Nuvama Downgrades UPL to Hold Amid Restructuring Plans
Nuvama has downgraded UPL to a hold rating, setting a target price of Rs 816. Analysts highlighted that the company recently announced a significant restructuring initiative. This involves merging UPL SAS and UPL Corp to create a unified crop protection entity, which will be listed as UPL Global. Meanwhile, UPL Ltd will remain as the holding company for its formulation business, research and development, Superform, and Advanta.
The demerger is strategically designed to drive synergies and unlock value for shareholders. Importantly, the transaction is cash and tax neutral, protects minority interests, and does not alter the capital structure. It is expected to have no material impact on the current leverage overhang, providing stability during the transition.
Jefferies Issues Buy on IDFC First Bank Despite Fraud Case
Jefferies has issued a buy recommendation for IDFC First Bank, with a target price of Rs 100. Analysts noted that the bank disclosed a suspected fraud involving Rs 590 crore at its Chandigarh branch, linked to certain Haryana state government accounts. The bank has promptly initiated an investigation and is taking steps to recover the funds, which amount to approximately 0.9% of its net worth post-tax.
While this incident highlights the need for strengthened operational controls, Jefferies clarified that the issue has not spread to other clients. The bank's proactive measures and the limited financial impact support the positive rating, emphasizing resilience in its operations.
Morgan Stanley Underweight on Dixon Technologies Amid DRAM Price Surge
Morgan Stanley has assigned an underweight rating to Dixon Technologies, with a target price of Rs 8,157. Analysts pointed to a dramatic surge in DRAM spot prices, which as of February 13, 2026, were up 6.8 times year-over-year. Average mobile DRAM prices for some variants have increased by 55% and 64% quarter-over-quarter in 2026.
According to TrendForce, mobile DRAM prices are expected to rise by approximately 88-93% in the current quarter and 20-25% in the next. This poses a significant headwind for India's smartphone market, where about 75% of devices are priced below $300. The increased costs could further pressure an already muted industry, impacting Dixon Technologies' prospects.
CLSA Outperform on Tech Mahindra's AI and Growth Strategy
CLSA has given an outperform rating to Tech Mahindra, with a target price of Rs 1,810. Analysts met with the company's chief operating officer, who expressed optimism about artificial intelligence as a net positive volume opportunity and a potential margin lever. New opportunities are emerging around building small language models (SLMs) and infusing AI into business process outsourcing (BPO) operations, which present significant areas for system integrators.
Tech Mahindra is the only global system integrator (GSI) partner in the India AI mission, where it is developing a large language model (LLM). The company emphasizes employee reskilling, categorizing its workforce into white, blue, brown, and black belts. Similar to other Indian system integrators, Tech Mahindra plans to partner with foundation model companies like OpenAI and Anthropic at the Mahindra group level. Analysts remain positive on Tech Mahindra's vision to achieve higher-than-peer average growth in FY27, supported by strong order booking momentum and cyclical tailwinds from the US midterm elections.
Macquarie Initiates Coverage on Torrent Pharma with Outperform Rating
Macquarie has initiated coverage of Torrent Pharma with an outperform rating and a target price of Rs 5,000. Analysts noted that the company is executing its perfected acquisition blueprint with the JB Pharma acquisition, which is expected to accelerate its growth momentum. Post-acquisition, pro forma earnings before interest, taxes, depreciation, and amortisation (EBITDA) are estimated to almost double by FY29 based on the FY25 base, driving meaningful cash earnings per share (EPS) accretion.
Additionally, pro forma net debt to EBITDA is projected to decline by FY28. Key catalysts for the stock include regulatory approvals for the JB Pharma acquisition, synergy realisation, and the launch of key products, positioning Torrent Pharma for robust financial performance.
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