Tech Mahindra
Nomura – Buy, TP Rs 1,670
2QFY26 strong across most parameters. Deal wins and pipeline robust; aiming for better revenue growth in FY26E vs FY25. Business turnaround progressing well at midpoint of 3-year plan. Trades at 18.3x FY27F EPS.
CLSA – High Conviction O-P, TP Rs 1,695
2Q revenue and EBIT beat; margins at 12.1%, targeting 15% in FY27. Strong management track record; growth ambition above peer average remains uncertain.
Jefferies – U-P, TP Rs 1,270
Q2 revenues/margins inline; profits impacted by FX losses. Strong order wins support 2HFY26, but sharp FY27 growth recovery unlikely. Onsite wage inflation may challenge 15% margin target.
MS – UW, TP Rs 1,555
Positives: strong deal wins, client stability, margin improvement. Concerns: weak conversion to revenue, tough vertical outlook, weak macro. Trades at slight discount to HCLT, limiting risk-reward.
Persistent Systems
HSBC – Hold, TP Rs 6,000
2QFY26 strong growth and profitability; deal wins recovered. Industry-leading growth, strong software engineering and managed services capabilities.
CLSA – High Conviction O-P, TP Rs 8,270
Strong quarter: order book, revenue, margin, ROE expansion, improved FCF/PAT. FY27 revenue target US$2bn; 29% EPS CAGR FY25-27.
Nomura – Neutral, TP Rs 5,200
All-round 2Q performance; margin beat from lower software license cost. FY26-28 EPS raised 3-5%. Trades at 37.5x FY27F EPS.
Nuvama – Buy, TP Rs 7,000
Strong margin performance; demand pipeline improving. Margins aided by lower software license costs; growth outlook maintained.
ICICI Prudential Life
MS – EW, TP Rs 625
VNB beat from higher product-level margin and cost control; low ROEV and APE volatility keep EW stance.
HSBC – Buy, TP Rs 700
VNB margin surprise in 2Q; demand pickup and distribution focus to drive recovery in 2HFY26. Attractive valuation at 1.4x FY27E EV.
Jefferies – Buy, TP Rs 730
Q2 VNB Rs 6bn (+1% YoY). APE down 3% YoY. Margins up ~100bps; ITC absence may impact Dec Qtr. FY25-28 VNB CAGR ~13%.
Nuvama – Buy, TP Rs 770
Retail APE down 7% YoY; group APE +20.7% YoY. VNB margin 24.4%. FY26E/27E/28E VNB slightly adjusted; TP maintained.
ICICI Lombard
HSBC – Buy, TP Rs 2,250
2QFY26 PAT +5% above HSBCe; high retention and investment income; premium growth positive; profitability priority.
MS – EW, TP Rs 2,035
PAT beat due to investment income; underwriting weak; premium growth strong in 3QF26.
Elara – Buy, TP Rs 2,250
GDPI ₹6,600cr; PAT +18% YoY; CoR 105.1%; robust ROE 21.4%, solvency 2.73x; FY26 H2 growth accelerating; GST tailwinds aid growth.
Nuvama – Buy, TP Rs 2,340
Muted 1.6% YoY GWP growth; CoR 105.1%; APAT +18.1% YoY; FY26E-28E APAT revised; TP maintained.
LG Electronics India
Nomura – Buy, TP Rs 1,800
Favorable demographics, low penetration, premiumization driving growth. Strong ROE/ROIC (31%/56%) by FY28F; trades mid-band 30–45x.
RBL Bank
Citi – Buy, TP Rs 300
ENBD stake acquisition (51%) may infuse Rs 180-190bn; near-term RoE dilution offset by structural CoDs improvement. Positive outlook maintained.
CLSA – Hold, TP Rs 260
Assume 25% stake purchase at Rs 350/share; triggers open offer for 26%. Positive synergies: lower wholesale cost, more secured lending. ROA +25bps, ROE stable; FY27 BVPS Rs 318.
Schloss Bangalore / Leela
MS – OW, TP Rs 562
2Q: OR +4%, ARR +7%, RevPAR +13%, revenue +11% YoY. Targeting mid-high teens EBITDA growth FY26. Focus on luxury assets and Brookfield partnership for expansion.
Elara – Buy, TP Rs 569
ADR +7% YoY; occupancy +410bps; BKC project structure saves ₹1,200–1,500cr. Dubai JV contributes ~₹50cr post rebranding; FY28E PAT raised 34%.
M&M Financial
MS – EW, TP Rs 300
2QFY26 profit Rs 10.9cr (+YoY); provisions down sharply. Gross Stage 3 at 2.86% vs 9.14% YoY; coverage 65.3%.
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