Dolat Capital

AI disruption fears have eased for Indian IT, but global growth concerns, inflation and Middle East tensions continue to weigh on the outlook, says Dolat Capital.

Oil and Gas Q2 Results Preview: City gas distributions are experiencing volume growth but their margins are under pressure, adds the brokerage.

MDR on UPI represents a significant industry tailwind for payment services led Fintech players, allowing Payment players to not only scale the business but also better absorb cost escalation related to infrastructure, invest in innovation and cybersecurity, adds the brokerage.

Dolat Capital has turned constructive on the sugar sector as domestic sugar prices surge amid tight inventories, lower-than-expected production and firm global sugar markets.

Bangalore based, metal injection moulding company has fixed the price band in the range of Rs 461-485 per share.

Noting revenue miss in Q1, trimming of guidance at upper end by 50 basis points, and measured commentary, the brokerage lowers the IT major's revenue estimates by 1.9%/2.4%.

The quarter included a provision of Rs 240 crore towards inventory and other associated costs related to Semaglutide API.

Zomato, Blinkit parent Eternal's Q1 saw broad-based improvement in key metrics, but near-term earnings may be weighed down by expansion investments, losses in new business and higher tax rate, adds the brokerage.

Execution pace to continue for the next few quarters, order book conversion given the 7.2x book-to-bill, sustainability of the power segment margin improvement into H2 FY27, scale-up of the non-thermal order book (nuclear, defence, transmission) into revenue, adds the brokerage.

Wipro's Q1 revenue was a mild miss, and management remains cautious on near term environment, with concerns primarily coming in from slow revenue conversions and delayed client decision making, adds the brokerage.

Dolat Capital believes Pearl Global is entering a multi-year growth phase, supported by structural tailwinds including China+1 sourcing, supplier consolidation towards large compliant manufacturers, and improving market access through the IndiaUK and IndiaEU FTAs.

Demand remained subdued, with some large deal closures slipping into early Q2 despite healthy TCV momentum; while mgmt reiterated its 1315% rev CAGR aspiration, achieving it remains challenging amid absences of any triggers that can throttle rev growth, adds the brokerage.

Following the recent run-up in the stock price, Bajaj Consumer's risk-reward has turned less favorable with near-term positives already reflected in valuations.

Inflation revival, accelerated store additions and moderation of competition from Qcom are potential triggers. Thus the brokerage expects DMart to deliver a 17% earnings CAGE over FY26-28E.

A sustained outsourcing momentum pick-up by mid-market enterprises, continues to remain a sweet spot for R Systems to drive high-quality outcomes, adds the brokerage.

Dolat Capital noted that while the acquisition strengthens Persistent's positioning as a global digital engineering and AI-led services player, the premium pricing raises concerns around value creation.

Despite near-term volatility arising from elevated gold prices and macro uncertainties, Titan's management remains confident of sustaining a strong medium-term growth trajectory.

The market narrative has clearly shifted towards selective vendors, particularly those demonstrating executionled growth, adds Dolat Capital.

Dolat Capital lists its top stock picks after Q3 results- details inside.

With a diversified brand portfolio and growing geographic footprint, Jubilant FoodWorks' long-term growth outlook remains robust, adds the brokerage.