Nomura Sees Up to 35% Surge in Paytm and HDB Finance, Goldman Issues Sell on Tata Tech
Global institutional brokerages rolled out crucial rating updates and price revisions on Thursday, October 15, 2026, delivering an active roadmap for Dalal Street investors across financial, capital goods, hospitality, and engineering technology counters. Research notes released by marquee investment houses—including Nomura, CLSA, Goldman Sachs, HSBC, and Jefferies—revealed an overwhelmingly selective stance, recommending 'Buy' calls on six equities driven by accelerating operational metrics, while sounding cautionary alarms on high-valuation plays. With heavy-weight fintechs and auto-ancillary players enjoying aggressive target upgrades on expanding margins, traditional engineering and capital goods firms faced significant target compression as analysts recalibrated sector multiples against shifting demand cycles and escalating market competition.
Bullish Radar: Nomura and Jefferies Project Strong Upside for Paytm, HDB Finance, and Leela Palaces
Leading the bullish momentum, Japanese brokerage Nomura initiated a high-conviction 'Buy' rating on One97 Communications (Paytm) with an ambitious target price of ₹2,250, signaling an upside potential of 31.4% driven by surging monetization in core merchant lending, optimized payments processing, and margin gains from artificial intelligence integrations. Nomura also upgraded HDB Financial Services to a 'Buy' with a price target of ₹790, representing a 35.4% rally potential on robust loan book expansion, an 8% net interest margin target, and a 2.5% return on assets despite a 2% profit miss in the second quarter. In the auto-ancillary and telecom segments, Nomura pegged a ₹1,800 target on Dhoot Transmission (22.3% upside) citing its 41% domestic market share in two- and three-wheeler wiring harnesses and soaring electric vehicle revenue share, alongside a ₹1,870 target on Bharti Hexacom (19.1% upside) to capitalize on regional tariff expansions across Rajasthan and the Northeast. Concurrently, hospitality player Leela Palaces drew unanimous 'Buy' ratings from both Nomura and Jefferies—with targets set at ₹650 and ₹735 respectively (offering 9.9% to 24.3% upside)—bolstered by a 33% revenue surge and rising average room rates across domestic leisure and corporate destinations.
Caution Flags: CLSA Warns of 24% Downside on BHEL as Goldman Sachs Slaps Sell on Tata Tech
In sharp contrast to the consumer and financial optimism, global research houses issued stark warnings on capital goods and specialized software providers facing growth bottlenecks. CLSA retained its 'Underperform' stance on state-run engineering behemoth Bharat Heavy Electricals Limited (BHEL), setting a target price of ₹351 that implies a steep 24.4% downside from its recent close of ₹464. While BHEL logged a 24% year-on-year revenue increase in the second quarter with operating margins widening 330 basis points to 11%, CLSA cautioned that intensifying domestic competition, the entry of alternative electrical equipment suppliers, and potential slowdowns in large-scale power order disbursements threaten sustained order inflows. Meanwhile, Goldman Sachs reiterated a 'Sell' rating on Tata Technologies with a target price of ₹560, flagging a potential 25% downside; despite closing a major $138 million European automaker engagement and posting a modest 1.9% sequential revenue growth, the engineering services provider fell short of operating profit projections as operational disruptions tied to European client Volkswagen continue to weigh down its acquired business portfolio. Taking a neutral middle ground, HSBC retained a 'Hold' on ICICI Lombard with a raised target of ₹1,820 (6.2% upside), observing that while healthy policyholder retention supported strong second-quarter numbers, current trading multiples already bake in the insurer's strengths amid lingering regulatory shifts.
