Leading brokerage firms have issued updated ratings and target prices for several prominent Indian companies, painting a mixed picture for the near-term outlook. The calls cover sectors from consumer durables and cement to IT and pharmaceuticals, reflecting varied analyst sentiment based on recent management commentary and macroeconomic factors.
Voltas Faces Near-Term Headwinds
Nuvama Institutional Equities has maintained a 'reduce' rating on Voltas, setting a target price of Rs 1,170. Analysts pointed out that the company's management indicated persistent weakness in near-term demand. This is attributed to high channel inventory, estimated at around 45 days, coupled with seasonally soft demand in the November-December period.
However, a sequential improvement is anticipated in the third quarter of FY26 (Q3FY26). This expected recovery is partly due to anticipated pre-buying by the channel ahead of potential price increases, driven by cost inflation and changes in the rating table for appliances. Reflecting lower margin expectations, Nuvama has cut Voltas's earnings per share (EPS) estimates by 12% for FY26 and 3% for FY27.
Bullish Calls on SBI Cards and Dalmia Bharat
In contrast, Kotak Institutional Equities is positive on SBI Cards and Payment Services, assigning an 'add' rating with a target price of Rs 975. The optimism stems from management's guidance on improving asset quality. This improvement is expected to be led by a decline in the formation of special mention accounts (SMAs) and their flow rates. The company also noted a recovery in customer spending, confidence in defending its market share, and a gradual loan growth trajectory. The cost-income ratio is projected to remain in the range of 55-57%.
CLSA has an 'outperform' rating on Dalmia Bharat with a target of Rs 2,650. The cement maker's management highlighted an expected high-single-digit volume growth for Q3FY26, supported by sequential improvements in November and December following a prolonged monsoon season. A key concern, however, is weak pricing, particularly in the eastern region, where prices have declined by approximately 3-4% on a blended basis, likely impacting quarterly margins. The company reiterated its disciplined pricing strategy, avoiding aggressive discounts to chase market share. On the expansion front, the Jaisalmer greenfield project remains a key opportunity, with land acquisition and clearances at an advanced stage.
IT and Pharma in the Spotlight
Morgan Stanley has an 'equal-weight' stance on HCL Technologies with a target price of Rs 1,680. The IT major announced an acquisition of telecoms services assets carved out from Hewlett Packard Enterprise (HPE) for a total cash consideration of $160 million (including incentives). While this marks another strategic buy, analysts believe the financial impact may not be significant for HCL Tech. The company has not disclosed the revenue or margin profile of the acquired assets.
Citigroup maintained its 'buy' rating on Divis Laboratories, with a target price of Rs 9,140. The focus here is on the US Biosecure Act, which is likely to become law after the Senate passed the National Defense Authorization Act (NDAA). The bill has now been sent to the White House for Presidential approval. Analysts note that the latest version does not name specific companies, unlike earlier drafts, though US officials have previously flagged some China-based firms. This ongoing global supply-chain diversification by innovator pharmaceutical companies could benefit Indian contract development and manufacturing organizations (CDMOs) like Divis.
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