Bernstein Sees Paytm at ₹2,200; Mixed Calls on Tata Consumer & Sona BLW
A wave of high-impact research notes swept Dalal Street ahead of Tuesday's opening bell on October 27, 2026, as premier global and domestic brokerage houses issued fresh investment ratings, target price revisions, and earnings assessments across eight prominent Indian equities. Four companies witnessed dual coverage with contrasting perspectives, resulting in two upward target revisions alongside three cuts as institutional analysts factored in Q2 operating metrics, margin trajectories, and shifting demand dynamics across financial services, consumer goods, pharmaceuticals, auto components, cement, and building materials.
Tech and Healthcare Focus: Bernstein Sets ₹2,200 Target on Paytm as Kotak and JPMorgan Review Mankind Pharma
Global brokerage Bernstein reiterated its Outperform rating on One97 Communications (Paytm) with an ambitious target price of ₹2,200, highlighting the fintech major's second-quarter revenue momentum fueled by an exceptional 49% year-on-year surge in financial services and a 26% expansion in marketing operations. Even as payment processing net income improved and operational EBITDA escalated by 90% to represent 10% of total revenue, Bernstein flagged rising corporate expenditure as an ongoing margin pressure point to monitor. In the pharmaceutical space, Mankind Pharma drew bifurcated institutional sentiment following its second-quarter earnings scorecard; Kotak Institutional Equities assigned a Buy rating with a target price of ₹3,035, forecasting the company to outperform the broader domestic formulation market over the next two quarters backed by core Indian formulations, BSV integration, and export momentum, projecting a healthy 23% compounded annual EPS growth over FY2026-29 despite lingering softness in over-the-counter (OTC) consumer wellness products. Conversely, JPMorgan maintained a cautious Neutral stance on Mankind Pharma with a ₹2,700 price target, acknowledging a 3% revenue beat on solid domestic formulation sales and export growth alongside resilient EBITDA margins, but trimming its forward consumer business estimates pending tangible proof that high domestic growth rates can be sustained alongside an OTC recovery.
EV Auto Ancillaries and Hospitality: Diverging Calls on Sona BLW, Ather Achieves Breakeven, and ITC Hotels Surges
The auto component and electric mobility sector presented sharply diverging brokerage perspectives, most notably on Sona BLW Precision Forgings, where Citi reiterated a Buy rating and raised its target price to ₹960 after second-quarter earnings topped street estimates behind robust volume off-take in suspension motors, traction motors, and differential assembly lines, while noting that an expanding order book of ₹25,100 crore—up from ₹24,000 crore at the close of Q1—cushions performance against raw material and freight headwinds. In stark contrast, Kotak Institutional Equities assigned a Sell rating on Sona BLW with a target of ₹700, arguing that despite an operational EBITDA beat and sizable opportunities across railway systems and traction motors, the stock's current trading multiples are excessively expensive and stretch valuations beyond fundamental justification. In the pure-play EV segment, HSBC raised its target price on Ather Energy to ₹1,800 with a Buy recommendation, praising the electric two-wheeler maker's milestone achievement of reaching EBITDA breakeven in the second quarter despite raw material input inflation, while noting that near-term stock trajectory will hinge on market adoption of its newly unveiled product 'Konarc'. In the hospitality basket, Jefferies reaffirmed a Buy recommendation on ITC Hotels with a target of ₹220 per share, citing a 37% year-on-year surge in consolidated EBITDA, a 21% jump in revenue per available room (RevPAR), and a 25% increase in hotel management fee collections, prompting the brokerage to upgrade its forward earnings estimates.
Consumption, Cement, and Piping: Dual Views on Tata Consumer, Dalmia Bharat Under Pressure, and Citi Sells Supreme Industries
Fast-moving consumer goods bellwether Tata Consumer Products generated divided calls following its second-quarter report card, which featured a 14% revenue rise, 17% EBITDA growth, and an 11% volume expansion in its branded Indian portfolio; Morgan Stanley maintained an Overweight rating with a price target of ₹1,202, predicting margin expansion in the second half of the fiscal year while observing that management held back from committing to a full-year 50-70 basis points expansion target. Citi upheld a Buy rating on Tata Consumer but trimmed its target price to ₹1,225, noting that while emerging engines like Tata Sampann and ready-to-drink beverages surged by 40%, raw material inflation and soft margins in the legacy domestic tea portfolio weighed on profitability, though pricing interventions should support a second-half rebound. In the infrastructure and materials sector, Dalmia Bharat faced target reductions after a weak September quarter marred by sales volume contractions, input cost inflation, and asset impairment charges; HSBC downgraded the cement manufacturer to Hold with a lower target of ₹1,820 as overhang from acquired assets threatens to drag on into FY2027, whereas Jefferies retained a Buy rating while lowering its target to ₹2,125, cutting EBITDA projections by 7-11% to reflect weakness in eastern regional markets and recent executive management transitions. Rounding out the advisories, Citi issued a Sell rating on Supreme Industries with a price target of ₹3,000; despite the plastic products major delivering a 45% year-on-year EBITDA surge and a 19% volume increase that beat expectations by 8%, Citi warned that management's FY2027 volume guidance reduction to 10% overall and 13% for piping leaves second-half projections overly optimistic, cautioning that falling PVC resin prices could induce destocking, lower dealer procurement, and wipe out prior inventory profits.
