Research notes

The report estimates +1.7% QoQ CC growth for Tata Elxsi and cuts its target price from INR 4,100 to INR 3,900 on a lower 25x multiple.

The note expects LTTS to grow +2.1% QoQ CC and aim for mid-single-digit FY27E growth, with target price raised to INR 3,570.

The report expects Mphasis to grow +3.5% QoQ CC on continued BFSI ramp-up and names it a mid-tier preference, raising the target price to INR 2,840.

The note says Persistent will lead mid-tier growth at +6.3% QoQ CC including the Concise Systems acquisition, and is a stated mid-tier preference, with target price raised to INR 6,070.

The report lists LTIMindtree as a mid-tier preference and expects +5.3% QoQ CC growth aided by about one month of Randstad IT consolidation (organic ~+0.6%), with target price raised from INR 5,000 to INR 5,270.

The note says Tech Mahindra will post one of the best tier-1 prints at +0.9% QoQ CC, tier-1-leading +5.3% YoY CC growth and ~190bps YoY margin expansion, with target price raised to INR 1,660.

The report expects Wipro's revenue to decline -0.4% QoQ CC and guidance of -1% to 0% QoQ CC for Q3FY27E factoring furloughs, with target price cut from INR 195 to INR 185.

The note expects HCL Tech to lead tier-1 at +2.0% QoQ CC with ~50bps margin expansion, while trimming the upper end of its services guidance to 1.5-3%, and raises the target price to INR 1,370.

The report says Infosys is its preferred tier-1 pick but expects +1.3% QoQ CC growth, a 50bps FY27E guidance cut to 2-3% CC, TCV of about USD 2-3bn, and a target price trimmed from INR 1,300 to INR 1,250.

The note says TCS will trail expectations in a seasonally strong quarter at +0.5% QoQ CC, with TCV of USD 8-10bn and a maintained 26-28% margin band, and its target price is cut from INR 2,580 to INR 2,470 on a lower 15x multiple.

The note says it estimates a ~7% EBITDA impact for Aster DM and maintains BUY.

The note says it estimates a ~6% EBITDA impact for Max Healthcare and maintains BUY.

The note says it estimates a ~5% EBITDA impact for Apollo Hospital under the assumed margin-cap scenario and maintains a BUY rating.

The note says MBL remains among the few footwear retailers chugging along across KPIs and that, after a ~34% one-year stock correction, valuations are more palatable (~35x Sep-28 P/E), with HSIE maintaining ADD at a DCF-based TP of INR1,030/sh (implying ~43x Sep-28 EPS) while cutting FY27/28 EPS estimates by 5-7%; it pencils in ~13% YoY Q2FY27 revenue growth with a 40bps margin hit from minimum wage hikes, ~18% revenue CAGR over FY27-29, ~35-40 Walkway store additions over FY27-29, and contributions from Clarks and Footlocker from FY28 and Fila from FY29.

The report says Sagar Cements' subsidiary completed its 0.7mn MT brownfield expansion at end-Sep'26 and that the announced merger at a 29-for-98 share swap would issue 6.8mn new SGC shares (about 5% dilution), with completion expected by early FY28 and promoter holding moving to 46% from 48%.

The note maintains ADD with an unchanged TP of INR 190 (70% weight to 6.5x Sep'28E EBITDA, 30% to replacement value at USD 65/MT), stating consolidated clinker/cement capacity has risen to 7/12mn MT after the 0.7mn MT Andhra Cements brownfield commissioning, estimating FY26-29E volume/EBITDA CAGR of 10%/16%, margin compression to ~INR 430/MT in FY27E recovering to INR 552/MT by FY29E, and net debt/EBITDA falling below 3x by FY29E from 5.5x in FY26, while cutting FY27/28E EBITDA by 7%/4.4%.

The note says offline execution, where the channel accounts for ~35% of business (50%+ for Mamaearth), is central to the next phase of growth, with management targeting 3x expansion in direct reach to 300k outlets over three years and value-weighted distribution rising from 40-45% to 80-85%; HSIE expects ~25% revenue growth in Q2FY27 with ~12% operating profit margin and reiterates BUY with a Sep-27 TP of INR 550 on 5x EV/sales (cut from 5.25x on sector de-rating).

The note says it retains REDUCE with a revised TP of INR 280 (from INR 273), citing the shift from secured long-term contracts to volatile tolling business, subdued return ratios from ~INR 300bn of capex (RoIC falling to ~13.4% by FY30E, balance sheet turning to net debt of INR 41.6bn in FY30E from net cash of INR 72.9bn in FY26, negative FCF of INR 56.3bn over FY27-30E), and near-term volume growth challenges at Dahej (global LNG price surge, QatarEnergy force majeure) and Kochi (lack of pipeline connectivity), while noting the 750-KTPA Dahej petrochemical complex is ~42% complete and on track for mid-FY29E commissioning and the QatarEnergy 7.5 MMTPA SPA has been extended to CY2048 on a DES basis.

The note says it maintains BUY with a revised TP of INR 445/share (9x Sep'28E consolidated EBITDA) versus INR 410 earlier, estimating ~7% YoY Q2FY27 volume growth but unit EBITDA falling to ~INR 760/MT on a ~INR 250/MT opex rise from fuel, packing and logistics costs, with consolidated volume/EBITDA CAGRs of 9%/9% over FY26-29E as the Kutch clinker unit starts in Q3FY27 and capacity rises to 34.5mn MT by FY29.

The note maintains a REDUCE rating with the target price raised from INR 911 to INR 1,028 (CMP INR 1,219), saying the recent Clariant Muttenz asset acquisition and VP4 Frankfurt divestment represent disciplined post-Heubach portfolio rationalisation that should aid balance sheet deleveraging, with net debt/EBITDA seen improving from 0.85 in FY27 to 0.20 in FY30 and revenue/EBITDA/APAT CAGR of 6/14/40% over FY27-FY30E, while the stock trades at 54.5/27.8/23.4x FY28/29/30E EPS.

The report maintains BUY with a revised target price of INR 2,110/share (12x Sep'28E consolidated EBITDA), while lowering FY27/28E EBITDA estimates by 4.5/4.8%, estimating Q2FY27E volume growth of ~6% YoY and unit EBITDA of ~INR 750/MT, cumulative FY27-29E capex of INR 135bn, net debt/EBITDA peaking at 2.5x in FY27E, and volume/EBITDA CAGR of 12/11% over FY26-29E, with central assets, Belgaum, Pune SGU, Kadapa IU and the Chennai bulk terminal taking consolidated capacity to 67mn MT by FY28-end plus the BJCL acquisition pending NCLT approval.

The note maintains ADD with a Sep-27 SoTP-based target price of INR 300 (cigarettes valued at INR 137/share at 11x P/E, Other FMCG at INR 98/share at 4x sales), says the bulk of required cigarette price hikes are now in place and per-stick profitability should recover by around Q4FY27, while factoring in a 6% cigarette volume decline in FY27 and 3% in FY28, flagging rising illicit trade as the key risk and trimming FY27E/FY28E EPS by 0.5%/0.6%.

The report notes Jubilant Ingrevia announced a 40% acquisition of Zettaone Technologies for Rs 189.2 crore, a company with FY26 revenue of Rs 98 crore, to anchor its electronics/semiconductor business through high-speed PCB design expertise.

The note says investors can buy in the Rs 653-667 band and add on declines to Rs 597-607, projecting 14% revenue CAGR, 220bps margin improvement and 25% PAT CAGR over FY26-29E, supported by the company's position as the world's only scaled non-Chinese pyridine producer, a Rs 1,700 crore completed capex cycle, CDMO ramp-up and management's FY27 EBITDA guidance of Rs 750-800 crore.

The note says HDFC Securities maintains BUY with a DCF-based target of INR140/share (up from INR135, implying ~44x Sep-28 EPS), modelling ~16%/19%/25% revenue/EBITDA/PAT CAGR and ~80bps pre-Ind AS EBITDA margin expansion to 10.6% over FY26-29E, while noting management's 18-20% revenue growth guidance, ~100 large-format store additions annually, a four-hub supply chain transition, and risks from the ~40% Kedaara/Partners Group stake overhang and eventual succession of 65-year-old MD & CEO Gunender Kapur.