1. Tata Motors (TMCV):
Thiscommercial vehicle manufacturer rose 6.4% over two trading sessions after itsbusiness update on January 1. The company reported a sharp rise in December sales, which surged 25% YoY to 42,508 units and climbed nearly 20% from the previous month.
Managementsaid that growth was driven by stronger economic activity rather than temporary factors. MD and CEO Girish Wagh said sales momentum began with the GST 2.0 rollout and the festive season in Q2FY26, and continued into Q3FY26. He added that demand improved after the monsoon, as construction and mining activity picked up, alongside steady demand from core industries and the auto logistics sector.
Looking ahead, Waghsaid, “We expect demand to strengthen in Q4FY26 across most commercial vehicle segments.” He added that “the government’s sustained infrastructure push” should drive demand in 2026.
On November 12, 2025, TMCVlisted on the stock exchanges at a 26% premium following itsdemerger on 1st October fromTata Motors (now Tata Motors Passenger Vehicles). The demerger separates the fast-growing passenger vehicle and electric vehicle businesses from the more stable, cash-generating commercial vehicle (CV) business. The split allows investors to value the two businesses separately.
One keychallenge for TMCV remains the light commercial vehicle (LCV) goods segment, where market share has fallen from around 40% in FY22 to around 28% in H1FY26. Mahindra & Mahindra has expanded aggressively here in pickups and small commercial vehicles.
Facing pressure in the LCV segment, managementexpects a gradual market share recovery, supported by higher retail volumes, new launches, and the full pass-through of GST benefits to customers.
InCred Equities recentlyupgraded the stock to “Add” with a target of Rs 513. The brokerage highlighted improving CV demand, GST-driven cost efficiencies, easing interest rates, and stronger industrial activity as factors that could support small truck demand and help Tata Motors regain market share through FY28.
2. Divi's Laboratories:
This pharma company rose 4.3% last week after Citi set a price target of Rs 9,140, implying an upside of nearly 38%. Citi said 2026 could be an “inflection year” for the company, as growth starts picking up after a slower period. The stock has gained around 12% over the past year.
The brokerage expects Divi’s product pipeline to support growth over the next 12 months. This includes new GLP-1 products for obesity and diabetes that work in a similar way to popular weight-loss medicines such as Zepbound and semaglutide-based drugs, and are expected to be launched in 2026. The company’s ‘generics’ business (producing off-patent drugs) is also expected to bounce back as patents on several major global medicines expire.
Citi noted that quarterly profits may remain uneven due to the nature of Divi’s B2B business. However, the long-term outlook remains positive. The brokerage believes the company’s revenue and EBITDA could triple or even quadruple over FY26-30.
In Q2, Divi’s net profit and revenue beat Forecaster estimates by 15.3% and 4.4%, respectively. The generics segment, which accounts for about 44% of total revenue, continued to grow despite pricing pressure. The company managed this through backward integration, coupled with higher sales volume. Looking ahead, Trendlyne’s Forecaster expects Q4 net profit to rise 3.6% to Rs 615 crore, with revenue growth of 16%.
CEO Kiran Divi said, “We are facing pricing pressure in the generics business, but volumes are stable. Pricing is expected to stabilise over the next few quarters, with backward integration at the Kakinada unit helping manage costs.”
CEO Kiran Divi said, “We are facing pricing pressure in the generics business, but volumes are stable. Pricing is expected to stabilise over the next few quarters, with backward integration at the Kakinada unit (in Andhra Pradesh) helping manage costs.” He added that FY26 capex will be higher than the earlier guidance of Rs 2,000 crore, with Rs 1,550 crore already spent in H1FY26.
3. Hindalco Industries:
This aluminium company rose over 1% on January 6 after Geojit BNP Paribas upgraded its rating to 'Buy' with a target of Rs 1,034. The brokerage expects strong metal prices and rising domestic demand to support earnings in the coming months.
Geojit said the company is strengthening its downstream business by making finished aluminium and copper products, which earn better margins than raw metal. Higher use of recycled metal is also helping cut costs and reduce earnings swings. This strategy led to a 69% jump in downstream margins in Q2. Rising domestic demand, lower GST, and firm global metal prices further support growth.
Global aluminium and copper prices have risen sharply this year, reaching $2,979 per tonne and $12,466 per tonne, respectively. It’s worth noting here however, that metal prices tend to be volatile, and any pullback in a major market like China could force rapid downward moves. To protect margins amid price volatility, the company has locked in prices for 49% of its Q4FY26 aluminium sales at $2,760 per tonne.
In Q2FY26, Hindalco’s revenue rose 13.5% YoY, driven by its India aluminium business and US-based subsidiary Novelis (industrial aluminum smelting company). Net profit increased 21%, supported by a better mix of higher-value products.
Hindalco’s Aditya Smelter Phase 2 project is expected to add 1.9 lakh tonnes (14% of existing capacity) of aluminium capacity by 2029. The company is also developing three captive coal mines, which are expected to start supplying power from 2026 and help lower energy costs. At Novelis, renewable energy capacity is set to nearly double by the end of the year, reducing operating costs and tariff risks.
On these initiatives, CEO Satish Pai said, “The expansion should deliver healthy returns even if margins soften slightly. The focus remains on keeping net debt below 2x EBITDA while executing the Rs 83,000 crore capex programme through 2029.”
4. Devyani International:
This restaurant stock slid 9.7% over the past week as investors questioned whether the proposed merger with Sapphire Foods India could revive weak demand at existing outlets. Same-store sales declined across KFC and Pizza Hut stores operated by both companies in H1FY26, as intense local competition, aggressive discounting, and shifting consumer preferences have continued to hurt footfalls.
On January 1, Devyani’s board approved the merger of Sapphire Foods with itself. Under the scheme, Sapphire shareholders will receive 177 Devyani shares for every 100 shares held. In addition, Arctic International, a Devyani subsidiary, will acquire an 18.5% stake in Sapphire, consolidating control over the combined business.
As part of the broader transaction, Devyani will also acquire 19 KFC restaurants in Hyderabad for Rs 90 crore and pay a one-time fee of Rs 320 crore to Yum! Brands. This payment covers merger approvals, and grants Devyani rights to operate in new territories. Management expects the consolidation to improve scale and bargaining power across brands and geographies.
Commenting on the merger’s impact, Promoter and Chairman Ravi Kant Jaipuria said, “The merged entity will have more than 3,000 stores globally and an annual turnover of approximately Rs 8,000 crore.” He added that the integration could generate annual cost savings of about Rs 220 crore from the second year onward through efficiencies in procurement, logistics, and overheads.
Motilal Oswal remains constructive on the long-term benefits of the merger and maintains a ‘Buy’ rating with a target price of Rs 180. It expects the combined entity to accelerate store expansion, lower raw-material costs, and improve operating leverage. The brokerage forecasts revenue growth of about 12% and EBITDA growth of over 15% annually over FY26–28.
Recent financial performance, however, remains mixed. In Q2FY26, Devyani reported revenue growth of 12.6% YoY, aided by new store additions and the acquisition of Sky Gate Hospitality (parent co of Biryani By Kilo, Goila Butter Chicken, and The Bhojan). Yet the company posted a net loss due to elevated operating costs, higher raw-material prices such as cheese and flour, and lower margins from the newly acquired Sky Gate brands.
5. Coal India (CIL):
The stock of this coal & mining company rose by over 4% in the past week after its wholly owned subsidiary, Bharat Coking Coal (BCCL), announced its initial public offer (IPO). The Rs 1,071.1 crore issue, opening on January 9, is a complete offer-for-sale, with Coal India selling a 10% stake, or about 46.6 crore shares. The divestment is expected to generate around Rs 605 crore in profit, translating into a 130% return on investment.
Director M.K. Agarwal stated that the IPO proceeds will fund CIL’s Rs 16,000 crore capital expenditure plan for FY26. Following a directive from the Prime Minister's Office, the company aims to list all eight of its subsidiaries by 2030 to improve transparency and unlock asset value.
Operations in the second quarter were challenging, with revenue rising just 0.5% YoY due to an intense monsoon that disrupted mines in Jharkhand and Chhattisgarh. Coal production between April and November 2025 reached 453.5 million tonnes, compared to 471 million tonnes in the same period last year.
Looking forward, Trendlyne’s Forecaster projects a significant revenue surge of 18.8% in Q3FY26. This optimistic outlook is supported by a recovery in operational momentum following a weather-disrupted first half. Analysts from Kotak Securities highlight that while production was initially hamstrung by an extended monsoon, offtake volumes have remained remarkably steady through the third quarter. This suggests that end-user demand, particularly from power and steel sectors, has not weakened, even as global commodity cycles fluctuate. The stock appears in a screener of companies with rising net cash flow and cash from operating activity.
Global brokerage firm Jefferies reiterated a ‘Buy’ rating on Coal India and raised its target price to Rs 440, citing steady cash flows driven by demand from power and industrial users. It added that the stock remained an attractive defensive bet amid volatile metal prices.
Trendlyne's analysts identify stocks that are seeing interesting price movements, analyst calls, or new developments. These are not buy recommendations.
