India's IT sector is likely to report a subdued start to FY27, with Nirmal Bang expecting revenue growth pressure across most large-cap technology companies even as deal activity remains healthy.
Set as Trusted Source
on Google Search
India's IT sector is likely to report a subdued start to FY27, with Nirmal Bang expecting revenue growth pressure across most large-cap technology companies even as deal activity remains healthy.
As confidence builds around the sustainability of returns and the durability of the transformed franchise,Nirmal Bang believes South Indian Bank is well positioned for a valuation rerating.
Jyoti CNC should outpace industry growth, supported by its leading domestic CNC manufacturing capabilities and a 21% domestic manufacturing market share, adds the brokerage.
Nirmal Bang remains constructive on Zota, supported by improving storelevel economics, increasing store maturity, and a faster-than-anticipated path to profitability.
Nirmal Bang continues to believe that Blue Star is well placed to ride the room AC industry tailwinds with its B2B businesses also showing strong growth momentum.
Nirmal Bang's revised target price implies an upside potential of around 25% from current levels, despite a slight downward revision due to a marginal change in ownership in its insurance subsidiary.
Nirmal Bang has turned cautious on the Indian IT sector, maintaining an underweight' stance for FY27 amid rising structural challenges driven by Gen AI-led pressures.
Agriculture and allied sector growth is expected to be healthy at 4.5% YoY in Q4 FY26 supported by a robust Rabi crop.
Strong order wins and the visible turnaround in StahlSchmidt Cable Systems, which turned Ebitda positive in Q4 FY26, along with diversification into EMA, electronics, and sensor segments under the beyond cables' strategy, position Suprajit well for medium-term growth.
While the JB Pharma acquisition strengthens Torrent's India franchise and medium-term growth visibility, current valuations largely factor in the near-term earnings and synergy benefits, says Nirmal Bang
Nirmal Bang remain positive on BEL, given its position as the key integrator across India's defence electronics ecosystem and its strong participation in multiple strategic defence platforms.
Amber's FY26 performance remained mixed, with topline growth of 22% but relatively modest 12% bottom-line expansion, impacted by elevated JV losses and higher depreciation and interest costs from an accelerated capex cycle.
The upward revision in target price is driven by strong order visibility, improving execution outlook, and HAL's increasing strategic importance within India's defence ecosystem.
While Hyundai Motor India has historically relied on a limited SUV portfolio, product cadence is improving with multiple new launches planned over the next two years, which should support domestic growth and aid exports, adds the brokerage.
Nirmal Bang remain positive on Kotak Mahindra Bank, due to its higher than industry loan growth and healthy RoAs of +1.9% over FY26-FY28.
Nirmal Bang expects its coverage banks to report NII/PPoP/PAT growth of 9.9%/12.1%/8% YoY respectively due to lower margins on a YoY basis.
The brokerage has reinitiated coverage on Infosys with a Buy' call, and target price of Rs 1,746 valuing it at 21x FY28E EPS based on its long term risk and fundamental analysis.
While geopolitics remains a long-term positive for defence spending, Nirmal Bang noted that the near-term impact is mixed, with execution risks and cost pressures weighing on earnings visibility.
Q4 reflects a demand-driven upcycle constrained by supply-chain inefficiencies and cost inflation with the industry navigating a delicate balance between growth and profitability, says Nirmal Bang.
Food and beverage inflation is seen bottoming out at 2.88% in Feb-26 vs 2.12% in Jan-26.