Brokerages maintain contrasting views on India's major steel companies, with Motilal Oswal Financial Services maintaining a Buy rating on Tata Steel with a significantly higher target price of ₹250, citing strong results across domestic and overseas businesses supported by higher India steel prices. Morgan Stanley also maintains an Overweight rating with a target price of ₹215, while Citi has upgraded its target price to ₹200 from ₹180 while maintaining a Sell rating, expecting Q1 realizations to improve quarter-on-quarter, though further steel price hikes appear unlikely. Goldman Sachs also raised its target to ₹218 from ₹210 while maintaining Neutral stance, highlighting realization uptick across regions that supported earnings. However, Citi maintains a Sell rating on SAIL with a higher target of ₹180 from ₹135, noting that Q4 performance was strong but EBITDA per tonne may have peaked.
In the consumer space, Motilal Oswal Financial Services cut its target price on Voltas to ₹1,349 from ₹1,409 while maintaining Equal-weight rating, acknowledging strong RAC franchise and distribution network positives but noting competitive intensity remains elevated. Elara Capital maintains a Buy rating with a higher target of ₹1,360, expecting price hikes ahead despite earnings miss driven by margin pressure. The technology sector saw ICICI Securities initiate a Buy rating on Sedemac Mechatronics with a target price of ₹2,350, positioning it as a rare tech-moat play benefiting from electrification trends in two-wheelers and three-wheelers. Kotak Securities downgraded Aether Industries to Reduce despite growth outlook remaining intact, citing fire impact and input costs that weighed on Q4 results.
Defence sector recommendations show mixed signals, with Elara Capital upgrading Hindustan Aeronautics to Buy from Accumulate with a target price of ₹5,350, citing strong order book and execution capabilities. JPMorgan maintains Overweight on Hindustan Aeronautics but cuts the target price to ₹5,145 from ₹6,040 due to LCA delivery delays, though management targets double-digit growth in FY27. Kotak Securities maintains Sell on Cochin Shipyard with a target of ₹830, citing weak quarterly performance and progress on partnerships as key monitorables. The infrastructure sector saw Goldman Sachs maintain Buy ratings on Solar Industries with a target of ₹19,590 from ₹18,900 following Q4 results that surpassed estimates, and GS also raised targets on Data Patterns to ₹4,165 from ₹3,650 despite mixed quarterly performance.
The telecom sector presents a complex picture with Citi maintaining a Buy/High Risk rating on Vodafone Idea with a target price of ₹14, while Apollo Tyres receives a Buy rating with a target of ₹540. Vishal Mega Mart has attracted multiple Buy recommendations from HDFC Securities (₹130 target) and Emkay Global Financial Services (₹160 target), with upside potential of approximately 34.5%. The auto sector shows mixed signals with Tata Motors receiving an Accumulate rating from Elara Capital with a target price of ₹423, while JSW Steel maintains a Buy rating from HDFC Securities with a target of ₹1,370. Siemens Energy also receives positive coverage with a Buy rating from HDFC Securities and a target price of ₹3,844.
Latest brokerage recommendations include Prabhudas Lilladher's Accumulate rating on KEC International with a target price of ₹558, revising EPS estimates downward by -30.1%/-23.9% for FY27E/FY28E due to slower execution amid labour shortages and supply-chain disruptions from the Middle East crisis. KEC International reported muted Q4FY26 performance with consolidated revenue declining 7% YoY to ₹63.9bn, while EBITDA margin contracted to 7% impacted by supply-chain disruptions and dispatch delays, resulting in approximately ₹4bn revenue loss during the quarter. Despite near-term challenges, management guided 12-15% revenue growth and order intake target of ₹300bn, supported by healthy order inflow in T&D (₹180bn) and Civil business (₹80bn). The stock currently trades at P/E of 17.8x/12.2x on FY27/28E earnings.
