Nomura Bets Big on Jio Platforms at ₹1,340; Street Backs Maruti & L&T
Global brokerage houses released a flurry of high-stakes equity recommendations on Wednesday morning, October 28, 2026, realigning target prices and ratings across automotive, telecommunications, infrastructure, defense, and pharmaceutical sectors. The morning calls were headlined by Japanese brokerage Nomura initiating coverage on digital market debutant Jio Platforms with a bullish outlook, while JP Morgan upgraded two-wheeler major Bajaj Auto to Overweight. Institutional sentiment diverged sharply across defense and infrastructure counters, with Larsen & Toubro drawing strong backing despite operational margin hurdles, whereas Mazagon Dock Shipbuilders faced an aggressive downgrade from HSBC following disappointing quarterly metrics. Concurrently, automobile bellwethers Maruti Suzuki and Bajaj Auto secured near-unanimous positive conviction, and drugmaker Cipla saw diverging ratings amid strong domestic demand for its specialized metabolic therapies.
Digital Disruption and Two-Wheeler Upgrades: Nomura Backs Jio Platforms as JP Morgan Re-Rates Bajaj Auto
In a major research rollout timed with its market listing, Nomura initiated coverage on Jio Platforms with a 'Buy' recommendation and a price target of ₹1,340 per share. The brokerage noted that the telecom powerhouse has successfully evolved from a sector disruptor into an established market leader, forecasting a 13.5 percent compounded annual growth rate (CAGR) in consolidated EBITDA between fiscal years 2026 and 2029. Analysts emphasized that with the capital-intensive phase of the pan-India 5G rollout largely finished, capex obligations will taper off, paving the way for sharp free cash flow expansion alongside compounding contributions from its fixed home broadband vertical. In the two-wheeler space, Bajaj Auto saw widespread upgrades: JP Morgan elevated its stance from Neutral to 'Overweight' with a target of ₹12,500, citing accelerating electric vehicle volumes, expanding export footprint across new geographic markets, and the anticipated launch of two new motorcycle architectures in the 125–250cc category by calendar year 2027. CLSA echoed this bullishness by reiterating an 'Outperform' rating with a higher target of ₹13,446, highlighting that the company preserved its second-quarter EBITDA margin at 20.9 percent despite absorbing a 3 to 3.5 percent spike in raw material input costs.
Infrastructure Expansion vs Defense Reset: L&T's $90-Billion Backlog Contrasts Mazagon Dock Downgrade
Infrastructure bellwether Larsen & Toubro (L&T) attracted close scrutiny following its second-quarter scorecard. CLSA reaffirmed an 'Outperform' rating with a target price of ₹4,842, highlighting that execution speed, order inflows, and working capital cycles outperformed Street expectations, even as inflationary project overheads dampened quarterly operating margins. L&T's core engineering and construction division achieved 22 percent year-on-year growth, with Middle Eastern and domestic businesses expanding 26 percent and 16 percent respectively, driving its consolidated order book up 28 percent year-on-year to approximately $90 billion. Nomura took a more balanced stance, maintaining a 'Neutral' rating on L&T with a target of ₹3,940, citing persistent margin pressures despite strong international execution. In contrast, HSBC delivered a stern reset on state-run defense manufacturer Mazagon Dock Shipbuilders, slashing its rating to 'Reduce' and trimming its target price to ₹1,680. The brokerage highlighted that weak second-quarter revenues, squeezed profitability, and compressed operational margins trailed forecasts, cautioning that while potential orders from the Project 75I submarine program may arrive by fiscal 2027, meaningful top-line contributions will take two to three years to materialize, leaving near-term earnings vulnerable through FY2029.
Auto Resilience, Telecom Towers, and Healthcare: Maruti Suzuki, Cipla, and Financials in Focus
Four-wheeler market leader Maruti Suzuki won widespread praise across foreign research desks. CLSA reiterated an 'Outperform' rating with a target of ₹14,537, noting a 71-basis-point sequential margin expansion in the second quarter fueled by operational cost efficiencies and favorable realization spreads. HSBC assigned a 'Buy' with a target of ₹14,500, banking on management guidance of a 10 percent volume growth in domestic wholesales across the second half of FY2027. Nomura also reaffirmed a 'Buy' on Maruti Suzuki with a ₹13,046 target, pointing to resilient near-term festive dispatches while monitoring long-term electric vehicle market share transitions. In the telecom infrastructure arena, CLSA assigned a 'High Conviction Outperform' on Indus Towers with a target of ₹565, citing core second-quarter revenues rising 4 percent year-on-year to ₹5,450 crore, adjusted EBITDA beating forecasts by 5 percent, and a projected 9 percent annual core EBITDA run-rate through FY2029.
The financial and pharmaceutical sectors also saw targeted revisions. HSBC reiterated a 'Buy' on SBI Life Insurance with a target price of ₹2,088, forecasting a steady 15 percent medium-term CAGR across both Annualized Premium Equivalent (APE) and Value of New Business (VNB). HSBC similarly issued a 'Buy' on Max Financial Services with a ₹1,900 target, citing margin accretion and resilient new business generation. In healthcare, Cipla witnessed divergent analyst views: HSBC retained a 'Hold' with a target of ₹1,400 due to subdued quarterly numbers, though it noted the company's unchanged FY2027 EBITDA margin band of 18.5 to 20 percent and its $1-billion US annual sales target anchored by respiratory inhaler rollouts. CLSA maintained an optimistic 'Outperform' on Cipla with a ₹1,600 target, crediting record-breaking domestic performance driven by strong patient uptake of its GLP-1 metabolic treatment, Yurpeak. Finally, Nomura upgraded B2B e-commerce platform IndiaMART InterMESH from Sell to 'Neutral' with a target of ₹1,840, though it warned that flat-to-declining paid subscriber additions require urgent product enhancements to reignite long-term growth.
