A host of global and domestic brokerages have released fresh views on Coforge, Physicswallah, Knowledge Marine, RBL Bank, and SBI Cards Ltd. ahead of Wednesday's session.
They have also shared their outlook on India Strategy, and the RBI's liquidity measure.
CLSA on Coforge
Maintain Outperform with target price of Rs 2,275
Fund raise plans
Believe that the stock can react negatively to this news
Investor community typically does not like the uncertainty or the big bets around acquisitions
Last time when the fund raise was announced, the PE multiple had corrected by 20% over March-April
But rerated 50% by end of calendar year 2024 from where it was when the fund raise was announced in March
View any potential correction as a buying opportunity for the long-term investors
UBS India Strategy - Hartmut Issel
Expect earnings growth to approach the low double-digit threshold—projecting 10.2% for FY26, followed by 15.4% in FY27
Primary driver remains the financial sector, led by banks
Financials continue to be one of our preferred sectors
Believe the outlook for AI’s impact on IT services is becoming increasingly clear, with both positive and negative effects
As a result, we do not recommend completely avoiding these stocks
Portfolio Changes:
Added BHEL and Cognizant Technology to the portfolio, each with a weight of 2 percentage points
Added Hyundai Motor India with a weight of 4 percentage points
Removed M&M, CG Power and L&T Finance
Increased the weights for L&T by 1 percentage points and Axis Bank by 2 percentage points
Reduced the weights for Siemens by 1 percentage points and HUL by percentage points
Investec on RBL Bank
Maintain Buy with target price of Rs 430
Mgmt intends to deploy $1.5 billion of the $3 billion infusion to retire high-cost liabilities
Expects rating upgrades to narrow wholesale funding cost gaps vs larger peers
Expects to grow loans at 30% in FY27
Mgmt expects one-time ECL impact of Rs 1,500-1,700 crore, run-rate impact of 20-25bps
Jefferies on Chola Finance
Maintain Buy with target price of Rs 1,980
Cobrapost's Allegations Around Governance Issues Appear Misplaced
Cash EMI payments are usual for a part of Chola's target borrowers who earn in cash
Related party transactions flagged reflect normal business ops. & are disclosed
Other concerns flagged seem in line with standard practices
Allegations seem to lack merit
Mgmt guided for good Q3 disbursement
Morgan Stanley on SBI Cards
Maintain Underweight with target price of Rs 700
Post-festive industry spending growth looks to be largely aligned with pre-festive YTD growth
Observe 14% YoY (adjusted) growth in credit card spending after the festive season, near the 15% YoY seen in Apr-Aug 2025 data
Nuvama on Knowledge Marine
Initiate Buy with target price of Rs 2,500
Integrated and diversified marine services platform
High entry barriers and strong win-rate to drive growth
Margin resilience with Tonnage Tax Scheme to aid PAT
See FY25–28E revenue/EBITDA/PAT CAGR of 58%/62%/71%
Avendus Spark on LG Electronics
Initiate Reduce with target price of Rs 1,536
Superior products and innovative launches have kept LG ahead of competition historically
Dominant presence in premium products
Strong distribution reach is a key strength as of now
Robust in-house manufacturing, with majority of products produced at two facilities and a third facility in the pipeline
New capacity addition to cater to South Indian market & exports, save logistics cost
Rising competition from new brands is slowing revenue growth and a key concern
Nomura on RBI Liquidity Measure
Rs 2 lakh crore of OMO purchases and $10 billion buy/sell swap is more than the market expected
The total injection of Rs 2.9 lakh crore is a positive surprise and more than the market expected
OMO purchases will elevate the supply pressure coming from State Development Loan and should push Indian Government Bonds yields lower initially
The $10 billion buy/sell swap will add liquidity and reduce the CCS/NDS/FX forwards pressure
RBI’s stance on liquidity is certainly more proactive
Suggests it wants the banking system in a surplus to support the monetary policy transmission
Goldman Sachs on Physicswallah
Initiate Neutral with target price of Rs 135
Leading player with a robust execution track record in a large TAM
Forecast a 24%/80% revenue/EBITDA FY25-30
See strong top of the funnel organic traffic
Relatively benign competitive environment in India’s edtech sector
Pricing structure allows it to penetrate deeper into multiple new education categories
Business model also has a negative working capital cycle
Forecast 100%+ FCF to net income starting FY26
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