Brokerages' Radar
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Brokerages issued fresh views on Infosys, Reliance Industries, Hindalco, Tata Motors PV, CG Power alongside commentary on oil, steel sectors, equity strategy and more. From a cautious stance on consumer staples and IT services to highly optimistic outlooks on the power transmission super-cycle, here are the key highlights from the latest brokerage notes:
CITI On India Equity Strategy
- The combined impact of geopolitics, AI & El-Nino risk has resulted in a subdued sentiment, particularly among FIIs.
- India allocation in GEMS (Global Emerging Market) funds is at 5yr low & India UW remains close to highest in 20yrs
- Healthy medium-term outlook & low positioning implies that any resolution of West Asia situation & pause in FII outflows could result in upsides. D
- Domestic flows are stable – any slowdown is a risk though.
- Valuations near 10yr LTA are more reasonable vs. last few years.
- Given higher EPS downgrade risks due to prolonged conflict) - NIFTY target of 26k (27k earlier
- Key Overweight: Financials, Telecom, Healthcare, Utilities, Defence
- Key Underweight: IT Services, Staples, Metals.
- Add Hitachi Energy post initiation
Nomura On Adani Ports
- Maintain Buy, TP Rs 1930 (From Rs 1850)
- 4Q performance beats estimates; outlook robust
- Raise FY28F EBITDA by 6%, implying 19% EBITDA CAGR over FY26-28F
- Aims to expand domestic port capacity by 1.5x to 1,000MT in CY30 from 653MT in FY26
- Management expects healthy revenue/EBITDA CAGR of 19%/18% over FY26-31E
- Remains India's largest private port operator with strong defensible moats such as industry-leading operating efficiency and integrated logistics offering.
Macquarie On Power
- JSW Energy-Initiate Outperform-TP Rs 720
- Adani Power-Initiate Neutral-TP Rs 230
- Adani Energy Solutions-Initiate Neutral-TP Rs 1450
- Indian power sector is undergoing a broad-based regulatory and operational reset across generation, transmission, and distribution
- Strong capacity addition on the back of robust demand outlook.
- Transmission (capex super-cycle) and improving discom health
- Regulatory tailwinds seen
- Prefer NTPC > JSW Energy > Power Grid > Adani Green > Adani Power > Adani Energy Solutions.
Jefferies On Power
- May 2026 power demand rose 11% YoY on a base of 5% YoY decline in May 2025.
- June 2026 generation to date is also strong at 12% YoY rise.
- Apr-May 2026 saw 7% demand growth and expect 6% growth in FY27E assuming normal weather conditions.
- India's peak power demand reached 271 GW in May 2026, meeting Ministry of Power's 270 GW expectation.
- Top picks: JSW Energy, Adani Energy Solutions and NTPC.
Morgan Stanley On Reliance
- Maintain Overweight, TP Rs 1803
- META and Reliance announced that META will lease 168 MW in the first phase of data centre capacity from Reliance
- At its 1GW Jamanagar datacenter, with an option to scale up.
- META will cover the cost of energy and water supporting facilities.
- META will connect the datacenter to its cable systems (Project Waterworth), which links the US, India, Brazil and South Africa, among other regions.
- RIL's proposed US $110bn AI investment over seven years is as large as its last investment cycle in 2014-21 for its consumer businesses.
- Estimate the Intelligence business will deliver 12%+ post tax ROCE, i.e., ~2x higher than its consumer/telco investments over the past decade.
Goldman Sachs On Reliance Industries
- Maintain Buy, TP Rs 1910
- Revise FY27E/28E EBITDA estimates by -4.5%/-2.0%
- Weaker INR outlook, stronger refining cracks outlook offset in near-term by higher crude premium, windfall taxes on refined products, and higher LPG production
- Lower E&P earnings driven by higher oil and LNG price outlook, more than offset by mark to market of larger KG D6 production volume decline and higher opex
- Lower Retail earnings factoring in margin impact from investments in JioMart
- lower FY27E/28E EPS by -8.5%/-2.6% as mark to market other non-operating income and expenses based on FY26 actual results.
CLSA On Upstream Oil (ONGC, Oil India)
- Government has announced an increase in the royalty rate on onshore crude oil production after the cut announced about a month ago.
- The new effective royalty rate of 13.33% on crude production from onshore fields is higher than the 10% announced on 8 May, but this is still lower than the 16.67% rate that was applicable before.
- Could hit EPS of ONGC/Oil India by 2%/9%
- See this as a one-off tweak to protect state government revenues
- see the recent stock price fall as an overreaction for ONGC
- Oil India expect it to report notable jump in production in its June quarter results.
Morgan Stanley On Steel
- Jindal Steel-Maintain Overweight-TP Rs 1340 (From Rs 1250)
- JSW Steel-Maintain Overweight-TP Rs 1470 (From Rs 1330)
- Tata Steel-Maintain Overweight-TP Rs 235 (From Rs 215)
- SAIL-Maintain Underweight-TP Rs 160 (From Rs 140)
- Increase F27 steel spread estimates by ~2%, while F28 remains largely unchanged.
- Localization of the Indian steel industry and the medium-term anti-involution theme in China provide structural support for steel spreads beyond seasonality.
- Steel stocks have performed well, and expect select names to continue to outperform, supported by strong earnings growth potential.
- Limited Middle East conflict impact.
HSBC On Steel
- Steel demand remains solid
- See muted steel price declines this monsoon owing to production constraints
- High coking coal prices a concern for steelmakers
- Expect domestic steel price hikes post monsoons
- Buy-rated TATA and JSW (Flat steel) better placed than Holdr ated SAIL (Long steel) given higher margins and prices.
Morgan Stanley On Hindalco
- Maintain Overweight, TP Rs 1325
- Novelis Announces Restart of Oswego Hot Mill
- Oswego facility was disrupted by two fires in September and November 2025, affecting cumulative volumes of 150-200kt
- Positive development for the company.
- Although management earlier guided to a restart by June, it had been was an overhang for the stock
- Expect the facility to ramp-up quickly and normalize production over F2Q27
- Next keys to track will be-Bay Minette commissioning by F3Q27
- Overall insurance recoveries over the next couple of years – management had guided to 70-75% recoveries of overall impact of US$1.7bn.
JP Morgan On Pidilite Industries (Management Meet)
- Maintain Overweight-TP Rs 1630
- Medium-term growth outlook remains constructive, underpinned by strong India consumption and housing/construction tailwinds
- Strategically, the company is prioritizing sustainable Underlying Volume Growth (UVG) over pure pricing
- Deepening its moat through premiumization in core adhesives, faster growth in underpenetrated categories such as tile adhesives and waterproofing
- Further expansion of its Growth & Pioneer portfolio, which now contributes nearly half of the business and could add ~100bps to UVG annually.
- Expect mid-teens+ revenue growth in FY27, supported by 10%+ pricing, resilient underlying demand, and operating leverage to partly offset gross margin pressure
- Keeping EBITDA margins around the mid-point of the guided band of 20-24%
JP Morgan On Q-Commerce
- Pecking order in QC is Eternal>Swiggy
- Blinkit's quarterly monthly DS add runrate remains stable and it is on track to reach 3,000 DS by Mar-27 while Zepto and Instamart saw moderate increases.
- On an absolute level, both Zepto and Instamart remain significantly behind Blinkit on aggregate DS and the net add pace (
- Store vintage remains highest at Zepto (91% of DS >6M old), followed by Blinkit and Instamart at joint second (86% of Dark stores >6M old)
- City footprint saw a decline with a reduction in tail cities across all three platforms
- Blinkit maintained its leadership across the top metros except in Chennai and Hyderabad.
- Blinkit's stable pace of DS adds alongside muted subsidies.
JP Morgan On Consumer Staples
- FMCG companies have entered FY27 on a cautiously optimistic footing
- Volume growth step-up seen through 2HFY26 has been sustained into Q1FY27 so far,
- Expect FY27E revenue growth of ~12% (avg) to come in ahead of FY26 supported by the return of pricing-led growth.
- The structural pivot towards premiumization, digital channels, and portfolio diversification remains firmly intact.
- Preference is for companies that can defend core franchises while building higher-growth, higher-optionality adjacencies
- Sector valuations have been weighed down by cyclical concerns (El Niño, inflation) and investor flows towards higher growth sectors.
- Key Overweight -TATA Consumer, Marico, NESTLE, HUL and GCPL.
Jefferies On Tata Motors PV (Annual Report)
- Maintain Underperform, TP Rs 300
- JLR's FY26 annual report outlines a tough business environment
- Uncertainties and regional disparities in EV adoption requiring the company to adjust its EV-centric product strategy to incorporate ICE/hybrids.
- CWIP (capital work & product development in progress) is already up 6x in 3-years to £8bn (31% of total assets)
- Depreciation fell to 11-year low in FY26.
- Warranty expense also rose to 15-year high of 6.6%
CLSA On Infosys
Maintain Outperform, TP Rs 1512
- Believe market estimates of 2%-4% of deflation due to AI are incrementally being offset by new volume opportunities around managing AI agents, token cost optimisation and modernisation related work.
- GenAI services opportunity around six new value pools will be US$300bn-US$400bn by 2030
- Overall TAM for System Integrators can expand by up to 15x as AI impacts white-collar human capital pool globally.
- GenAI revenue for INFY is currently at c.US$1bn annually, and is growing faster than the company average growth rate.
- Co is ahead of competition in AI adoption with top rankings across 16 industry analyst reports.
- The current CEO tenure is ending in Mar 2027, and the board will decide future courses of action.
Nomura On Pharma
- IPM Growth Trends-May 2026
- Torrent's growth is the strongest amongst coverage
- Sun gains market share in semaglutide
- All companies under coverage grew ahead of the market except for Alkem and Dr Reddy's
- Eli Lilly's Tirzepatide maintained its No. 1 position in May 2026
- Torrent maintained its leadership position with a 19% market share.
- Torrent was the only generic to have generated sales from oral Semaglutide for the full month of May-26.
HSBC On IT Services
- Sentiment remains cautious on the sector
- Accelerated M&A by IT companies may prove to be an incremental risk rather than an offset to AI impact
- AI deflation may continue to eat away the bulk of incremental tech spend rendering anaemic growth for another 6-8 quarters
- Expect sector valuations to bottom out at 13-14x PE, as a growth pick-up from FY29 remains a plausible scenario.
Jefferies On FCNR-B Deposits
- Banks' new FCNR-B rates is a 200-350bps hike with larger banks at 5.5-6% & smaller ones at 7%.
- Large banks' rates are a tad below 6.5% expectation, as they are testing demand at a cost below local deposits
- Smaller banks offer higher rates to win clients & cover for lower leverage.
- Level of leverage & cost of borrowing (4.75-5%) will determine IRRs & inflows.
- Hope India raises 10% of forex reserve ($680bn), even if at higher rate.
- With 7-10x leverage, customers can generate 14-18% US$ IRR annually over 3-5 years with large banks & 22-29% with smaller banks.
Macquarie On GE Vernova T&D
- Initiate Outperform, TP Rs 5470
- One of the most strategically positioned players
- India's grid monetization and renewables-driven transmission capacity buildout
- Orderbook triples over FY24-36, indicating high conviction in multi-year transmission them
- Highest exposure share at 335 of revenue
- Capacity ramp-up to capitalise on both local and global oppotunities.
CLSA On Honasa Consumer
- Maintain Outperform, TP Rs 462 (From Rs 434)
- Substantial white-space for expansion in key product categories
- To drive >500bps margin over five years
- Margin will be driven by improving channel mix and operating leverage
- Raise FY27-29CL estimates 6-14%
JP Morgan On Jubilant Foodworks (Management Meet)
- Maintain Neutral, TP Rs 474
- Confidence in structural ability to deliver 5-7% LFL growth
- Focus on execution superiority and significant runway for store expansion
- FY27 SSSG expected to be more price indexed (inflationary backdrop)
- Near term 200bps standalone EBIDTA margin remains intact
- Standalone revenue growth of 15%
Macquarie On Siemens Energy
- Initiate Outperform, TP Rs 4190
- Structural tailwinds at work, capacity ramp-up to capture demand
- Electrification decarbonization and grid monetization to persist for decades
- Backed by strong order book, 30% EPS 3-year CAGR and >25% return ratios
- Business is skewed towards transmission (heavy investments)
Macquarie On CG Power & Industrial Solution
- Initiate Outperform, TP Rs 1,090.
- Multiple engines at work-across grid, industrial equipment, railways etc.
- Co aims to support India's high voltage grid built-out.
- Co has leadership in low voltage motors.
- Backed by strong orderbook, 28% FY26-29E CAGR and >20% returns.
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