By Abdullah ShahAnand Rathi maintains its ‘Buy’ rating on this defence PSU, with a target price of Rs 5,431, an upside of 18.1%. HAL is nearing deliveries of its Tejas Mk-1A fighter jet after delays of over two years. Engine shortages, pending software updates, and delayed weapon approvals previously halted progress. However, analyst Yellapu Santosh believes these issues are now gradually being resolved, improving the company’s execution and aircraft deliveries.
Management confirmed that it has completed most weapon and laser-guided bomb trials, with only final approvals pending. HAL has received seven engines and expects 10 more by November 2026. The company has already built and flight-tested around 20 Tejas Mk-1A jets and plans to deliver the first 16-18 aircraft by March 2027. Furthermore, HAL estimates new orders worth roughly Rs 90,000 crore across FY27 and FY28, including contracts for aircraft repair and maintenance.
Santosh highlights that HAL’s Rs 2.5 lakh crore order book provides strong earnings visibility for years. This pipeline includes 97 Tejas aircraft, six Advanced Light Helicopters, and eight Dornier planes. He expects the next leg of growth to be driven by Tejas Mk-1A deliveries, improving engine supplies, trainer aircraft production, upgrades of Su-30 fighter jets and a steady flow of repair and maintenance contracts.
ICICI Direct reiterates its ‘Buy’ rating on this packaged foods company, with a raised target price of Rs 1,723, an upside of 15.5%. Nestle delivered healthy Q1FY27 results where net profit surged 48.3% YoY, helped by inventory destocking and a premium product mix. Revenue expanded 25.5%, led by rising sales across the beverages, confectionery, prepared dishes, and milk products segments.
Analysts Kaustubh Pawaskar and Abhishek Shankar note that rebounding urban demand, increased ad spending, and a rural market push propelled the double-digit expansion this quarter. They add that high base effects might slow top-line growth in the coming quarters. However, underlying demand remains strong even with a weaker monsoon, backed by higher sales volumes and wider distribution.
On input costs, Pawaskar and Shankar expect favourable coffee prices due to sufficient global supply, though cocoa and sugar prices will likely remain high. Prices for milk, wheat, and edible oils have largely stabilised at elevated levels. Nestle plans to offset these cost pressures through operational efficiency, price hikes, and premium products. Pawaskar and Shankar estimate Nestle will post revenue and net profit CAGRs of 14.4% and 18.9%, respectively, over FY27–28.
Motilal Oswal maintains its ‘Buy’ rating on this NBFC, with a higher target price of Rs 700, implying a 20.2% upside. The lender posted strong Q1FY27 results. Revenue surged 32.5% YoY, fueled by rapid growth in gold loans and microfinance (MFI), while lower provisions helped net profit soar 2.9 times.
Analysts Abhijit Tibrewal and Pranav Nawale highlight IIFL’s shift toward secured lending as it gradually winds down most unsecured loans, excluding MFI. They expect a healthy portfolio mix, normalised credit costs, and operating efficiency to boost profitability over upcoming quarters. Management states that AI cost benefits are expected to become visible over the next 2-3 years, alongside operating leverage from the company’s branch-led model.
Tibrewal and Nawale express confidence in further stock rerating as IIFL executes its growth plans. The lender continues to focus on small-ticket gold loans, maintaining attractive pricing and resilient margins despite market competition. Management projects home finance assets under management to grow 17.5% and disbursements to rise 30% in FY27, with growth picking up sharply from Q2. Analysts estimate IIFL will achieve a 44% net profit CAGR over FY27–28.
ICICI Securities maintains its ‘Buy’ rating on this diagnostics company, with a target price of Rs 650, an upside of 12.1%. Thyrocare reported impressive Q1FY27 results that beat Forecaster estimates, as revenue rose 24.3% YoY and net profit surged 34.1%. Analysts Abdulkader Puranwala and Nisha Shetty note strong demand for blood and laboratory tests in the core pathology segment.
Management retained its FY27 revenue growth target of 15–20%. The company is prioritising high-margin specialty diagnostics, such as allergy and genomics testing. It has introduced 20 such tests and expects them to contribute 15–20% of revenue over the next three to four years. To focus on its primary pathology business, Thyrocare is considering separating its medical imaging arm, Nueclear Healthcare.
Puranwala and Shetty project volume growth, specialised tests, and aggressive network expansion to propel profits forward. They raised their profit forecasts for FY27 and FY28, predicting the company’s earnings to grow by around 23% annually between FY27 and FY28.
Axis Direct retains its ‘Buy’ rating on this small finance bank with a higher target price of Rs 86, implying an upside of 22.7%. The bank delivered stellar Q1FY27 results as net profit tripled YoY, driven by reduced provisions. Revenue rose 25.1% on strong momentum across retail and wholesale banking segments.
Analysts Dnyanada Vaidya and Abhishek Pandya view Ujjivan as the top pick for the microfinance (MFI) recovery cycle. They point to stabilising collections, lower bad loans, and shrinking credit costs. They expect strong net interest margins (NIM) and rising fee income from cross-selling to fuel earnings growth. Management aims to keep its NIM at current levels of around 8.5% in FY27 by expanding high-yielding secured loans such as gold, vehicle, and micro-mortgage products alongside MFI yields.
While Ujjivan is accelerating investments in branch expansion, branding, and technology throughout FY27, Vaidya and Pandya note that delayed expense rollouts and operational efficiencies will trim funding costs. They project the bank will deliver a 23% CAGR in net interest income and a 41% net profit CAGR through FY29.
Note: These recommendations are from various analysts and are not recommendations by Trendlyne.
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