1. Lemon Tree Hotels:

This hotel operator surged 5% over the past week after reporting its Q2FY27 results. Revenue increased 18% YoY, while net profit grew 64%. Both revenue and net profit beat Forecaster estimates by a wide margin. The company appears in a screener of stocks that effectively use their capital to generate profits, with RoCE improving over the last two years.

Operating performance improved in both pricing and occupancy. Average room rates across owned and leased hotels increased 8% to Rs 6,751, while occupancy climbed 633 basis points to 76.1%. EBITDA margin expanded 157 basis points to 44.6%. Executive Chairman Patanjali Keswani said, “The second half of FY27 is expected to contribute 55% of the revenue, and almost 60% of EBITDA.”

Asset-light expansion is becoming an increasingly important growth driver. During the quarter, Lemon Tree opened eight managed and franchised hotels with 523 rooms and signed another 11 contracts covering 825 rooms. Fees from third-party-owned hotels increased 30%, taking total management fees up 19% to Rs 41 crore. This model allows the company to expand its presence and generate recurring fee income without owning every property.

The more differentiated long-term opportunity lies in the proposed demerger of Fleur Hotels. Under the scheme, Lemon Tree plans to separate its asset-light hotel management and brand business from its hotel ownership and development operations, which will be housed under Fleur Hotels. The restructuring could allow Lemon Tree to focus on higher-margin management and franchise fees, while Fleur operates as a separate hotel ownership platform.

Motilal Oswal maintains a 'Buy' rating with a sum-of-the-parts target price of Rs 140, implying 15% upside. Brokerages expect higher room rates, improved occupancy, new hotel additions and growing management fees to support earnings. Risks include a slowdown in travel demand that affects occupancy and room rates, rising renovation and operating costs, and delays in executing the hotel development pipeline or in completing the Fleur demerger.

2. Kalyan Jewellers: 

This jewellery retailer soared 24.5% last week, hitting a 52-week high of Rs 718.1 after reporting strong Q2FY27 results on November 10. Revenue climbed 31.4% YoY, driven by healthy same-store sales growth (SSSG), rapid store additions, and demand across India, international markets, and the daily-wear jewellery brand, Candere. Net profit surged 64% as premium products, tax benefits, and a one-time property sale boosted the bottom line. Both revenue and profit beat Forecaster estimates.

Domestic revenue (87.3% of the top line) grew by 32%, driven by higher sales of studded jewellery and the opening of 11 new stores, despite single-digit inflation in gold prices. Management pointed out that customers shop to a budget rather than a quantity of gold, so softer gold prices translate into higher volumes. 

The company continues to scale its Candere business, with revenues rising 61% during the quarter and plans to add 50 showrooms in FY27. While the overall business rose, EBITDA margins dipped 20 bps due to a higher mix of recycled gold and open-position losses in silver and platinum.

Buoyed by the robust quarter, Executive Director Ramesh Kalyanaraman said, “We are confident of exceeding the 25% revenue growth outlook for FY27, with an SSSG estimate of over 10%.” Management remains highly optimistic about H2, noting that festive and wedding-season demand, particularly during Navratri and Dhanteras, is already driving sales higher in Q3.

To maintain this momentum, the company plans to open 140 new stores this year, including 84 Kalyan showrooms, 50 Candere outlets, and six international locations. The company utilises a mix of company-owned and franchise-operated stores, with the asset-light franchise model accelerating expansion while improving capital efficiency. 

Following the results, Motilal Oswal retained a ‘Buy’ rating with a target price of Rs 800, implying a 14.8% upside. The brokerage expects continued customer acquisition, volume-led demand, and the ongoing shift from unorganised to organised retail to drive revenue. Analysts project the firm will deliver annual revenue and net profit growth of 21.5% through FY29.

3. Tata Steel:

This steel producer fell 2.8% on November 9 as growing UK losses raised concerns about its recovery. In Q2FY27, its UK EBITDA loss more than doubled QoQ to £56 million (around Rs 720 crore). Weak demand and heavy imports left UK warehouses with excess steel. Tighter import restrictions in July offered little relief as shipments from earlier orders continued to arrive. As a result, Tata Steel's UK deliveries fell 22% QoQ.

The UK troubles also led brokerages to cut their price targets. Nomura lowered its target by 12.5% to Rs 210, implying a 12.5% upside, while maintaining its 'Buy' rating. IDBI Capital cut its target by 8.7% to Rs 209, implying a 12% upside, while retaining its 'Hold' rating.

Despite these challenges, Tata Steel's revenue and net profit grew 11.5% and 18.2% YoY, respectively, driven by stronger performance in its Indian operations. Deliveries in India rose 7.7% as production increased and demand from automobile and construction companies improved.

However, higher raw-material and transport costs pushed Indian operations' EBITDA per tonne down 7.2% sequentially to Rs 17,790. With steel prices recovering since September, MD & CEO T. V. Narendran said, “In India, we expect the realisations to be about Rs 3,500-3,600 per ton higher in Q3 compared to Q2.”

Tata Steel plans to spend around 70% of its FY27 capital budget in India. Its Rs 33,873 crore expansion at the Neelachal Ispat Nigam plant in Odisha is underway and expected to add 4.8 million tonnes of annual capacity by FY30, roughly 18% of its current Indian capacity. The company is also increasing coated steel production for vehicles, construction and food packaging to boost sales of higher-value products.

Meanwhile, Tata Steel's Netherlands business recovered sharply, with EBITDA jumping from €4 million in Q1 to €72 million in Q2, even as deliveries fell. Restarting its Direct Sheet Plant in August after an emissions-related shutdown helped cut costs and boost sales of more profitable steel products.

4. Data Patterns:

This defence company rose 8.7% on Monday as a surge in new orders raised expectations of a strong recovery in sales, following weak Q2FY27 earnings. Chairman & MD Srinivasagopalan Rangarajan also retained FY27 guidance of 20-25% revenue growth and 35-40% EBITDA margins, expecting deliveries to pick up sharply in H2FY27.

“We received fresh orders worth Rs 929 crores in Q2FY27,” Rangarajan said, taking H1 order inflows to nearly three times last year’s level. Two radar production contracts from Bharat Electronics accounted for 63% of the quarter’s new orders.

Revenue and net profit both plunged by over 55%, missing Forecaster estimates by 45.5% and 69%, respectively. Management said it had delivered an unusually large defence contract in the year-ago quarter, making the comparison tougher. Deliveries were also lower this quarter, as several defence projects are scheduled for completion in H2.

Government defence projects typically see more deliveries towards the end of the financial year. But meeting these targets will require a sharp recovery. Jefferies estimates Data Patterns needs 66-75% revenue growth in H2 to meet its full-year target, after a weak first half. Profitability also needs to improve, with H1 EBITDA margins at just 25.2%, well below the management’s full-year target.

Management expects another Rs 1,500-2,000 crore in orders before March, in addition to existing and negotiated contracts. Rangarajan said these potential contracts face limited competition, but their approval timelines remain uncertain. Meeting FY27 guidance will depend on how quickly the company delivers its existing orders.

Data Patterns is also moving beyond supplying individual components to developing complete radar, communication and electronic warfare systems. This could help it win larger defence contracts in India and overseas, having already delivered a complete radar system to a European customer last year.

Jefferies reiterated its ‘Buy’ rating with a target price of Rs 5,545, implying a 30% upside. The brokerage expects Data Patterns’ profit to more than double by FY30, but flags outdated technology and difficulties managing expansion as key risks. 

5. Motilal Oswal Financial Services:

This capital markets company gained around 11% over the past week following a rebound in the broader equity market. The firm’s Q2FY27 net profit almost tripled YoY as revenue increased by more than 64%, driven by growth in asset and private wealth management. The company is gradually shifting towards businesses that generate recurring income from asset management, reducing its dependence on transaction-based revenues.

Asset management is becoming a larger contributor to earnings, accounting for 43% of operating PAT, up from 31% a year earlier. Mutual fund performance, higher AUM, and growing alternative investment offerings are supporting this expansion. Motilal Oswal Alternates has also raised 90% of its Rs 3,000 crore maiden private credit fund and launched its first commercial real estate fund.

Motilal Oswal's recurring revenue share increased to 66% of group revenue, compared with 55% in FY24. Group MD Navin Agarwal said, “This has helped in reducing transaction-based cyclicality in revenue.” Asset management and private wealth are expected to contribute an increasing share of group earnings as their AUM expands.

ICICI Securities maintains a ‘Buy’ rating on the stock, with a higher target price of Rs 1,326, implying an upside of around 8%. The brokerage expects stronger execution, higher recurring income, fund performance and growth in asset and wealth management to support earnings. However, risks include a broader market downturn that could affect AUM valuations and client activity, as well as weaker trading volumes that could affect brokerage income.

Trendlyne's analysts identify stocks that are seeing interesting price movements, analyst calls, or new developments. These are not buy recommendations.