1. Apollo Tyres:
ICICI Direct maintains its ‘Buy’ rating on this tyre manufacturer, with a target price of Rs 605, an upside of 15.7%. The company delivered strong Q2FY26 results, with revenue growing 6.2% YoY to Rs 6,860.8 crore. Analysts Shashank Kanodia and Bhavish Doshi believe that GST 2.0 reforms and expansion in Hungary will boost auto segment volumes, driving revenue growth in the near to medium-term.
Management expresses confidence in navigating industry challenges, focusing on margin expansion and growth plans. The company saw strong performance in the replacement and original equipment manufacturing (OEM) segments, and exports recovered. Analysts believe reducing GST on new tyres (28% to 18%) and tractor tyres (5%) will improve cost competitiveness and boost demand across OEM and aftermarket channels.
Kanodia and Doshi note that passenger car radial (PCR) capacity expansion will finish in FY27. They expect management to ramp up the plant's capacity to meet growing demand, adding that favourable raw material prices and robust replacement market demand will sustain its growth. They project Apollo Tyres to deliver an 8.2% revenue CAGR and a 37.3% net profit CAGR over FY26-27.
2. Tata Steel:
Axis Direct upgrades this steel manufacturer to a ‘Buy’ rating, with a target price of Rs 195, an upside of 13.1%. In Q2FY26, net profit surged 3.7 times YoY to Rs 3,101.8 crore, thanks to lower raw material and finance costs. Revenue increased 8.3%, driven by growth across all regions. Analyst Aditya Welekar highlights that India volumes rose to 5.6 million tonnes (MT) as the Kalinganagar Phase II plant in Odisha continued its ramp-up.
Management expects volume growth to improve as Kalinganagar reaches its full 5 MT capacity by the end of FY26. Additional capacity from the Ludhiana electric arc furnace in FY27 and from the Jamshedpur combi mill will support medium-term growth. The next major expansion involves scaling up Neelachal Ispat Nigam to 5 MT from 1.1 MT.
Welekar notes the company’s cost-cutting program has worked effectively, achieving savings of Rs 5,450 crore in the first half of FY26. He expects volume growth to continue as new capacity comes online, though overall volumes may moderate after FY26 until large expansion projects begin. Sustained cost optimisation and a better product mix will remain key drivers of strong earnings.
3. Biocon:
Motilal Oswal reiterates its ‘Buy’ rating on this biotech company with a target price of Rs 480, an upside of 13.9%. In Q2FY26, the company reported 19.6% YoY revenue growth to Rs 4,295.5 crore, driven by the biosimilars segment, which now accounts for over 60% of total sales. EBITDA rose 22% to Rs 840 crore, due to better operating leverage after adding three new facilities last year.
Analysts Tushar Manudhane and Vipul Mehta note that biosimilars remain the key growth driver, showing strong performance across North America, Europe, and emerging markets, boosted by new launches and market share gains. The generics segment also rebounded with 24% growth, helped by new US and European launches and contributions from facilities capitalised in FY25.
Biocon continues to reduce debt. Management confirms full repayment of the remaining structured debt by January 2026, with lower interest costs starting in H2FY26.
Manudhane and Mehta expect the company to enter a clear scale-up phase. They project 16% revenue growth and 77% net profit growth over FY26–28, supported by stronger biosimilar traction, a broader generics pipeline, and ongoing deleveraging efforts.
4. Welspun Corp:
Geojit BNP Paribas maintains its ‘Buy’ rating on this iron & steel producer, with a target price of Rs 1,150, an upside of 27.3%. In Q2FY26, the company reported 32.5% YoY revenue growth to Rs 4,373.6 crore. EBITDA rose 48%, and margins improved 140 basis points. Net profit jumped 53.2%, thanks to tighter cost control and improved operational efficiency.
The company’s US subsidiary secured $715 million (over Rs 6,300 crore) in line-pipe orders for natural gas and natural gas liquids projects. These orders offer revenue visibility through FY28 and strengthen the company’s position in the US energy infrastructure chain. Demand in this sector is rising due to new gas projects and growing data centre requirements.
The order book stands at Rs 23,500 crore, providing a multi-year pipeline across domestic and international markets. Analyst Mithun T Joseph states this visibility comes from rising demand for energy transportation systems and steady demand from industrial and water pipeline projects.
Joseph believes Welspun Corp is well-positioned to benefit from global spending in energy infrastructure, its large order book, margin improvement, and a disciplined cost structure. Despite recent investments, the company maintains a healthy balance sheet and improving returns.
5. DOMS Industries:
Prabhudas Lilladher retains its ‘Buy’ rating on this stationary manufacturer, with a target price of Rs 3,085, an upside of 20.8%. The company delivered robust Q2FY26 results, with revenue jumping 23.8% and net profit growing 13.5% YoY. Analysts Jinesh Joshi and Stuti Beria note that healthy volume growth in the stationery segment (91.7% of revenue) amid new product launches across scholastic stationery, kits & combos, and office supplies supported revenue growth.
Management maintains its capex guidance at Rs 2,100-2,250 crore for FY26. This capex funds a 44-acre expansion project, enabling in-house tip production, in a bid to reduce procurement costs and boost margins. Extended monsoons delayed the expansion, but management expects production to start by Q1FY27.
Joshi and Beria add that the company’s focus on capacity expansion in the core stationery business, widening the product basket, and strengthening the distribution network will drive top-line and profitability. They expect DOMS Industries to deliver a 22% revenue CAGR and a 24% net profit CAGR over FY26-28.
Note: These recommendations are from various analysts and are not recommendations by Trendlyne.
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