CITI on Pine Labs
Initiate buy, TP Rs 235
India’s payments fintech is on a monetization improvement trajectory, with leading players increasingly entrenched in respective core areas of leadership
While product/services/distribution build-outs into comprehensive plays will continue across fintech ecosystem, large players don’t face significant disruption risks owing to:
a) across-the-board profitability push,
b) rising regulatory costs & compliance requirements,
c) stickiness borne out of integration into enterprise business workflows
Further, while consumer payments has seen flux in competitive positioning in the past decade, there have been relatively fewer changes in positioning/leadership within segments in merchant payments.
BoFA Sec on Groww (Billionbrains Garage Ventures)
Initiate Buy, TP Rs 235
Groww is well positioned to capitalize on India’s retail investing tailwinds; expect revenue growth of 30% CAGR over FY26-28
Best‑in‑class profitability with further upside from operating leverage, driving EBITDA/PAT margins to 67%/52% by FY28E
Valuing Groww at 39x FY28E P/E; Near term risk- weak capital market perf and six-months lock in expiry
Elara Capital on Jindal Saw
Initiate Buy with a target price of ₹280
Earnings recovery expected over FY27–FY28, driven by water and oil & gas demand
Order book at all-time high (~1.4x trailing volumes), indicating strong visibility
Jal Jeevan Mission spending revival to drive domestic pipe demand
Global pipeline capex supported by energy security concerns
Exports rising, with diversification reducing dependence on domestic capex
Capacity expansion to support margins and operating leverage
Valuations attractive, with rerating potential driven by execution and growth
Elara Capital on Vishal Mega Mart
Initiate Buy with a target price of ₹130
Diversified model combining apparel, FMCG and general merchandise drives footfall and margins
Private label mix ~75%, enabling strong pricing power and higher margins
Revenue and EBITDA expected to grow at 18% and 21% CAGR over FY26–FY28
Asset-light model and low-cost structure drive superior return ratios
Strong store expansion runway, focused on tier 2 and smaller cities
Operating leverage to drive margin expansion to ~10.3% by FY28
Risk from potential supply overhang due to promoter stake dilution.
CITI on DR Reddys
Sell, TP Rs 1070
Dr. Reddy’s Semaglutide generic, Embeltah, has been denied registration by Brazil’s ANVISA as filing did not meet all technical requirements to prove the efficacy, safety and quality of product
This rejection likely prevents Dr. Reddy’s from participating in initial wave of Semaglutide generic launches in Brazil, a market expected to face intense competition with 16 other applications pending before ANVISA.
Furthermore, Apotex’s tentative approval in the US suggests it may gain a lead over Dr. Reddy’s in Canadian market
Jefferies on Indus Tower
Downgrade to U-P from buy, TP cut to Rs 375 from Rs 530
Downgrade due to site renewal risks bunched up over 2HCY26/1HCY27 which could impact revenues/growth
Elevated capex levels due to higher growth and maintenance capex which will impact earnings growth as well FCF/payouts
Cut revenue/PAT estimates by 2-6% to factor renewal risks post which stock offers 3% EPS growth & 4% yield
Risks on growth outlook should weigh on re-rating potential too.