Stock Picks Today: Divi's Labs, Lenskart, Hindalco, And More On Brokerages' Radar

Divi's Laboratories Ltd., Lenskart Ltd., and Hindalco Industries Ltd. are among companies that have drawn commentary from top brokerages on Thursday. Analysts have tweaked share price targets and future outlook after some of these companies announced their December quarter results.

Brokerages On Divis's Labs

Jefferies

• Maintain Buy; Hike TP to Rs 8100 from Rs 8000.
• Strong operational beat to estimates.
• Patent Overhang Addressed with Pipeline Depth.
• Nutraceuticals and custom synthesis continued growth momentum.
• Divi's hinted that their growth momentum will continue in FY27 despite key patent expiry.
• 3 major dedicated CDMO projects will begin commercial sales from H2CY27.
• Overall, outlook remains best in class in industry.

Morhan Stanley

• Maintain Overweight; Hike TP to Rs 7989 from Rs 7541.
• Strong margin, custom synthesis share rises again.
• Q3 reaffirmed Divi's structural shift towards Custom Synthesis.
• Three dedicated CS projects are progressing well and commercial volumes are expected in CY27.
• Valuation remains attractive.

Goldman Sachs

• Maintain Neutral; Cut TP to Rs 6050 from Rs 6375.
• Q3 in-line; CS outperformance continues, generics still subdued.
• Reiterated its double digit profit growth outlook predicated.
• Stay Neutral on valuation.

Citi 

• Maintain Buy with TP of Rs 9140.
• Q3 In-Line; Management provides clear visibility for FY27/28.
• Big earnings upcycle not far away.
• Mgmt provides strong growth visibility for FY27/28.
• Continues to deliver strong earnings growth despite an adverse generic API pricing.
• Maintain Divi as top pick in India Pharma.

ALSO READ: Divi's Labs Q3 Result Review: Jefferies Hikes Target Price, But Citi Remains Cautious

Brokerages On Hindalco Industries

HSBC

• Maintain Buy with TP of Rs 1240.
• Multiple Oswego fires dent strong operating environment.
• Oswego fire impact likely continuation over next two quarters.
• Oswego Fires dent an otherwise strong operating performance.
• Novelis expects 70-80% of cash flow and adj. EBITDA impact to be recoverable through insurance.
• Management reiterates Bay Minette full plant commissioning in H2CY26, cold mill to begin commissioning in March.

Citi

• Maintain Buy with TP of Rs 920.
• Profitability was hurt further due to Oswego fires.
• Headline EBITDA appears ahead of estimate.
• Oswego will restart late in Q2CY26.
• Concerns around higher Oswego cash flow impact due to second fire and delayed timelines and consequent net debt to EBITDA rising beyond 4x.

Jefferies 

• Maintain Hold with TP of Rs 855.
• Fire Disruptions Weigh on Novelis.
• Q3 reported EBITDA was just $93 million; EBITDA adjusted for New York plant fire was $348 milion.
• New York plant is expected to restart in late Q2CY26 with $1.3-1.6 billion FCF impact.
• Novelis expects to recover 70-80% from insurance.
• Novelis' operational outlook has been clouded by multiple fire incidents while its net debt is rising.

Brokerages On Lenskart

Citi

• Maintain Neutral; Hike TP to Rs 520 from Rs 500.
• Strong growth and margin; valuations cap upside potential. 
• Lenskart execution remains strong on all parameters: store expansion, SSG and profitability/margins. 
• Believe current valuations already price in the growth and margin improvement trajectory. 
• Will watch out for growth momentum in Q4. 

Morgan Stanley 

• Upgrade to Overweight from Equal-weight; Hike TP to Rs 561 from Rs 445.
• Reported 40% growth in its India business in Q3, beating our projections by a significant margin. 
• Believe the company has raised the bar on how growth projections could be going forward. 
• Growth levers in place; Management remains focused on expanding the total addressable market. 

Macquarie

• Maintain Outperform; Hike TP to Rs 550 from Rs 530 
• Q3 EBITDA beat on strong India performance and better on store additions and mix-led realisation pickup drove better-than-expected 40% sales growth in India.
• International margins may expand faster as higher consumer adoption and tighter supply chain integration reduce costs. 
• See stronger sales growth momentum in India, which along with the Q3 beat drives 2-4% EPS increases. 

Jefferies 

• Maintain Buy; Hike TP to Rs 575 from Rs 520.
• Delivered an exceptional quarter, with strong growth and smart margin expansion. 
• Mgmt commentary was even more compelling. 
• Highlighted  a clear focus on long term growth over short term margin maximisation. 
• Margins seen as an outcome rather than the objective. 
• Shareholder letter stood out for its clarity and transparency.
• Reinforces confidence in execution & governance. 

ALSO READ: Lenskart Q3 Review: Most Brokerages Hike Target Price — Here's Why

Brokerages On Mahindra & Mahindra

Jefferies

• Maintain Buy with TP of Rs 4500.
• Delivered 15th consecutive quarter of double-digit EBITDA growth.
• Benefitting from strong industry demand and market share gains.
• Although it sounded uncertain on FY27 tractor industry outlook given high base.
• Expect MM's core EPS to rise 30% YoY in FY26, followed by 15% CAGR over FY25-28E.

Citi

• Maintain Buy with TP of Rs 4230.
• UV capacity expansion remains on track; capacity ramp-up plan on track.
• M&M remains a market leader in tractors and continues to gain traction in UVs with its strong product pipeline.
• Also growing its EV portfolio which should aid market-share gains.

Morgan Stanley

• Maintain Overweight; Cut TP to Rs 4358 from Rs 4407.
• FY27 could see moderation in tractor and UV growth.
• Both segments should turnaround in FY28.
• Market shares to remain stable.
• No new EV launches in CY26; focus will be on ramping up current launches.
• Entire portfolio expected to be covered by PLI incentives by Q1FY27.

Kotak Securities

• Maintain Buy; Cut TP to Rs 4300 from Rs 4350.
• Q3 standalone EBITDA was 5% below estimates.
• M&M continues to execute well by maintaining a leadership position in all three segments.

ALSO READ: M&M Q3 Review: Morgan Staley, Kotak Cut Target Prices Despite Earnings Beat — Here's Why

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