Multiple brokerages have issued fresh ratings and share price targets for steel stocks, with Aditya Birla Capital initiating coverage on JSW Steel and Steel Authority of India (SAIL) with Buy ratings. According to LiveMint, the brokerage has also assigned Add ratings to Tata Steel and Jindal Steel and initiated Positive coverage of ArcelorMittal. The recommendations come as Aditya Birla Capital sees a durable upcycle for Indian steel, driven by tightening supply, resilient demand and trade protection. The brokerage's proprietary steel supply-demand model points to a tightening domestic market with domestic steel inventories expected to decline from around 10 million tonnes currently to almost zero over the next three years.
JSW Steel received a target price of ₹1,425 from Aditya Birla Capital, implying an 18% upside from its current market price of ₹1,220 as of 22 October. As reported by LiveMint, SAIL has a target price of ₹225, indicating a potential upside of 36.8% from ₹170. Tata Steel has a target price of ₹190 against its current market price of ₹172, implying an upside of 12.7%, while Jindal Steel has a target price of ₹1,075 versus ₹1,028, indicating an upside of 8.6%. Jefferies maintains its BUY recommendation at ₹1,650 target price and named it a top pick in India metals, while Motilal Oswal reiterated a BUY rating at ₹1,460 target price.
Infosys reported Q2FY27 revenue of USD 5.1 billion, representing a 1.2% quarter-on-quarter growth in constant currency terms, which was below the estimated 1.8% QoQ growth. The company's adjusted EBIT margin stood at 21%, in line with estimates of 21.1%, while adjusted EBIT rose 1.6% QoQ and 10.4% YoY to ₹103 billion, slightly below the estimated ₹104 billion. Adjusted PAT came in at ₹78 billion, up 0.6% QoQ and 6.2% YoY, below the estimated ₹81 billion. Motilal Oswal has now recommended a BUY rating with a target price of ₹1,300, implying approximately 13% upside, valuing the stock at 16x FY28E EPS. The brokerage notes that while AI revenue continues to scale up, productivity pass-through on the existing book of business will remain a near-term headwind.
Elara Capital upgraded both Torrent Pharma and Dr Reddy's Laboratories from REDUCE to ACCUMULATE rating. According to ET Now, Torrent Pharma received a ₹5,056 target price from Elara Capital while maintaining ₹5,900 target price from Jefferies. Dr Reddy's Laboratories saw its target price raised to ₹1,338 from ₹1,222 by Elara Capital, while Motilal Oswal maintained NEUTRAL at ₹1,180 target price.
