MS on Hyundai
OW TP Rs 3066
By 2030, India will became second-largest market for HMC, after the US. Rs450bn capex, seven new nameplates, multi-powertrain strategy, and luxury foray via Genesis to drive growth.
Tarun Garg takes over as MD and CEO of HMI.
F2030 revenue guidance of Rs1trn-plus looks conservative to us.
On F27 estimates, HMI, MSIL and M&M (tractors at 25x P/E) trade at P/Es of 26.3x, 25.4x, and 23.8x, respectively
HSBC on Hyundai
Buy, TP Rs 2800
5-year volume CAGR of 7%, 11-14% EBITDA margins and export focus were in line with expectations
Significant increase in capex (and hence D&A cost) and backend loaded product launches were negatives
Valuation not undemanding, although long-term potential of HMI franchise is attractive
Nomura on Hyundai
Buy, TP Rs 2846
Aiming for ahead-of-industry growth till FY30
Filling white spaces in MPVs, SUVs, CNG, hybrids a key growth driver
Genesis brand’s launch a key positive
Key risks: 1) lower EV margins, and 2) SUVs losing share to hatchbacks and entry-segment cars over the next five years.
Nuvama on Hyundai
Target Price: ₹3,200 (Maintain BUY)
The company has an upcoming pipeline of 26 models by FY30E, including seven new nameplates, with new MPV and off-roader SUV models
Management expects to meet CAFÉ 3 norms using multiple powertrains. By FY30, the portfolio will include 13 ICE, 5 EV, 8 Hybrid, and 6 CNG models
The company is targeting a domestic volume CAGR of 7% over FY25-30E, outpacing the industry CAGR of 5%
Export share is expected to expand from 27% in H1FY26 to up to 30% by FY30E
Local sourcing will increase from ~82% in ICE models to 90% by FY30Е
An investment plan of ₹45,000 crore over FY26-30E is earmarked for product development, R&D, and capacity/upgradation
Revenue and EPS are projected to grow at a CAGR of 10% and 17% over FY25-28E, with an average RoIC of 59%
CLSA on Axis BK
O-P TP Rs 1400
2QF PBT, adjusted for one-offs, was 3-4% better than est. driven primarily by better NII and PPOP
Believe 2Q was a quarter of a change in trend.
Firstly, growth picked up, both on loans and deposits.
Both grew low-double digits vs. high-single digits earlier.
Secondly, core slippages (ex-technical) came in lower than the in past few quarters.
Axis took a one-time standard asset provision of Rs12bn for its crop loan portfolio though – this provision will be released before Mar 2028.
Margins were down only 7bp (11bp, ex one-offs) driven by a sharp decline in cost of deposits
Bernstein on Axis BK
O-P, TP Rs 1250
Reported its 2Q with growth metrics showing sequential improvement and asset quality witnessing a sharp recovery as slippages declined meaningfully QoQ.
While credit costs remain elevated – albeit lower than the previous quarter – this is largely due to oneoff provisions on agri advances, which could reverse in subsequent quarters. Encouragingly, underlying trends such as lower slippages and improving card additions suggest that asset quality stress may be nearing a bottom
HSBC on Axis BK
Buy, TP raised to Rs 1460
AXSB reported very strong results in loan growth, margins, asset quality; one-off provisions were a disappointment
However, earnings inflection is visible; raise FY26-28e EPS by 2.7-5.3% on stronger growth, lower credit costs
premise for AXSB’s recent upgrade to preferred pick is playing out
Nomura on Axis Bank
Buy, TP Rs 1440
2Q26: Strong operational performance
Loan growth picks up; one-off provisions drag PAT
Technical slippages moderate significantly; credit cost elevated due to a one-off
Jefferies on Axis BK
Buy, TP Rs 1430
Q2 profit of Rs51bn, -26% YoY, was ahead of estimates with key positive in (1) better NIMs- down just 7bps QoQ, (2) pick-up in loan/ deposit growth to 12/11% & (3) moderation in slippages & core credit costs.
RBI mandated provision of Rs12bn and recurring PSLC cost of Rs9bn are negative.
Still, better core results compensate for that
Tweak est. to factor better core trends & see vals attractive.
JPMorgan on Axis Bank
Recommendation Neutral; Target Price ₹1,260
Q2 miss led by higher provisions on crop loans
Asset quality improving with GNPA and slippages declining
NIMs stable, corporate loans driving overall loan growth
Nuvama on Axis Bank
Target price: 1,180 (Maintain HOLD)
Mixed Q2FY26 results with a beat on loan growth and NIM, but a miss on credit cost, loan mix, and opex
Loan growth of 5% QoQ was better than expected but driven mostly by the corporate segment, while retail lagged
Both core and technical slippages declined on a high base of Q1; however, credit cost remained elevated at 1.3%
The miss was driven by an RBI inspection-related standard and a one-time provision of ₹120 crore on crop loans. As a Selin result, RoA fell to 1.2% from 1.5% QoQ
Retain Target price of 1,180 and maintain HOLD, in view of recurring volatility in credit costs and a weak loan mix
Recommend switching to ICICI Bank for a more sustainable and less volatile business model with stronger CASA growth
Jefferies on HDFC Life
Buy, TP Rs 930
Q2 VNB of Rs10bn, up 8% YoY, was tad ahead of estimates with better margins.
APE growth was soft at 9%, led by Ulips & protection
Expect growth to improve as base normalises from Dec qtr and competition has realigned pricing on non-par savings products.
Margins for 2HFY26 will fall slightly due to impact of GST and expect to normalise from FY27
GS on HDFC Life
Buy, TP Rs 865
An inline 2QFY26 with VNB up 8% yoy largely tracking topline growth (+9% yoy).
Growth was driven by Par products that more than doubled (yoy) on back of new launch momentum in 1HFY26; ULIPs grew +42% yoy (+23% vs. GSe) on improving equity market sentiment. VNB margins remained stable qoq at c.24% as better product mix (higher protection, par as well as higher sum assured ULIPs) offset the impact of surrender regulations, GST impact (90bps impact for Q2) as well as higher fixed cost investments.
CLSA on HDFC Life
O-P, TP Rs 910
HDFC Life’s 1HFY26 VNB margin at 24.5% was 10bps higher than our expectation
Drag on margins due to the loss of the GST input tax credit for September sales (c.15% of the first half) was 50bps.
Management indicated that it is working on multiple fronts to mitigate the negative impact.
Retail protection growth was strong at 28% in the first half, with more than 50% growth in September following GST changes.
Nuvama on HDFC Life
Target price: ₹910 vs ₹920 (Maintain BUY)
APE growth in Q2FY26 was moderate at 8.7% YoY (1.0% below estimates). Retail and Group businesses grew evenly at 8.8% and 7.4% YoY, respectively
The impact of non-availability of GST ITC, revised surrender norms, and lower fixed-cost absorption was partially offset by higher protection sales (up 24.1% YoY)
VNB margin declined 25 bps YoY to 24.1%; VNB stood at 10.1 billion, up 7.6% YoY – 3.7% below estimates
On muted growth and margin pressure, we cut FY27E/FY28E VNB and VNB margin estimates by 1.9%/0.4% and 104 bps/86 bps, respectively
We slightly tweak our Target price to ₹910 (earlier ₹920), based on FY27E/FY28EP/EV multiples of 2.2x/1.9x
MS on HDB Fin
EW, TP Rs 805
PAT beat MSe on 6% operating profit beat – higher NII and lower operating costs.
Credit costs, bad loan formation and write-offs were elevated but stage 2 was stable QoQ
Raise F26e EPS by 4% on higher NIM, but cut F27 / F28 by 0.4% / 3%
Jefferies on HDB Fin
Buy, TP Rs 900
Q2 PAT was Rs5.8bn (-2% YoY), 2% miss vs. our est. as miss in lending PAT (5% miss) due higher provn was offset by higher BPO PBT.
AUM growth moderated to 13% YoY, but NIM surprised positively (20bps QoQ).
AQ slipped QoQ mostly due to higher stress in CV portfolio.
Initial trends in consumer, autos in Oct has been positive per mgmt.
Growth & AQ trends should improve in 2H led by GST cut & normalization in activity levels
MS on L&T Fin
UW, TP Rs 143
Remain cautious on LTF at NTM P/BV of 2.3x
Expect ROE emergence to be slow driven by compression in risk-adjusted NIM and ROA as the business de-risks and loan growth moderation amid overcapitalization.
F2Q26 ROE of 11.3% remains well below COE.
Macquarie on Tata Com
O-P, TP Rs 2210
TCOM management shared a constructive message during the Sep-Q earnings call, even as the results for the Digital Portfolio were in-line, while Core Connectivity was softer
TCOM’s Digital Portfolio saw 15% YoY aggregate revenue growth (Next Gen connectivity +29%, Cloud +13%) alongside a moderation in EBITDA losses (estimate 200-300bps QoQ improvement).
Overall Core Connectivity revenue growth was soft at 1% YoY (impacted by overseas cable cuts; MQe 4%) albeit with margin normalising.
CLSA on Tata Com
O-P, TP Rs 2100
2QFY26 consol. revenue of Rs61bn, up 6% YoY/2% QoQ, was in line
TCom’s data revenue was up 7% YoY/1% QoQ, driven by digital services (49% of data revenue), which reported 14% YoY/1% QoQ growth.
Consol. Ebitda of Rs11.7bn was up 4% YoY/3% QoQ, & with data margin up 144bps QoQ, data business Ebitda was up 10% YoY/9% QoQ.
TCom gearing is comfortable at 2.5x net debt to Ebitda.
TCom offers 10-15% data revenue & consol. Ebitda Cagrs by FY28CL
Investec on UBL
Maintains ‘Hold’ With Target Price Of ₹2,081
Grew Slower Than Industry MoM In Karnataka
Believe The Price Increases At The Lower End Of Market Impacting The Overall Share Picture
Karnataka’s Performance Is Critical As It Is One Of Co’s Largest & Most Profitable States
Expect An Improving Performance In The Coming 3 Months As The Base Effect Starts To Kick In
Morgan Stanley on AU SFB
Target Price ₹1,000
Recommendation Overweight
Focus on loan growth, NIMs & asset quality for Q2 results
Improving macro and better asset quality could drive faster loan growth in FY27 vs FY26
Expects 30% re-rating over next 9-12 months if earnings trajectory improves
Nuvama on HDFC AMC
Target price: ₹7,020 vs ₹6,530 (Maintain BUY)
Strong SIP inflows of ₹86,100 crore in Q2FY26 (up 6.8% QoQ) were partially offset by a weak equity market, resulting in equity QAAUM growth of 15.5% YoY and 7.5% QoQ
Revenue and EBIT grew 15.8% and 13.5% YOY, respectively, while APAT rose 3.9% YoY but declined 10.2% QoQ to ₹670 cr
We tweak FY26E/FY27E/FY28E NOPLAT estimates by // -1.3%/-1.6%/-0.8%. Along with a valuation rollover to Sep-27E, this lifts the TP to ₹7,020 (earlier ₹6,530)
We value the stock at FY27E/FY28E P/E multiples of 45.6x/38.8x
Nuvama on KEI Ind
Target Price: ₹4,450 (Maintain BUY)
The company reported another strong quarter with revenue/EBITDA/PAT growth of 20%/22%/31% YoY
Revenue and EBITDA were in line with estimates, while PAT came 9% above estimates due to higher other income
The C&W segment saw revenues grow 23% YoY, with EBIT margins expanding 50 bps YoY and 20 bps QoQ to 10.9%
Exports surged 93% YoY, contributing 22% of total revenues
We expect peers to report healthy numbers, given strong tailwinds in the cables segment
BUY rating maintained with a Target Price of ₹4,450. KEI continues to be a top pick
CLSA on India strategy
India underperforms peers as FIl selling continues
Nifty rose 0.8% in September, the second-worst performing in emerging markets after philippines
FII’s sold US$2.1bn of equities, led by active funds.
Fils rotated into financials and took their underweight positions in autos and materials to record lows, funded by selling staples and healthcare.
Direct mutual fund inflows were flat MoM at US$6bn as higher passive flows offset a MoM fall in active flows
SIP contributions hit a new record but discretionary inflows fell MoM
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