1. FSN E-Commerce Ventures (Nykaa):
This cosmetics retailer rose 4.5% on October 5 following an upbeat Q2FY27 business update. The company expects revenue to grow in the high-20% range YoY, even as festive demand shifted into Q3. Steady beauty sales and a sharp fashion rebound power this growth. Trendlyne Forecaster projects a 28.7% revenue rise and expects net profit to triple.
Beauty remains Nykaa’s biggest moneymaker. The company expects revenue to grow in the high-20s as it wins new customers and opens more physical stores. Nykaa added 14 stores this quarter, bringing the total to 338. Meanwhile, existing stores posted their fastest sales growth in six quarters. Management aims to push the beauty network beyond 600 locations by FY30.
Fashion is growing even faster. Nykaa expects segment revenue to jump into the low-40% range after widening its catalogue. The platform added 250 brands this quarter to attract new buyers. Abhijeet Dabas, CEO of Nykaa Fashion, said, “We are seeing a higher share of revenue come from repeat customers.” Stronger customer loyalty lowered acquisition costs, helping the fashion segment turn profitable. However, competition is rising from fast-fashion brands like NEWME, which launches over 500 styles weekly and plans to expand to 50 stores by the end of 2026.
By FY30, Nykaa aims to grow revenue up to three times and EBITDA up to five times. It also targets a threefold jump in fashion sales alongside high single-digit margins. HDFC Securities calls these FY30 targets aggressive, especially for fashion. The brokerage warns that Nykaa will struggle to slash marketing and fulfilment expenses without hurting customer growth.
Following the business update, Morgan Stanley kept an ‘Overweight’ rating with a target price of Rs 356, implying a 3.8% upside. It noted that both overall and beauty sales growth outpaced the bank's 26% and 25% forecasts. Fashion delivered the biggest surprise, beating the expected 35% growth. Analysts anticipate even stronger Q3 results as delayed festive demand hits the books.
2. Honasa Consumer:
This personal products company rose 9.5% in the past week after reporting a positive update ahead of its upcoming quarterly results.
Honasa Consumer expects Q2FY27 net sales value YoY growth to be in the early 30s, with Mamaearth growing in the high teens and younger brands in the mid-40s. It also expects an early double-digit operating margin. Forecaster, meanwhile, expects net profit to jump nearly 69%.
The update addresses two concerns ICICI Securities had flagged following Q1 earnings: whether Mamaearth could sustain growth and if Honasa could build sizeable brands beyond it. The brokerage reiterated its “Buy” rating in August and raised the target price to Rs 720, implying an upside of 54%. It pointed to The Derma Co crossing Rs 1,000 crore in annualised sales and younger brands growing faster than Mamaearth, noting that growth was spreading across the portfolio.
HDFC Securities also counts Honasa among its preferred consumer stocks, expecting earnings to grow faster than most of the sector as margins improve. It sees wider physical-store reach helping drive the next phase of growth across the company’s brands.
Offline channels already contribute about 35% of Honasa’s sales and more than half of Mamaearth’s, while the company directly reaches around 1,20,000 stores. It plans to increase this to about 3,00,000 by FY31. But HDFC notes that adding stores alone is not enough; sales from existing outlets also need to rise.
The brokerage found that retailers typically earn a 15-23% margin on Honasa products, with promotional schemes taking this to 27-35%. Those incentives can boost sales, but the extra payouts can eat into profit.
ICICI Securities also cited rising competition in the company’s core categories as a risk, which include face washes, shampoos and sunscreen. However, Honasa said it gained about 3.5 percentage points of market share in face washes and 1.6 points in shampoos in Q1, indicating that competitive pressure has not stopped it from gaining share.
Even so, management expects margins to improve as newer brands become more profitable. EBITDA margin stood at 12.5% in Q1. Alagh said, “We will expand EBITDA margin by 100-150 basis points each year,” with a target of reaching 15% in five years.
3. Sterlite Technologies (STL):
This optical and digital connectivity stock surged 11.7% over four sessions starting October 1, reaching an all-time high of Rs 1,051.1. The rally came after STL secured a $1.2 billion order from a hyperscale partner to supply optical connectivity products through 2030. Optical networking contributes to over 95% of the company’s total revenue.
The momentum continued as Nomura initiated coverage with a ‘Buy’ rating and a target price of Rs 1,350, implying a 33% upside. The brokerage expects heavy data centre spending and tight industry supplies to drive long-term demand. A lack of factories outside China, which reduces supply diversification, combined with raw material bottlenecks and limited glass preform capacity, has created a persistent global supply deficit. To secure materials, hyperscalers are signing multi-year agreements, creating major opportunities for companies like STL.
Nomura notes that STL’s end-to-end manufacturing capabilities will help it capture market share while rivals struggle with supply bottlenecks. Analysts estimate high-margin data centre revenue will jump from just 1% of total sales in FY26 to roughly 40% by FY29.
Discussing the growth outlook, CFO Ajay Janjari said, “We are targeting revenue to grow over 4x from Rs 4,750 crore in FY26 to Rs 20,000 crore in FY29, with EBITDA margin expanding 13.8 percentage points to over 27%.” An order book exceeding $2 billion fuels this expected surge in the core optical fibre business. STL plans to sell more high-value, integrated connectivity solutions. This shift will improve factory utilisation and enrich the product mix, further boosting margins.
The global boom in AI and data centres is driving demand for optical fibre and connectivity solutions, expanding opportunities for STL. The company aims to invest Rs 1,000 crore annually over the next three years to expand its preformed fibre and cable capacities by 50%. This will scale capacity in line with demand from telecom, AI data centres and other optical connectivity applications.
4. JSW Infrastructure:
This marine ports and services company’s stock fell 5.7% on October 8 after HSBC downgraded it to ‘Reduce’ and set a target price of Rs 310. Although the stock has rallied 27% year-to-date, HSBC warned that the company's aggressive, capex-led expansion strategy carries elevated execution risks and could dilute its return on invested capital (ROIC).
While HSBC expects strong cargo volumes in India to cushion disruptions at the company's Fujairah facility, it cautioned that slower project execution will likely weigh on earnings. Consequently, the brokerage trimmed JSW Infra's EBITDA estimates by 4% to 7% for FY27 through FY29. Highlighting a clearer growth trajectory, HSBC signalled a preference for peer Adani Ports, pointing to its superior ROIC and attractive valuation.
Despite HSBC's cautious stance, broader market sentiment around JSW Infrastructure remains strong, with Trendlyne Forecaster showing 14 out of 17 tracking analysts holding a ‘Buy’ rating. The Forecaster expects JSW Infra’s Q2FY27 net profit to grow by 15.5% YoY, supported by port capacity expansion and logistics growth.
Operational headwinds stem primarily from its Fujairah Liquid Terminal in the Middle East, where an oil tank was damaged in a March drone strike by Iran. Although operations have been fully restored, repeated escalations in early 2026 highlight ongoing geopolitical risk in the strategic hub. Management factored Fujairah's impact into a revised FY27 volume growth target of 4.4% to 127 MTPA, while firmly maintaining its EBITDA targets of Rs 3,000 crore for FY27 and Rs 5,000 crore for FY28.
5. Bajaj Finance:
This non-banking financial company surged 2.3% on October 5 after reporting its Q2FY27 business update, with assets under management (AUM) growing 26.5% YoY to Rs 5.9 lakh crore, the fastest pace in seven quarters. The stock also drew attention after the company announced a Rs 17,500 crore fundraise through a qualified institutional placement (QIP) and promoter warrants. Jefferies retained its ‘Buy’ rating with a target price of Rs 1,280, implying about 33% upside, and named Bajaj Finance among its top picks.
Bajaj Finance’s new loan bookings for the quarter rose 11%, compared with 26% a year earlier. The company says the figures are not directly comparable because the festive season began earlier last year.
The current opportunity lies in growing across multiple lending categories while deepening relationships with its large customer base. The company has been expanding its gold-loan and microfinance networks alongside digital lending channels. Vice Chairman and Managing Director Rajeev Jain said, “The company is targeting Rs 10 lakh crore of AUM by 2029, while aiming to maintain its profitability metrics as the balance sheet scales.”
The proposed capital raise could support the next phase of growth. Bajaj Finance plans to raise up to Rs 11,700 crore through a QIP and Rs 5,800 crore through warrants issued to promoter Bajaj Finserv. This would be its first equity fundraise since 2023.
Jefferies expects AUM growth to remain around 23% annually through FY29 and sees earnings growth of 35% in FY27, followed by 22% in each of the next two years. The key risk is that the expansion will require more capital at a time when funding conditions could become less favourable. The RBI raised the repo rate by 25 basis points to 5.5% on October 7, its first hike in nearly four years, while Bajaj Finance has also raised its fixed-deposit rates by 15-40 basis points. Higher funding costs could pressure margins even as loan growth remains strong.
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