Citi on Apollo Tyres
Recommendation: Buy, Target: ₹510
2QFY27 standalone results were above estimates and mitigated impact of a lackluster EU business performance on consolidated earnings.
In India earnings beat despite weaker gross margin reflected a surprisingly strong revenue growth.
Margin headwinds in EU business exacerbated the weakness in revenue momentum.
Would watch out for mgmt commentary on India demand and competitive landscape.
Watch out for volume and price contribution of revenue growth in India.
Watch out for raw material and other manufacturing cost trends and 2H outlook.
Watch out for sustainability of cost optimization undertaken in India.
Watch out for reasons for weak EU performance.
Goldman Sachs on Endurance Technologies
Recommendation: Neutral, Target: ₹2650 (Earlier Target: ₹3090)
Expects meaningful margin recovery in FY28 as greenfield expansion start up costs moderate.
Exploring aerospace defence data centres robotics railways solar and power backup opportunities.
Higher depreciation financing costs and raw material pressures prompt cuts to FY27 to 29 earnings estimates.
Kotak on Endurance Technologies
Recommendation: Add, Target: ₹2825 (Earlier Target: ₹3000)
Stricter safety regulations and expansion into four wheelers and EV components support multi year growth.
ETL 2.0 strategy targets aerospace defence and other non automotive opportunities.
European consolidation could drive market share gains but commodity pressures may delay margin recovery.
Citi on Exide Industries
Recommendation: Buy, Target: ₹560 (Earlier Target: ₹510)
Commissioned 6 GWh lithium ion cell gigafactory in Bengaluru with customer qualification and commercial ramp up remaining key triggers.
Strong automotive OEM wins replacement demand and solar adoption support continued business momentum.
European battery partnership expands export opportunities while cost optimisation and calibrated pricing support margins.
HSBC on Tata Motors CV
Recommendation: Buy, Target: ₹500
Quality related cost impact resurfaces like 1Q bundled with an adverse product mix leading to EBIT margins near breakeven and affecting cash position.
Revenue growth decent but weak margins restrict earnings growth as Tata offer sails through and Iveco now a subsidiary.
Nomura on Tata Motors CV
Recommendation: Buy, Target: ₹511
Iveco weak 3Q means TMCV execution to be in focus.
Demand and margin outlook tougher with catalysts to be internal with significant potential for improvement under TMCV.
Iveco 3QCY26 industrial margin falls to 0 percent vs 2.8 percent in 2QCY26.
Citi on Varroc Engineering
Recommendation: Sell, Target: ₹640
Recent order wins and Forsee acquisition expected to strengthen revenue growth and expand battery pack business.
Plans to exit Italian two wheeler lighting facility and shift selected production lines to Vietnam and Romania.
Margin pressure and rising debt remain concerns with recovery of input cost inflation from OEMs a key monitorable.
Kotak on Varroc Engineering
Recommendation: Reduce, Target: ₹740
EV orders polymer products and overseas expansion to support growth ahead of industry.
Lighting competition and limited e mobility OEM diversification remain key risks.
Margin recovery likely to remain subdued amid pricing pressure and slower overseas ramp up.
Citi on Dabur
Recommendation: Sell, Target: ₹380
Revenue EBITDA and recurring PAT grew 12 percent 8 percent and 11 percent YoY.
Growth construct remained broadly similar to recent quarters with domestic growth driven almost equally by volume and pricing.
Notably growth was also broad based across segments.
Mgmt highlighted strengthening performance of the core portfolio premiumisation tailwinds and focused execution as key drivers of performance.
General trade growth improved to mid to high single digits although we note the benefit of a favourable base following last year GST rate cut implementation.
Separately company announced a leadership transition and will watch for any shifts in strategic priorities under new CEO.
HSBC on Dabur
Recommendation: Hold, Target: ₹426
Q2FY27 revenue in line and EBITDA 1 to 2 percent below consensus with 5.5 percent volume growth in India FMCG.
Mohit Malhotra resigns as CEO effective 13 November and Herjit Singh Bhalla will remain India CEO.
Jefferies on Dabur
Recommendation: Buy, Target: ₹535 (Earlier Target: ₹610)
Dabur reported largely steady domestic vols and strong international growth however margin was a miss due to higher opex.
HPC and foods were strong while healthcare was impacted by ongoing regulatory issues.
Top mgmt changes across consumer firms continues with Mr Mohit Malhotra resigning.
Dabur is hosting meet on 5 Nov under Mr Harjit Bhalla so await commentary on strategy and outlook.
Valuations appear attractive.
CEO Mohit Malhotra resignation puts upcoming management strategy in focus.
Rural demand recovery premiumisation and Project Saksham support medium term growth.
Healthcare faces regulatory challenges causing cuts in earnings estimates by 1 to 4 percent amid cost pressures.
BofA on Nykaa
Recommendation: Neutral, Target: ₹400 (Earlier Target: ₹370)
Beauty growth supported by customer acquisition premiumisation and repeat purchases.
Nykaa Now and advertising income offer additional growth opportunities.
Fashion marketing efficiency to improve margins though premium valuations limit rerating.
HSBC on FSN E Com
Recommendation: Buy, Target: ₹410
Robust GMV performance continues with BPC up 25 percent and Fashion up 42 percent while House of brands continues to scale.
EBITDA margin up 196bp yoy as leverage continues to flow through.
Raise FY27 EBITDA by 3 percent.
Jefferies on FSN E Com
Recommendation: Buy, Target: ₹415 (Earlier Target: ₹400)
Nykaa delivered a strong 2Q despite the festive shift with EBITDA up 65 percent YoY backed by growth as well multi qtr high margin.
Beauty sustained healthy momentum and Fashion too delivered strong growth and stayed at breakeven.
Own brands continued to witness a dream run and Nykaa Now widened its reach and assortment.
e B2B moderated a bit but will pick up ahead.
Valuation remains punchy but should be viewed in the context of strong momentum on growth and margins.
Nomura on FSN E Com
Recommendation: Buy, Target: ₹427
Strong growth and margin expansion to continue.
2QFY27 EBITDA in line with estimates with premiumization and increased brand partnerships to drive growth.
Expect Nykaa to sustain strong growth momentum with margin expansion driven by premiumization increasing brand partnerships and scale up of own brands.
Focus on physical expansion in Tier 2 and 3 cities.
Raise revenue growth estimates by 2 to 4 percent and raise EBITDA margin by 20 to 40bps.
Citi on Lenskart
Recommendation: Neutral, Target: ₹700 (Earlier Target: ₹650)
Store expansion premium lenses and higher volumes support growth.
Operating leverage and in house manufacturing should drive gradual margin improvement.
Premium valuations and tougher second half comparisons limit rerating potential.
CLSA on Lenskart
Recommendation: Outperform, Target: ₹773
Sales grew 36 percent YoY in line with estimate.
Reported Ebitda margin expanded 210bps YoY with Ebitda 3 percent above consensus.
Delivered another strong quarter especially in India business with robust volume growth and beat on profitability.
Lenskart ability to profitably serve both ends of the spectrum provides a durable advantage for sustained long term growth.
HSBC on Lenskart
Recommendation: Buy, Target: ₹790
Beat on consensus EBITDA by 3 percent with India SSSG at 21 percent and international sustaining growth at 23 percent constant currency.
Revise thoughts on India margin expansion and see international as larger opportunity vs earlier.
India multiple unchanged and international higher.
Jefferies on Lenskart
Recommendation: Buy, Target: ₹780 (Earlier Target: ₹680)
Compounding story continues with strong growth and sharp margin expansion.
Lenskart is widening the funnel at both ends with Hustlr Club targeting next 100mn Indians evolv elevating experiential retail and smart glasses adding a long term growth vector.
Despite FX pressure margin progression is on track with seven levers identified toward 25 percent EBITDA without a timeline as growth is a priority.
Premium valuation is supported by strong growth.
Macquarie on Lenskart
Recommendation: Outperform, Target: ₹750
2Q EBITDA was above estimate as sharper store additions and mix led realisation pickup drove better than expected 50 percent YoY EBITDA growth in India.
Believe AI led eye testing could widen the customer funnel by increasing testing throughput and reducing optometrist supply constraints.
Build in stronger ASP assumptions supported by 7 percent growth achieved in 1HFY27.
Nomura on Lenskart
Recommendation: Buy, Target: ₹888
2Q27 above estimates with consolidated sales growth of 32.5 percent.
EBITDA growth up 65 percent YoY with margin up 270bp YoY to 13.8 percent aided by operating leverage in both India and International.
India saw strong SSSG and in house manufacturing with rent leverage driving margins.
International saw volume led growth with pre Ind AS OPM holding up in double digits.
Key initiatives taken to drive long term volume growth of 20 percent and OPM of 25 percent.
Jefferies on Emmvee Photovoltaic Power
Recommendation: Buy, Target: ₹430
Expects domestic solar module demand of 70 GW in FY27 supported by cheaper renewable power and government schemes.
Expanding cell capacity to 8.9 GW and module capacity to 16.3 GW with targets of 9 GW ingot wafer integration by FY30.
Projects 34 percent EBITDA CAGR through FY29 with disciplined order selection aiming to protect margins amid rising competition.
Jefferies on Torrent Power
Recommendation: Buy, Target: ₹1635 (Earlier Target: ₹1780)
Sept Qtr EBITDA was 5 percent above estimates.
Company has commissioned 310 MW of RE capacity in 1HFY27.
Management plans to add 1.0 to 1.2 GW in FY27E and 1.4 to 1.6 GW in FY28E vs estimate of 0.6 GW in FY27E and 1.4 GW in FY28E.
Transmission infra unavailability is leading to delays in commissioning though our estimates already factored delays.
Expect 13 percent EBITDA CAGR over FY26 to 30E led by 35 percent CAGR in RE EBITDA.
Citi on Aptus Value Housing Finance
Recommendation: Buy, Target: ₹285 (Earlier Target: ₹350)
Cuts FY27 to 29 AUM growth forecasts to 20 to 21 percent amid slower disbursements.
NBFC asset quality stress and higher funding costs pressure profitability.
Expects growth recovery by Q4FY27 as management retains above 20 percent ROE guidance.
Jefferies on Aptus Value Housing Finance
Recommendation: Buy, Target: ₹290 (Earlier Target: ₹350)
Expects 20 percent AUM growth in FY27 against management guidance of 22 percent.
Rising stress in NBFC subsidiary and higher borrowing costs could pressure margins.
Cuts FY27 to 28 EPS estimates by 1 to 3 percent with attractive valuations and 19 to 20 percent ROE supporting outlook.
Bernstein on BSE
Recommendation: Underperform, Target: ₹3180
Impact from CAS reflected in softer volume growth and market share trends in Q2 results.
Earnings came ahead of expectations driven by lower SGF contributions during quarter.
Q3 trends on market volumes and BSE market share gains remain strong.
Remain concerned about longevity of BSE high growth and consequent normalization of valuations.
Jefferies on BSE
Recommendation: Underperform, Target: ₹3100 (Earlier Target: ₹2840)
Options market share gains may become harder and expects 12 to 15 percent trading volume growth over FY28 to 29.
Cash equity market share remains below management double digit target.
Premium valuation versus NSE and management transition by June 2027 remain key concerns.
JPM on BSE
Recommendation: Overweight, Target: ₹3960
Reported revenues of Rs 14.33bn as sharp YoY step up in equity derivatives was impacted by multiple headwinds QoQ.
EBITDA grew 43 percent YoY to Rs 9.73bn at a 67.9 percent margin.
Net profit ex CDSL share was Rs 7.83bn aided by a strong Rs 1.18bn other income.
UBS on BSE
Recommendation: Outperform, Target: ₹4050
2Q FY27 saw a beat with cash equities outperforming and normal rate revenue growth accelerating.
Lower regulatory and operating expenses as a percentage of sales led to the margin beat.
Macquarie on MCX
Recommendation: Outperform, Target: ₹3830
MCX handily beat consensus expectations.
Are seeing continued acceleration as awareness and acceptance of this niche asset class grows.
Morgan Stanley on MCX
Recommendation: Overweight, Target: ₹4055 (Earlier Target: ₹3835)
Maintains its Overweight rating.
Revenue forecasts are raised by 4 to 6 percent for FY27 to FY29 driven by higher average daily traded revenue.
ADTR assumptions have been increased on the back of strong October trading activity.
Expense estimates are lowered reflecting sufficient core SGF.
EPS estimates are raised by 5 percent for FY27 and 6 percent for FY28.
Raises its bull case valuation to 6240 and bear case valuation to 1830.
Jefferies on Niva Bupa
Recommendation: Buy, Target: ₹100 (Earlier Target: ₹95)
Strong retail health growth and market share gains support business expansion.
Improving claims ratios channel diversification and new products strengthen profitability outlook.
Hikes FY28 to 29 earnings estimates by 5 to 12 percent with distribution regulations and solvency remaining monitorables.
Kotak on Samhi Hotels
Recommendation: Buy, Target: ₹235 (Earlier Target: ₹240)
Targets 14 to 15 percent same store RevPAR growth in 2HFY27 on strong domestic demand.
Plans 1669 additional rooms by FY31 and repositioning of 473 rooms into upper upscale segment.
Expects leverage below 3x by FY27 end with expansion largely funded internally.
Bernstein IC Abbott India
Recommendation: Market-Perform, Target: ₹24851
Strong established brands and commercial execution support steady growth in the domestic pharmaceutical market.
Limited new molecule pipeline constrains participation in India innovation led healthcare expansion.
Annual product launches have declined from 11 to five with brand extensions accounting for 80 percent of launches.
Bernstein IC Pfizer India
Recommendation: Outperform, Target: ₹4424
Global innovation pipeline and new specialty medicines expected to transform India growth trajectory.
Hospital focused therapies and preventive healthcare launches could support double digit revenue growth.
Improving operating leverage and faster access to globally developed medicines underpin earnings recovery.
Bernstein IC GSK Pharma India
Recommendation: Outperform, Target: ₹3430
Top pick among listed multinational pharma companies supported by a strong global innovation pipeline.
Adult vaccines specialty respiratory treatments and oncology launches expected to accelerate revenue growth.
Innovation led portfolio expansion could drive high double digit growth with oncology sales reaching Rs 3.8 bn by FY28.
Citi on Anthem Biosciences
Recommendation: Buy, Target: ₹1030 (Earlier Target: ₹870)
Targets double digit FY27 growth supported by commercial molecule ramp up.
Unit 4 commissioning targeted around March 2028 with Rs 12 bn planned capex.
Strong late stage pipeline pharma relationships and efficiency gains support margin outlook.
Jefferies on Anthem Biosciences
Recommendation: Buy, Target: ₹1050
Expects another 1 to 2 late stage molecules to transition to commercial manufacturing over the next 12 months.
Expanding relationships with global pharmaceutical companies strengthen its CRDMO growth pipeline.
Plans Rs 12 bn capex including fermentation expansion and new fill and finish capabilities for biologics.
Citi on Apollo Hosp
Recommendation: Buy, Target: ₹10770
Apollo delivered another strong quarter with consolidated revenue EBITDA and PAT growing 23 percent 29 percent and 32 percent YoY.
Hospitals revenue grew 23 percent driven by 14 percent inpatient volume growth and an 8 percent increase in ARPP.
EBITDA increased 20 percent despite Rs 348mn of losses and pre operative expenses at new units.
HealthCo revenue and EBITDA grew 23 percent and 75 percent with the digital business turning cash positive for the first time.
Strong hospital demand improving HealthCo profitability and the sizeable bed expansion pipeline reinforce confidence in the medium term outlook.
Potential impact of the oncology trade margin cap and regulatory notice on hospital margins will likely be a key focus area.
Citi on Aurobindo Pharma
Recommendation: Sell, Target: ₹1270
Strong 2QFY27 with EBITDA and PAT beating estimates by 8 percent and 9 percent.
Driven by robust Europe growth slightly better than expected US traction and currency tailwinds.
EBITDA margin remained flat QoQ at 21 percent.
US sales increased 20 percent QoQ to US 477mn largely driven by the Lannett consolidation.
While continued strength in Europe is encouraging driven by volume growth and market share gains remain cautious about sustainability given market saturation and pricing pressure.
Following Lannett consolidation expect US growth to stabilize and moderate from the current pace.
Kotak Inst Eqt on Biocon
Recommendation: Add, Target: ₹390
BIOS missed estimates in 2QFY27 due to deferred shipments in biosimilars and lower growth in generics.
BIOS continues to guide for a strong 2HFY27 largely led by scale up of the recent biosimilar launches.
Factoring in market share gains new launches and insulin capacity expansion bake in a 15 percent biosimilars sales CAGR over FY2026 to 29E.
Building in improved growth across segments debt reduction and operating leverage bake in a 17 percent EBITDA CAGR over FY2026 to 29E.
Following recent stock price correction risk reward has turned favorable even as 1HFY27 execution stayed soft.
Citi on Dr Lal Pathlabs
Recommendation: Buy, Target: ₹2380 (Earlier Target: ₹2160)
Management targets high teens FY27 revenue growth and sustainable mid teens organic growth.
Network expansion and specialized diagnostics support sustained volume growth.
Genomics oncology and preventive testing to improve revenue mix and profitability.
Goldman Sachs on Dr Lal Pathlabs
Recommendation: Sell, Target: ₹1750 (Earlier Target: ₹1700)
Management hikes FY27 revenue growth guidance to high teens and EBITDA margin guidance above 28 percent.
Preventive diagnostics better test mix and higher realisations support earnings growth.
Hikes FY27 to 29 estimates by up to 4 percent but expensive valuations limit attractiveness.
Kotak on Dr Lal Pathlabs
Recommendation: Add, Target: ₹2300
Hikes FY27 revenue growth guidance to high teens from mid teens.
Network expansion rural penetration and Suburban turnaround support volume growth.
Expects 17 percent adjusted EPS CAGR through FY29 aided by specialty diagnostics and genomics.
Nomura on Dr Lal Pathlabs
Recommendation: Buy, Target: ₹2280
Another strong quarter with estimates raised.
Beat driven by broad based volume growth and realization gains with margins at multi quarter high.
Model FY27F revenue growth of 18.7 percent and an EBITDA margin of 29.4 percent ahead of management guidance on back of strong 1HFY27 results.
Jefferies on Lupin
Recommendation: Underperform, Target: ₹1750 (Earlier Target: ₹2050)
US sales expected to decline as competition intensifies for Mirabegron and Tolvaptan.
Key respiratory injectable and biosimilar launches unlikely to contribute meaningfully before FY29.
Cuts FY27 to 28 EPS estimates by 5 percent and 1 percent and maintains FY27 EBITDA margin guidance of 24 to 25 percent.
Kotak on Lupin
Recommendation: Add, Target: ₹2335
India formulations expected to outperform industry growth by 1.2 to 1.3x.
US competition in Tolvaptan and Mirabegron to pressure near term profitability.
Respiratory generics biosimilars and Ellipta launches could drive stronger recovery from FY30.
Bernstein on Zydus Life
Recommendation: Buy, Target: ₹1457
Delivered Q2 revenue of Rs 79.1bn up 29 percent YoY and ahead of both est.
Believe revenue beat should not be overlooked.
Disappointment was on costs as EBITDA declined 150 bps more than adjusting for product mix.
Investments ahead of Saroglitazar launch were higher than estimated.
Excluding them estimate margin would have been 25.5 percent vs 24 percent reported.
Reiterate positive view on innovation story and FY28 inflection.
BofA on Zydus Lifesciences
Recommendation: Neutral, Target: ₹1200
gAdempas and gIbrance launches to support US growth in FY28.
Saroglitazar US launch targeted for March 2027 with meaningful traction expected after FY29.
US commercialisation spending and elevated R and D costs likely to pressure margins.
CLSA on Zydus Life
Recommendation: Outperform, Target: ₹1390
Reported a revenue growth of 29 percent YoY driven by healthy growth in all segments.
Margin was in line with its guidance despite continued investments in Saroglitazar launch activities.
It retained its FY27 guidance of single digit revenue growth in US driven by new launches and India to continue to outpace IPM growth.
It expects margin of 24 percent plus.
Zydus continues to invest in building its specialty portfolio and build a differentiated product pipeline.
Jefferies on Zydus Lifesciences
Recommendation: Buy, Target: ₹1430 (Earlier Target: ₹1370)
Saroglitazar awaits US FDA decision in November 2026 with commercial launch targeted for March 2027.
US specialty portfolio exclusive launches and differentiated Indian products expected to sustain growth.
Retains North America mid single digit growth guidance and consolidated EBITDA margin guidance above 24 percent.
Bernstein on US Midterm Elections
Retains Nifty target at 25000 and sees limited near term gains from Democratic victory.
Democratic Congress could curb US spending and lower Treasury yields.
Falling US yields historically supported FII inflows into Indian equities.
Every 10 bps decline in US yields historically attracted 950 mn in FII inflows.
Lower yields could strengthen the rupee and improve foreign investor sentiment.
AI investments and competing emerging markets may limit India foreign inflows.
US political deadlock could trigger risk aversion and capital outflows.
Trump tariffs on Russian oil buyers unlikely to change despite Democratic control.
Middle East tensions and elevated crude prices remain major risks for India.
H 1B restrictions may face resistance but tighter immigration scrutiny likely to continue.
Indian IT faces US spending risks with North America contributing over 55 percent of revenues.
Long term market performance hinges on crude prices external balances and earnings growth.
BofA on India Equity Strategy
Democratic sweep raises AI regulation risks and could slow US data centre expansion.
BofA sees AI capex concerns as overdone with slower investment reducing overcapacity risks.
US AI capex growing at 26 percent annualised real pace raising overinvestment concerns.
US growth inflation and Fed forecasts through 2028 remain unchanged.
State level zoning and permitting restrictions pose bigger risks to AI infrastructure.
Political gridlock could increase US trade and foreign policy uncertainty.
India could benefit from lower AI exposure and reduced global technology volatility.
Lower US yields and weaker dollar could support FII inflows and stabilise INR.
Korea Taiwan and Japan face greater risks from an AI investment slowdown.
India limited participation in the AI rally could cushion a global technology correction.
Indian AI capex exporters trade at expensive 47x forward P E and 1.8x PEG.
ABB India Siemens and Cummins India face risks from slower US data centre orders.
Maintain Underweight on AI linked Industrials and Capital Goods exporters.
Maintain Overweight on Cables given limited US data centre export exposure.
Prefer Financials Real Estate Autos and Regulated Utilities on potential RBI rate cuts.
JPMorgan on India Equity Strategy
Bullish on Indian equities amid falling crude prices lower US yields and renewed FII interest.
Foreign investors reversing their India underweight could unlock US 115 bn in inflows.
Lower crude could support the rupee ease inflation and improve corporate margins.
Expects small and mid caps to outperform large caps on earnings growth.
Overweight Financials Industrials Healthcare Materials and Consumer Discretionary and Underweight IT.
Private capex recovery gaining momentum across renewables semiconductors EVs and data centres.
India peak electricity demand projected to reach 459 GW by FY36 from 271 GW.
Power transmission investment opportunity estimated at Rs 8 trillion.
MSCI India trades at a 13.4 percent discount to its 10 year average valuation.
Banks real estate insurance and materials offer attractive relative valuations.
Aviation paints cement tyres and logistics among potential beneficiaries of cheaper crude.
El Nino and weak rainfall threaten rural demand and agricultural incomes.
