Life Insurance Corporation of India, Crompton Consumer Ltd., Mankind Pharma Ltd., Devyani International Ltd., and Eternal Ltd. are among companies that have drawn commentary from top brokerages on Friday.
Analysts have tweaked share price targets after these companies announced their September quarter results.
Morgan Stanley India Strategy
For covered stocks, revenue, Ebitda, and net profit growth stood at 8%, 12%, and 13% year-on-year respectively.
Average Ebitda margin was 23%, slightly higher than analysts’ estimates.
Thirty-four Nifty companies reported revenue growth of 9% (2 percentage points above estimates) and net profit growth of 7% (5 percentage points above estimates).
Half of the coverage universe has surpassed analysts’ expectations so far.
The broader market (1001 companies) reported revenue and net profit growth of 9% and 15% year-on-year respectively, with an 84 basis point margin expansion.
Citi on LIC
Maintains Buy rating and cuts target price to Rs 1,345 from Rs 1,370.
The quarter was operationally strong with a continued focus on product mix realignment and improving sub-segment margins.
Despite higher ULIPs within the non-savings business, value of new business margin rose by 145 basis points year-on-year.
Management has not indicated any incremental impact from the absence of ITC benefits on the VNB margin.
Management remains upbeat.
Market share stabilisation in individual annualised premium equivalent (APE) will be key for a re-rating.
Citi on Devyani
Maintains Buy and cuts target price to Rs 182 from Rs 202.
Discretionary spending slowdown continues to weigh on same-store sales growth (SSG) and margins.
Near-term earnings are expected to remain volatile.
Quick service restaurants (QSRs) are likely to be the biggest beneficiaries of improving consumer sentiment and discretionary spending.
Jefferies on Crompton Consumer
Maintains Buy and cuts target price to Rs 410 from Rs 445.
Profit missed estimates; electrical consumer durables (ECD) segment was weak but better than peers.
Volume growth of 3% was offset by lower pricing.
Butterfly saw strong profit growth of 34% year-on-year.
The stock has fallen 25% year-to-date and now trades at 24 times FY27 estimated price-to-earnings, around 25% below its five-year average.
Jefferies on TCI Express
Maintains Buy and raises target price to Rs 950 from Rs 870.
Volume growth remains weak.
Muted revenue growth led to lower Ebitda due to negative operating leverage.
GST reforms and route realignments impacted growth.
Commentary turned positive, supported by recovery in key segments.
Citi on L&T Finance
Maintains Buy and raises target price to Rs 330 from Rs 311.
Unveiled an artificial intelligence blueprint aimed at reducing credit and collection costs while driving growth.
Near-term objectives (12–18 months) include achieving 20–25% risk-calibrated assets under management (AUM) growth.
Aims to reach 2.8–3.0% return on assets (RoA) by fourth quarter.
Seeks to reduce credit costs to 2%.
Jefferies on Mankind Pharma
Maintains Buy and cuts target price to Rs 3,000 from Rs 3,100.
Results were in line with subdued expectations.
Reorganisation efforts are taking longer than expected to yield results.
Fiscal 2026 Ebitda margin guidance remains at the lower end of the 25–26% range.
Outperformance in chronic therapy continues, while acute therapy remains a drag.
Mankind remains one of the preferred picks despite the September quarter setback.
Jefferies on Godrej Properties
Maintains Buy with a target price of Rs 3000.
Pre-sales remain strong and guidance is likely to be revised upward.
Targets 20% mid-term growth.
Cash flow performance is expected to improve in the second half.
Sales estimates have been raised; valuations remain attractive.
Brokerages on Apollo Hospitals
Citi
Maintains Buy with a target price of Rs 9330.
Second quarter performance was overall in line.
HealthCo delivered healthy margin expansion.
Hospital business saw a slight year-on-year margin contraction due to a high base and weak seasonal demand.
Morgan Stanley
Maintains Overweight with a target price of Rs 8058.
Results were in line.
Digital business losses narrowed quarter-on-quarter.
Brokerages On Lupin
Nomura
Maintains Buy with a target price of Rs 2,350.
Second quarter results were ahead of estimates.
Both North America and India operations performed better than expected.
There was a significant beat in the Latin America (LATAM) and rest of world (ROW) markets.
Quarterly capital expenditure was the highest in the past four years.
Morgan Stanley
Maintains Equal-weight with a target price of Rs 2,096.
Stellar second quarter performance.
High-value generic drugs boosted margins.
Growth driven by strong sales from gJynarque and gSpiriva.
Ebitda growth was 75% year-on-year, with margins at an all-time high of 33%.
Jefferies on Amber
Maintains Buy with a target price of Rs 9,450.
Weakness in room air conditioners offset strong growth in components.
Net loss in the second quarter was driven by lower margins and higher interest costs.
Elevated inventory in the second quarter is expected to normalise going forward.
Amber has received approval for multi-layer printed circuit boards under the Electronics Component Manufacturing Scheme (ECMS).
UBS on ABB India
Maintains Neutral with a target price of Rs 5360.
Base orders rose 13% year-on-year, in line with expectations, but large orders declined 72%.
Ebitda margin was weak at 15.1% due to higher raw material costs and the impact of quality control orders (QCO).
Order commentary will be key for a stock re-rating.
JPMorgan on Eternal
Maintains Overweight with a target price of Rs 390.
The chief financial officer outlined the company’s value creation plans for the next five years.
The company aspires to become a $100 billion firm from the current $34 billion market capitalisation.
Management expects net order value to reach $40 billion, with $25 billion from quick commerce, $10 billion from food delivery, and $5 billion from district business.
Focuses on EBIT margins rather than adjusted Ebitda when targeting a 5% long-term goal.
Expects quick commerce to be a winner-takes-most market with one or two players capturing around 80% share.
In food delivery, management sees decent penetration and expects 20% compound annual growth rate (CAGR) driven by monthly transacting users (MTU) and inflation.
Management believes competition is mild, leading to accelerated MTU additions in quick commerce.
Sees greater opportunity at the premium end and plans to launch a gourmet version of its app.
Management stated that the company does not need to raise capital unless it starts a new business.
JPMorgan on Amara Raja
Maintains Neutral with a target price of Rs 1,125.
Revenue was in line with expectations.
Slight Ebitda miss due to higher other expenses.
Expects downward revisions to Street profit estimates due to the miss.
Management clarity on demand growth and cost outlook will be key to monitor.
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