE from 7 percent to double digits
Leverage expected to normalise to 2.5x and near term EPS dilution remains a risk
Motilal Oswal on Adani Ports & SEZ
Recommendation: Buy, Target: ₹2170
Evos acquisition adds 6.3 mn cubic metres of storage capacity across Europe
Targets double digit Evos RoCE over 2 to 3 years through efficiency and utilisation gains
Expects 17 percent revenue 18 percent EBITDA and 21 percent PAT CAGR over FY26 to 28
CLSA on Apollo Hosp
Recommendation: O-P, Target: ₹9860
Apollo recorded slightly beat our estimates with revenue growing at 23 percent YoY led by healthy growth across all its segments with margins improving by 70bps YoY
Its planned capacity addition of 4718 census beds around 49 percent of capacity by FY31 is on track with 520 commissioned
It expects healthcare margins to improve from 24 percent supported by higher margins at established hospitals and breakeven at new hospitals
It expects online pharmacy margins to converge with offline as volumes rise
JPM on Apollo Hosp
Recommendation: OW, Target: ₹10700
2Q revenue and EBITDA grew 23 percent and 29 percent YoY 10 percent and 11 percent QoQ with revenue 2 percent ahead of consensus
Hospital demand was strong occupancy up 400bps to 73 percent IP volumes up 14 percent ARPP up 8 percent but margins fell 60bps YoY to 24 percent as new unit losses and pre operative costs offset improvement at established hospitals 25.8 percent up 60bps YoY
Hyderabad Financial District unit has broken even in approx 3 months and management expects remaining three greenfield units to break even by year end
HealthCo demerger remains on track for 4QFY27 subject to approvals but annualised EBITDA margin target is now 6 percent vs 6.5 to 7 percent earlier due to higher staffing and one time integration costs
Digital health achieved cash breakeven in 2Q with management guiding to more visible margin improvement starting to play out in two quarters
JPM on Astral
Recommendation: OW, Target: ₹1635
ASTRA 19 percent yoy volume growth while reasonable was likely slightly softer than expectations given peer commentary on real estate demand being strong in 2Q and the approx 40 percent growth until mid August as communicated by management
Key disappointment was on margins which contracted by 155 and 318bps qoq and yoy to 13.1 percent impacted by the staggered pass through of higher RM costs
While adhesives and paints qoq margin compression was expected given commentary and prints from peers Pipe EBITDA declining to Rs31 per kg from Rs35 per kg qoq and yoy was a negative surprise
While management highlighted that price escalations are now complete and margins should recover in 3Q in context of SI qoq flattish Pipe EBIT per kg in 2Q despite fact that ASTRA has higher exposure to the superior margin Real Estate sector print was disappointing
CLSA on Astral
Recommendation: Hold, Target: ₹1460
2Q Ebitda missed estimates on significantly lower margins while piping volume growth up 19 percent YoY was in line
Lower profitability was attributed to a delay in the pass through of higher input costs
With prices hikes made in 3Q and volume resilience it expects strong earnings trajectory in 3Q
Astral reiterated FY27 guidance of double digit volume growth 1H 10 percent YoY and margins of 16 percent to 18 percent 1H 17.4 percent with unprecedented growth in October
At 43x FY28 PE its current valuation is fair
CLSA on Aurobindo
Recommendation: Hold, Target: ₹1800
Reported record revenue beat and Ebitda beat driven by healthy growth across all geographies and margin in line improved by 75bps YoY
Its US revenue was driven by the successful completion of the Lannett acquisition
It retained its guidance of double digit revenue growth with a 21 percent plus margin in FY27 and expects FY28 to be better owing to the full year benefit from Lannett and new biosimilar launches
It is building a diversified launch pipeline for next few years
Raise estimates led by Lannett better mix and higher utilisation at its facilities
Kotak on Balkrishna Industries
Recommendation: Sell, Target: ₹2200 (Earlier Target: ₹2125)
India demand remains strong while US and European OHT outlook stays mixed
Domestic TBR PCR and two wheeler expansion carries execution and margin risks
Higher rubber and freight costs could keep FY27 to 28 EBITDA Margins below 21 percent
HSBC on Britannia Industries
Recommendation: Buy, Target: ₹5480
Bakery adjacent categories and international operations support growth diversification
Product innovation and cost efficiencies remain central to profitability improvement
Palm oil sugar and other input inflation remain key margin risks
Goldman Sachs on Britannia Industries
Recommendation: Neutral
Biscuit demand recovery supports growth aided by a favourable base
Palm oil sugar and crude linked inflation pressure gross margins
Cost efficiencies partly offset input inflation but margin recovery remains uncertain
Jefferies on Dabur
Recommendation: Buy, Target: ₹535
IGNITE strategy targets core brand investments premiumisation and stronger distribution
Plans to double direct village reach and increase premium revenue share to 23 percent by FY28
Targets 1.5x higher cost savings over 18 months with FY31 strategy roadmap awaited
Goldman Sachs on Emami
Recommendation: Buy, Target: ₹625
Strategic investments target over Rs 8 bn FY27 revenue
Axiom Ayurveda Brillare and digital brands drive portfolio transformation
Skin care hair care and healthcare support growth and hikes FY27 to 29 EPS estimates
Jefferies on Entero Healthcare
Recommendation: Buy, Target: ₹2100 (Earlier Target: ₹1800)
Targets 23 percent FY27 revenue growth with potential upside from acquisitions
Expects 20 percent revenue CAGR and EBITDA margins above 6 percent over three years
MedTech expansion organic growth and working capital efficiency support profitability
Citi on Fortis Healthcare
Recommendation: Buy, Target: ₹1180
Targets 12000 beds over 3 to 5 years from around 6300 currently
Suguna acquisition strengthens Bengaluru and Ashok Vihar adds 400 plus beds in Delhi NCR
Brownfield expansion acquisitions and diagnostics growth support earnings outlook
Jefferies on Gujarat Pipavav Port
Recommendation: Underperform, Target: ₹135 (Earlier Target: ₹131)
Expects 10 to 15 percent container volume growth in FY28 supported by transshipment
Liquid volumes could double by FY29 aided by new jetty and pipeline
Concession extension beyond September 2028 remains crucial with revenue sharing terms a key risk
Morgan Stanley on India Equity Strategy
Adds HDFC Bank Tata Consumer Hyundai Motor India and Godrej Properties to Focus List
Removes L and T Varun Beverages Maruti Suzuki and Prestige Estates
Maintains Overweight on Financials Consumer Discretionary and Industrials
Consumer Discretionary and Industrials carry 300 bps overweight each
Financials carry 200 bps overweight in sector portfolio
Maintains Underweight on Materials Healthcare Energy and Utilities
HDFC Bank offers attractive valuations with improving NIM and mid teen NII growth potential
Tata Consumer expected to deliver 22 percent earnings CAGR over FY26 to 29 versus 14 percent for peers
Hyundai three launches over 6 to 8 months could drive market share gains
Godrej Properties earnings expected to grow at 40 percent CAGR over FY26 to 29
Jefferies on LG Electronics India
Recommendation: Buy, Target: ₹1950 (Earlier Target: ₹1895)
Targets mid teen FY27 sales growth and low double digit operating margins
Sri City plant premiumisation and exports support capacity led growth
Vehicle Solutions entry and new product launches offer additional growth opportunities
UBS on LG Electronics India
Recommendation: Buy, Target: ₹2100
Reiterates mid teen FY27 revenue growth and early double digit EBITDA margin guidance
Vehicle Solutions entry opens opportunities in automotive infotainment and telematics
Sri City manufacturing exports and premiumisation support medium term growth
Jefferies on LIC
Recommendation: Buy, Target: ₹510 (Earlier Target: ₹530)
New annuity health and protection products expected to support second half growth
Distribution reforms improving product mix and equity market recovery support valuations
Cuts FY28 to 29 VNB estimates by 3 percent amid lower yield curve benefits
Jefferies on PI Industries
Recommendation: Buy, Target: ₹2070 (Earlier Target: ₹2910)
CSM exports face persistent pricing pressure and weak volume growth
Biologicals and new innovator molecules offer medium term growth opportunities
Cuts FY27 to 28 EPS estimates by 40 percent and 35 percent amid margin pressure and pharma losses
JPM on Samvardhana Motherson
Recommendation: OW, Target: ₹205
Q2 beat on revenue and EBITDA vs JPMe
Part of reason for 2Q beat was that one acquisition came in ahead of expectations and also margin impact from consolidation was lower than expected
FY27 to 29E revenue and EBITDA are broadly unchanged as were building in ramp of acquisitions as well as margin expansion from 2HFY27 onwards
Raise FY27 to 29E EPS by 1 to 4 percent
CLSA on Samvardhana Motherson
Recommendation: O-P, Target: ₹217
2QFY27 Ebitda margin came in at 8.7 percent flattish QoQ and in line
Revenue grew approx 27 percent YoY supported by consolidation of two acquisitions larger one being in PV wiring harness space
Believe that gradual ramp up in the non auto businesses especially in consumer electronics will drive organic growth at an approx 12 percent Cagr over FY27 to 29CL alongside continued steady execution in auto segments
Over and above this see scope for inorganic growth considering leverage ratio net debt to Ebitda being at 0.5x FY28CL vs SAMIL being comfortable until 2.5x level
Citi on Samvardhana Motherson
Recommendation: Sell, Target: ₹140 (Earlier Target: ₹115)
Yutaka and Nexans acquisitions expected to support earnings growth
Consumer electronics expansion and aerospace diversification offer new growth avenues
Weak global vehicle demand acquisition uncertainty and rising debt remain risks
Kotak on SKF India
Recommendation: Sell, Target: ₹1300
Expects 10 percent revenue CAGR over FY26 to 29 supported by automotive demand
EV bearing content aftermarket gains and industrial localisation support growth
Margins likely to remain at 13 to 14 percent with commodity costs and product mix limiting recovery
Jefferies on Titan
Recommendation: Buy, Target: ₹6000
Titan delivered a strong 2Q despite gold price volatility and festive shift with record high reported jewellery margin and over 20 percent domestic rev growth
International performance was bolstered by acquisitions and LFL growth was strong
Mgmt intends to focus on top line growth with an eye on mkt share which think is just what a leader should be doing while retaining its approx 11 percent jewellery margin guidance
CITI on Titan
Recommendation: Buy, Target: ₹5875 (Earlier Target: ₹5700)
Domestic jewellery TMZ revenue and EBIT grew ex bullion and ex one off 20 percent and 26 percent YoY with margins improving by 60bps YoY to 11.7 percent vs Citi est of 10.7 percent
Reported PAT growth of 56 percent was higher led by one time benefit of custom duty Rs4.9bn partly offset by MTM loss of 60bps in jewellery
Management highlighted festive saw very strong start with some softness in the interim
Priority is to drive buyer growth and revenue growth and there are levers to offset weak gold price impact on ticket size
While growth in 2H will likely be soft vs 1H due to high base bundled with moderating gold price we believe overall earnings growth will still be relatively strong high teens with potential to surprise through mix improvement
Targets sustainable jewellery revenue growth of around 20 percent
Higher studded jewellery mix expected to drive margin expansion
Expects high teen earnings growth despite slower second half revenue momentum
JPM on Titan
Recommendation: Neutral, Target: ₹5540
Q2 EBIT ahead of expectations led by better than expected margins for domestic Jewellery and Watches though earnings lagged estimates due to higher finance costs
Domestic Jewellery revenue grew 21 percent yoy largely ticket size led as overall buyer growth remained flat
Encouragingly core jewellery continued to witness healthy demand and positive buyer growth while declining gold coin sales weighed on headline growth
Management remains optimistic on sustaining this momentum as stable or softer gold prices improve affordability
Caratlane EBIT margin was weaker than anticipated though as format invested heavily to drive DD buyer growth
Key investor debate remains sustainability of topline growth in 2H as gold price led ticket size tailwind moderates
Jefferies on Uno Minda
Recommendation: Buy, Target: ₹1700 (Earlier Target: ₹1500)
Capacity expansion across alloy wheels sunroofs airbags and EV components drives growth
Expects 28 percent EPS CAGR through FY29 with ROE reaching 21 to 22 percent
Hikes FY27 to 29 EPS estimates by 6 to 9 percent and industry slowdown remains key risk