Kotak Inst Eqt on NSE
Recommendation: Buy, Target: ₹2200
NSEs investment case is underpinned by its market leadership across liquidity pools revenue diversification and scalable in house technology.
Expect mid teens earnings growth along with improving EBITDA margins low capital intensity and strong cash generation.
Key risks include further derivatives regulation trading volume sensitivity market share loss and technology or cybersecurity failures.
JPM on NSE
Recommendation: Overweight, Target: ₹2130
NSE reported 2Q27 consolidated revenue from operations of Rs 40.7 bn up 10.6 percent YoY and down 10.8 percent QoQ which was 4 percent ahead of JPMe.
Strong expense control resulted in operating EBITDA coming in at Rs 30.8bn up 10.7 percent YoY and down 13.2 percent QoQ and 5.5 percent above JPMe.
EBITDA margins were stable at 75.7 percent despite lower revenues QoQ.
Lower other income dragged core APAT to Rs 25.6bn up 10.1 percent YoY and down 16.2 percent QoQ and 3.5 percent above JPMe.
NSE trades at a FY28E P E of 36.8x.
Macquarie on NSE
Recommendation: Outperform, Target: ₹1975
In line quarter with equity cash ahead and options below estimates.
New products nascent but regulatory backdrop expected to improve.
Impact of CAS ADTO declined QoQ across equity cash futures option notional and options premium due to Closing Auction Session CAS rules.
Continue to expect volume recovery from 3QFY27E onwards as SEBI revised CAS framework last month.
Market share declined 130bp QoQ in equity cash ADTO and 50bp in options premium ADTO.
Jefferies on NSE
Recommendation: Buy, Target: ₹2125 (Earlier Target: ₹2085)
Strong cash equities commodity options and non transaction revenues support diversification.
Potential securities lending and borrowing reforms offer further growth opportunities and mutual fund order market share improves.
Higher technology spending and transaction tax pressures remain concerns while Jefferies believes valuations understate NSEs competitive advantages.
Emkay Global on NSE
Recommendation: Buy, Target: ₹2050
CAS amendments effective December 2026 expected to boost cash market participation and trading volumes.
Easing EPI margins and potential securities lending reforms could further support market expansion.
Planned corporate bond index futures launch awaits RBI approval and technology costs expected to grow in mid teens.
B&K on NSE
Recommendation: Buy, Target: ₹2100
Upcoming CAS regulatory changes and recovering options volumes expected to support trading activity.
Strong IPO pipeline improving colocation demand and growing mutual fund platform offer additional catalysts.
Options market share stabilises around 70 to 72 percent and disciplined costs support profitability outlook.
Kotak Inst Eqt on BSE
Recommendation: Buy, Target: ₹4000
BSE has established a credible position in index options with liquidity spreading beyond expiry day.
At the same time adjacent businesses such as cash MF and colocation continue to deliver healthy growth.
Expect these drivers to support 17 percent revenue CAGR and 20 percent adjusted EBITDA CAGR over FY2027 to 30E even without further gains in derivatives market share.
Jefferies on MCX
Recommendation: Buy, Target: ₹4000
Options trading remains the key growth driver accounting for 76 percent of transaction revenues.
Jefferies forecasts 25 percent earnings CAGR over three years supported by strong revenue growth and margin expansion.
MCX dominant commodity exchange position supports growth outlook while competition and regulatory changes remain key risks.
UBS on SBI
Recommendation: Neutral, Target: ₹1100
Reported a mixed quarter with strong NII growth of 5 percent QoQ and NIM of 2.94 percent both ahead of est.
Yet loan growth of 18.2 percent YoY and 3 percent miss on PPOP due to higher opex were key negatives.
There was also a one time gain from SBI MF listing of Rs72.9bn but was partly offset by treasury losses of Rs12.8bn.
Ex of listing gain RoA for H1 was under 1 percent vs reported RoA of 1.14 percent.
Retail loan growth of 14.5 percent YoY continued to lag overall loan growth and segments other than gold remained weak.
Bank continues to maintain full year guidance of 14 to 15 percent loan growth 1 percent RoA and over 3 percent domestic NIM.
Macquarie on SBI
Recommendation: Outperform, Target: ₹1220
2Q Exceptional gains aid earnings while loan growth remains healthy.
Margins resilient.
Asset quality remains healthy and ECL impact manageable.
At 1.3x FY28E P BV valuations look comfortable against expected ROA above 1 percent.
CLSA on SBI
Recommendation: Outperform, Target: ₹1325
Delivered a 2 percent NII beat versus our estimates driven by an 11bp QoQ domestic NIM expansion.
Lower fee income and treasury losses led to a 3 percent PBT miss.
Domestic loans growth at 17 percent YoY was broad based while international loans declined 3 percent QoQ adjusted for FCNR deposit backed loans.
Deposit growth was healthy at 12 percent YoY with 8 percent YoY CASA growth only soft spot.
In line with sector asset quality continued to improve with net slippages down 10bp YoY even off a low base.
SBI should be largely unaffected by the new insurance distribution guidelines with distribution income less than 3 percent of PBT.
Bernstein on SBI
Recommendation: Market Perform, Target: ₹1300
Headline earnings growth masked a softer underlying quarter with lower credit costs and stake sale gains supporting profitability.
Healthy loan growth and an 8 bps QoQ NIM recovery failed to lift underlying PPoP which declined 1 percent YoY amid weaker other income and rising expenses.
Excluding one offs EPS grew a more modest 5 percent YoY while RoA declined 21 bps QoQ to 0.90 percent compared with reported EPS growth of 13 percent and RoA of 1.19 percent.
HSBC on SBI
Recommendation: Buy, Target: ₹1220
2QFY27 underscored by strong NII and NIMs while loan growth was lower and opex higher than estimates.
Upgrade EPS by 4 to 8 percent for FY27 to 29e on stronger than estimated NIM momentum and operating leverage playing out.
TP cut as build in some discount for slower loan growth and lower multiples for some subsidiaries.
CITI on SBI
Recommendation: Buy, Target: ₹1300
SBI Rs230bn PAT up 14 percent YoY was lifted by a Rs72.9bn stake sale gain partly offset by a Rs12.8bn treasury loss and 15 percent YoY 38 percent QoQ opex growth.
NII rose 14 percent YoY 4.6 percent QoQ beating estimates as NIMs expanded 8bps vs our forecast of 2bps decline.
With 49 percent of loans linked external benchmarks incl 32 percent repo linked NIMs should skew favorably in a rising rate cycle though management conservatively reiterated 3 percent plus NIM guidance.
Loan growth was modest at 3.3 percent QoQ 18.2 percent YoY lagging the system as corporate lending stayed flat.
Management retained 14 to 15 percent FY27 advances guidance though we expect 16 percent plus.
Slippages stayed below 0.5 percent and credit costs under 0.35 percent.
ECL transition impact is pegged at Rs195bn 3.3 percent of net worth and 0.4 percent of advances.
Nomura on SBI
Recommendation: Neutral, Target: ₹1100
2QFY27 NII beat but loan growth slows.
In line core performance weak treasury and higher opex offset by one time gain on SBI FUNDS stake sale.
NIM expansion led to NII beat and higher opex lower other income resulted in PPOP miss.
Growth guidance maintained at 14 to 15 percent in FY27P and asset quality benign.
Kotak Inst Eqt on SBI
Recommendation: Buy, Target: ₹1250
Reported 15 percent yoy earnings growth led by a 7 percent yoy operating profit growth stake sale in mutual fund.
RoE at 15 percent was driven by healthy NII growth NIM recovering 10bps qoq and a low credit cost.
Asset quality remains a minor concern.
Like franchise given its inexpensive valuation for a superior return profile.
Jefferies on Aegis Vopak
Recommendation: Hold, Target: ₹265 (Earlier Target: ₹280)
Retains 5 bn capex plan through FY31 and JNPA Kandla and Kochi expansions remain on track.
Kandla Gorakhpur pipeline completion could improve LPG terminal utilisation as Jefferies expects 36 percent EBITDA CAGR over FY26 to 30.
Ambitious capacity and market share assumptions alongside demanding valuations limit near term conviction.
Kotak on Amara Raja Energy and Mobility
Recommendation: Reduce, Target: ₹700
Lead acid battery business expected to remain steady supported by automotive and aftermarket demand.
Gotion partnership termination creates technology capex and execution risks for planned LFP cell manufacturing.
Raw material inflation pressures near term margins and lithium ion expansion remains capital intensive and uncertain.
Jefferies on Bajaj Finserv
Recommendation: Buy, Target: ₹2300 (Earlier Target: ₹2550)
Bajaj Finance and life insurance remain key growth drivers while general insurance faces underwriting pressure.
Life insurance product mix shifts towards term and annuities supporting margins and mutual fund business continues scaling.
Regulatory clarity on insurance commissions and expenses remains critical and cuts core profit estimates by 1 to 2 percent.
CITI on Bata India
Recommendation: Sell, Target: ₹550 (Earlier Target: ₹675)
Revenue grew 7.5 percent YoY on a low base partly affected by shift in festive period.
Profitability was weak as well with EBITDA declining 1 percent YoY and adj PAT declining 12 percent YoY.
Pre IND AS 116 EBITDA margin was 6 percent in 1HFY27 vs 7.5 percent in 1HFY26.
Adj for one off expenses EBITDA grew by 4 percent YoY.
Other highlights growth was impacted due to shift in festive season partly offset by higher ASP.
Bata India revenue growth and profitability have been relatively weak over the past few years and we see scope for further de rating.
Cut FY27 to 28E EPS est by 17 percent and target P E multiple to 25x Sep 28E factoring weak growth and profitability.
Nomura on BEL
Recommendation: Buy, Target: ₹530
Upbeat on large order wins in multiple verticals.
Robust operational performance in 1HFY27.
On course to meet FY27E order intake target of at least INR550bn.
Transitioning into a phase of substantial contract acquisitions.
Trading at 33x 29x FY28F FY29F EPS.
CITI on Bharat Electronics
Recommendation: Buy, Target: ₹515
Retains FY27 revenue growth guidance of 15 percent plus and order inflow target above Rs 25000 crore excluding QRSAM.
Next Generation Corvette electronics opportunity of nearly Rs 20000 crore moves closer to order conversion.
QRSAM approval remains the key catalyst and Shatrughat Samaghat and HAMMER orders strengthen the near term pipeline.
Jefferies on Bharat Electronics
Recommendation: Buy, Target: ₹490
Retains FY27 revenue growth guidance of 15 percent plus and order inflow guidance of Rs 55000 crore.
Expects Rs 30000 crore QRSAM order by March 2027 and naval electronics and electronic warfare strengthen pipeline.
Missiles and drones offer major long term opportunities and cuts FY27 EPS estimate by 3 percent.
Kotak on Bharat Electronics
Recommendation: Add, Target: ₹420
Retains FY27 revenue growth guidance of 15 percent plus EBITDA margin above 28 percent and core order target of Rs 25000 crore.
QRSAM and AMCA order awards remain key catalysts and timely conversion of defence pipeline critical.
Cuts FY27 to 29 estimates by 1 to 2 percent and strong execution supports outlook despite order timing uncertainty.
UBS on Bharat Electronics
Recommendation: Buy, Target: ₹500
Retains FY27 revenue growth guidance of 15 percent plus with potential upside from strong execution.
QRSAM orders of nearly Rs 30000 crore and Next Generation Corvette orders exceeding Rs 20000 crore are key catalysts.
Expansion into missiles drones counter drone systems and airborne electronics broadens long term opportunities.
Kotak on Carborundum Universal
Recommendation: Sell, Target: ₹1090 (Earlier Target: ₹1080)
Ceramics business remains resilient while abrasives face Chinese competition and higher input costs.
Semiconductor business expected to contribute a mid to high single digit share of revenue and profit by FY31.
Foskor closure and overseas business normalisation offer recovery potential and expensive valuations remain a concern.
HSBC on CONCOR
Recommendation: Hold, Target: ₹483
Q2 review steady revenue performance weighed down by weak domestic profitability.
Volume recovery should be gradual amid geopolitical uncertainties and competitive intensity.
Jefferies on Dhoot Transmission
Recommendation: Buy, Target: ₹1750 (Earlier Target: ₹1730)
Strong two wheeler demand and rising EV adoption underpin 29 percent EPS CAGR over FY26 to 29.
Expanding into battery packs sensors and controllers and hikes FY27 capex guidance to Rs 750 crore.
Copper cost pass through improving Multilink profitability and normalising ESOP costs expected to drive margin recovery.
Kotak on Dhoot Transmission
Recommendation: Sell, Target: ₹1420
Electric two wheeler adoption and higher component content support 26 percent revenue CAGR over FY26 to 29.
Battery packs and EV components offer diversification and Multilink acquisition expands product capabilities.
Expects margins around 15 to 15.5 percent over FY28 to 29 and expensive valuations and manufacturing costs warrant caution.
Jefferies on Emcure Pharma
Recommendation: Buy, Target: ₹2500 (Earlier Target: ₹2320)
Hikes FY27 revenue growth guidance to over 20 percent from mid teens and targets 100 bps margin improvement.
Amphotericin B expansion across 20 European countries and upcoming Treprostinil launch support international growth.
Domestic recovery and new product approvals strengthen outlook and hikes FY27 to 29 EPS estimates by 3 to 4 percent.
Kotak on Emcure Pharmaceuticals
Recommendation: Buy, Target: ₹2450
Hikes FY27 sales growth guidance to over 20 percent from mid teens and targets upper end of 75 to 100 bps margin expansion guidance.
Zuventus recovery new launches and deeper molecule penetration expected to accelerate domestic growth.
International business remains a key growth engine and Kotak expects 19 percent EPS CAGR over FY26 to 29.
CITI on Endurance Technologies
Recommendation: Buy, Target: ₹3550
Strong domestic two wheeler demand and expanding order wins support India growth outlook.
Standalone order pipeline strengthens across FY27 to 29 and capacity expansion in India and Europe supports execution.
European business performance and commodity inflation remain key monitorables and higher capital costs pressure profitability.
Kotak on Eureka Forbes
Recommendation: Buy, Target: ₹600
Retains FY27 guidance for accelerating revenue growth while maintaining EBITDA margins.
Water purifier market share gains premiumisation and new launches in air purifiers and water softeners support growth.
Expanding retail presence and marketing investments strengthen distribution and commodity inflation remains a margin risk.
Nomura on IGL
Recommendation: Neutral, Target: ₹140
Near term margin risk on high gas costs.
Volume growth recovered to 2yr highs and spot gas sourcing hurts margins.
2Q big miss on margins as higher spot LNG purchases raises gas costs.
3Q profitability may remain under pressure as gas costs have increased further.
Stock trades at 15.4x FY28F EPS vs its historical one year forward average of 18.2x.
Kotak on KEC International
Recommendation: Add, Target: ₹360 (Earlier Target: ₹400)
Cuts FY27 revenue growth guidance to 8 to 10 percent from 12 to 15 percent amid Middle East disruptions and execution delays.
Record order book of nearly Rs 40000 crore supports visibility and India transmission and distribution and cables remain growth drivers.
Cuts FY27 to 29 estimates by 3 to 5 percent and right of way challenges high debt and weak civil project margins remain concerns.
CLSA on Max Health
Recommendation: Outperform, Target: ₹1160
Reported network revenue growth of 18 percent YoY mainly driven by an increase in operational beds while its margin remained flattish YoY despite high bed additions.
Max plan to increase bed capacity by c 65 percent over FY27 to 30 is progressing as planned.
It expects its greenfield and brownfield facilities to breakeven within 1 year or 1 quarter of operations.
Expect margins to improve as operating leverage increases from higher occupancies at its newer facilities.
Kotak on Max Healthcare
Recommendation: Add, Target: ₹935
Plans to nearly double bed capacity by FY30 and brownfield expansion expected to support faster utilisation.
Capacity commissioning delays and intensifying competition across Delhi NCR remain key concerns.
Supreme Court proceedings on hospital trade margins pose regulatory risks and valuations limit upside despite growth visibility.
Nomura on MGL
Recommendation: Buy, Target: ₹1465
2QFY27 results miss estimates on higher gas costs and volume in line.
Unit EBITDA of INR6.8 scm was down 14 percent q q and 20 percent below estimate.
Adjusted net income at INR1.5bn declined 20 percent q q and 29 percent below estimate.
Lower other income and higher interest cost added to EBITDA miss.
Stock currently trades at an FY28F P E of 11.4x compared with average one year forward multiple of 12x.
Stock offers a dividend yield of 2.9 percent.
HSBC on Nalco
Recommendation: Buy, Target: ₹465 (Earlier Target: ₹480)
Alumina prices rebound around 30 percent potentially offsetting subdued global aluminium prices.
New 1 MT alumina refinery expected to commence production in January 2027 and smelter expansion targeted for December 2030.
Low cost operations and net cash position support outlook and cuts FY27 to 29 EBITDA estimates by 1 to 5 percent.
GS on Neuland Labs
Recommendation: Buy, Target: ₹25275 (Earlier Target: ₹24675)
Q2 sales and EBITDA declining 13 percent and 37 percent respectively ahead of GSe on account of weakness in commercial CMS projects and decline in the Spec API segment.
EBITDA margin came in at 21.7 percent despite improvement in gross margin on account of operating deleverage.
Management reiterated that quarterly performance can remain uneven and should be assessed over a longer period given the inherent lumpiness in CMS ordering patterns.
Expect NEUL growth trajectory to remain underpinned by continued scale up in commercial CMS as management remains confident of the scaleup in FY27 and 28E.
Improved development pipeline visibility with management highlighting at least two new late phase projects including peptide opportunities which could support future commercial conversion.
Expanding capability led investments across peptides complex molecules and capacity expansion including Gland Pharma collaboration for sterile APIs.
Management reiterated its medium term aspiration of 20 percent growth while retaining caution on quarterly volatility.
Bernstein on Paytm
Recommendation: Outperform, Target: ₹2200
Potential UPI MDR implementation could add nearly Rs 1000 crore to FY28 profit before tax.
Merchant lending growth and operating leverage expected to drive non linear earnings expansion through FY30.
BNPL scale up and consumer credit cross selling offer further upside and regulatory timing remains a key uncertainty.
Kotak on Petronet LNG
Recommendation: Sell, Target: ₹265
Dahej terminal market share weakens to an estimated 54 to 56 percent reflecting intensifying competition.
India LNG demand outlook improves following West Asia disruptions but Dahej competitive positioning remains challenged.
Reliance on trading and efficiency gains raises earnings sustainability concerns and muted volume growth limits conviction.
Nomura on Petronet
Recommendation: Buy, Target: ₹355
Volumes remain strong despite high gas costs.
Qatar lost volume offset by alternate sources and petchem plant remains on track for FY29F.
Sharply cut FY27 to 29F revenue estimates due to higher share of tolling volumes where gas cost is not recognised in topline.
Introduce a one time 10 percent cut in Dahej regas tariff from 2029 onwards.
CITI on Power Grid
Recommendation: Buy, Target: ₹335 (Earlier Target: ₹360)
Hikes FY27 capex guidance to Rs 37000 to 40000 crore and cuts capitalisation guidance to Rs 25000 to 30000 crore.
Transmission projects worth Rs 2.2 lakh crore under execution and Rs 67200 crore bidding pipeline support visibility.
Right of way delays remain a near term concern and project commissioning and order conversion are key catalysts.
Jefferies on Power Grid
Recommendation: Buy, Target: ₹300 (Earlier Target: ₹315)
Hikes FY27 capex guidance to Rs 37000 to 40000 crore and cuts capitalisation guidance to Rs 25000 to 30000 crore.
Projects worth Rs 2.2 lakh crore under execution support visibility and transmission bidding pipeline remains healthy.
Right of way delays pose execution risks and sustained capex and 16 to 17 percent ROE support medium term outlook.
Kotak on S H Kelkar And Company
Recommendation: Buy, Target: ₹290 (Earlier Target: ₹270)
Retains 12 to 13 percent annual revenue growth guidance and targets EBITDA margins above 15 percent within 12 to 24 months.
New India factories expected to commence operations in Q4FY27 and Q4FY28 and global fragrance expansion supports growth.
Expects EBITDA to double over FY26 to 29 and net debt likely to decline by March 2027 as inventories normalise.
HSBC on Sedemac
Recommendation: Buy, Target: ₹4000
2Q revenue in line but EBITDA margins miss estimates due to higher semiconductor and PCB costs and margins in 2H to hold vs 1H.
Increasing ISG and EFI ECU penetration and biz win for ISG ECU and magneto kit to drive up ASPs and help revenue growth.
TP implies FY28 P E of 64x which believe is justified considering the strong growth trajectory.
GS on Solar Ind
Recommendation: Buy, Target: ₹26550
Q2 ahead of estimates across all key parameters.
Growth was led by the Defense and International businesses with revenues increasing 98 percent and 57 percent YoY respectively.
Commercial Explosives revenue increased 61 percent YoY but declined 29 percent QoQ with sequential moderation in India business largely reflecting seasonality.
This came against a volatile Ammonium Nitrate pricing environment with the AN index up 14.6 percent YoY but down 25 percent QoQ.
Despite sharp sequential correction in AN prices SOIL managed commodity cycle well with limited impact on profitability.
CITI on Tata Motors PV
Recommendation: Sell, Target: ₹270 (Earlier Target: ₹305)
Healthy domestic passenger vehicle demand and market share gains offset by escalating cost pressures.
Cuts India PV margin estimates and valuation multiple to 13x EV EBITDA from 17x.
JLR new model launches expected to increase marketing expenses and margin uncertainty keeps Citi cautious.
Jefferies on TBO Tek
Recommendation: Buy, Target: ₹1905
Europe and Asia Pacific remain key growth engines and Middle East recovery supports geographic diversification.
Classic Vacations integration and operating leverage support long term profitability and expects 41 percent PAT CAGR over FY26 to 29.
Geopolitical disruptions could pressure near term travel demand although normalisation offers recovery potential.
UBS on TVS Motor
Recommendation: Buy, Target: ₹5630
Norton unveils new 450cc roadster with global launch including India planned for 2027.
Expected pricing around Rs 5 lakh with India manufacturing aimed at expanding Norton addressable market.
New model complements premium Manx and Atlas motorcycles and UBS believes Norton growth potential remains underappreciated.
