By Trendlyne AnalysisThis precision components maker rose 7% on September 29 after launching two new manufacturing plants for GE Vernova’s Gas Power business. Spread across 15,200 square metres, the plants will make specialised parts used in power-generation equipment, including components for gas turbines. Azad now operates three dedicated facilities for GE Vernova, more than for any other customer.
The expansion deepens Azad's relationship with GE Vernova. In January 2025, Azad signed a six-year, $112 million deal to supply airfoils for advanced gas turbines, followed by a $53.5 million Steam Power contract in May 2025.
Whole-Time Director Vishnu Malpani explained the strategic value of dedicated plants: “Once a global marquee OEM integrates a dedicated qualified facility into their primary supply chain, shifting that business carries a huge switching cost.” Malpani highlights that this secures multi-year revenue and volume visibility. However, Azad relies heavily on a few key buyers. Its top customer drives 19% of FY26 revenue, while its six largest clients generate nearly half of all sales.
Azad boasts an order book exceeding Rs 6,500 crore, nearly 11 times its FY26 revenue. However, management notes that converting this backlog into sales takes time because new machines and components require customer approval before full-scale production. The company is targeting annual revenue growth of over 25% and EBITDA margins of 32-35%. Trendlyne’s Forecaster expects FY27 revenue to grow 33.5%.
The company is moving beyond individual components into manufacturing complete engines. In July, Azad delivered India’s first indigenous expendable turbojet engine to DRDO, handling the manufacturing, assembly, and integration.
ICICI Securities upgrades Azad to ‘Buy’ from ‘Add’ with a target price of Rs 3,200, implying an 8% upside. The brokerage expects the transition from capacity building to order execution to fuel a 33% revenue CAGR over FY27-29, while net profits nearly triple. However, delays in customer approvals could slow the conversion of Azad’s large order book into revenue.
This shipping company rose 3% over the past week after Nomura initiated coverage with a “Buy” rating and a target price of Rs 1,965, implying about 28% upside. The brokerage is positive on the company’s countercyclical approach to fleet management, which involves buying ships when prices fall, selling into strength, maintaining low leverage and returning surplus cash. At the end of August, the firm announced a Rs 900 crore share buyback programme at a maximum price of Rs 1,530 per share.
The company transports various commodities with its fleet of crude and product tankers, gas carriers, dry bulk vessels, offshore vessels and jack-up rigs. Earnings are currently benefiting from strong tanker rates and GE Shipping’s high exposure to the spot market. Forecaster expects revenue to grow 35% in FY27, with net profit growth of over 30%.
Management said disruptions around the Strait of Hormuz forced oil cargoes onto longer routes, sharply increasing demand. CFO G Shivakumar said, “Instead of importing from the Middle East, Asian countries had to source oil from the US or Brazil.” He added that this is a much longer voyage and therefore requires more ships.
GE Shipping has over Rs 8,000 crore in cash as of the June quarter and is taking a cautious approach to fleet expansion as vessel prices and freight rates have risen. The firm is therefore prioritising replacing older vessels with younger, more fuel-efficient ships while broadly maintaining capacity. In July, it replaced an older tanker with a younger vessel. Management says newer ships can use 20-25% less fuel than vessels built before 2013, improving operating economics.
Nomura expects the fleet to grow from around 40 vessels currently to 62 by FY29, assuming a meaningful decline in tanker rates. The main risk is that the current freight environment has already triggered a large wave of new vessel orders. Management expects oversupply risk to increase as these ships are delivered, while a normalisation in trade routes could also push freight rates lower.
This pharmaceutical giant's stock price jumped 2.5% on September 29 after Citigroup upgraded it to a ‘Buy’ rating from ‘Sell’. The brokerage also raised its target price to Rs 1,450, implying a 20.2% upside. Citigroup turned bullish on the drugmaker, citing clear earnings visibility, strong sales in non-US markets, and margin growth potential.
Analysts believe the company will navigate market competition using its diverse product lineup and massive global presence. Recent developments suggest the drugmaker has crossed its major growth hurdles. Crucially, the company has applied for US FDA approval for an Abatacept biosimilar, a key arthritis treatment with a global market size of $3.1 bn in 2025. The company expects final regulatory approval for the drug by the end of 2026.
Dr Reddy’s EBITDA margin crashed by 14.2 percentage points YoY in Q1FY27. Semaglutide-related setbacks, including a Rs 240 crore provision, lost production incentives, and lower sales, caused this steep drop. Additionally, soaring freight and raw material costs stemming from the West Asia conflict squeezed profits. However, the brokerage expects the upcoming resumption of Semaglutide supplies in Canada to revive both revenue and margins.
Together, the upcoming Abatacept launch and resumed Semaglutide supplies will generate an extra $350-400 million in revenue through FY29. This cash injection will help the company offset the revenue cliff for its generic cancer drug, Revlimid, following the expiry of volume caps this January.
Citi predicts Dr Reddy’s operating margins will rebound to 20% by FY29, up from an estimated 14% in FY27. The Abatacept launch and Semaglutide recovery alone will drive a 450 basis point margin expansion. Citi expects North American revenues (27% of topline) to bottom out in FY27, and highlights the company's execution in the non-US markets (62% of revenue). Accelerating growth across India, Europe, and emerging markets is shifting the business toward more sustainable, long-term earnings streams.
Management remains confident about a recovery in H2FY27. CEO Erez Israeli said, “The strength of our base business and ongoing productivity initiatives will continue to support double-digit base business growth.”
The stock of this healthcare facilities company declined 5.3% on September 30 after the Supreme Court raised concerns over steep medicine markups in private hospitals. The court questioned why essential drug prices cannot be capped at a 16% margin over the price-to-retailer (PTR) and criticized hospitals requiring inpatients to buy medicines exclusively from in-house pharmacies. While the court held off on immediate regulatory action to give the government time for consultations, the next hearing is scheduled for October 12, 2026.
Medicine and consumable sales generate about 12 to 15% of Fortis’ overall revenue. Because Fortis is structurally a clinically focused hospital operator, unlike peers like Apollo Hospitals with vast retail pharmacy footprints, potential regulatory price caps are expected to have a limited overall impact on the company.
Compounding its legal troubles, the Delhi High Court ordered a forensic audit into Fortis following Daiichi Sankyo’s push to enforce a Rs 3,500 crore arbitral award against former promoters Malvinder and Shivinder Singh.
Fortis management denied involvement in the disputed stake sale and ownership change, noting the transactions predated IHH’s control. It said the company complied with all applicable laws and that the forensic audit would not affect its brand, operations or patient inflow.
Despite legal headwinds, Fortis’ core operations remained strong, with the hospital segment serving as the primary growth driver and contributing around 85% of consolidated revenue. Looking ahead, Fortis plans to add about 2,000 brownfield beds over the next four years, including 500 beds in FY27. Motilal Oswal highlighted bed expansion and improving occupancy rates as key drivers of volume-led growth and reaffirmed its ‘Buy’ rating with a target price of Rs 1,130.
This oil marketing & distribution company rose 1.2% on Monday after Motilal Oswal reiterated its “Buy” rating with a target price of Rs 362, implying an upside of 26.8%. While the rating was unchanged, the fresh update pushed back on three key worries behind Petronet LNG’s sharp fall over the past seven months: costly LNG, Qatar supply disruption and a possible fee cut at Dahej, its main LNG processing plant in Gujarat.
The biggest near-term problem is expensive LNG. Costs for users such as fertiliser makers, factories and city-gas companies have more than doubled, making buyers reluctant to lock into fresh long-term contracts. Motilal expects demand, and in turn Petronet’s terminal usage, to pick up once prices become more affordable.
There are some early signs of demand picking up, with LNG shipments from Deepak Fertilisers and ExxonMobil coming in. The company is also adding capacity. It spent Rs 560 crore to raise Dahej’s annual capacity by 29%, at roughly one-tenth the cost of building a similar new terminal.
Motilal Oswal also says the risk of the Dahej facility charging lower fees may be overstated. About half the terminal’s business is tied to long-term contracts, and management says the fee on the renewed Qatar deal, covering 7.5 million tonnes a year, will not fall below current levels. The rest is locked in through 2035 with agreed fees and minimum usage commitments.
Analysts see the company’s Kochi facility emerging as a new growth driver. It ran at just about 24% of capacity in Q1FY27, largely because it has not been connected to a wider pipeline network. That should change once the Kochi-Mangalore-Bangalore pipeline links it to the national gas grid. Motilal expects the pipeline to start by March 2027, while management sees utilisation rising to around 40% over the next two to three years.
LNG supplies from Qatar remain the main near-term risk, but Petronet is replacing much of the missing supply from elsewhere. Vice President of Finance & Accounts Debabrata Satpathy said, “Even if that volume is not available from the Gulf region, more than two-thirds of that is being compensated from other parts of the world.” He added that once Gulf supplies return, capacity utilisation should “improve quite a bit.”
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