Brokerages rolled out fresh calls on Marico, Mahindra & Mahindra, Larsen & Toubro, Punjab National Bank, Hero MotoCorp, Coforge, while also flagging trends across banks, and pharma.
Jefferies on Marico
- Jefferies maintains a Buy rating and hikes the target price to Rs 960 from Rs 900.
- Marico continues to deliver consistent growth.
- Management remains confident on the outlook.
- The company expects high-teens EBITDA growth in FY27 and mid-teens growth through FY30.
- Management believes internal execution remains strong, with external factors the key monitorable.
- Marico remains Jefferies' top pick.
Morgan Stanley on Marico
- Morgan Stanley maintains an Overweight rating with a target price of Rs 934.
- Q4 trends remained healthy with positive FY27 commentary.
- Management now targets high-teens EBITDA growth for FY27 versus mid-teens earlier.
- Commodity inflation remains manageable for Marico at present.
Citi on Marico
- Citi maintains a Buy rating and hikes the target price to Rs 940 from Rs 900.
- Q4 was strong and growth visibility continues to improve.
- The brokerage expects medium-term momentum to remain robust.
- Falling copra prices are expected to offset inflation in crude-linked inputs.
- Citi estimates 11% revenue CAGR and 16% EPS CAGR over FY26–29.
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Kotak Securities on Mahindra & Mahindra
- Kotak maintains a Buy rating and hikes the target price to Rs 4,050 from Rs 4,000.
- Q4 execution remained strong.
- Better-than-expected ASPs offset raw material headwinds.
- Automotive performance exceeded expectations, while tractor profitability lagged.
- Kotak expects M&M to continue outperforming industry growth in tractors and CVs.
- A strong launch pipeline through CY30E should sustain SUV leadership.
- Valuations remain attractive.
JPMorgan on Mahindra & Mahindra
- JPMorgan maintains an Overweight rating and hikes the target price to Rs 4,135 from Rs 3,980.
- Better-than-expected FY27 guidance should support the stock.
- The upgrade is driven primarily by stronger SUV volumes.
- The brokerage expects some margin headwinds across businesses.
Citi on Mahindra & Mahindra
- Citi maintains a Buy rating and hikes the target price to Rs 4,470 from Rs 4,230.
- Q4 results beat estimates due to stronger auto ASPs and better gross margins.
- Management outlook remains positive, with mid-to-high teens UV growth and mid-single-digit tractor growth guidance.
- The brokerage has raised UV and tractor volume assumptions, although weak monsoons remain a risk.
Jefferies on Mahindra & Mahindra
- Jefferies maintains a Buy rating but cuts the target price to Rs 4,000 from Rs 4,500.
- M&M delivered its 16th straight quarter of double-digit EBITDA growth.
- The brokerage remains positive on autos, though cautious on the tractor cycle.
- Improving EV margins, easing CAFE concerns and upcoming SUV launches support the outlook.
- Jefferies cuts FY27-28 EPS estimates by 3–5% and now expects 11% core EPS CAGR over FY26–28.
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Kotak Securities on Punjab National Bank
- Kotak maintains an Add rating and cuts the target price to Rs 125 from Rs 140.
- Profitability remained steady overall.
- RoE was supported by lower credit costs and lower retirement-related provisions.
- Asset quality remains stable with high PCR supporting low credit costs.
- However, core profitability remains weaker than peers.
UBS on Punjab National Bank
- UBS maintains a Neutral rating and cuts the target price to Rs 122 from Rs 140.
- Weak NII was offset by lower credit costs.
- Q4 PAT beat estimates due to lower opex and provisions.
- Loan growth remained modest while margins contracted 5 bps QoQ.
- Management guided for 12–13% loan growth and RoA above 1%.
Citi on Punjab National Bank
- Citi maintains a Sell rating and cuts the target price to Rs 103 from Rs 115.
- NIMs continued to contract.
- Provision write-backs and recoveries supported profitability.
- Loan growth lagged the system due to weaker retail traction, while MSME and overseas businesses drove growth.
- Slippages increased QoQ.
Jefferies on Punjab National Bank
- Jefferies maintains a Buy rating and cuts the target price to Rs 130 from Rs 134.
- Q4 NII miss was offset by lower opex and provisions.
- Loan growth improved, though NIM compression impacted NII.
- The bank has room to grow loans despite soft deposit growth.
- Slippages declined YoY and core credit costs remain controlled.
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JPMorgan on Hero MotoCorp
- JPMorgan maintains an Overweight rating with a target price of Rs 6,385.
- Pricing and fixed-cost management offset commodity pressures in Q4.
- The brokerage does not see any major negative trends in the results.
- Key monitorables include demand sustainability, market share and commodity costs.
Morgan Stanley on Hero MotoCorp
- Morgan Stanley maintains an Overweight rating with a target price of Rs 6,537.
- Q4 performance was largely in line with estimates.
- ASPs grew 2.7% QoQ.
- Gross margins declined 110 bps QoQ, while EBITDA margins fell 20 bps QoQ.
Citi on Hero MotoCorp
- Citi maintains a Buy rating with a target price of Rs 6,900.
- Q4 EBITDA was slightly ahead of estimates, though PAT remained in line due to lower other income.
- Demand remains healthy post GST cuts.
- The company is gradually improving market share in scooters and EVs.
- Cost-cutting measures continue to support margins.
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UBS on Coforge
- UBS maintains a Neutral rating with a target price of Rs 1,240.
- FY27 outlook remains robust.
- Q1FY27 growth is expected to remain flattish due to deal closure timing.
- The company expects FCF-to-PAT conversion above 100% in FY27.
Citi on Coforge
- Citi maintains a Sell rating with a target price of Rs 1,115.
- Q4 revenue growth remained slower despite margin outperformance.
- Executable order book growth moderated to 16% YoY.
- Management continues to guide for industry-leading growth despite a challenging environment.
Jefferies on Coforge
- Jefferies maintains a Buy rating and hikes the target price to Rs 1,860 from Rs 1,620.
- Q4 results beat expectations, driven by stronger margins and robust free cash flow conversion.
- Strong deal wins and a 16% YoY rise in executable order book provide growth visibility.
- The brokerage expects double-digit organic growth and 23% EPS CAGR over FY27–29.
- Valuations remain attractive at 19x one-year forward PE.
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Bernstein on Larsen & Toubro
- Bernstein maintains an Outperform rating with a target price of Rs 4,637.
- Order inflows continue to beat expectations despite a high base.
- Revenue missed estimates due to geopolitical disruptions and weakness in the domestic water segment.
- Margins were slightly below expectations, while working capital and returns remained strong.
- The brokerage sees near-term challenges but believes the company is making the right long-term moves.
Jefferies on Larsen & Toubro
- Jefferies maintains a Buy rating and hikes the target price to Rs 4,885 from Rs 4,500.
- The company unveiled its Lakshya 2031 strategy after exceeding Lakshya 2026 targets.
- Guidance includes 10–12% order inflow CAGR and 12–15% revenue CAGR through 2031.
- Plans include investments in data centres, electronics and semiconductors.
- A potential real estate IPO is also part of the value creation roadmap.
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Citi on Banks
- Citi says the approval of ECLGS 5.0 could support Rs 2.55 trillion of incremental MSME credit flow.
- The move is positive for lenders, credit sentiment and financial stability.
- Key beneficiaries include Axis Bank, RBL Bank and PSU banks.
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Jefferies on Emcure
- Jefferies maintains a Buy rating and hikes the target price to Rs 1,970 from Rs 1,780.
- Q4 beat estimates and FY27 guidance was encouraging.
- Domestic growth remained modest due to Zuventus integration and restructuring.
- Management guided for low-to-mid teens sales growth and 75–100 bps EBITDA margin expansion in FY27.
- Growth momentum in Europe and Rest of World markets remains strong.
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Kotak Securities on Aarti Industries
- Kotak downgrades Aarti Industries to Reduce from Add with a target price of Rs 460.
- Inflationary pressures remain a near-term challenge for margins.
- Q4 trends were mixed and near-term outlook remains cautious.
- Growth projects are expected to contribute gradually.
- The downgrade follows the recent stock run-up.
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Goldman Sachs on KEI Industries
- Goldman Sachs maintains a Buy rating and hikes the target price to Rs 5,005 from Rs 4,585.
- New capacity ramp-up is expected to support stronger FY27 growth.
- End-market demand remains resilient amid continued capex activity.
- The brokerage expects KEI to grow faster than the industry leader over the medium term.
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Jefferies on SRF
- Jefferies maintains an Underperform rating with a target price of Rs 2,640.
- Q4 EBITDA and PAT beat estimates by 10% and 12%, respectively, led by Chemicals.
- Strong refrigerant gas export volumes and pricing drove performance.
- The company doubled capex for its new HFO plant and HF capacity, while also announcing a 25% increase in HFC capacity.
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