PL Capital has retained its'Overweight' stance on the Indian cement sector, citing resilient cement prices despite seasonal weakness, while cautioning that weak demand conditions, elevated fuel costs and poor monsoon trends could weigh on margins in the coming quarters.
Fractal's FY26 annual report suggests that despite macro uncertainties, its enterprise clients continue to make AI investments to achieve competitive advantage, operational agility and margin expansion, highlights the brokearge.
Sashidhar Jagdishan's exit would be negative and near-term pressure may persist till succession clarity emerges, although HDFC Bank is attractive at 1.4 times Mar'28E core ABV, but medium-term return would hinge on strategy and execution, adds the brokerage.
Motilal Oswal believes that the pivot towards managing lifecycle engineering can structurally improve the quality of Cyient's revenue; however, the key monitorable remain the success rate and execution within its marquee accounts.
Positive Indigenisation Lists are structurally positive for Indian defence companies as they create a domestic demand pool by mandating local sourcing of identified defence equipment and components, believes the brokerage.
Britannia trades at 41.1 times FY28 earnings per share which provides a good entry point for 12-15 months perspective, says PL Capital.
The brokerage remains cautious on SRF due to continued weakness in agrochemicals, persistent pricing pressure in specialty chemicals and expectations of softer profitability in the packaging films business from the second quarter onward.
Anthem Biosciences reported a weak June-quarter performance due to shipment deferments from key customers, but PL Capital remains constructive on the stock, retaining its Buy' rating on expectations of a recovery in the coming quarters.
PL Capital retained its 'Hold' rating on Canara Robeco, citing the need for sustained improvement in fund performance and net inflows for a potential re-rating.
The upgrade was driven by the recent correction in the stock price and an upward revision in earnings estimates, while maintaining a positive view on Polycab's medium-term growth prospects, adds the brokerage.
Tata Elxsi's margins contracted despite a 50 bps tailwind from currency benefit, impacted majorly by one off item related to transaction costs and employee retention costs, and investments in people and capabilities.
PL Capital believes rising competition from quick commerce is likely to limit growth across Modern trade and DMart Ready.
Consumer Q1 Results Preview: PL Capital believes that demand outlook remains cautious due to likely impact of El Nino and monsoon activity, but easing crude prices will provide a tailwind.
Ports Q1 Preview: JSW Infra's performance is likely to be affected by the disruptions at the Fujairah Liquid Terminal; strong throughput at Jaigarh and Dharamtar, healthy domestic commodities demand and continued ramp-up of the rail logistics business should partially offset the impact, adds the brokerage.
India's EMS sector is expected to deliver another quarter of healthy revenue growth in Q1 FY27, supported by robust order execution across key players, according to PL Capital.
Blue Star's market share in the room AC segment has been rising consistently, from 7% in FY14 to 14.3% currently, and the company targets to reach 15% market share by FY27 through product expansion and deeper distribution penetration, adds the brokerage.
RITES offers an attractive dividend yield of 4-5%, further strengthening its appeal for investors seeking steady cash flows alongside growth, adds the brokerage.
PL Capital believes that the company is at an inflection point with its rising global market share and leadership in the domestic market.
The brokerage expects Asia's oldest stock exchange to maintain superior return metrics, with Ebitda margin, core RoE of 71%/37% by FY28E, underpinned by strong operating leverage and disciplined capital management.
Considering the leakage in the traditional bucket, weakness in the marquee accounts and maturing AI-led services, PL Capital believes LTMindtree is at the inflection point, wherein the near-term revenue growth appears to be challenging before it achieves the aspirational growth rate.
