Brokerages Issue Bullish Calls on Key Indian Stocks
In a series of optimistic assessments, major financial institutions have released favorable ratings and revised target prices for several prominent Indian companies, highlighting robust growth trajectories and strong operational performances.
CLSA Upgrades M&M with Outperform Rating
CLSA has reaffirmed an outperform rating on Mahindra & Mahindra (M&M), raising the target price to Rs 4,702. Analysts emphasized that the company continues to dominate as a revenue market leader in the utility vehicle segment. With a robust pipeline of new launches, superior execution capabilities, and improving profitability, M&M is projected to achieve a 20% earnings before interest, taxes, depreciation, and amortisation (EBITDA) compounded annual growth rate (CAGR) from FY26 to FY28.
In the third quarter of FY26 (Q3FY26), M&M's auto EBIT margin reached 9.5%, surpassing the estimated 9.0%. For the tractor division, analysts forecast a 7% growth in FY27 following a strong performance in FY26.
HSBC Maintains Buy on Hindalco Industries
HSBC has issued a buy rating on Hindalco Industries with a target price of Rs 1,240. Analysts noted that while fires at the Oswego facility impacted operations, the overall performance remains robust. Management has reiterated plans for the full commissioning of the Bay Minette plant in the second half of FY26, with the cold mill set to begin commissioning in March.
Citigroup Bullish on Divis Laboratories
Citigroup has assigned a buy rating to Divis Laboratories, setting a target price of Rs 9,140. The company reported a strong 20% EBITDA growth in Q3FY26, with management providing clear visibility for FY27 and FY28. Multiple products, including Tirzepatide (a GLP-1 drug), are expected to transition to commercial volumes over the next 12 months.
Additionally, three dedicated projects are slated to enter the commercial stage in CY27. Analysts see no deviation from the double-digit growth trajectory, regardless of patent cliffs, and new projects could further expand margins, with management expressing limitless potential.
Jefferies Raises Target for Lenskart
Jefferies has upgraded Lenskart with a buy rating, increasing the target price to Rs 575. Analysts praised the company for delivering an exceptional quarter, marked by strong growth and smart margin expansion across both Indian and international markets. Management commentary underscored a strategic focus on long-term growth over short-term margin maximisation, viewing margins as an outcome rather than a primary objective.
Motilal Oswal Positive on Ashok Leyland
Motilal Oswal Securities has issued a buy rating on Ashok Leyland with a target price of Rs 238. Analysts identified multiple growth drivers poised to benefit from a commercial vehicle (CV) cycle revival. The Q3FY26 earnings beat was attributed to better margins and higher other income.
Over the years, Ashok Leyland has effectively reduced business cyclicality by diversifying into non-truck segments. Continued emphasis on margin expansion, prudent capex control, and a net cash position are expected to enhance returns and support investment in growth avenues in the coming years.
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