Nomura on Tech Mahindra
Buy | Target Price Rs 1,670
2QFY26 was a good show on most parameters. Deal wins and pipeline are strong; management aims for better revenue growth in FY26E versus FY25. Business repair is underway with solid progress at the midpoint of a three-year turnaround. Stock trades at ~18.3x FY27F EPS.
CLSA on Tech Mahindra
High Conviction Outperform | Target Price Rs 1,695
Reported revenue and EBIT beats in 2Q. EBIT margin at 12.1% (helped partially by FX); achieving 15% EBIT margin in FY27 appears feasible. Primary uncertainty is whether TechM can grow faster than peers in FY27. Maintain conviction in management given consistent operating improvements over the last six quarters.
Jefferies on Tech Mahindra
Underperform | Target Price Rs 1,270
Q2 revenues and margins broadly inline but profits missed due to FX losses. Strong order wins should support 2H FY26, but a sharp sector recovery in FY27 is not expected. Onsite wage inflation (H-1B) could challenge the company’s 15% margin target for FY27.
MS on Tech Mahindra
Underweight | Target Price Rs 1,555
Positives: strong deal wins, client stability, steady margin improvement. Concerns: weak conversion of deals to revenue, challenging vertical outlook (manufacturing), and weak macro. Relative valuation versus peers limits upside — risk/reward seen as unfavorable.
HSBC on Persistent Systems
Hold | Target Price Rs 6,000 (raised)
Strong 2QFY26 growth and further margin improvement. Deal wins recovered and software engineering capabilities underpin managed-service execution. Growth is industry-leading but valuation is rich.
CLSA on Persistent Systems
High Conviction Outperform | Target Price Rs 8,270 (raised)
Another strong quarter: order book, revenue growth, margin expansion, ROE improvement and materially better FCF/PAT conversion. Management reiterated US$2bn revenue by FY27 and guides margin expansion; expect strong EPS CAGR over FY25–27.
Nomura on Persistent Systems
Neutral | Target Price Rs 5,200
All-round 2Q performance with healthy deal wins. Margin beat aided by lower software license costs. Upgrades FY26–28 EPS by 3–5%; stock trades at ~37.5x FY27F EPS.
Nuvama on Persistent Systems
Buy | Target Price Rs 7,000 (increased)
Strong margin performance and maintained growth outlook. Margins benefit from lower software license costs; pipeline improvements visible across verticals.
MS on ICICI Prudential Life
Equal Weight | Target Price Rs 625
VNB beat driven by product-level margin improvement and cost control. Valuation looks reasonable but low ROEV, sustained APE share weakness and VNB margin volatility keep a neutral stance.
HSBC on ICICI Prudential Life
Buy | Target Price Rs 700
VNB margin surprise in 2Q backed by better mix and cost control. ITC impact will show in 2H; recovery expected from product mix and distribution deepening. Valuation at ~1.4x FY27E EV attractive.
Jefferies on ICICI Prudential Life
Buy | Target Price Rs 730 (cut)
Q2 VNB ~Rs 6bn (+1% YoY) inline; APE down 3% YoY. Margins +~100bps YoY; absence of ITC may pressure Dec quarter. Cut near-term VNB estimates; watch persistency.
Nuvama on ICICI Prudential Life
Buy | Target Price Rs 770 (maintain)
Retail APE down but group APE strong. Protection mix improved; VNB margin 24.4%. Slight tweaks to VNB estimates but keep TP intact on Sep-27E roll forward.
HSBC on ICICI Lombard
Buy | Target Price Rs 2,250
2Q PAT beat driven by high retention and investment income. Premium growth outlook positive; profitability remains a priority amid corridor pressures.
MS on ICICI Lombard
Equal Weight | Target Price Rs 2,035
PAT beat due to investment income; combined ratio/underwriting weak. Strong near-term premium growth in motor and health should support momentum, but valuation leaves limited margin for error.
Elara on ICICI Lombard
Buy | Target Price Rs 2,250 (upgraded)
GDPI ~Rs 6,600cr; PAT +18% YoY; CoR 105.1%; ROE comfortable and solvency strong. Expect H2 acceleration, GST tailwinds and CoR improvement; upgraded to Buy.
Nuvama on ICICI Lombard
Buy | Target Price Rs 2,340 (maintain)
Muted GWP growth but robust investment yield drove APAT. CoR elevated; APAT estimates revised; maintain Buy with TP based on Sep-27E roll forward.
Nomura on LG Electronics India
Initiate Buy | Target Price Rs 1,800
Favourable demographics and low appliance penetration underpin a multiyear growth runway. Premiumisation supports upside. Expect robust ROE/ROIC by FY28; value creation tied to localization and margin expansion.
Citi on RBL Bank
Buy | Target Price Rs 300
Early take on Emirates NBD (ENBD) talks: a >51% stake could imply a sizeable equity infusion (US$2.0–2.14bn for 51%), materially boosting net worth and enabling faster growth. RoE dilution possible initially; key is structural improvement in cost of deposits and execution.
CLSA on RBL Bank
Hold | Target Price Rs 260
Scenario analysis (assume 25% primary equity + open offer): benefits include lower wholesale funding cost and more secured retail lending. Expect modest ROA improvement but ROE to remain broadly unchanged given higher equity.
MS on Schloss Bangalore (Leela)
Overweight | Target Price Rs 562
Strong 2Q: OR +4%, ARR +7%, RevPAR +13%, revenue +11% YoY. Reiterates mid-high teens EBITDA growth target for FY26. Luxury asset strategy backed by Brookfield partnership supports expansion.
Elara on Schloss Bangalore (Leela)
Buy | Target Price Rs 569 (maintain)
ADR +7% YoY, occupancy improvements and BKC project cost savings drive upside. Dubai JV adds near-term EBITDA; FY28 PAT upgraded materially.
MS on M&M Financial
Equal Weight | Target Price Rs 300
2Q profit improved on lower provisions; gross Stage-3 returned to ~2.86% vs 9.14% YoY and coverage at ~65%. Asset quality improvement is encouraging; watch for sustainability in provisioning and growth.
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