Urban Company, Cipla, JSW Steel, Coforge And More On Brokerages’ Radar

A clutch of global brokerages have rolled out fresh views on Urban Company, UltraTech Cement, Cipla, Radico Khaitan, JSW Steel, Coforge and more ahead of the upcoming session.

Jefferies on Radico Khaitan

• Retain buy with TP of Rs 3850 (+30%)
• In high spirits
• Broad based volume momentum and improvement in profitability
• Mgt commentary also quite positive
• With healthy margins, rising brand power and sustained momentum across markets outlook remains strong
• Raises EPS estimates by 2-5%

Jefferies on Shyam Metallics

• Maintains buy with TP Rs 1000
• Weak Dec quarter
• Blended EBITDA per tonne contracted 10% QoQ
• Announced next phase of expansion

Jefferies on Home First Finance

• December quarter results : Inline PAT
• Disbursement to improve and stress stabilizing
• Mgt has guided for AUM growth in FY27
• Spreads should be rangebound despite PLR cut
• Expect 24% EPS Cagr and 14-15% ROE over FY26-28E

Jefferies on Sona BLW

• Retain Buy with TP Rs 585
• Dec-Q Beat and Buying Opportunity
• After three tough quarters, its autobusiness is regaining momentum with stabilization in differentials and strong growth in traction motors
• Witnessing its strongest pipeline of new business enquiries boosted by insolvency at three European competitors
• We raise FY26-28E EPS by 4-8%

Nomura on Sona BLW

• Maintain by with TP of Rs 623
• Driving towards high growth phase
• Top pick in the auto ancillary space
• 3Q revenue / EBITDA ahead; significant potential in motor business opportunity

CLSA on Sona BLW

• Maintain outperform with TP of Rs 570
• Robust execution amidst adversities
• Continued to gain market share in domestic traction motors
• Ebitda margin improvement on back of a superior product mix and cost management

Jefferies on Kotak Mahindra Bank

• Maintains Buy with TP Rs 530
• Dec Qtr: Leads on Loan Growth, Lags on NII Growth
• Performance as on par with peers
• Asset quality is stabilizing, leading to lower credit costs
• On a potential IDBI deal, the CEO said the bank evaluates transactions but doesn’t want distractions, implying a lower deal probability

Jefferies on JSW Energy

• Maintains Buy, lowers TP to Rs. 660 vs Rs. 700 earlier
• Weak Qtr; Execution to Drive Upside
• Company is on track to meet our 3.1 GW FY26E addition estimate with 2.5 GW added in 9M
• Management is confident of adding 0.6-1.1 GW above our estimates
• We lower our FY26E-28E EBITDA by 2-4% and EPS cuts are higher given B/S leverage and higher tax rate
• We believe JSW Energy (JSWE) will deliver 41% EBITDA CAGR in FY25-28E on execution uptick

Jefferies on Paytm

• Maintains buy, cuts TP to Rs 1450 vs 1600 earlier
• Non-Renewal of PIDF Scheme Drags Profits;
• Core Business on Strong Footing
• Change in incentive structure drive Adj. EBITDA change of 8-14% and leads to cut in PT
• Paytm is seeing good traction

Jefferies on JSW Steel

• Reiterate BUY with TP of Rs 1400
• Modest Dec-Q; Upward Inflection Ahead
• We expect a strong sequential improvement ahead with rising Indian steel prices
• We expect EBITDA to rise 34% QoQ in Mar-Q and 45% YoY in FY27
• Our FY27-28E EPS is 11-21% above street
• Its 2.7x FY27E PB appears rich, but we believe is justified for healthy volume growth outlook and improving ROE

Goldman Sachs on Cipla

• Maintain our Sell rating lowers TP to Rs1,275 (from Rs1,385)
• We see multiple headwinds ahead: gRevlimid absence in 2026 impacting profitability
• Inferior product mix as well as higher R&D costs leading to FY27 showing a tepid EBITDA growth despite a favorable base
• We cut our FY26-28E EPS estimates by 2-15% to factor in the Q3 miss

HSBC on Cipla

• Downgrade to Hold; cut TP to Rs 1,285 (from Rs 1,610)
• Diminished gRevlimid sales in 3Q led to a big dip in profitability;
• FY26 EBITDA margin guidance cut to 21% (from 22.75-24%
• Execution remains key for Cipla to tackle challenges

Bofa on Cipla

• Reiterate Underperform reduces TP to Rs 1325 (vs. Rs 1420)
• Weak 3Q as US decline weighs on margins
• Pipeline execution remains key
• The lower revenue along with higher R&D cost led to the large EBITDA miss in the qtr
• We expect the earnings downgrade to continue post the qtr with the US pipeline monetization being key for recovery in margins from current levels

Macquarie on Cipla

• Maintains Outperform with TP of Rs 1490
• Management lowered its FY26E EBITDA margin guidance to 21%
• Mgt signaled a downgrade to FY27E US revenue guidance
• We believe the recent stock- price correction already reflects the near-term headwinds.

Macquarie on Coforge

• Retains outperformance with TP of Rs. 2230
• No QIP, taking $550 million loan instead
• Mgt confident of continued growth in core sectors
• Liked that mgt is taking the loan approach instead of QIP

CLSA on Coforge

• Maintains High conviction outperform raises to Rs 2,426 vs Rs 2,411
• Broader execution remains strong
• Encora acquisition on track around its closing timelines
• Coforge reported another quarter of strong deal wins
• Revenue growth and stable Ebit margins given the impact of wage hikes during the quarter
• Successful integration of Encora will likely be the next re-rating catalyst.

HSBC on Godrej Consumer

• Maintains buy raises TP to Rs 1,470 
• Domestic volume growth was strong
• EBITDA beat driven by India performance
• Home Insecticide underperformed growth of emerging categories
• Long-term guidance of high-single-digit volume growth in India
• Home insecticide recovery and raw material price stability key to performance

Macquarie on Godrej Consumer

• Maintains buy with TP of Rs 1400
• In-line 3Q; signs of Indonesia demand stabilisation
• In-line 3Q EBITDA; Indonesia strength offset by slight miss in Africa
• Co. reiterated FY26 guidance of high-single- digit sales growth and double-digit India Ebitda growth 

Macquarie on Indusind bank

• Maintains underperform with TP of Rs 635
• Kitchen sinking continues
• Higher credit cost drive PAT miss
• Expect credit cost to remain elevated in near term
• ROA to remain subpar in near term

Macquarie on Shriram Finance

• Maintains outperform with TP Rs 1220
• Positive surprise on margins
• Marginal PAT beat driven by lower credit costs
• All eyes on margin trajectory
• Credit cost guidance retained

CLSA on Shriram Finance

• Maintains outperform increases TP from Rs 1,030 to Rs 1,150
• Positive surprise on NIM; Asset quality good
• Adjusted for the one-time labour code impact
• We expected margins to improve 10bp QoQ, they improved nearly 40bp QoQ, driven by a decline in the cost of funds
• AUM growth of 15% was slightly below the levels witnessed in the past few quarters, but in line with our estimate
• Asset quality held up well, with a 30bp sequential improvement in the net slippage ratio to 1.3%.
• Key thing to watch is how Shriram’s incremental cost of funds moves after the MUFG investment comes in

Macquarie on Mphasis

• Maintains underperform with TP of Rs 2140
• Performance lag vs mid-cap peers widening
• Liked insurance growth vertical
• Despite higher deal wins revenue growth slower
• TCV down 18.9% QoQ

HSBC on UPL

• Maintain Buy TP of Rs 925
• UPL’s stock price correction post Advanta filing surprised us; we explore investor concerns
• Any disconnect over potential valuations emerged as a key concern; we think this is now captured in the stock price
• Business fundamentals remain supportive

Morgan Stanley on ICICI Prudential AMC

• Initiate Overweight with TP of Rs 3500
• In pole position
• Think IPRU AMC is well placed to deliver strong, industry leading profit growth in the medium term
• Positives – leadership position in active equity mutual funds and alternates, industry-leading operating profitability, and strong brand and distribution
• Should sustain premium valuations
• See FY26-28e CAGR of 26% for total AAAUM and 25% for MF AAAUM
• Expect net operating revenue CAGR of 22% over FY26-28 with MF revenue CAGR at 21%
• Forecast operating profit before tax and net profit CAGR of 24% and 22%
• See dividend payout maintained at 81% over FY26-28

Jefferies Greed and Fear Portfolio Changes

• Investment in MakeMyTrip in the Asia ex-Japan long-only portfolio will be removed and replaced by an investment in JSW Energy with a 4% weighting
• Investments in Rio Tinto, GMR Airports, and Samsung Electronics will be increased by one percentage point each, while the investment in Samsung Life will be increased by two percentage points
• These will be paid for by removing the investment in Zomato
• Investment in MakeMyTrip in the India long-only portfolio will also be removed and replaced by an investment in Chola Finance with a 4% weighting
• The investment in InterGlobe Aviation will be removed and replaced by an investment in Max Healthcare Institute with a 4% weighting

Morgan Stanley on UltraTech

• Maintain Overweight with TP of Rs 14100
• Strong delivery led by volumes
• Realizations were a tad softer, led by non-trade segments
• Volumes market share gains, cost-saving levers, and economies of scale continue to play out
• UltraTech is preferred cement play on strong earnings compounding story

Jefferies on UltraTech

• Maintain Buy; Hike TP to Rs 14750 from Rs 14700
• Solid Beat; Beat led by both vol & unit EBITDA
• Consol vols grew 15% YoY LFL amid improving industry demand in the quarter to 9-10% YoY vs 4-5% in H1FY26
• Unit EBITDA rose QoQ on strong operating leverage, despite weak price
• Mgmt said January price is improving amid demand strength
• Unit EBITDA is expected to further improve QoQ in March quarter
• Mgmt retained capacity targets of 235 MTPA by FY28

Kotak Securities on BPCL

• Maintain Sell with TP of Rs 300
• Q3 beat: GRM better likely on higher Russian crude benefit
• Believe that there is a strong case for retail fuel price cuts and/or higher taxation
• Apart from the lack of pricing freedom, BPCL’s upcoming capex cycle is also an overhang

Morgan Stanley on BPCL

• Maintain Overweight with TP of Rs 468
• Strong Beat; 25%+ ROE in Play
• Indian refiners are outperforming expectations and should reduce investor concerns
• Expect a 10-15% upgrade to FY27 street estimates
• BPCL integrated margins were US$13.6/bbl and continue to remain above mid-cycle

Kotak Securities on Axis Bank

• Maintain Buy; Hike TP to Rs 1500 from Rs 1400
• A firm recovery underway
• Stable annual trends but strengthening sequentially
• Steadily recovering from the stress that emerged from retail loans
• Performance has started to converge with its frontline peers, which drives positive view

Morgan Stanley on Marico

• Maintain Equal-weight with TP of Rs 741
• Acquires Premium Gourmet Snacking Brand
• Zea Maize stake acquisition is in line with Marico’s diversification strategy
• Will help expand its TAM in the value-added foods categories
• Marico plans to leverage its existing scale in foods to broaden the brand’s presence across channels
• Target to increase its revenue share of growth segments from 22% in FY25 to 25%+ by FY27
• Acquisition will increase its growth segment annual revenue run-rate by ~6%

Morgan Stanley on Axis Bank

• Maintain Overweight; Hike TP to Rs 1650 from Rs 1450
• Re-rating setup getting stronger
• Balance sheet growth, asset quality and cost to assets are all moving in the right direction
• Expect momentum to sustain NIM is impacted by the rate cycle
• Bank expects return to 3.7-3.8% as guided earlier – retail disbursements pickup will help

Jefferies on Axis Bank

• Maintain Buy; Hike TP to Rs 1550 from Rs 1530
• Loan growth pick-up led by corporate; retail disbursements to lift retail growth
• Deposit growth picks-up; Asset quality continues to improve
• See valuations attractive; Axis stays among top-picks

HSBC on Kotak Mahindra Bank

• Maintain Buy; Cut TP to Rs 490 from Rs 500
• Lacking surprises, outlook unchanged
• Q3 results lack the surprises that peers delivered, leading to a largely unchanged outlook
• Cut FY26-28 EPS by 4-9% to reflect softer fees, lower trading profits, higher operating costs but also build in lower credit costs

Investec on PVR

• Maintain Hold with TP of Rs 1238
• Monetisation of 4700BC– Increased focus on the core
• With net debt at Rs 618 cr, stake sale proceeds are equivalent to 37% of net debt
• This should materially improve liquidity and financial flexibility
• Transaction is balance-sheet positive and supportive amid a challenging demand and content environment into FY26

Investec on Marico

• Maintain Buy with TP of Rs 833
• Augmenting Foods play with 4700BC
• View this as a strategically coherent bolt-on that diversifies Marico’s foods portfolio into premium snacking
• It can benefit disproportionately from Marico’s scaled go-to-market engine
• Core upside is distribution leverage

Goldman Sachs on Urban Company

• Maintain Neutral; Cut TP to Rs 139 from Rs 140
• Q3 review: Another strong quarter
• Elevated, broad-based revenue growth, and improving profitability
• Company sounded constructive on long-term growth outlook
• See sustained traction in core services, and early momentum in InstaHelp
• Losses could remain elevated in the near-term
• Management’s new guidance of consolidated adjusted EBITDA reaching breakeven by Q3FY28 is slightly behind expectation

Morgan Stanley on Urban Company

• Maintain Underweight with TP of Rs 120
• Steady core but elevated investments in Insta
• Core India consumer services ex Insta and international profitability tracking ahead of expectations
• Outlook of consolidated adjusted EBITDA breakeven by Q3FY28 appears conservative
• Aspiration of consolidated adjusted EBITDA of Rs 1000 cr by FY31 should be reassuring
• Growth/profitability surprises on the upside in International
• Investments in Insta accelerating dragging consol profitability but opening up large TAM

Morgan Stanley on Autos

• India and the EU are set to announce a trade deal, as per reports
• India will lower import duty on PVs from 70-110% to 40%
• See limited near-term impact on Indian OEMs
• But over time the door opens for EU OEMs, particularly premium players, and competitive intensity could rise
• BEVs will not get any reduction in duty for the first five years, but duty cuts will be similar after five years
• EU OEMs, especially premium OEMs, could benefit as luxury market expands

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