Systematix Institutional Equities

The progress on EW shields for Super-Sukhoi is on track with user trials expected after December.

While the growing complex generics, injectables and biosimilars pipeline provides medium-term growth visibility, Systematix remain cautious on Lupin's near-term US trajectory, given continued competitive intensity in Tolvaptan and Mirabegron.

The brokerage incorporates Ajanta Pharma's quarterly performance into its estimates and expect India to remain a key growth driver, supported by sustained outperformance against IPM, while factoring in normalisation in Africa institutional business.

Systematix remains constructive on the cement major, supported by its capacity expansion pipeline, continued focus on profitable growth and structural cost reduction initiatives.

Mankind Pharma's consumer healthcare remains a key monitorable, with high-single-digit growth expected in FY27 and recovery anticipated in FY28, adds the brokerage.

According to the brokerage, the global and Indian defence spending is on an upswing, driven by multiple conflicts worldwide. India's defence budget is expected to grow at double digits, while the private sector could outpace industry growth, supported by government's focus on indigenisation and an increasing role in exports.

Systematix noted Colgate's strong brand equity, potential for mix enrichment, best-in-industry margins, and strong pricing power, but await growth stabilisation at more favourable levels going forward.

UltraTech's Q2 results have prompted three brokerages out of four, to cut their target prices, even as strong volume growth supported a positive long-term outlook.

The brokerage expects a gradual recovery in Jindal Saw's profitability from H2 FY27, supported by normalisation of export shipments, improved utilisation at the Nashik seamless facility following reinstatement of its API license, and a gradual recovery in DI pipe operations.

The brokerage remains constructive on Hindustan Zinc's underlying commodity backdrop, with both zinc and silver expected to remain in supply deficit, although near-term prices could remain volatile amid geopolitical developments, energy costs, and currency movements.

While Nirmal Bang is the most optimistic among the five brokerages, with a target price of Rs 1,000, Anand Rathi and ICICI Securities have placed greater emphasis on the time required for a sustained post-merger recovery.

The three brokerages, ICICI Securities, IDBI Capital, Systematix remain positive on Axis Bank despite pressure on margins and operating expenses during the September quarter. The private lender reported a 37.6% YoY increase in net profit to Rs 7,003 crore, supported by lower provisions.

Wipro's turnaround remains constrained by weaker pockets within its portfolio, subdued demand and geopolitical headwinds, adds the brokerage.

Systematix continues to expect HCLTech to deliver above-industry growth in FY27E and FY28E, underpinned by strong bookings, improving traction in large accounts, continued investment and its longterm AI ambitions, these include building full-stack AI services and taking a minority stake in Sarvam AI.

IT services companies are expected to post another quarter of muted growth despite strong seasonality, amid weakness in select verticals, productivity-led pricing pressure, competitive bidding and geopolitical headwinds, says Systematix.

While milk supply could be constrained, volatile and procurement costs could remain elevated nearterm, Systematix believes Dodla has the requisite playbook of pricing, inventory management, procurement network and supply chain capabilities to play this phase out.

Prolonged margin pressure, higher funding costs, change in growth outlook on account of elevated crude oil prices, regulatory changes around flexi loans and any deterioration in asset quality remain key risks to the brokerage's valuation.

Government of India's keenness to provide complete transfer of technology from DRDO to private players could enable Apollo Micro Systems to secure large, platform-level opportunities, similar to Solar Industries' evolution into manufacturing complete Pinaka systems, adds the brokerage.

Timex Group has successfully engineered a structural corporate turnaround, evolving from a historically loss-making entity into a high-margin, assetlight luxury and fashion watch powerhouse, highlights the brokerage.

TCS is taking measured steps to narrow the gap with larger peers, with a sharper focus on large-deal wins and a renewed, capability-led M&A strategy, adds the brokerage.