The first ATF price revision after the start of the Middle East (ME) conflict saw high frenzy—OMCs (IOCL) initially hiked domestic/international rates by 115%/107% MoM to Rs207/USD1.7 per ltr, followed by announcement of domestic scheduled airlines’ rate revision by only ~25% to Rs105/ltr as GoI action was aimed at shielding domestic air travelers from high fares (international fares unchanged).
We initiate coverage of Granules with BUY and SOTP-based Mar-27 TP of Rs800 (implied target EV/EBITDA of ~12x; ~30% upside). Granules fits into our framework of backing companies with a smaller US base + a US portfolio construct with strong near-term growth visibility.
Exports is emerging as a key growth lever, with plans to double revenue in FY27 vs FY25 and deliver >20% CAGR over coming 5Y, led by a dedicated exports team, product localization, and upcoming capacity expansion in Sri City.
Current exposure in the Middle East (ME) remains low (~10% of overall orderbook). The management sees potential revenue impact of USD20-30mn in Q4FY26 due to supply-related challenges for the Power T&D business.
Infosys has signed definitive agreements to acquire Optimum Healthcare IT (up to USD465mn; ~1.7x P/S) and Stratus Global LLC (up to USD95mn; ~2.2x P/S), with a combined cash consideration of ~USD560mn.
Our meeting with the top management (MD/CEO/CFO) was encouraging. PAG is seeing improving demand trends (post Oct-25), and targets to deliver doubledigit sales growth and retain 19-21% EBITDA margin band in the near term.
We hosted a call with City Union Bank’s Credit Head, Mr Subramanian T R, and Head of IR, Mr Jayaraman, to discuss current growth and asset quality trends, along with any potential impact from the Middle East crisis.
We initiate coverage on Kalpataru (KL) with BUY and SOTP-based TP of Rs420. KL is an established integrated real estate developer focusing on the Mumbai Metropolitan Region (MMR) and Pune, where it has strong recall and diversified pricing points.
We initiate coverage on Parag Milk with BUY and DCF-based Mar-27E TP of Rs250 (implied P/E of 15x). Strong backend capabilities and brand portfolio enable Parag to scale up front-end capabilities and accelerate growth.
We came out of Ethos’s investor summit with renewed confidence on the company’s 10x scale-up opportunity over the next decade; hence, we reiterate BUY.
LGE does not foresee any production disruption from the current LPG supply, on limited dependance in refrigerators and RACs being covered until Mar-26 and transition to PNG/diesel underway; vendors, however, are facing supply challenges.
Domestic E-2W industry seeing strong growth momentum (20-30% YoY during Dec ’25-Feb ’26), led by the >Rs0.1mn segment and the <Rs0.1mn market volume showing signs of bottoming; stepup in ICE-2Ws has not slowed the E-2W industry.
ABB India has announced a capex plan of ~USD75mn for CY26 which is aimed at expanding its manufacturing capacity and R&D capabilities for electrification and automation solutions.
We interacted with R Srikrishna, CEO of Hexaware Technologies (HEXT), to gauge the market pulse and assess the growth outlook. HEXT’s CY25 growth was impacted by weak macros, higher than usual client-specific challenges, and weak NN deal-wins in H1CY25. NN trends and overall growth started improving in H2CY25.
Per media articles (refer to link) , the Union Cabinet has approved changes to the Press Note 3 framework for FDI (we await official confirmation by the GoI).
We reiterate BUY on Delhivery with TP of Rs500. We expect 19% volume CAGR (16% organically) over FY25-28E in the B2C express segment on the back of favorable industry structure bolstered by the consolidation of Ecom Express fortifying Delhivery’s market leadership, as customers (majorly D2C) are likely to stream toward tech-supported pan-India pincode coverage and cost-efficient quality 3PL operators.
We met the management of APTY. KTAs: Demand is strong, with double-digit YoY growth across channels and segments in Q4, triggered by recent GST cuts; outlook for FY27 also appears healthy.
We hosted SPRL’s management, to discuss key strategies and growth outlook for legacy business and fast-growing newer verticals. The management reiterated confidence in sustaining industry-beating growth (8-10% outperformance vs underlying auto industry).
The US Department of Commerce imposed a preliminary CVD on solar PV imports from India, Indonesia and Laos, with India rate at 126% leading to significant negative sentiment for Indian players, with sharp stock correction.
We expect sharp earnings recovery for SAIL, with EBITDA/t rising to Rs7,000-7,500 in the next two quarters (vs ~Rs4,500/t in Q3). This would be driven by inventory unwind and improved realization (QTD average at +11% for flats and +17% for longs vs Q3), partly offset by higher coking coal costs (+18% QoQ).
