JP Morgan has maintained an overweight rating on Reliance Industries (RIL) with a target price of Rs 1,660. Analysts believe that RIL will benefit from sustained strength in its refining and petrochemical spreads, along with a weaker rupee. The stock's valuations continue to appear reasonable, with the commissioning of New Energy businesses expected to act as a catalyst through FY27.
Key Takeaways from RIL's Annual Report
According to analysts, there are at least two important takeaways from RIL's annual report. First, headline capital expenditure (capex) of Rs 1.4 lakh crore increased 10% year-on-year (YoY), but capex in cash flow of Rs 1.2 lakh crore fell 11% YoY. This could be due to timing differences in payments and capitalized foreign exchange translation losses. Second, headline O2C (oil to chemicals) capex increased to Rs 32,400 crore in FY26, while retail capex fell meaningfully to Rs 21,100 crore. However, the largest component of capex was the unallocated segment at Rs 55,900 crore, up from Rs 31,200 crore in FY25.
CLSA Initiates Coverage on Lenskart
CLSA has initiated coverage on Lenskart with an outperform rating and a target price of Rs 604. Analysts noted that the company is a leading eyewear brand in India, well positioned to cater to affluent urban and emerging cohorts while also offering affordable products for the masses. They believe Lenskart is well placed to expand its 2,609-store network in India while maintaining store economics, driving profitability through operating leverage and mix improvement. Product margins and operating leverage are expected to drive India profitability, while international business profitability is improving. Key risks include affordability constraints in lower cohorts, step-change in technology, and slower-than-expected new store additions.
Elara Capital Maintains Buy on BEML
Elara Capital has maintained its buy rating on BEML with a target price of Rs 2,700. Analysts reported that the company's revenue for the January-March quarter (Q4FY26) grew 9% YoY to Rs 1,790 crore, led by rail, metro, and defence segments. However, earnings before interest, taxes, depreciation, and amortisation (EBITDA) declined 36% YoY due to one-off provisions of around Rs 150 crore related to the Mumbai metro project. Excluding one-offs, EBITDA margin contracted 210 basis points YoY to 23.5%. Order inflows grew 20% YoY to Rs 1,250 crore in Q4FY26, while the order book at Rs 15,900 crore provides strong revenue visibility. FY27 and FY28 earnings estimates have been cut by 8% and 6%, respectively, due to a slowdown in the mining segment. Earnings growth of 83% is expected over FY26-FY29, with an average return on equity of 20%.
Motilal Oswal Neutral on ITC
Motilal Oswal Financial Services has a neutral rating on ITC with a target price of Rs 300. Analysts noted that effective February 2026, the cigarette industry is witnessing one of its most disruptive regulatory resets after the implementation of GST 2.0. The revised taxation framework has resulted in an estimated 60-65% surge in cigarette taxes for ITC, implying the need for a roughly 35% hike in retail prices. This is the steepest hike seen historically and a sharp departure from the largely stable tax regime maintained during 2018-25. The transition has also been unusual due to the one-month gap between the announcement (January 2026) and implementation (February 2026), compared to the typical immediate or near-immediate execution seen historically. In response, ITC has adopted a calibrated and phased price hike strategy instead of taking an upfront full tax pass-through, with the objective of limiting the shift toward illicit cigarette markets and retaining market share among legal players. Analysts expect a 10% volume decline in FY27E and flat volume in FY28E in ITC's cigarette segment. Earnings pressure on cigarettes would remove near-term catalysts such as improving FMCG and paper. Valuations remain comfortable, but analysts do not see any near-term positive catalyst.
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