UBS on LTmindtree
Initiate Neutral, TP Rs 5830
While like Cos recent healthy deal wins & strong positioning for upcoming GenAI cycle, are also concerned about its growth underperformance to mid-cap peers, its ability to achieve margin targets, and high client concentration risk
Also wrestle with whether LTIM should be considered a mid cap or a large cap, as it has characteristics of both, & market cap is currently c16% above Tech Mahindra’s
Valuations also straddle two categories (28x vs large caps at 20-22x, and mid-caps at 30-40x).
UBS on Mhpasis
Initiate Buy, TP Rs 3370
Like largely due to potential recovery in revenue growth in near term, which is not entirely priced in.
Headwinds from a large customer (DXC), subsidiary (Digital Risk, DR) & vertical-specific issues have largely eased
Expect revenue growth should accelerate (UBS FY25-28E CAGR of 10% vs 2% in FY22-25)
Current valuations, although at a premium to three-year average, price in a 7-8% revenue CAGR over FY25-30, vs est. of 11% for that period.
UBS on Persistent
Initiate Buy, TP Rs 6730
Like Persistent for its
1) strong execution (India’s fastest growing IT services company in FY20-25,
2) among the highest market share gains over the past five years, per Gartner,
3) resilient margins, which are up around 600bps over the same period (most peers: range-bound or declines),
4) focused exposure to product engineering and low exposure to legacy services,
5) strongest positioning (versus mid-tier and large-cap peers) for upcoming GenAI cycle
Current val (around 44x 1yr fwd PE) price in flattish margins & a 14-15% revenue CAGR, which seem pessimistic
Jefferies on Spirit Cos
Initiate Buy on USL – TP Rs 1570
Initiate Buy on Radico – TP Rs 3500
Initiate Buy on Allied Blenders – TP Rs 620
Spirits category offers premiumisation led strong growth potential, with double-digit top-line CAGR across cos & a meaningful room to expand margins.
Radico (top pick) leads on growth (>35% EPS Cagr), while UNSP offers favorable risk-reward after >20% stock correction
ABD is a dark horse, with meaningful upside but execution holds key
Key risks: Adverse regulatory events in key states, weakening of consumer demand, & inflation in key commodities (ENA, glass)
DAM Cap on Northern Arc
Initiate Buy, TP Rs 335
Stock trading at an attractive valuation of 0.9x on FY27e book & 6.8x on FY27e earnings
Increasing share of direct to customer lending, coupled with easing interest rate environment would ensure margin expansion.
In addition to this, fund management & placement business would enhance fee income going ahead and thereby RoAs could enhance further
Expect asset quality headwinds (particularly MFI) to also abate from 2H of FY26 and expect a normalcy from FY27 onwards.
Culmination of all these factors will ensure healthy improvement in earnings & thereby return ratios
Expect earnings CAGR of 39% over FY26-FY27E
HSBC on Autos
Led by GST-driven price cuts, factor in 200-300bp higher CAGR over next 4-5 years across Auto segments
Share prices are up 6-17% since GST revisions announced on 15 August, so are now likely to track earnings growth
Growth could be front-end loaded, leading us to lift our FY27/28 EPS estimates 4-14% across cos
Prefer Maruti – BUY, TP raised to Rs 17000,
Hyundai – Buy, TP Raised to Rs 2800,
TVS – BUY, TP Raised to Rs 4000
M&M – Buy, TP Raised to Rs 4000
Ather – Buy, TP Raised to Rs 600
Nomura on Autos
GST cuts – Early signs of demand recovery
Upgrade to higher segments may accelerate
Prefer M&M, Hyundai, TVS and Ashok Leyland
Channel checks with dealers suggest that the GST cuts have already translated into a sharp pickup in customer activity on the ground
Inquiries have risen meaningfully across both two-wheeler and passenger vehicle showrooms
Incred on Autos
GST Rate Cuts & Cess Withdrawal Seen As Biggest Stimulus For Auto Sector In Recent History
Could Trigger 2-3 Year Cyclical Recovery
Raise Domestic Auto Vol Forecasts By 300 bps To 11% For
FY26 & 500 bps To 15% For FY27, Led By PVs
Upgrades: Apollo Tyres, Escorts Kubota, M&M & Tata
Nuvama on BSE
From expiry war to tenure tweaks
Following SEBI chair Tuhin Kanta Pandey’s remarks, a discussion paper on increasing the tenure of index options is expected
Market is abuzz with likely contours of the paper and potential changes to derivative expiry days/periods
Other alternative actions such as increasing the contract sizes and tightening intraday/EOD exposure limits may also be tweaked
In this respect, we reckon that limiting expiries may be most damaging to earnings of exchanges
We have modelled in five possible scenarios, throwing up cuts in BSE’s FY27E earnings in a range of 19.8% to 38.5%
We maintain ‘BUY’ on BSE with a target price of Rs2,820 (45x Sep-27E EPS + value of CDSL)
Will revisit our numbers once clarity emerges on the matter
Jefferies on India Strategy
Weak FPI positioning & large India underperformance
This implies that any potential good news on India-US trade can cause a sharp market upswing
But beyond that, returns might be muted given the potentially large equity supply & high PE / weak earnings
Strong domestic buying should prevent downside though
A sideways market would be great for bottom-up ideas Changes In Model Portfolio
Addition/Weight Increase – Bajaj Finance, Radico Khaitan and GMR Airports
Deletion/Weight Decrease – Bandhan Bank, ITC & Infosys
Move IT to Underweight by trimming the weight of Infosys as AI adoptions weakens the growth outlook and recent upmove captures gains
Overweight on lenders is maintained, with Bajaj Finance replacing Bandhan
Bajaj Finance could capture any post GST cut consumption upside
Add Radico Khaitan, which is a fast growing spirits franchise
GST uncertainty on ITC makes us remove the same
Add some weight on GMR as it is evolving into a diversified consumer platform from being a utility airport operator.
CLSA on Bandhan Bk
High Conviction O-P, TP Rs 220
Conf Feedback
Management was cautious about near-term asset quality while being optimistic about future loan growth
Overall loan growth is projected to be in low teens for FY26 & in mid-single digit for MFI.
Management also acknowledged that MFI asset quality recovery has been slow & expects it to improve in 2HFY26
There is still some lagged impact of June repo cuts that is yet to play through, thus some more pressure on yields is yet to be realised
That said, management acknowledged that pressure on NIMs will be partly offset by: SA rate cuts and share of wholesale deposits reducing in the near term and by a higher CASA ratio over longer term
CLSA on Samvardhana Motherson
O-P, TP Raised to Rs 124
Conf Feedback
Co now aiming to 5x revenue in next five years along with maintaining its long-term ROCE target intact at 40%
Despite global car market remaining stagnant due to geopolitical, macro and supply chain issues, SAMIL has been able to execute a more than 2x jump in its bottom line and is looking to set steeper targets for its next five-year plan
Co looking to the non-auto segment as a major driver of profitable growth ahead
Nomura on Apollo Hospitals
Neutral, TP Rs 6856
AHEL (Apollo Hospitals Enterprise) will be acquiring a 30.58% stake owned by IFC in its subsidiary, Apollo Health & Lifestyle, for a consideration of Rs 1254 cr
With this stake increase, IFC gets an exit from AHLL after 8 years & post transaction, AHLL will become a 100% subsidiary of AHEL.
With AHEL now owning 99.42% & balance in ESOP pool, believe that just like its pharmacy business, co might be considering a separate listing of AHLL as well.
A full ownership by AHEL should result in greater
flexibility with respect to capital allocation and better operational synergies for AHLL.
JPM on Tata Tech
UW, TP Rs 570
Co announced acquisition of Germany-based Auto ER&D co ES-Tec, which specializes in ADAS, connected driving & digital engineering
TATATECH is acquiring ES-Tec for EUR 75mn ($88mn) at EV/Revenues of 2.1x.
ES-Tec had revenues of EUR 36mn ($ 42mn) in CY24 with high revenues per employee of $142K, implying high on-site nature of work & hence margins could be lower
Co, however, has mentioned that deal is EPS accretive from 1st year itself
This would add 2% to FY26 revenues & 5% to FY27 revenues
View this acquisition as a good one given ES-Tec has grown at a healthy 20% CAGR over CY22-24 and it gives TATATECH access to the German market as well as the Volkswagen account
Remain UW, though, as expect revenues to decline 4.6% CC & margins to decline 100bps in FY26, which, does not justify a 37x one year forward P/E.
GS on Havells
Maintains Buy; Hikes Target Price To ₹1,720 From ₹1,660
Well-Positioned For Growth Revival In Electrical & Durables
While Q2 will be disrupted by GST implementation uncertainty, would see any share price weakness as opportunity to build on positions in stock
While shares have not corrected much, believe earnings growth revival can drive up multiples & lead val higher
MS on CPI data
Disinflationary Pressures To Continue
Headline CPI Ticked Up To 2.1% YoY In Aug, Due To Softer Decline In Food Prices
Lower CPI Forecast To 2.5% For FY26, Building In A Benign CPI Trend And Deflationary Impact From GST
Expect RBI To Ease In Oct Policy With Risk Of Further Easing
Antique on HAL
Target Price: ₹6,360 (Maintain Buy)
Supply chain challenges easing off
HAL has received third delivery of GE 404 engine
Fourth engine expected by September end
First two Tejas MK1A jets to be delivered by October
Near-term financials may stay volatile due to supply chain execution for the large Tejas Mk-1A order
Retain positive stance—multi-year double-digit earnings growth potential
Antique on FMCG Sector
Sequential recovery continues; dealer/distribution interactions confirm trends.
Nestle distributors show recovery in dairy & nutrition business; strong traction in beverages, chocolates & instant noodles.
ITC Foods enjoys healthy performance, cigarettes stable.
HUL sees sequential recovery; detergents impacted by heavy monsoons.
Dabur offtake remains under pressure due to beverages portfolio.
Emami witnesses healthy offtake across most categories.
Marico stable, supported by festive season (Pujo) ahead.
GCPL delivers healthy offtake in household insecticides, helped by mosquito infestations.
Colgate sees healthy offtake from general trade and successful trade schemes + price hikes.
GST cut expected to drive volume growth (mid-high single digit improvement).
Preference: GCPL, Marico & Emami in consumer staples.
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