Goldman Sachs has maintained a neutral rating on ITC with the target price unchanged at Rs 330. Analysts noted that the company's January-March quarter (Q4FY26) earnings are not comparable on a year-on-year (YoY) basis due to changes in the cigarette tax structure. They anticipate the peak earnings impact from the cigarette tax hike to occur in Q1FY27. The brokerage estimates a cigarette volume decline of approximately 8% and an earnings before interest and taxes (EBIT) decline of about 17% in FY27. The fast-moving consumer goods (FMCG) business saw growth accelerate to 15% YoY, while the earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin improved by 200 basis points (bps) YoY. Additionally, the paper business EBIT margins recovered due to lower wood costs and anti-dumping duty benefits, whereas the agri business EBIT declined by 29% YoY because of West Asia shipping disruptions. Analysts expect agri headwinds to persist in the near term.
Citi Maintains Buy on LIC
Citigroup has maintained a buy rating on Life Insurance Corporation of India (LIC) with a target price of Rs 1,475. Analysts highlighted that the life insurance major's Q4FY26 operational performance was strong, driven by an approximately 690 bps YoY expansion in the value of new business (VNB) margin, supported by a higher non-par mix and favourable yield curve-led benefits in the rapidly growing non-par book. Economic value contracted by 3% over September 2025 (up 2% over March 2025), primarily due to elevated negative investment variance, with similar impact from debt and equity for FY2026. Management noted that the drop in net gain on future value (FV) change as of March 2026 has been largely recouped (around 80%) until mid-May 2026, providing comfort on economic value recoup. The management also emphasised concerted efforts to sustainably improve persistence, product innovation, increase productivity of existing agents, augment the agent base, and drive higher business through non-agency channels. Valuation remains benign, with FY2027 projected core EV (excluding mark-to-market EV) at levels higher than the current market value. Visibility on promoter holding structure remains a key overhang, even as operational performance stays sound.
Jefferies Upgrades Nykaa
Jefferies has maintained a buy rating on Nykaa and raised the target price to Rs 350. Analysts noted that the company continues to report strong growth across segments, with beauty growth exceeding 25% and achieving the highest-ever EBITDA margin. Its fashion business reported continued acceleration, reaching break-even, signalling that management has cracked the code. Own brands continue to grow from strength to strength. The company's medium-term outlook is quite positive, although management sounded a note of caution given the tough macroeconomic environment.
CLSA Outperform on Honasa
CLSA has maintained an outperform rating on Honasa with a target price of Rs 434. Analysts reported that the company achieved revenue growth of 23% YoY (28% growth excluding changes in accounting), which was ahead of estimates. Volume grew 30%, while margin expanded more than 650 bps YoY, leading to a beat on EBITDA. Three key highlights stood out: firstly, Mamaearth grew in the teens YoY, and management expects double-digit growth to continue. Secondly, offtake growth in general trade and modern trade was up 30% YoY, a healthy sign of rising brand traction. Lastly, operating leverage, albeit on a soft base, helped EBITDA beat estimates by more than 140 bps. Analysts believe Honasa's runway to scale brands via its focus categories and hero SKUs remains long. Execution of the Mamaearth turnaround continues to improve, and analysts expect margin expansion to persist.
Morgan Stanley Overweight on LG Electronics India
Morgan Stanley has maintained an overweight rating on LG Electronics India with a target price of Rs 1,726. Analysts said the company's revenue grew 8% YoY, led by premiumisation and broad-based demand recovery. EBITDA margin declined 230 bps to 11.7% due to commodity inflation and rupee depreciation, while adjusted profit after tax (PAT) fell 8% YoY. The company's home entertainment revenue rose 20% YoY. Industry-wide price hikes are underway to offset commodity cost pressure, and management expects cost pressures to ease as geopolitical conditions stabilise.
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