Brokerages have highlighted opportunities across the metals and mining, pharma, renewable energy, consumer durables, and railway engineering sectors, issuing fresh calls and updates on Hindustan Zinc, Anthem Biosciences, Crompton Greaves Consumer Electricals, Adani Green Energy, and Titagarh Rail Systems, along with their latest views on the financials and insurance sectors.
HSBC on Hindustan Zinc
- Maintain Buy with TP of Rs 770
- Increasing disconnect with strong LME zinc prices; Upside risks to consensus
- Given strong LME zinc prices, HindZinc's relative underperformance is surprising
- Weakness in silver and potential government sell down likely weighed on the stock
- Strong LME zinc and improving silver prices, weak INR and strong sulfuric acid prices build substantial upside risks to consensus estimates
Jefferies on Anthem Bioscience
- Initiate Buy with TP of Rs 1050
- Powerhouse of Capability
- High-growth Indian CRDMO with industry-leading manufacturing capabilities and a technocrat-led mgmt team
- Boasts highest EBITDA margin and ROCE among Indian CRDMOs
- One of the few players with complex fermentation-based peptide capabilities
- Expect Anthem to deliver FY26-29E Revenue/PAT CAGR of 18%/20%
- See scale-up of existing contracts & robust late phase projects pipeline.
Bernstein on Financials
- India's macro backdrop remains broadly supportive
- Growth rebounds, fundamentals remain firm for the sector
- Private Banks gain momentum as PSU Banks defend profitability
- Expect the banking sector to sustain healthy growth in FY27
- See robust liquidity conditions and a recovery in nominal credit growth
- Although potential policy tightening could moderate momentum later in the year
- Margin outlook remains stable, with deposit repricing largely behind us and any rate hikes likely to provide an incremental boost to NIMs
- Asset quality is expected to remain benign, supporting stable credit costs and earnings resilience
- Within the sector, Private Banks are likely to continue narrowing the growth gap with PSBs
- Latter's greater reliance on borrowings could weigh on relative margin performance
Jefferies on Crompton Consumer
- Maintain Buy with TP of Rs 330
- Aiming at Metamorphosis
- Growth outlook of 2x sales in 5-Year, with operating margin at 11-12%
- Premium Fans mix rose to 25% now; Solar and Wires are new products
- Avg 14% price hikes in lead categories in last 1-Year
- Est FY26-29e EPS CAGR at +18% vs +1% CAGR in FY20-26
Citi on Crompton Consumer
- Maintain Buy with TP of Rs 400
- Less Seasonal, More Scalable
- Targeting 15% CAGR over FY26-31 vs 10.7% CAGR over FY22-26
- Profit growth to outpace revenue growth
- New businesses (Wires, Solar Rooftop, etc.) are expected to contribute 20% of FY31 revenue
- Addressable market has doubled
- Weather-dependent categories have declined from 45% to 20% of TAM
- Successful de-risking of the business model, turnaround at Butterfly, and launch of new growth levers, provide better visibility for future earnings.
MS on Adani Green
- Initiate Overweight with TP of Rs 1525
- Powering Intelligence, Cleanly
- Adani Green is India's leading clean energy platform
- Combining strong execution at scale across clean technologies
- Improving portfolio quality that supports better cash flow
- See returns visibility, with one of the strongest capacity and earnings growth profiles in the sector
- Future of Energy – Leveraging Scale in a Rapidly Growing Market
- The Adani Ecosystem – Positioned to Win.
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Jefferies on Titagarh
- Maintain Buy with TP of Rs 990
- Brick by Brick, Up the Value Chain
- Included in the Approved Vendor category of Indian Railways for supply of traction motor for locomotives
- Estimate 4-5% annual revenue accretion from the order
- Believe, the order paves way for the company's plans to move up the technology value chain through backward integration.
MS on Insurance
- IRDAI takes action on FY25 EOM non-compliance
- IRDAI has warned Niva Bupa and directed it not to open any new place of business for six months from the date of the order
- This action follows a breach of expense of management (EOM) limits in FY25
- Niva Bupa complied with EOM limits in FY26 and Q1FY27 and remains on track for FY27
- It is evaluating the order and will take appropriate steps to safeguard stakeholder interests
- View IRDAI's action on EOM non-compliance as positive for the sector, and it could ease competitive intensity.
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