Stock Picks Today: Dixon Tech, Natco Pharma, Ather Energy, NMDC And More On Brokerages' Radar

Brokerages shared fresh views on Dixon Technologies, Natco Pharma, Ather Energy, Zee Entertainment, Finolex Cables and more while strategy notes highlighted trends in the cement, pharma, data centres and India equity

Macquarie On Dixon Tech 

• Maintain Outperform, TP Rs 15000 
• PLI 2.0 details emerging for mobile phones 
• Domestic Value Addition (DVA) of more than 55% vs 15%-20% (Currently) 
• PLI 2.0 will be formally linked with the Rs40,000 crore Electronics Components and Manufacturing Scheme (ECMS) 
• Incentives will be tiered based on the local sourcing of critical sub-components 
• PLI 2.0 to provide confidence around margin trajectory 
• Dixon could be the key beneficiary with its JVs with Q Tek ,  HKC and Chongqing Yuhai 
• Provide visibility for the company to target other major input costs such as batteries and PCBs, through capex outlay and/or JVs and acquisitions. 

Investec On Natco Pharma 

• Maintain Buy, TP Rs 1220 (From Rs 1035).
• Q4 saw Core business performing well – after adjusting for one-off expense. 
• No gRevlimid but delivered strong numbers.  
• Sema-India (~1bn sales) and new launches in Brazil/Canada/US as key drivers.
• With Rs 2500cr cash, co offers M&A optionality – management has been conservative.
• Raise FY27E/FY28E EPS ests by 5%/4%  

Nomura On Data Centers 

• Decadal growth opportunity.
• Industry to record 30% CAGR over CY25-30F. 
• India to outperform broader APAC. 
• Lower capex and favourable power economics support attractive returns.
• India's digital, cloud and GenAI adoption driving demand.
• Attractive opportunities for industrial equipment manufacturers.
• Top picks: CGPOWER and Ge Vernova TD to benefit.

Systematix on NMDC

• Maintain BUY on NMDC with a revised TP of Rs 112.
• Strong FY26 execution with future growth trajectory intact.
• Management has guided for 60mt production in FY27.
• Management expects EBITDA margin to recover to ~35-40%
• Raises FY27E/FY28E EBITDA estimates by 10%/8% and PAT estimates by 23%/21%.
• Revision is built on NMDC's strong execution track record.

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Morgan Stanley-India Equity Strategy  

• Bottom maybe behind us. 
• With earnings growth acceleration likely in the pipeline and valuations and sentiment coming off near extremes 
• Indian equities appear poised for a strong year ahead.
• The long-term story is intact notwithstanding the AI debate.
• Domestic Cyclicals > Defensives and External-facing sectors; overweight Financials, Consumer Discretionary and Industrials. 
• Underweight Energy, Materials, Utilities and Healthcare.  
• IT services could be the dark horse as the world pivots to these companies to build AI applications and solutions.  
• Key risks to India are mostly external, including geopolitical tensions and slowing global growth.  
• Worry about the low productivity in farming, capacity constraints in the judiciary and embodied AI hitting the labour markets. 

Nirmal Bang on Ather Energy 

• Initiate Buy, TP Rs 1210 (26% upside).
• Built to scale, poised to lead.
• Technology led EV player with strong visibility.
• Distribution expansion to support growth. 
• 42.5% volume CAGR over FY26-28E. 
• Expect EBIDTA breakeven by FY28E.

Axis Capital On Jyoti CNC Automation 

• Maintain Buy, TP at Rs 728 (From Rs 924). 
• Q4 weak due to capacity constraints and Huron issue. 
• Cut FY27/28 earnings by 8%/16% due to mix change. 
• Capacity expansions will commence from Q2FY27. 
• Realizations are expected to decline structurallu by scale. 

 Axis Capital On Zee 

• Maintain Reduce, TP Rs 80/share.  
• Zee partners with FIFA for broadcasting rights in India. 
• Accretion to ad & subscription rev could be limited by the match timings.
• Await execution before baking in any benefits to ad & subscription revenue. 
• ZEE5 could see a boost in subscription revenues in the season.  
• ZEE5 it is unlikely to be sticky post the flagship events.   
• Current estimates assume 4% subscription CAGR for FY26-29E.

ALSO READ: Axis Capital Remains Bearish On Zee Entertainment Despite FIFA World Cup Broadcast Deal

 Jefferies On Shyam Metalics & Energy 

• Reiterate Buy, TP at Rs 1040 (From Rs 970) 
• Strong Mar-Q and Healthy Growth Outlook. 
• Raise FYY27-28E EPS by 10-17%   
• Expect 14% EPS CAGR over FY26-29E 
• Retains a strong growth mindset  
• Plans to double its carbon steel capacity and become top-3 stainless steel player in India by FY30. 

Jefferies On TBO Tek 

• Retain Buy, TP Rs 1615 
• March Disruption Masks Strong Jan-Feb; Recovery Underway 
• Recovery trends are improving, with 1QFY27 expected better QoQ/YoY.   
• WC outflow was timing-led, while luxury, AI (Voya), and Classic integration support growth.  
• Normalization in travel should also aid margin expansion and drive re-rating 

Jefferies On Finolex Cables 

• Maintain Buy, TP Rs 1200 (From Rs 1000) 
• Key C&W domestic players and a play on housing, capex 
• Despite +30%YTD stocks trades at attractive valuations vs peers 
• Took many price hikes in FY26 (total ~20%) to pass-on copper volatility 
• Healthy volume traction in Cables, steady margins and FMEG sustaining +ive EBI 
• Raise FY28e EPS by +3% 

Jefferies On Indian Pharma  

• Mar-Q Pharma Review: More Hits than Misses.
• Lupin and Zydus were strong while Dr Reddy and Cipla were weak. 
• Raised EPS est for Zydus the most (14%) while Lupin saw 5-10% EPS cuts.  
•  Key monitorable going forward are cost pressures from prolonged West Asia conflict. 
•  Top picks: Mankind Pharma, Ajanta Pharma, Zydus Health. 

Jefferies On Cement  

• Mixed Mar-Q, Weak Pricing FollowThrough Amid Cost Pressures 
• UltraTech outperformed again with strong delivery on both Vol/Unit EBITDA.  
• Industry demand remained steady at ~7-7.5% YoY 
• Pricing up ~2% QoQ and costs easing on Oplev 
• Elevated energy prices, amid West Asia tensions, pose near term earnings risk 
• Cost shocks are historically hard to pass through in the short term 
• Prefer Ultratech Cement, JK Cement 

Investec On Cello World  

• Maintain Sell, TP Rs 435 (From Rs 515) 
• Expect downgrades to continue.
• Opalware continues to see increase in competitive intensity. 
• Glassware faces constant pressure from imports further delaying ramp-up. 
• Receivables rationalization to impact growth and margins.
• Reduce target multiple to 24x (30x, DCF derived) and PAT ests. are 26/13% lower.

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