Bank stocks 'stumble' as oil prices bite—are your savings safe in this market?

*MOSL on BSE*

Upgrade to Buy, TP Rs 4000

BSE: Earnings engine reignites!

Notional ADTO surged 85% in Oct’26 MTD vs Aug’26. Partial CAS reversal effective 7-Dec’26 provides a structural catalyst

With 30%+ premium market share & P/N ratio at 14bps vs NSE’s 20bps+, scope for further market-share gains and monetisation improvement remains significant

Forecast 27% PAT CAGR over FY26-28 and raise FY27/FY28 PAT estimates by 10%/12%

*Jefferies on MCX*

Buy, TP Rs 4000

MCX’s share price is down 12% over last month, consistent with Gold price correction

This provides a good opportunity to BUY considering bullion is only 40% of transaction revenue vs 60% from energy, where Sep-Oct’26 ADTO is ahead of estimates

If sustained through 3QFY27e, this could lift FY27e PAT by 4-5%

Further, MCX offers a hedge against crude volatility, unlike global peers

Trades at 36x FY28e EPS with 26% 3 yr EPS CAGR

*Bernstein on One 97 Comm*

O-P, TP Rs 2200

Delivered strong revenue growth in 2Q27, led by financial services (+49% YoY, +12% QoQ) & marketing services (+26% YoY, +20% QoQ).

Net payment revenue also grew a healthy 7% QoQ, though YoY growth was more modest at +8% due to PIDF revenue in last

year’s base.

Revenue growth was stronger than expected, but costs were also higher, with indirect costs up 14% YoY (+5% QoQ).

Despite this, EBITDA increased 90% YoY (+33% QoQ), with EBITDA margin expanding to 10%.

*MS on One 97 Comm*

EW. TP Rs 1450

Key Takeaways

(+) Clean operating beat: Revenue up 28% YoY (beat estimate by 5%/; EBITDA Rs2.7bn (+91% YoY) – in line with MSe

(+) Financial services revenue growth rose to 49% YoY (+5% vs estimate), led by merchant (50%+ of loans to repeat borrowers), postpaid & personal

loans.

(+) Expects a 2.5bps lift in payment processing margin from MDR on select UPI P2M transactions (implies Rs9.7bn on F28 GMV estimate).

(=) Per management, DLG costs to rise from 3QF27 as largest lender resumes DLG; CM to dip near term, but management expects EBITDA to improve in

3QF27.

(-) Payment GMV was flat qoq and YoY growth moderated to 25% – industry growth itself moderated as festive season shifted to 3QF27

*GS on One 97 Comm*

Buy, TO Rs 2010 from Rs2070

2Q had a number of positives:

(i) Revenue growth was strong at 28% YoY (33% LFL) and should accelerate further as MDR revenue starts flowing in from later this FY;

(ii) EBITDA was a 10% beat vs GSe, with margins continuing to expand;

(iii) Paytm has now quantified its expectation from UPI MDR (+2.5 bps payment processing margin), and per our calculation this should translate into Rs8-9 bn in EBITDA in FY28, largely in line with our estimate though it should help the market build more confidence on incremental EBITDA opportunity;

(iv) Financial Services growth further accelerated and Paytm is seeing improving trends in personal loans, and expects meaningful revenue/EBITDA from postpaid from FY28;

(v) Paytm’s market share in payments saw another quarter of improvement, with one of the highest MTU adds in recent periods.

The one negative in print was higher than expected capex (device related), which translates into higher D&A costs & thus leads to some cuts in EPS.

*CITI on One 97 Comm*

Buy, TP Rs 1940 from Rs1560

2Q EBITDA/EBIT was +4%/+1% vs Citi at Rs2.7bn/Rs1.2bn.

Net payment margins rose 0.5bps QoQ to 9bps (CitiE: +0.3bps QoQ).

Financial services revenue growth accelerated to 49% YoY (45% YoY in 1Q; CitiE: 44% YoY).

Management guided to +2.5bps net payment margin impact from UPI-MDR (Rs9bn in FY28E – along expected lines) & expects DLG mix in merchant-lending business to rise in near term (negative impact on near-term CM margins).

Paytm is seeing growth acceleration in financial services and improvement in net payment margins even ex-UPI

It is also upping investments in tech (AI), marketing and distribution (MTU acquisition, on-ground sales-fleet).

*Jefferies on Paytm*

Recommendation: Buy, Target: ₹2150

Q2: Momentum Stays Strong; MDR To Aid Profit & Investments

Sharp rise in Ebitda margin to 10% led by efficiencies

PBT was 17% above est., but PAT (pre-exceptional) was in line due to higher taxes

Rev growth is led by financial services (loan distribution, investments)

UPI-MDR will start post-Diwali & mgt sees 2.5bps on GMV as revenues

*Bernstein on Sona BLW*

OW, TP Rs 850

Q2 Revenue growth (+35% YoY) reflects several levers coming through together: traction motors gaining share, strong recovery in differential assemblies, & suspension motors scaling in China

Business enters H2 with a broader base of growth & further programs to ramp

While declining percentage margins will understandably attract attention, don’t think earnings case require a return to historical peaks while revenue opportunity continues to expand

Management has, however, retained its 23-25% EBITDA margin framework

*CITI on Sona BLW*

Buy, TP Raised to Rs 960 from Rs830

Strong beat in 2QFY27 results, driven by a robust revenue growth.

Suspension motors, traction motors and differential assemblies segments saw strong trends.

Demand outlook remains positive, with tailwinds for global EVs as well as domestic E2W sectors .

New products are likely to result in Sona’s growth being higher than underlying industry’s.

Orderbook trends improved with (Rs251bn now vs Rs240bn as of 1QFY27 end).

That said, margins are likely to remain under pressure, given 1) severe material cost inflation, 2) increase in freight rates, & 3) mix shift towards 2W traction motors (low margin).

*Kotak Inst Eqt on Sona BLW*

Sell, TP Rs 700 from Rs675

2QFY27 EBITDA came in 9.5% above estimates due to a better-than-expected revenue print

Expect revenue growth to accelerate, owing to

(1) recovery in differential assembly business,

(2) strong momentum in traction motors and railway segments

(3) incremental opportunity in differential gears.

Beyond current products, expect Physical AI & BEV traction motor opportunity to drive medium-term growth prospects

Valuation remains expensive, which drives SELL

*JPM on Sona BLW*

UW, TP Rs 600

2QFY27 a beat vs expectations.

Revenue of Rs 15.5bn (+35% YoY) was 7% above JPMe, while EBITDA of Rs 3.6bn (+23% YoY) was +5% vs JPMe

EV revenues grew 129% YoY due to a combination of:

1) normalisation of differential assembly revenues in North America,

2) traction motor growth in Indian 2W/3W EVs, and

3) suspension motors ramp-up in China

Raising FY27-29 revenue and EBITDA forecast by 9-13% and 5-10%, respectively

This should drive an EPS CAGR (FY26-29) of 23%, but stock is already trading at 47xFY28 P/E

*Jefferies on Sona BLW*

Recommendation: Buy, Target: ₹950 (Earlier Target: ₹900)

Q2 Beat and Good Order Traction

Secured new orders across differentials, radar sensors and motors & motor controllers

Recent partnership with Denso and entry into robotics & physical AI has also opened up big opportunities

Valuation is rich, but multiples should sustain given strong engineering capabilities and growth potential

*CLSA on Tata Cons*

O-P, TP Rs 1372

Reported sales growth of 14% YoY (11% UVG for India business), 3% above CLe.

Ebitda grew 17%, in line with estimate.

Salt business volumes grew +9% with tea volumes flat.

Growth business delivered 42% revenue growth, vs 47% last quarter, despite a difficult base driven by strong growth in Sampann (+57% YoY, largely volume led).

TCPL expects tea business growth to accelerate, better margins YoY and sequentially (2HFY27 vs. 1HFY27) driven by price increases (tea, salt, cap foods) and rising scale efficiency for growth businesses.

*HSBC on Tata Cons*

Buy, TP Rs 1170

Q2FY27 results were a marginal beat driven by non-India business; India business margins remained flat qoq

‘Growth’ businesses grew by 40% (Q1: +47% yoy). 50-70bp margin improvement remains a focus (FY27 HSBCe: 40bp)

India margin trajectory near-term trigger

*GS on Tata Cons*

Buy, TP Rs 1325 from Rs1440

Strong 2QFY27 despite a tough environment, largely in-line with estimates

India business: Double digit volume growth and 17% revenue growth, pricing to significantly accelerate in 2H

‘Growth’ businesses deliver 40% growth driven by Sampann & RTD

Capital Foods and Organic India domestic growth at 24%, exports impacted due to shipping delays

Salt continues to deliver strong growth, tea muted

Management reiterated their guidance for 50–70 bps of consolidated EBITDA margin expansion in FY27

*MS on Tata Cons*

OW, TP Rs 1202

2Q revenue, EBITDA and adj. PAT grew +14%, +17% and +18% YoY, which was +1%, +1% and -3% vs MSe.

EBITDA margin was 13.8% (+31bps YoY, +30bps QoQ; MSe 13.9%).

Strong top-line growth momentum is positive - India branded revenue growth rose to +17% (13% each for last 3 quarters) with volume growth at +11% YoY.

Management guided for YoY EBITDA margin expansion in 2H, without committing to 50-70bps guidance for F27.

Margin concerns, though valid, are in price.

*CITI on Tata Cons*

Buy, TP cut to Rs 1225 from Rs1400

Delivered another strong quarter – consolidated revenue/ EBITDA grew 14%/17%

Growth construct remained healthy: India underlying volumes grew 11%, salt volumes grew 9%, and growth businesses increased 40%, led by Sampann and RTD.

While India tea segment revenue remained soft and domestic margins faced inflationary pressure (across tea, salt and other inputs), see a clearer margin-recovery path through 2HFY27E. Pricing actions across multiple categories are yet to flow through fully and should help mitigate India margin pressures.

Stronger international and non-branded profitability provide further support at the consolidated level.

*Jefferies on Tata Cons*

Buy, TP cut to Rs 1250 from Rs1450

TCPL remains a key beneficiary of rapid rise of Q/C, esp. for growth portfolio (+40% YoY), which contributed c38% of India business in 2Q, with this share set to reach c50% in 3Y.

Overall, 2Q was ahead despite inflationary pressures in tea/salt, but product price hikes should help ahead.

International saw a revenue decline but saw margin expansion.

FY27 guidance of 50-70bps YoY EBITDA margin expansion stays

*Kotak Inst Eqt on Mankind Pharma*

Buy, TP Rs 3035

Reported a strong 2QFY27, driven by healthy growth across domestic formulations, BSV and international markets.

It is confident of outperforming IPM by 1.1-1.2X at least over next two quarters.

OTC franchise remains sole area of concern, with growth yet to pick up

Mankind’s base business is showing tangible signs of recovery, reflected in improving volume growth, a richer chronic-care product mix and sustained momentum in BSV

Expect Mankind to report a robust 23% EPS CAGR over FY2026-29.

*JPM on Mankind Pharma*

Neutral, TP Rs 2700

Delivered a 2Q beat, with revenue 3% ahead of JPMe led by strong India Rx and healthy exports growth, offsetting consumer weakness.

India growth was about 16% YoY but was helped by a low base, so sustainability of the outperformance remains to be seen.

EBITDA margin came in at 27%, about 100bps ahead of expectations, but mgmt maintained full-year margin guidance of 25.5–26.5%

Consumer guidance has been cut to single digits from HSD-DD, although mgmt remains confident of double-digit growth from next year, supported by faster scaling in e-commerce and quick commerce where mix rose to about 18% in 2Q vs. about 12% last year

Raise EBITDA estimates by 3–4% on better visibility in India Rx & exports

Maintain Neutral as want more consistent India outperformance & a clearer consumer reset; more colour on ACTx is awaited at investor meet today

*Macquarie on Mankind Pharma*

U-P, TP Rs 2200

2Q revenue, EBITDA and adj. PAT beat estimates by 3%, 4% and 12%, respectively

EBITDA beat was driven by revenue beat, better-than-expected gross margin, operating leverage and lower-than-expected R&D expenses

PAT beat was driven by the EBITDA beat, higher-than-expected other income, and a modestly lower effective tax rate.

BSV remained strong across key brands, while consumer healthcare was subdued due to softer category offtake and weakness in eastern and southern India.

Net debt declined to Rs26.4bn from Rs33.8bn in June.

Management maintained FY27 EBITDA margin guidance at 25.5–26.5%, despite the 2Q margin of 27.1%, with operating leverage expected to remain supportive.

*Bernstein on Mankind Pharma*

UW TP Rs 2057

While Q2 is historically stronger for Mankind, believe Q2FY27 provided limited incremental evidence to justify its premium valuation.

Excluding better-than-expected operating leverage, headline numbers were largely in line with estimates.

Domestic growth of 15.9% appears healthy, but recovery remained uneven: gastro and vitamins improved, while anti-infectives grew only 5.4% and consumer healthcare 1.2%.

Volume growth of 6.7% deserves credit, but management had already guided to a better Q2.

Seasonally stronger acute demand, an easier GST-affected base and limited contribution from new brands also leave us reluctant to extrapolate headline growth.

Consumer recovery has been pushed out again, reinforcing initiation concerns around weakening momentum & slow brand creation.

Exports surprised positively, while BSV continues to build a better execution record

Margins beat estimates, but management retained 25% guidance set at beginning of the year

*Jefferies on Mankind Pharma*

Recommendation: Buy, Target: ₹2900 (Earlier Target: ₹3220)

No Longer Waiting for Godot

Q2 results beat; strong Q2 was driven by robust domestic growth and solid export momentum

This resulted in gross margin gains and operating leverage

Domestic formulations grew 16% YoY, finally outpacing industry growth

Muted consumer healthcare growth was the only weak point in Q2

*Jefferies on ITC Hotels*

Buy, TP Rs 220

Delivered a sharp beat, with consol EBITDA up 37% YoY (12% beat); ex-Sri Lanka residences, hotel Rev/EBITDA grew 17%/28% YoY with margins up 270bps.

RevPAR rose 21%, mirroring strong sector trends, while mgmt fees grew 25% YoY.

ITCH completed the Welcomhotel Ahmedabad conversion, added a Lucknow land parcel, & targets 10% key CAGR over FY26-31 (+3-4% CAGR owned keys)

Raise EBITDA by 3-5% (14% EBITDA CAGR over FY26-FY29e).

*HSBC on ITC Hotels*

Buy, TP Rs 205

Q2FY27 EBITDA beat consensus by 6%, and margin expanded by 200bps; RevPAR grew by 21% YoY

No guidance for FY27 but management indicated low-double digit to mid-teen earnings growth for next 3-4 years

While its domestic operating ROCE was 19.5%, group ROCE is still low due to its Colombo assets and big treasury income

*HSBC on Ather Energy*

Buy, TP raised to Rs 1800 from Rs1600

Ather reported a strong 2Q with a surprise EBITDA break-even despite demanding commodity headwinds

This operational resilience should further raise market confidence in Ather’s ability to scale in long-term

Near-term risk is muted response to Konarc

*Nomura on Ather Energy*

Buy, TP Rs 2070 from Rs1926

2QFY27: EBITDA margin at +0.8% (Nomura: -2.6%, Consensus: -2.7%)

Stronger growth visibility with Konarc; reaffirm as top 2W pick

Q2 ASPs and margins beat consensus; stronger bookings a key positive

Ather trades at 4.0x FY29F EV/sales, which find very attractive considering its much higher growth potential vs peers

*HSBC on Dalmia Bharat*

Downgrade to hold, TP cut to Rs 1820

Muted volume growth, large cost increases, and asset impairment drive net loss

Acquired assets to remain a drag in 3Q with breakeven targeted for end of FY27

*MS on Dalmia Bharat*

UW, TP Rs 1640

Reported results were very weak – volumes struggled, partly on seasonality, while cost metrics stayed stretched.

Though operating leverage benefits should accrue in 2H, variable costs are expected to stay elevated, partly offset by recent price hikes.

Maintain relative UW on weak profitability

*CITI on Dalmia Bharat*

Buy, TP cut to Rs 1900

At Rs4.9bn (3% below), 2Q EBITDA fell 29% yoy – higher costs (9%) offset the benefit of volumes (+3%) and realizations (+1%).

EBITDA/t (adj): Rs694 (Rs746 ex central assets) vs. Rs1,055 in 1Q and Rs1,010 last year.

QoQ EBITDA/t contraction on lower realizations, higher costs, lower volumes, JPA losses.

Net D/EBITDA 2x vs. 1.5x in 1Q.

2Q has been disappointing, with little visibility on cost improvement in 3Q; however, medium-term progress on premiumization/costs could yield favorable returns.

EBITDA/t is likely to expand – variable cost increases +JPA losses to be offset by better operating leverage, reasonable mix, and higher prices.

$60 EV/t is inexpensive

*CLSA on Dalmia Bharat*

O-P, TP cut to Rs 2000

2Q result was sharply below expectation &weaker than peers due to an adverse geographical mix, market share loss, losses in acquired assets and an accentuated cost impact.

Near term profitability is likely to improve on cement price hikes, higher fixed cost absorption and the ramp-up of assets, partly offset by higher fuel costs.

Over medium term, execution on both asset utilisation and cost savings will be key to watch.

While valuations are undemanding, triggers look back-ended.

*Jefferies on Dalmia Bharat*

Buy, TP cut to Rs 2125

Delivered a weak SepQ, with EBITDA down 29% YoY on East region underperformance (weak vols/px) & higher costs.

While industry-wide px hikes should support 2H recovery, JPA-related losses will increase in 3Q before easing

Co also announced an unexpected mgmt transition, with CMO becoming advisor to Mr Dalmia & CFO taking new charge of sales/marketing

Cut EBITDA by 7-11% to reflect NT weakness

*CLSA on Supreme Ind*

Hold, TP Rs 3500

Reported strong 2QFY27 results with Ebitda up 45% YoY, in line with estimates, helped by robust volume growth (+19% YoY) and price increases.

It revised FY27 volume growth guidance to 10% (vs 12-13% earlier) and maintained Ebitda margin at 14-14.5%.

This looks demanding, despite recovering PVC prices (spot c.25%+ vs June exit), given ask rate for the rest of the year is 17%+.

A strong October (23% volume growth) and price hike announcements provide some comfort

Raise FY27-29CL PAT 2%-10% on better volumes and profitability

*CITI on Supreme Ind*

Sell, TP Rs 3000

At Rs4.3bn (~8% ahead of est) Supreme’s 2Q EBITDA was up 45% yoy on higher volumes (+19% yoy) and likely inventory gains from higher PVC (and other polymer) prices.

EBITDA/kg was Rs23.4 vs Rs25.3 in 1Q and Rs19.3 in 2QFY26.

Supreme has lowered their FY27 total volume growth guidance to ~10% (vs 12-13% earlier) & 13% for plastic pipes division (vs 15-17% earlier).

Note that Supreme’s revised guidance would still imply a volume growth of 22% in 2HFY27 for the plastic pipes segment (vs 2% growth in 1HFY27).

With a strong base in 2HFY26 (+17% yoy, channel restocking), think there is further downside risk to FY27 volume guidance.

Further, with PVC prices close to peak, some channel destocking and reversal of some of the inventory gains recorded so far is likely.

*MS on Urban Co*

OW, TP Rs 190

Analyst day takeaways

a) improvement in growth in India consumer services NTV ex Instahelp is structural;

b) reiterated outlook of 3QF28 breakeven and Rs10bn F31 at consolidated adj EBITDA level;

c) balance sheet is already strong so fund-raising is for strategic flexibility.

*GS on Urban Co*

Neutral, TP Rs 130

Analyst day key takeaways

(i) UC could continue to grow NTV higher than its guided 20%+ in the core business, with even stronger visibility on margins;

(ii) Core business moats continue to get stronger, with improving densification and partner utilisation driving accelerating user growth;

(iii) Foray into Air Conditioners is unlikely to be material to capex or alter Native’s margin trajectory;

(iv) A large part of InstaHelp investment is towards market build-out, which will drop off in a few quarters, helping UC reduce losses in the segment even if competition stays elevated, per the company;

(v) Announced capital raise is likely to be deployed either towards M&A or to keep buffer if Instahelp competition becomes more intense, but UC is unlikely to enter new product categories or geographies.

*UBS on Urban Company*

Recommendation: Buy, Target: ₹180

Densification breeds a step change in growth trajectory

Conclusion from Analyst Day: See upside risk to Rs 1000 cr EBITDA guidance by FY31

Operating leverage is coming through despite higher marketing investments

Fundraise provides strategic flexibility to pursue inorganic opportunities over next 2-3 years

Fundraise is building relative balance sheet strength while signalling willingness to compete aggressively in InstaHelp

*BofA on Urban Company*

Recommendation: Underperform, Target: ₹150

Focusing on right levers; Traction strong across segments

Steady Core business, InstaHelp burn may be high in near term

InstaHelp to remain in deliberate burn to win the category

India core: Flywheel intact; Salon Now opens a use case

In planned AC foray, the company would remain capex light & asset light

*Citi on Bharti Hexacom*

Recommendation: Buy, Target: ₹1870 (Earlier Target: ₹1700)

Superior growth warrants premium valuation

A cleaner way to play India telecom growth

Gov’t stake sale an overhang, but also a potential clearing event

Shift preference to Hexacom over Airtel among the telcos

*Jefferies on Vodafone Idea*

Recommendation: Buy, Target: ₹16 (Earlier Target: ₹20)

Attractive risk-reward

Stock has corrected 23% despite improving subscriber trends

Ongoing network rollouts, along with tariff hikes, should position Vodafone Idea well to deliver 11%/25% CAGRs in revenue/EBITDA over FY26-29

At 21x EV/cash EBITDA, shares trades below 5-yr average multiples

See 25% potential downside and 143% potential upside in bear and bull scenario

*JPM on KEI Ind*

Upgrade to OW, TP Rs 4650 from Rs5650

Believe risk/reward has turned attractive following a 35% correction from its recent peak

OW because:

(1) underlying growth is likely to improve

(2) mix shift could protect margins

While two negative catalysts - UTCEM entry & a margin expectation reset - have driven substantial underperformance (KEI -27% vs Polycab -12% and NIFTY 50 -5% since UTCEM C&W launch event on 3-Sep), believe KEI continues to offer exposure to structural theme of electrification/energy transition, with applications across power T&D, renewables, infrastructure, data centers, mobility electrification and exports

See a sharp correction in copper prices as key downside risk from here

*Jefferies on AB Real Estate*

Recommendation: Buy, Target: ₹1600 (Earlier Target: ₹1880)

Reported strong P&L in Q2 on a project delivery, with non-core asset sale proceeds helping turn the balance sheet nearly net cash

New project additions have picked up pace, though same will likely get launched from late FY27 onwards

Management focusing on long term value maximisation

Delay in Worli launch would impact near term pre-sales even as commercial buildout gains visibility

Stock trades at 45% NAV discount

*Jefferies on Adani Power*

Buy, TP cut to Rs 240

Sept Qtr EBITDA was 21% above estimates given higher than expected merchant sales

Raise FY27E EBITDA and PAT by 6-8% but retain FY28E-30E estimates as proportion of merchant reduces with signing of incremental PPAs.

Management retained their 2032 capacity guidance of 45 GW, with land and equipment already tied up for 42 GW.

*Macquarie on Eris Life*

O-P, TP Rs 1575

2QFY27 revenue and EBITDA were 2% above MQe, and adjusted PAT was mostly in line.

Revenue and EBITDA were also in line, while adjusted PAT was 7% ahead.

Domestic revenue rose 14.1% YoY, while growth excluding the portfolio licensed to Zorvia Healthcare was 16.5% YoY.

Sales growth was led by OAD, cardiac, and VMN, with diabetes +18.5% versus +16.1% for IPM, supported by insulin, semaglutide, and other recent launches.

International revenue was flat YoY but rose ~15% QoQ, reflecting resilience in the base business despite ongoing EU CAPA remediation at Swiss Parenterals.

*Elara Capital on APL Apollo Tubes*

Recommendation: Buy (upgraded from Accumulate), Target: ₹2503 (Earlier Target: ₹2312)

EBITDA per tonne guidance raised to ₹6,000 from ₹5,000–5,500

Sales volumes hit a record 0.96 million tonnes, reflecting a 13% YoY growth

Reiterated its capacity expansion target to 8 million tonnes by the end of FY28

Earnings per share estimates were raised by about 5% for FY27 and 3% for FY28

*UBS on Auto*

Festive update: Tractors outperform cars in festive; MHCVs tracking double digit growth

Festive demand continues to grind lower - 2Ws +11%; cars -9%

Base gets tougher from now on

Channel check points to low single digit decline in tractors so far

2W market share: Hero/Bajaj tracking 90bps/80bps decline vs. 110bps gains for TVS

*Goldman Sachs on Defense*

Approved proposals worth Rs 2.12 lakh cr for all the three forces

Focus on combat equipment for both Army and Navy

Proposals related to Light multi-role helicopters likely to aid Hindustan Aeronautics

DPSUs such as Hindustan Aeronautics, BEL, Mazagon Dock Shipbuilders and BEML could be positioned to benefit from the proposals approved

Of the current Acceptance of Necessity, 82% of the procurement to be made from within the Indian Industry

This benefits the entire India defense ecosystem

*Kotak Securities on Defence*

Rs 2.1 lakh cr of approvals reflect a shift to unmanned and air-defense capabilities

~82% of the proposed procurement value is earmarked for domestic industry

Marks the largest DAC approval of FY27 so far and nearly doubles FYTD Acceptance of Necessity to Rs 3.7 lakh cr

Unlike the land-mobility-heavy September package, this tranche is skewed toward unmanned systems, counter-UAS, short-range air defense and helicopters, alongside major indigenous naval platforms

BEL has the widest multi-item exposure

Hindustan Aeronautics gains from two helicopter programs

Bharat Dynamics from VSHORADS and IAF weapons, and the drone ecosystem

Order accrual from this tranche will largely fall in FY2028-30E

*HSBC on PB Fintech*

Recommendation: Hold, Target: ₹1150

Key debates on the stock revolve around its ability to grow while rationalising costs, margin outlook, and what is priced in

Given the significant variation in the potential impact of regulatory outcomes and its own initiatives, we look at different scenarios

See downside risks in fewer scenarios, but upside catalyst will depend on execution clarity

*Investec on Sheela Foam*

Recommendation: Hold, Target: ₹625 (Earlier Target: ₹700)

Recent price correction has made valuation more reasonable

See 20% EPS CAGR over FY27-29

Bake in conservative revenue growth of 7% CAGR over FY26-29, average EBITDA margin at 9.7%

Issues - input-cost pressures, demand sensitivity to pricing, downtrading risks and competition from D2C mattresses with lower TDI and polyol content