Centrum Broking cut its recommendation on Bata India from reduce to ‘sell’ with a target price of Rs 1,174 (-12%). Analysts said subdued consumer sentiments cut revenue momentum for Bata in Oct-Dec quarter.
However, with focus on end of season sales, new launches and better inventory management in the store could lead to strong footfall. They expect lower volume growth and elevated marketing spends to hold operating margin going forward. The risk factors for the rating are sharp inflation in input cost, weakness in demand and higher competition.
Elara Securities India has a ‘reduce’ rating on Steel Authority of India with a target price of Rs 104 (-5%). The ratings came as weak steel prices dragged down margin for the steel maker. Analysts expect volume to be healthy in Jan-Mar quarter, but capacity constraint remains a concern for medium-term growth. Also, absence of any meaningful recovery in steel prices, weak operational parameters and elevated debt levels despite no major capex in the pipeline are key challenges.
Prabhudas Lilladher has a ‘buy’ recommendation on Lupin with a target price of Rs 2,420 (+18%). The company has a strong Oct-Dec quarter. Analysts expect margins to sustain given a strong pipeline in the US. Their FY26/27E EPS estimates broadly remain unchanged. Any competition in gSpiriva and delay in new launches in the US will be key risks to their estimates.
ICICI Securities has a ‘buy’ recommendation on Crompton Greaves Consumer Electricals with a reduced target price of Rs 440 (-29%). Analysts are positive on Crompton. There is revival in profitability of Butterfly with stability in revenues. They also pointed out strong performance in the lighting division that was better than most peers. They noted the initiatives to drive premiumisation and distribution in fans. Solar pumps and air coolers have also reported strong growth.
BNP Paribas has an ‘outperform’ rating on Ashok Leyland with a target price of Rs 285 (+31%). Analysts said the company continued to deliver solid margins. In addition, they expect Ashok Leyland to improve its sales mix in MHCVs, gain market share in LCVs, and deliver strong growth in its defence and export businesses. Driven by these catalysts, they see the company offering strong earnings growth potential.
