BERNSTEIN’S TOP POWER PICKS — OUTPERFORM
• NTPC — Target ₹430
• L&T — Target ₹4,637
• JSW Energy — Target ₹575
• Tata Power — Target ₹443
📊 Bernstein says the data-centre power-demand story is yet to fully play out on the ground.
⚡️ India’s biggest advantage: lower cost of electricity, which could support the data-centre opportunity.
• NTPC — Target ₹430
• L&T — Target ₹4,637
• JSW Energy — Target ₹575
• Tata Power — Target ₹443
📊 Bernstein says the data-centre power-demand story is yet to fully play out on the ground.
⚡️ India’s biggest advantage: lower cost of electricity, which could support the data-centre opportunity.
JEFFERIES ON GMR AIRPORTS ; ACCUMULATE | TP ₹135
• AERA approved Hyderabad Airport’s FY27-31 tariff order; aero tariffs at ~₹540-630 through FY29.
• FY30-31 baseline tariff falls from ₹630 to ₹410 by FY31, but could rise to ~₹700-720 if planned capex is completed by FY29.
• Hyderabad Airport plans capacity expansion from 34mn to 60mn passengers with ~₹14,000 Cr capex.
• AERA approved ~₹13,800 Cr capex for CP4, ~99% of GMR’s request; 89% classified as Aero Capex.
• New Incremental ARR framework allows tariff recovery on large capex only after assets are commissioned and operational.
• Recovery mechanism remains intact; only timing of tariff recovery changes.
• AERA approved Hyderabad Airport’s FY27-31 tariff order; aero tariffs at ~₹540-630 through FY29.
• FY30-31 baseline tariff falls from ₹630 to ₹410 by FY31, but could rise to ~₹700-720 if planned capex is completed by FY29.
• Hyderabad Airport plans capacity expansion from 34mn to 60mn passengers with ~₹14,000 Cr capex.
• AERA approved ~₹13,800 Cr capex for CP4, ~99% of GMR’s request; 89% classified as Aero Capex.
• New Incremental ARR framework allows tariff recovery on large capex only after assets are commissioned and operational.
• Recovery mechanism remains intact; only timing of tariff recovery changes.
INVESTEC ON ADANI PORTS
• Gujarat Maritime Board signals Pipavav concession extension; positive read-through for Mundra.
• Mundra well placed to benefit from container capacity shortage.
• Adani Ports plans to expand Mundra container capacity by >50% and has received environmental clearance.
• Expansion should help capture likely container demand-supply mismatch on India’s West Coast over the next few years.
• Gujarat Maritime Board signals Pipavav concession extension; positive read-through for Mundra.
• Mundra well placed to benefit from container capacity shortage.
• Adani Ports plans to expand Mundra container capacity by >50% and has received environmental clearance.
• Expansion should help capture likely container demand-supply mismatch on India’s West Coast over the next few years.
INVESTEC ON PINE LABS
ACCUMULATE
TP ₹200
• Creating value beyond swipe; evolving beyond a payment acceptance provider.
• Leadership position in a growing prepaid ecosystem.
• Mix shift & operating leverage expected to drive profits.
• MDR on UPI could be a potential profitability booster.
ACCUMULATE
TP ₹200
• Creating value beyond swipe; evolving beyond a payment acceptance provider.
• Leadership position in a growing prepaid ecosystem.
• Mix shift & operating leverage expected to drive profits.
• MDR on UPI could be a potential profitability booster.
MACQUARIE ON ZYDUS LIFE
MAINTAIN OUTPERFORM
TP ₹1,285
• Strategic mix shift expected to drive margin expansion.
• Innovation portfolio emerging as a meaningful US growth driver.
• Robust US generics pipeline supports growth visibility.
• Sustained domestic outperformance supported by leadership positions.
• International formulations remain a profitable growth engine.
MAINTAIN OUTPERFORM
TP ₹1,285
• Strategic mix shift expected to drive margin expansion.
• Innovation portfolio emerging as a meaningful US growth driver.
• Robust US generics pipeline supports growth visibility.
• Sustained domestic outperformance supported by leadership positions.
• International formulations remain a profitable growth engine.
VARROC ENG
Varroc developing rare earth-free EV magnet to cut China reliance - NIKKEI
Auto parts maker has cut use of heavy rare earths after Beijing's export curbs
Varroc developing rare earth-free EV magnet to cut China reliance - NIKKEI
Auto parts maker has cut use of heavy rare earths after Beijing's export curbs
MACQUARIE ON BEL
MAINTAIN OUTPERFORM
TP ₹550
• Secured new orders worth ₹730 Cr since last disclosure on Aug 10, 2026.
• FY27 YTD orders at ₹6,200 Cr, down 45% from ₹11,200 Cr YoY.
• Order decline mainly due to timing of order bookings.
• Expects ₹55,000 Cr of new orders in FY27.
• Q1-end order backlog at ₹72,300 Cr, providing strong revenue visibility.
MAINTAIN OUTPERFORM
TP ₹550
• Secured new orders worth ₹730 Cr since last disclosure on Aug 10, 2026.
• FY27 YTD orders at ₹6,200 Cr, down 45% from ₹11,200 Cr YoY.
• Order decline mainly due to timing of order bookings.
• Expects ₹55,000 Cr of new orders in FY27.
• Q1-end order backlog at ₹72,300 Cr, providing strong revenue visibility.
INVESTEC ON ANGEL ONE
ACCUMULATE
TP ₹350 V ₹385 EARLIER
• Valuations reflect a temporary CAS shock.
• Sharp fall in derivative activity after implementation of CAS.
• Cuts FY27–29 revenue estimates by 4%.
• Cuts FY27–29 net profit estimates by 9%.
ACCUMULATE
TP ₹350 V ₹385 EARLIER
• Valuations reflect a temporary CAS shock.
• Sharp fall in derivative activity after implementation of CAS.
• Cuts FY27–29 revenue estimates by 4%.
• Cuts FY27–29 net profit estimates by 9%.
GOLDMAN SACHS ON INDIA CONSUMER
• Nestlé’s input costs comprise ~6–7% sugar and ~10% palm oil.
• Nestlé has high pricing power across many categories, helping mitigate cost inflation.
• Sugar accounts for ~10% of Varun Beverages’ raw-material costs.
• Varun’s shift toward no-sugar/low-sugar products is offsetting a significant part of sugar-price inflation.
• Nestlé’s input costs comprise ~6–7% sugar and ~10% palm oil.
• Nestlé has high pricing power across many categories, helping mitigate cost inflation.
• Sugar accounts for ~10% of Varun Beverages’ raw-material costs.
• Varun’s shift toward no-sugar/low-sugar products is offsetting a significant part of sugar-price inflation.
GOLDMAN SACHS ON INDIA CONSUMER
• Sugar prices have risen sharply in India, creating margin pressure for packaged-food companies.
• Britannia likely most impacted due to high sugar & palm-oil exposure and high share of price-point packs.
• Nestlé’s input costs comprise ~6–7% sugar and ~10% palm oil, but strong pricing power could mitigate the impact.
• Varun Beverages derives ~10% of raw-material costs from sugar.
• Varun’s shift toward no-sugar/low-sugar products is offsetting a significant part of sugar-price inflation.
• Sugar prices have risen sharply in India, creating margin pressure for packaged-food companies.
• Britannia likely most impacted due to high sugar & palm-oil exposure and high share of price-point packs.
• Nestlé’s input costs comprise ~6–7% sugar and ~10% palm oil, but strong pricing power could mitigate the impact.
• Varun Beverages derives ~10% of raw-material costs from sugar.
• Varun’s shift toward no-sugar/low-sugar products is offsetting a significant part of sugar-price inflation.
JEFFERIES ON BHARTI AIRTEL
MAINTAIN BUY
TP ₹2,400
• Telecom sector revenue grew 8% YoY in Q1FY27, reaching a new high.
• Bharti Airtel revenue grew 10% YoY, outperforming the sector, with revenue market share gaining 20 bps vs FY26.
• Vodafone Idea revenue rose 3% YoY despite subscriber decline; market share slipped to ~13%.
• Sector revenue expected to grow at 12% CAGR over FY27-29E.
• Next industry-wide tariff hike expected in April 2027.
MAINTAIN BUY
TP ₹2,400
• Telecom sector revenue grew 8% YoY in Q1FY27, reaching a new high.
• Bharti Airtel revenue grew 10% YoY, outperforming the sector, with revenue market share gaining 20 bps vs FY26.
• Vodafone Idea revenue rose 3% YoY despite subscriber decline; market share slipped to ~13%.
• Sector revenue expected to grow at 12% CAGR over FY27-29E.
• Next industry-wide tariff hike expected in April 2027.
CITI ON LUPIN
MAINTAIN SELL
TP CUT TO ₹2,050
• US base business losing momentum; pipeline seen insufficient to offset declines in key high-margin products.
• US sales expected to fall from around $1.3 Bn in FY26 to $975 Mn by FY29.
• EBITDA margin expected to decline from 30% in Q1FY27 to 20% by FY29.
• Apixaban could support FY28E earnings, but the opportunity may be short-lived.
• Biosimilars & inhalers offer long-term upside but remain unfilled.
• Elevated execution risk drives the downgrade to SELL.
MAINTAIN SELL
TP CUT TO ₹2,050
• US base business losing momentum; pipeline seen insufficient to offset declines in key high-margin products.
• US sales expected to fall from around $1.3 Bn in FY26 to $975 Mn by FY29.
• EBITDA margin expected to decline from 30% in Q1FY27 to 20% by FY29.
• Apixaban could support FY28E earnings, but the opportunity may be short-lived.
• Biosimilars & inhalers offer long-term upside but remain unfilled.
• Elevated execution risk drives the downgrade to SELL.
DAM CAPITAL ON UPL
MAINTAIN BUY
TP ₹870
• Restructuring overhang has weighed on the stock in recent quarters, while core business performance continues to strengthen.
• Advanta growing at 20%+, while Superform Specialty Chemicals grew 51% in Q1.
• Q1 contribution margin improved 180 bps; EBITDA rose 15% on 10% revenue growth.
• Market is applying a 61% Holdco discount, which DAM Capital sees as excessive.
• UPL retains its fastest-growing Superform business and key central capabilities.
• Advanta IPO could be the first major catalyst for value unlocking.
MAINTAIN BUY
TP ₹870
• Restructuring overhang has weighed on the stock in recent quarters, while core business performance continues to strengthen.
• Advanta growing at 20%+, while Superform Specialty Chemicals grew 51% in Q1.
• Q1 contribution margin improved 180 bps; EBITDA rose 15% on 10% revenue growth.
• Market is applying a 61% Holdco discount, which DAM Capital sees as excessive.
• UPL retains its fastest-growing Superform business and key central capabilities.
• Advanta IPO could be the first major catalyst for value unlocking.
Macquarie on Zydus Life
MAINTAIN OUTPERFORM
TP Rs 1285
NDR Takeaways
Strategic mix shift to drive margin expansion: EBITDA margin expansion to 27-28% from 24% currently
Innovation portfolio emerging as a meaningful US growth driver. Management expects Saroglitazar (FY28 launch) to generate peak sales of US$250-300mn (bull case: US$400mn), with FY27 margin guidance already reflecting most pre-launch US commercial investments.
Robust US generics pipeline underpins growth visibility
Sustained domestic outperformance supported by leadership positions:
Management expects the India business to outgrow the IPM by 300-500bps in FY27, supported by oncology, biosimilars, nephrology and gSemaglutide.
Zydus also benefits from supplying gSemaglutide to partners such as Torrent and Lupin.
International formulations remains a profitable growth engine & Consumer wellness offers sustained growth momentum
MAINTAIN OUTPERFORM
TP Rs 1285
NDR Takeaways
Strategic mix shift to drive margin expansion: EBITDA margin expansion to 27-28% from 24% currently
Innovation portfolio emerging as a meaningful US growth driver. Management expects Saroglitazar (FY28 launch) to generate peak sales of US$250-300mn (bull case: US$400mn), with FY27 margin guidance already reflecting most pre-launch US commercial investments.
Robust US generics pipeline underpins growth visibility
Sustained domestic outperformance supported by leadership positions:
Management expects the India business to outgrow the IPM by 300-500bps in FY27, supported by oncology, biosimilars, nephrology and gSemaglutide.
Zydus also benefits from supplying gSemaglutide to partners such as Torrent and Lupin.
International formulations remains a profitable growth engine & Consumer wellness offers sustained growth momentum
HSBC on Ports
Gujarat Govt. may roll over port concessions for Mundra, Pipavav, Hazira, Dahej, and set the framework for other states
GPPV’s Pipavav expires in 2028 and ADSEZ’s Mundra in 2031.
Renewal could clear overhang, unlock capex and rerating
Prefer ADSEZ (Buy
Gujarat Govt. may roll over port concessions for Mundra, Pipavav, Hazira, Dahej, and set the framework for other states
GPPV’s Pipavav expires in 2028 and ADSEZ’s Mundra in 2031.
Renewal could clear overhang, unlock capex and rerating
Prefer ADSEZ (Buy
Macquarie on GMR Airports
O-P, TP Rs 120
Airports Economic Regulatory Authority (AERA) released the tariff order for Hyderabad for its 4th control period (CP4: FY26-31).
GMR got approval for Rs138bn Hyderabad expansion capex, supporting capacity growth to 80mn pax; execution remains FY30-weighted.
Think revenue remains most sensitive to Hyderabad's capacity being delivered on schedule with tariffs now recoverable on a user-pay basis.
O-P, TP Rs 120
Airports Economic Regulatory Authority (AERA) released the tariff order for Hyderabad for its 4th control period (CP4: FY26-31).
GMR got approval for Rs138bn Hyderabad expansion capex, supporting capacity growth to 80mn pax; execution remains FY30-weighted.
Think revenue remains most sensitive to Hyderabad's capacity being delivered on schedule with tariffs now recoverable on a user-pay basis.
HSBC on Dixon
MAINTAIN Buy,
TP Rs 16000
Gazette notification states that incentives shall be disbursed to the mobile phone manufacturers, including EMS
Computation of incentives is on “eligible sales” and not total sales, which reduces the overall benefit for a co
Scheme is therefore positive for Dixon, component level PLI are additional
MAINTAIN Buy,
TP Rs 16000
Gazette notification states that incentives shall be disbursed to the mobile phone manufacturers, including EMS
Computation of incentives is on “eligible sales” and not total sales, which reduces the overall benefit for a co
Scheme is therefore positive for Dixon, component level PLI are additional
NUVAMA ON TATA CAPITAL
MAINTAIN HOLD
TP ₹415
• Management targets 23–25% AUM growth over the medium to long term.
• Housing likely to be the key growth driver, while retail, SME & corporate lending should also grow at a healthy pace.
• Unsecured retail loans could rise to 12–12.5% by FY28 from ~10% currently, while remaining capped at 15%.
• Improving margins & operating leverage expected to support RoA and RoE.
• Nuvama expects healthy returns over FY27–29.
• Current valuations leave limited room for execution misses, restricting meaningful upside.
MAINTAIN HOLD
TP ₹415
• Management targets 23–25% AUM growth over the medium to long term.
• Housing likely to be the key growth driver, while retail, SME & corporate lending should also grow at a healthy pace.
• Unsecured retail loans could rise to 12–12.5% by FY28 from ~10% currently, while remaining capped at 15%.
• Improving margins & operating leverage expected to support RoA and RoE.
• Nuvama expects healthy returns over FY27–29.
• Current valuations leave limited room for execution misses, restricting meaningful upside.
BofA on KEI Industries
Initiate Buy with TP of Rs 6300
Growth leader
Fastest growing player in the Wires and Cables Space
Fastest growing player in the Wires and Cables Space
Competition risk is real, but overestimated, in our view
Upside moderated post sharp rally YTD, yet attractive
Initiate Buy with TP of Rs 6300
Growth leader
Fastest growing player in the Wires and Cables Space
Fastest growing player in the Wires and Cables Space
Competition risk is real, but overestimated, in our view
Upside moderated post sharp rally YTD, yet attractive
BofA on Polycab
Initiate Buy with TP of Rs 11000
Steady Structural Compounder
Industry leader with strongest competitive position
Five moats underpin market share, margins and returns
Competition risk is real, but overestimated
Initiate Buy with TP of Rs 11000
Steady Structural Compounder
Industry leader with strongest competitive position
Five moats underpin market share, margins and returns
Competition risk is real, but overestimated