Morgan Stanley has assigned an overweight rating to ONGC with a target price of Rs 345. Analysts highlight that over the last two decades, ONGC has paid approximately $33 billion in dividends, nearly equivalent to its current market capitalization, while generating an average post-tax return on capital employed (ROCE) of 12%. Over the next 20 years of 2P reserve life, dividends are expected to double the historical rate. A 3% compounded annual growth rate (CAGR) of production from FY26 to FY29, driven largely by domestic gas production and a turnaround in international profitability, supports a 14% earnings CAGR.
HSBC Initiates Coverage on Max Financial Services
HSBC has started coverage on Max Financial Services with a buy rating and a target price of Rs 2,120. Axis Max Life Insurance (AMLI), the key operating subsidiary, is one of India's fastest-growing life insurers. Analysts believe its focus on diversifying distribution and products will drive sustainable, predictable growth with stable margins. Sustained operating performance and progress on potential mergers are key catalysts. Despite sector de-rating due to regulatory headwinds, Max Financial's resilience is reflected in its fundamentals. Downside risks include delays, regulatory hurdles, or unfavorable outcomes in the reverse merger; potential bancassurance limits; and reduced Axis Bank focus on insurance sales.
Jefferies Initiates Coverage on Meesho
Jefferies has initiated coverage on Meesho with a target price of Rs 225. Analysts note that Meesho is building a scale-led value commerce platform anchored in affordability, discovery, and logistics efficiency. A loyal user base, supported by a deep MSME supply network, drives a strong flywheel. The growth-led approach keeps monetization back-ended, with take rates expanding over time. The company has a net cash balance sheet with negative working capital, supporting capital-efficient growth.
DAM Capital Initiates Coverage on Physicswallah
DAM Capital has started coverage on Physicswallah with a target price of Rs 140. Analysts highlight this as an Indian ed-tech story where scale did not come at the expense of profitability. They expect a 24% revenue CAGR and a 71% EBITDA CAGR over FY26-FY28, driven by near-zero-cost category expansion online (Civil Services, CA, State Boards), maturing Vidyapeeth cohorts offline, and operating leverage from a centralized content and faculty base of about 2,500. Physicswallah is the only major Indian ed-tech player approaching profitability, thanks to the industry's lowest customer acquisition cost. Its refusal to pay star-teacher salaries broke the trend among peers.
CLSA Outperform on SBI
CLSA has an outperform rating on SBI with a target price of Rs 1,275. After reviewing the lender's annual report, analysts noted that FY26 was a good year. On deposits, the focus was on 'retailisation', with retail savings and term deposits growing 12-15% year-on-year. Corporate salary accounts grew 11% in FY26 to cross 2 crore. Priority sector lending (PSL) compliance improved significantly, with a sharp decline in PSL certificate purchases. Rural Infrastructure Development Fund (RIDF) assets have been stagnant since FY24, implying a lower drag on net interest margin (NIM). SBI launched an operations process re-engineering exercise and introduced variants of business loan products during the year.
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