MS on Reliance Ind
Overweight Call, Target Rs 3,416
Co’s GRM Outperformance Vs Benchmark Margin To Widen Further As Crude Discounts Rise
Stock Is Pricing In Mid-Cycle Refining Margins; Current Margins Are Below That
Refining Cash Flows Remain Key To Co’s Growth Plans
Global Refining Weakness Does Receive Investor Focus
$1/bbl Lower Refinery Margins Affect Co’s Cash Flow Negatively By $0.4 Bn
JPMorgan on IT
Overweight Call On Mphasis & Coforge
TCS Best Placed
BFS Has Been Standout Vertical With Positive Incremental Commentary Since IT Earnings Season
Commentary Has Highlighted That This Is Particularly Strong For US BFS Firms
A Potential Fed Rate Cut Could Drive A Recovery In Mortgages For US BFS
Fed Rate Cut Could Drive Improvement In Discretionary Tech Spends For The BFSI Vertical
Mphasis Has Highest Exposure (59% BFSI, 46% US BFS) Followed By Coforge (53% BFSI, 26% US BFS)
CLSA on IT
Maintain Cautious Stance With Underperform Call On LTIMindtree
Hold Call On TCS, Infosys & HCLTech
Software Is Growing Much Faster Than IT Services Spend & At Times Cannibalising It
Indian IT’s Global Market Share Has Somewhat Plateaued Lately At Around 16%
Offshoring Tailwinds Seen Post COVID Reversing In Few Instances
Captives Of G2000s In India With Annual Revenues $50 Bn Have Reached A Threshold
Nifty IT Now Just 7% Away From Peak Valuation Seen Post COVID Recovery
Growth For Indian IT Would At Best Be High-single Digits In FY26/27 Vs Mid-teens In FY22
Citi on Lupin
Sell Call, Target Rs 1,700
Otsuka (Innovator) Files Notice Of Appeal Against District Court’s Verdict On Generic Jynarque
There Is A Probability That Lupin May Still Prevail In The Higher Court
Co’s Generic Launch In April 2025 (If It Wants To Go Ahead) May Now Be An ‘At Risk’ Launch
There May Be Delay Around Injunctions/Restraining Orders
Co May Delay The Launch As It May Not Realise Full Potential Of Sole FTF With An “At Risk” Launch
Jynarque Contributes 30% Of Our FY26 EPS & There Is A Possibility Of Downside In This Number
Jefferies on Petronet LNG
Underperform Call, Target Rs 240
Volumes At Dahej Terminal Are Down 30% Since The May Peak
Volumes At Dahej Terminal Are Down As Gas Demand From Power Cooled Off
Earnings Momentum Is Negative
Capital Allocation Concerns On PDH-PP + East Coast Terminal Projects Are A Medium-term Drag
Valuations Are Unfavorable After 90% Rally Since November
MOSL on Persistent
Buy Call, Target Rs 6,300
Revenue Target Bt FY27 Is $2 Bn & Management Is Optimistic About Achieving This Target
There Is A Challenging Business Environment
Co Implementing Strict Cost Management Strategies
Focusing On High-Demand Areas Like Data, Cloud, Digital Engineering
Co Aims To Diversify Geographically To Increase Its European Rev Share From 7-8% To 12%
Jefferies on JSW Group
Group Believes India Is At An Upward Inflection, Offering Immense Growth Opportunities
Execution And Prudent Capital Allocation Is Strong & It Remain Key Focus Areas
It Is Rapidly Expanding Capacity In Steel, Energy, Ports & Paints
Developing Capabilities In Autos, And Actively Promoting Sports In India
UBS on Shriram Fin
Buy Call, Target Raised To Rs 3,850 From 2,915
Synergies From Merger To Keep Aiding Growth
NIM Compression Transitory; Accomplishing New Segments Further Is The Key
Asset Quality To Remain Stable; Credit Costs Guidance Maintained
Management Expects The C/I Ratio To Improve And Remain In The Guided Range Of 26- 27%
Nomura on Banks
Deposit growth & CASA could see +ve fillip from a potential easing cycle
Benefits from a potential CRR cut will get offset by tighter draft LCR norms
Rate cuts a sector dampener; will not jump the gun based on NIM alone
Top picks – Kotak, ICICI, SBI & Federal
Nuvama on Banks
Believe risks pertaining to CEO reappointment at AXIS & IndusInd fading, +ve for both
For AXIS, Board already approved incumbent CEO’s reappointment
Believe if RBI has to reject, should happen latest by this weekend so that there is enough time to find a replacement
