A clutch of global and domestic brokerages has rolled out fresh views on Sun Pharmaceutical Industries, Bharti Airtel, IndiaMART InterMESH, AU Small Finance Bank, Cyient DLM, Newgen Software Technologies, CEAT, SRF, CreditAccess Grameen, Persistent Systems and United Spirits following a mix of quarterly earnings updates, target price revisions and rating actions, ahead of the upcoming session.
Brokerages have also shared broader views across pharmaceuticals, telecom, banking and microfinance, IT services, consumer discretionary and speciality chemicals, alongside commentary on earnings momentum, margin trajectories, asset quality trends, execution visibility and near-term market sentiment.
Sun Pharmaceutical Industries
Jefferies on Sun Pharma
Maintain Buy with TP of Rs 2,100.
Sun is evaluating a $10–14 billion acquisition of Organon, which would be its largest deal.
The acquisition would broaden Sun's global reach, therapy mix and manufacturing footprint.
The deal marks an entry into biosimilars but does not materially strengthen the NCE pipeline or R&D capabilities.
Organon is currently under interim leadership following its CEO's resignation in Oct-25 amid an internal investigation.
The acquisition does not add a strong specialty pipeline or enhance NCE R&D capabilities.
While revenues would nearly double, the combined entity would be highly levered at the upper end of valuation.
Bharti Airtel
Morgan Stanley on Bharti Airtel
Maintain Overweight with TP of Rs 2,435.
Investor concerns around potential relief for the third player are addressed.
Delay in tariff hikes could lead to near-term correction and de-rating.
Morgan Stanley would use any such correction as a buying opportunity.
Valuation multiples are expected to sustain over the medium term.
EBITDA CAGR of ~17% over FY26–28 with ROCE improving beyond 20%.
IndiaMART InterMESH
Jefferies on IndiaMART
Upgrade to Hold from Underperform; Cut TP to Rs 2,100 from Rs 2,120.
December quarter results beat estimates.
Collections growth surprised positively, while paid subscribers declined.
Without subscriber growth, collections growth is unlikely to sustain above 15% YoY.
Earnings growth is expected to remain modest.
Jefferies estimates 12%/7% revenue and EPS CAGR over FY26–28.
AU Small Finance Bank
Jefferies on AU SFB
Maintain Buy; Hike TP to Rs 1,220 from Rs 1,170.
Asset quality and margins surprised positively in the December quarter.
Core profits grew 29% YoY, driven by higher margins and lower credit costs.
AUM grew 19% YoY, supported by strong momentum in wheels and commercial banking.
Transition to a universal banking platform presents a near-term opportunity.
Morgan Stanley on AU SFB
Maintain Overweight; Hike TP to Rs 1,230 from Rs 1,175.
Q3 delivered a strong beat on NII and credit costs, partly offset by opex.
NIMs and asset quality surprised positively again.
Morgan Stanley maintains high conviction in EPS growth of 40% in FY27 and 23% in FY28.
Improving MFI asset quality and stronger secured loan growth underpin the outlook.
Citi on AU SFB
Maintain Buy with TP of Rs 1,150.
Earnings beat driven by NIM expansion and sharp reduction in credit costs.
MFI portfolio has normalised, while credit cards are nearing normalised levels.
Growth remains robust with positive NIM surprise of 25 bps.
Cyient DLM
Kotak Securities on Cyient DLM
Maintain Reduce; Cut TP to Rs 385 from Rs 460.
Execution remained weak during the quarter.
Two new clients were added, offering some medium-term support.
Tariff-related issues impacted US business.
FY26–28 estimates cut by 13–14% to reflect weak execution.
Macquarie on Cyient DLM
Maintain Neutral with TP of Rs 380.
Q3 missed estimates due to tariff-related order push-outs.
Management commentary was positive, but execution remains key.
Macquarie prefers to wait for delivery before turning constructive.
Newgen Software Technologies
Jefferies on Newgen Software
Upgrade to Buy from Underperform; Cut TP to Rs 760 from Rs 835.
Growth pressures are largely priced in.
December-quarter revenues missed estimates, but profits beat.
Slower license sales and weakness in core markets were key negatives.
License sales decline in FY26 should normalise in FY27.
EPS estimates cut by 3–8%.
At 22x PE, risk-reward appears attractive.
CEAT
Kotak Securities on CEAT
Maintain Reduce; Hike TP to Rs 3,480 from Rs 3,450.
India business remains resilient.
Camso performance continues to cap upside.
Standalone revenue and EBITDA beat estimates.
FY26–28 EPS estimates cut by 1–4%.
CLSA on CEAT
Maintain Outperform; Hike TP to Rs 4,640.
Strong growth offsets pressure on gross margins.
Commodity inflation and currency depreciation impacted margins.
EBITDA margin at 13.6% supported by operating leverage.
SRF
Morgan Stanley on SRF
Maintain Underweight with TP of Rs 2,177.
Stock prices in above mid-cycle margins.
Significant domestic R32 capacity additions pose downside risk.
FY26 guidance implies a strong Q4 performance requirement.
Citi on SRF
Maintain Sell; Cut TP to Rs 2,575 from Rs 2,800.
Q3 underperformed due to pressure in agro specialty chemicals.
Packaging films and technical textiles also disappointed.
Low-cost Chinese competition and procurement deferrals weigh on outlook.
R32 capacity additions in 2026 pose downside risk to consensus estimates.
CreditAccess Grameen
Investec on CreditAccess Grameen
Maintain Buy with TP of Rs 1,450.
The company is at the start of an upcycle.
Growth is expected to accelerate with margin expansion and lower credit costs.
Remains Investec's preferred play on the MFI upcycle.
Persistent Systems
Investec on Persistent
Maintain Hold; Hike TP to Rs 6,665 from Rs 5,825.
Execution remained strong.
EBIT margin expanded 44 bps QoQ despite compensation hikes.
Strong deal wins with net new ACV of $256 million.
UBS on Persistent
Maintain Buy; Hike TP to Rs 7,490 from Rs 7,425.
Q3 performance remained robust.
EPS beat expectations after adjusting for labour code impact.
Management prioritises growth over further margin expansion.
United Spirits
Investec on United Spirits
Maintain Buy with TP of Rs 1,673.
Volume softness offset by strong product mix.
Gross margin expanded sharply.
Earnings growth expected to accelerate in Q4.
JPMorgan on United Spirits
Maintain Overweight with TP of Rs 1,650.
Revenue growth held up despite muted volumes.
Advertisement spends rose sharply, impacting EBITDA margins.
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