DAM Cap on UPL
Buy, TP Rs 870
Restructuring announcement has been a material overhang on UPL over last couple of quarters, & stock has been underperforming.
It has obscured fact that business itself has moved from strength to strength: Advanta compounding at 20%+, the specialty chemicals piece within Superform growing 51% in Q1, and margins improving across group – Q1 contribution margin up 180bps and EBITDA up 15% on 10% revenue growth, all despite a tough operating environment.
On numbers, market is applying a HoldCo discount of 61% – excessive for a co that will still retain its fastest-growing segment in Superform, in addition to manufacturing, R&D, capital allocation and central capabilities.
Advanta IPO should force first real mark on potential value unlock opportunity.
Macquarie on GMR Airports
O-P, TP Rs 120
Airports Economic Regulatory Authority (AERA) released the tariff order for Hyderabad for its 4th control period (CP4: FY26-31).
GMR got approval for Rs138bn Hyderabad expansion capex, supporting capacity growth to 80mn pax; execution remains FY30-weighted.
Think revenue remains most sensitive to Hyderabad’s capacity being delivered on schedule with tariffs now recoverable on a user-pay basis.
Macquarie on Zydus Life
O-P TP Rs 1285
NDR Takeaways
Strategic mix shift to drive margin expansion: EBITDA margin expansion to 27-28% from 24% currently
Innovation portfolio emerging as a meaningful US growth driver. Management expects Saroglitazar (FY28 launch) to generate peak sales of US$250-300mn (bull case: US$400mn), with FY27 margin guidance already reflecting most pre-launch US commercial investments.
Robust US generics pipeline underpins growth visibility
Sustained domestic outperformance supported by leadership positions: Management expects the India business to outgrow the IPM by 300-500bps in FY27, supported by oncology, biosimilars, nephrology and gSemaglutide. Zydus also benefits from supplying gSemaglutide to partners such as Torrent and Lupin.
International formulations remains a profitable growth engine & Consumer wellness offers sustained growth momentum
Bernstein on Lupin
OP, TP Rs 2707
Lupin’s favorable judgment on 24th August in the Kalydeco®️ patent trial moves its first-to-file ivacaftor programme to an immediate launch with 180-day exclusivity, strengthening our thesis around its expanding U.S. respiratory franchise
Delaware District Court found that Lupin’s formulation does not infringe four Vertex patent claims tried, removing principal litigated barrier to launch.
Lupin already has tentative ANDA approval for this product from US FDA for Cystic fibrosis.
Estimate US$20–30Mn of annual sales for Lupin, equivalent to approximately 1.4–2.1% of its current annualized U.S. revenue
CITI on Lupin
Downgrade to Sell, TP cut to Rs 2050 from Rs 2540
Co’s US base business is losing momentum, while pipeline appears insufficient to offset the decline in gJynarque and gMyrbetriq
Expect US sales to fall from ~US$1.3bn in FY26 to US$975m by FY29E, with EBITDA margins declining from 30% in 1QFY27 to 20% in FY29E.
Apixaban could support FY28E earnings, but opportunity may be short-lived.
Biosimilars/inhalers such as Neulasta Onpro, Etanercept and Spiriva Respimat offer longer-term upside, but remain unfiled so far
With elevated execution risk and limited visibility on replacing current high-margin products, downgrade stock
HSBC on Dixon
Buy, TP Rs 16000
Gazette notification states that incentives shall be disbursed to the mobile phone manufacturers, including EMS
Computation of incentives is on “eligible sales” and not total sales, which reduces the overall benefit for a co
Scheme is therefore positive for Dixon, component level PLI are additional
HSBC on Ports
Gujarat Govt. may roll over port concessions for Mundra, Pipavav, Hazira, Dahej, and set the framework for other states
GPPV’s Pipavav expires in 2028 and ADSEZ’s Mundra in 2031.
Renewal could clear overhang, unlock capex and rerating
Prefer ADSEZ (Buy Rating)
Investec on Adani Ports
Gujarat Maritime Board signs Pipavav concession extension; +ve for Mundra
Mundra well placed to benefit from container capacity shortage
Intends to expand Mundra container capacity by >50% and has obtained environment clearance for the same
Should help it benefit from likely container demand-supply mismatch on the West Coast over the next few yrs
Macquarie on BEL
Recommendation: Outperform, Target: ₹550
Secured new orders worth Rs 730 cr since its last disclosure on 10 Aug 2026
For FY27-to-date, secured new orders worth Rs 6200 cr, down 45% from Rs 11200 cr in the same period last year
Attribute the decline mainly to the timing of order bookings
See Rs 55000 cr of new orders in FY27
Order backlog stood at Rs 72300 cr at the end of Q1, providing strong revenue visibility
Jefferies on Bharti Airtel
Jefferies reiterates a Buy rating on Bharti Airtel with a target price of ₹2,400.
The telecom sector revenue grew 8% year-on-year in 1QFY27, marking a new high.
Bharti Airtel’s revenue increased 10% year-on-year, outperforming the sector average.
The company gained 20 basis points of revenue market share compared to fiscal year 2026.
Vodafone Idea’s revenue rose 3% year-on-year despite a subscriber decline, with its market share slipping to about 13% as subscriber losses moderate.
Total sector revenue is projected to grow at a 12% compound annual growth rate over FY27-29E.
The next industry-wide tariff hike is expected to take place in April 2027.
UBS on Capital Goods
Valuations high but excitement stays
H1CY26 – Improving short-cycle demand, rising private defence opportunity
Early signs of demand revival with low/medium voltage at the forefront
Order momentum to support premium valuations
Top picks are ABB, Siemens, CG Power, Triveni Turbine and Premier Energies
Goldman Sachs on India Consumer
Sugar prices have seen a sharp increase in India
Margin pressures on packaged food companies such as Britannia
Britannia most impacted due to high sugar / palm oil salience in input costs and high share of price point packs
Nestle and Varun Beverages have some impact, but could be mitigated better
Nestle’s input costs are ~6-7% sugar and ~10% palm oil
However, the company has high pricing power in many categories
Varun Beverages has 10% of raw material cost from sugar
Varun has been actively shifting to no-sugar/low-sugar products and this is offsetting a significant part of the inflation in the sugar price
Britannia – Neutral, TP Rs 6000
Nestle – Neutral, TP Rs 1575
Varun B – Buy, TP Rs 550
CLSA on Sterlite Tech
Recommendation: Outperform, Target: ₹950
Top datacentre play
USA & India datacentres to drive Sterlite’s exponential growth
Order book will continue expanding
Expect 14-21% revenue and EBITDA CAGR over FY27-29
Nuvama on Tata Capital Rating: HOLD
Target price: ₹415
Tata Capital is expected to enter a stronger growth phase, with management targeting 23–25% AUM growth over the medium to long term
Housing is likely to be the key growth driver, while retail, SME and corporate lending are also expected to expand at a healthy pace
Unsecured retail loans could rise to 12–12.5% by FY28, from around 10% currently, while remaining capped at 15%
Improving margins and operating leverage are expected to support RoA and RoE
Nuvama expects the company to deliver healthy returns over FY27–29
However, the brokerage believes current valuations leave limited room for execution misses, restricting meaningful upside
Investec on Angle One
Buy, TP cut to Rs 350 from Rs 385
Derivatives activity saw a decline in August (23% MoM decline in average number of daily contracts compared to July).
July itself saw 11% MoM decline compared to June.
While there are multiple factors that has impacted derivatives over past 2 years, closing auction session (CAS) seems to have led to a significant decline
Believe these are teething issues and volumes should normalise overtime as market participants adapt to the new system
Price-in CAS impact in Q2 and trading activity to normalise in Q4FY27 (same as Q1FY27)
Cut revenue and PAT estimates by 4% and 9% over FY27E-29E given this change
Investec on Pine Labs
Initiate Buy, TP Rs 200
Pine Labs is a leading merchant-focused fintech platform, with over 2mn POS terminals (17% m/s) & a dominant position in the enterprise merchant segment (>60% m/s).
It has used its merchant base to build several value-added services, led by affordability solutions (POS financing).
It processes 85% of offline whitegoods BNPL transactions, working with 450+ brands & 40+ financial institutions (FI’s).
Separately, it has also built a leadership position in gift card processing (90% m/s) & broader prepaid payment instruments segment.
Increasing scale and rising share of higher margin segments have driven EBITDAM expansion from 0% to 13% over FY23-26, with PAT margin reaching 4%
Expect co to deliver 20% revenue CAGR over FY26-29E and PAT margins to improve to 14% by FY29E