Buy

With a 32% upside from the CMP, we maintain our long-term BUY rating on the stock.

We maintain our BUY recommendation on reasonable valuations.

The sector—comprising bond issuance, bank credit, securitisation, and non-rating services—is projected to grow at a CAGR of 12% till FY28. CARE Ratings is expected to outperform with a revenue CAGR of 14% while maintaining healthy EBITDA margins of 38%.

Amidst tough macro environment, SBI reported yet another steady quarter with ~12% YoY growth in loans, deposits and PAT.

Solar Industries (SOIL)’s operating performance was in line with consensus’ estimate. EBITDA, at INR 5.3bn, jumped 19% YoY driven by robust defence and exports, compensating for the subdued performance in mining and infra segments, which were impacted on account of monsoon arriving early.

SignatureGlobal India (Signature) delivered a 57% sales booking CAGR over FY21–25, largely in affordable/mid-income housing projects.

PTC Industries’ (PTCIL) Q1FY26 EBITDA of INR 88mn was subdued, primarily on account of underperformance at Trac Precision Solutions (Trac; reported EBITDA-level loss due to execution delays, spillover of some contracts to Q2, leading to negative operating leverage).

India Shelter reported >17% RoE in Q1FY26, sustaining eight straight quarters of steady performance; RoA climbed from 5.5% to 6% despite leverage (asset/equity) worsening from 2.6x to 2.9x in Q1FY26.

HPCL’s Q1FY26 standalone EBITDA/PAT of INR 76bn/INR 43.7bn rose 3.6/12.3x YoY (+31/+30%QoQ), vs. I-SecE of INR 82/48.4bn, respectively.

Afcons reported a steady Q1FY26. Revenues stood at INR 34bn, EBITDA came in at INR 4.3bn (+23% YoY) and margins swelled 170bps YoY to 12.9%.