desk
Share
News Topical, Digital Desk : The latest reports from global brokerage houses have seen significant activity on several major names. Ratings have been downgraded, while targets have been raised. Surging memory prices, AI-driven demand, capex cycles, and valuations have all shaped the direction of stocks. Let's take a look at each stock's sentiment and what this means for investors.
CLSA on Dixon Technologies: Outperform to Hold
CLSA downgraded Dixon Technologies to Hold from Outperform and reduced the target to ₹12,100. The memory sector is entering an AI-led super-cycle; demand for high-bandwidth memory and DDR5 is strong. DDR5/DDR4 prices rose 119%/63% MoM and NAND 37–67%, respectively. There is a risk of supply squeeze due to global preference for AI-grade memory. Smartphone ASPs may increase by 10–25% due to higher memory prices – putting pressure on low-end volumes. Concerns have been raised on mid-term growth visibility.
CLSA on Coforge: High-Conviction Outperform
CLSA has given a High-Conviction Outperform rating on Coforge and a target of ₹2,426. Revenue visibility from the $1.56 billion, 13-year deal (March 2025) with Sabre. AI integration in the platform is strong. However, Sabre's FY26 guidance is mid-single digit, FCF negative - debt is important to watch.
Citi on LIC Housing Finance: Buy
Citi has given a Buy rating on LIC Housing Finance and a target of ₹730. 15%/20%/30% decline in 3/6/12 months - valuation attractive. FY27 P/B 0.6x, P/E 5x. Conservative implication of 11.5% RoE and 4% loan growth. Strategy reset: Distribution, co-lending, self-employed/affordable focus. Risk-reward favorable, downside limited.
Hitachi Energy Nuvama: Buy, target ₹26,400
Hitachi Energy India's T&D capex cycle remains strong beyond FY32. 5–6 years of demand visibility (domestic/export). EBITDA margins are sustainable; upside from operating leverage/localization. Growth drivers: Data centers (15% wallet share), rail, and HVDC pipelines. Further HVDC wins are likely to boost EPS from FY29.
MOSL on Tata Steel and JK Cement: Buy
Tata Steel: Target ₹240. Strong domestic demand, safeguard duty support. Earnings growth from capacity expansion. EU operations improving, TSUK on track to break-even. Valuation 7.7x EV/EBITDA, 2.3x FY27E P/B.
JK Cement: Target ₹6,780.
Strong demand in North/Central. Panna Phase-2 operational, Jaisalmer expansion ongoing. FY26–28 volume CAGR 13%; EBITDA/tonne FY27 ₹1,107, FY28 ₹1,140.
Jefferies on Alkem Labs: Buy
Alkem Laboratories: Target ₹6,550. Medtech strategy focus; Occlutech acquisition a highlight. Strong ortho/cardiac portfolio; ₹1,000 crore medtech sales in 5 years, 20–25% EBITDA margin target.
Goldman Sachs on Eicher Motors: Buy
Eicher Motors: Target ₹9,200. Demand support from GST cut (after September 2025) on sub-350cc bikes. Hunter 350 volumes ~20,000/month (previous year 15,000). Capacity addition in next 24 months; FY26–FY28 EPS raised by 3%.
Read More: Tata Investments shares surge 13%, supported by new updates on N Chandrasekaran's third term
--Advertisement--
