1. BLS International:
Thistravel services firm rose 3.6% last week after IDBI Capitalinitiated coverage with a ‘Buy’ rating and a target price of Rs 445. The brokerage noted that BLS International benefits from steady and diversified revenue streams, and strong growth in its core visa and digital services business.
IDBI is positive about BLS’ shift to higher-margin digital services, which are expanding faster than the legacy business. Earnings visibility has improved with recent contract wins. These include the Aadhaar Seva Kendra project worth ~Rs 2,000 crore and a three-year visa services contract in China. It expects profits to grow at a 26% CAGR through FY27, driven by digital identity and e-governance platforms that offer recurring revenue.
InQ2FY26, BLS’ revenue rose 49% YoY to Rs 737 crore, thanks to higher visa applications and the full-quarter contribution from recently acquired businesses. The newly added businesses, iDATA, Citizenship Invest, and Aadifidelis, contributed more than Rs 285 crore to revenue. They also expanded BLS’ footprint into 15 new visa markets and strengthened its presence in high-margin citizenship and residency services. Profit surged 27.4% to Rs 186 crore, supported by an improved operating leverage.
Joint MD Shikhar Aggarwalsaid, “The Aadhaar project is expected to generate around Rs 350 crore annually once fully ramped up”. Aadifidelis, which provides loan processing and distribution services, currently has lower margins and has shifted the revenue mix toward higher revenue but lower EBITDA. However, the introduction of value-added services such as faster loan processing, credit-profiling support, and digital onboarding is expected to boost profitability.
CFO Amit Sudhakar noted that EBITDA margins have stabilized at around 29% and expects the revenue mix to gradually shift toward a 70-30 split between visa and digital services. He added that the company plans to actively pursue acquisitions over the next few years. The focus will be on businesses valued on EBITDA multiples that can deliver strong returns and complement existing operations.
2. Lemon Tree Hotels:
Thishotel company rose 5.7% in two trading sessions afterannouncing two new hotels on November 27. Lemon Tree is adding a hotel at Surat Airport and a Keys Prima property in Haridwar.
This expansion targets key business and travel hubs. “With these signings, we strengthen our presence in Gujarat and Uttarakhand, which attract a mix of business, spiritual, and leisure travellers,”said Vilas Pawar, CEO of Managed & Franchise Business. The move expands its footprint to 29 hotels in Gujarat (10 operating, 19 upcoming) and 18 in Uttarakhand (nine operating, nine in development).
Q2FY26 financials showed strong momentum. Higher room rates and occupancy hitting 70% fueled a 16.8% YoY profit jump and 7.7% revenue growth. The company also signed 15 new hotels, adding 1,138 rooms to a pipeline now at 121 hotels and 9,118 rooms. Management is targeting an ambitious leap to 35,000–40,000 total rooms over the next three years, nearly double its current 20,000.
Lemon Tree is undertaking its largest-ever renovation, upgrading 4,600 rooms. The investment is already paying off, with refurbished hotels boosting revenue. So far, 3,000 rooms have been completed for Rs 300 crore, with the remaining 1,600 scheduled for the next 15–18 months. Chairman Patanjali Keswanisees a swift return: “Our principle is that any investment we make like this, we want a payback in 2 years. We spent Rs 300 crore; we want a Rs 150 crore increase in EBITDA per year.”
IDBI Capitalmaintained its ‘Buy’ rating and set a price target of Rs 200. The firm is bullish on Lemon Tree’s strong Q2 results, development pipeline and profitable renovations. It forecasts improved margins and consistent earnings growth as upgrades are completed.
3. JSW Steel:
This iron & steel products company’s stock fell 1.6% on December 3 after Nuvama Wealth, Citigroup, and CLSA indicated JSW Steel’s joint venture deal with Japan’s JFE Steel Corp (JFE) for a 50% stake in Bhushan Power and Steel (BPSL) is overvalued. They note that BPSL’s enterprise value (EV) of Rs 53,100 crore implies an EV-to-EBITDA multiple of over 10 times, higher than their estimates. Nuvama and ICICI Securities also estimate JSW will take an 11% EBITDA hit from the reduced contribution from BPSL.
However, other brokerages, including Jefferies, JP Morgan, Morgan Stanley and Motilal Oswal, are positive on the JV deal, citing a significant reduction in JSW’s debt, which will improve its balance sheet for future expansion.
Motilal Oswal maintained its ‘Buy’ rating on JSW, with a target price of Rs 1,350, a 16.2% upside. The brokerage believes the JV will cut JSW’s consolidated debt by Rs 35,000 crore, including BPSL’s Rs 5,000 crore debt, reducing its debt-to-EBITDA to 1.7 by FY27 from 3 in Q2FY26. It expects the company to deliver a revenue CAGR of 10.9% over FY26-28.
As part of the JV deal, BPSL will transfer to JSW Sambalpur Steel via a slump sale for Rs 24,480 crore. Subsequently, JFE Steel Corp will acquire a 50% stake in BPSL. JSW acquired BPSL in 2021 through an insolvency process. Since then, JSW has boosted BPSL's capacity from 2.8 million tonnes per annum (MTPA) to 4.5 MTPA, making it profitable.
The JV combines JSW Steel’s execution strength with JFE’s technological expertise to produce high-value steel. It allows JSW to monetise the value created from BPSL’s turnaround and reduce debt. The deal also helps JSW focus on its long-term plan to achieve 50 MTPA steel capacity in India by FY31.
In Q2FY26, JSW’s revenue grew 14.1% YoY, beating Forecaster estimates by 2.3%. Capacity ramp-ups drove this growth. Net profit surged 3.7 times, supported by lower coking coal and mining premium expenses. The company also plans to expand its India steel capacity to 42.5 MTPA by FY29 with a Rs 69,000 crore capex.
Jayant Acharya, Joint MD & CEO of JSW Steel, noted, “The ongoing expansions will take our India capacity from the current 34.2 million to 41.9 million by September '27. We have also approved setting up an electric arc furnace project in Kadapa, Andhra Pradesh, by the end of FY29, taking our India capacity to 42.9 MTPA.”
4. TVS Motor Company:
This 2/3 wheeler maker rose 3.7% on December 1 after its total vehicle sales grew 30% YoY to 5.2 lakh units in November. This was driven by a 27% increase in two-wheeler sales and a 58% growth in its international business. The strong performance was helped by a recovery in rural demand, more affordable prices after GST cuts, and lower interest rates.
TVS had reported a strong set of numbers during the September quarter. Profit increased 42% YoY to Rs 795.5 crore, driven by higher sales volumes. Cost control measures and a premium product mix helped the EBITDA margin improve by 100 bps YoY to 12.7%.
Revenue increased 24%, driven by strong sales momentum across all its segments. A 23% rise in total two- and three-wheeler sales in Q2 marked its highest-ever quarterly sales volume. EV sales were up 7%, though the company noted ongoing challenges with the availability of rare-earth magnets. The company expects its EV sales to improve from the third quarter with the rollout of its new Orbiter EV and as supply chain problems gradually ease.
Commenting on the demand outlook, CEO K N Radhakrishnan said, “We are expecting good momentum in Q3 with the GST benefit, supported by rate cuts and improving rural sentiment.” He anticipates commodity cost pressures to be softer in Q3 compared to Q2, while pricing discipline, favourable product mix and material cost-saving initiatives are likely to support margin expansion.
Nuvama maintains a 'Buy' rating on TVS Motor with a target price of Rs 4,100. The brokerage expects double-digit growth in both domestic and export markets, with the company's market share increasing to 19% by FY28. It also notes the company’s planned premium launches under its high-end Norton brand starting from FY26.
5. Petronet LNG:
The stock of this oil marketing & distribution company rose 4.5% on December 4 after it announced a major 15-year contract with ONGC for Ethane Unloading, Storage, and Handling (USH) services. This binding deal is expected to generate a gross revenue of about Rs 5,000 crore over its duration, with services beginning in 2028. Under the agreement, ONGC will reserve 600 kilo tonnes per annum (KTPA) of capacity at the company’s Ethane storage facilities in Dahej, Gujarat.
The company's underlying momentum remains strong despite a muted second quarter. Its net profit slipped by 4.9% YoY to Rs 805.8 crore, primarily due to foreign exchange losses and higher operating costs linked to leasing gas carriers. The profit missed Trendlyne’s Forecaster estimate by 8.1%. Its stock features in a screener of companies where mutual funds have been increasing shareholding over the past month.
Defying the overall weak quarter, the company’s Kochi terminal logged its highest-ever utilization rate, powered by a significant cargo import from Bharat Petroleum for regasification. Management expects this utilization rate to improve significantly over the long term, betting on global LNG prices to eventually soften. Furthermore, the final leg of the natural gas pipeline connecting Kochi to Bangalore is a crucial piece of infrastructure expected to be completed by the end of FY26.
CFO Saurav Mitra confirmed the full-year capital expenditure target remains Rs 5,000 crore. He noted that the improved utilization at the Kochi terminal, driven by BPCL imports, is expected to be a continuing trend. Looking at new projects, the company is constructing extensive Ethane storage facilities at Dahej, along with a unique third jetty that will be capable of handling not only LNG but also Ethane and Propane.
Motilal Oswal maintained a ‘Buy’ rating on the stock with a target price of Rs 390. However, the brokerage noted that the 5 million metric tonnes per annum (mmtpa) capacity expansion at the Dahej terminal is now expected to be completed by the end of March 2026, marking a three-month delay. Due to this delay and recent soft service volumes, the brokerage has slightly reduced its near-term volume forecast for the Dahej terminal to 16.9 mmtpa from 17.1mmtpa given earlier.
Trendlyne's analysts identify stocks that are seeing interesting price movements, analyst calls, or new developments. These are not buy recommendations.
