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HDFC Securities Institutional Equities
The brokerage firm HDFC Securities has shared its latest Q4 FY26 results review across key sectors, highlighting a mixed outlook for companies including ONGC, Siemens, Ashok Leyland, Alkem Laboratories, and Bharat Dynamics, with varying rating actions, target price revisions, and outlook commentary.
Oil and Natural Gas Corporation Ltd. remains under pressure as the brokerage maintains a Reduce rating with a revised target price of Rs 276, citing concerns over declining oil and gas production despite elevated crude realizations. The company's Q4 Ebitda fell 6.5% YoY, impacted by lower output, while the brokerage flagged potential government intervention in the form of windfall levies or discounted crude supply to OMCs
Siemens Ltd. continues to be a structural play on capex, with HDFC Securities retaining its Buy call and raising the target price to Rs 4,275. While revenue growth remained strong, margins were hit by forex volatility and commodity inflation. The brokerage lowered estimates slightly but highlighted a robust order book of Rs 450 billion and strong order inflows as key positives.
Ashok Leyland Ltd. has a more cautious near-term outlook, with HDFC Securities maintaining an Add rating and trimming the target price to Rs 182. The brokerage flagged demand uncertainty driven by geopolitical tensions and cost pressures, despite stable fleet replacement demand and margin resilience in Q4.
Alkem Laboratories Ltd. delivered a steady performance, with Ebitda rising 32% YoY, supported by strong India and export growth. The brokerage maintained an Add rating and raised the target price to Rs ,230, citing improving margin trajectory and growth visibility in chronic therapies and GLP-1 products. However, near-term cost pressures remain a concern.
Bharat Dynamics Ltd. reported a weak FY26 performance due to delayed execution and order timing, leading HDFC Securities to retain a Reduce rating with a target price of Rs 1,080. Despite a strong order book and long-term growth visibility, near-term earnings remain volatile due to execution delays and margin compression.
Overall, the brokerage's Q4 review underscores a divergent outlook across sectors, with capital goods exposure like Siemens remaining structurally positive, while oil and gas and defence stocks face near-term headwinds.
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