Highest Upside

Tata Motors JLR reported Q1FY26 wholesale volumes of 87,286 units, a 10.7% decrease YoY and 21.7% down from Q4FY25, reflecting the planned wind down of legacy Jaguar models and US import tariffs.

Tata Motors has struck a landmark deal to acquire Iveco Group N.V., aiming to establish a top-tier global player in the commercial vehicles sector.

We attended JLR’s Annual Investor Day meet to understand its outlook and growth strategy. JLR gave guidance for £28bn revenue with 5-7% EBIT margin in FY26 (vs earlier guidance of 10%; FY25: 8.5%); it maintained its interim/long-term guidance of 10%/15%, led by sustained focus on premiumization (growing share of higher-priced models), pricing discipline, and structural cost reduction.

We attended TTMT’s analyst meet to discuss the upcoming demerger, the IVECO acquisition (refer to our note), updates on JLR after the recent cyber-attack.

From a technical perspective, the stock has formed a solid base around its 200-week simple moving average, indicating that a short-term bottom is in place. Additionally, the Relative Strength Index (RSI) on the weekly chart has broken out of its oversold zone, further reinforcing the price strength. Moreover, both short-term and medium-term moving averages are positively aligned and trending...

Ajax reported a muted set of numbers in Q1FY26 with revenue and volume flat YoY. Sale of slipform pavers (~5% of revenue) in base quarter aided EBITDA margin of 17.1% in Q1FY26 (vs. 15.6% in FY25).

Q1FY26 performance: ACE's performance in Q1FY26 a mixed set, Revenue declined by 11% YoY (-32% QoQ) to 652 crore as the revenue of cranes, construction equipment & material handling segment (93% of total revenue) fell by 12.4% YoY (34% QoQ). Agri equipment revenue (7% of total) stood at 46.5 crore (+8.3% YoY, 4% QoQ). EBIDTA margin improved to 14.2% (+80 bps YoY, -280 bps QoQ), mainly led by better product mix. Subsequently, EBIDTA declined by 6% YoY (-43% QoQ) to 92 crore. However, other income grew by 85% to 51 crore resulting in PAT growth...

About the Company: RACL Geartech Limited (RACL) is an auto ancillary player Export driven model with margin resilience, value-added products: With ~70% of revenues from exports (~ 52% from Europe) and a shift towards low-volume, high-value parts, RACL maintains attractive margin profiles (EBITDA margins in the range of 20-25%) even in a competitive market. Its focus on complex, precision-engineered parts and forward integration...

The company’s liquidity position was adequate, supported by expectation of healthy cash flows, sizeable cash and bank balances (~Rs. 5,910 crore as on March 31, 2025) and low to moderate utilisation of committed facilities (buffer of ~Rs. 3,397 crore as on March 31, 2025).

Liquidity at HMIL was sizeable at ?8,579 crore as on March 31, 2025. Besides this average utilisation of the fund-based limit of ?3,637 crore was negligible in the six months through June 2025.

Hyundai Motor India (HMIL) plans to invest a total of INR450b over FY26-30, with 60% to be invested in R&D and 40% in capacity expansion and modernization. It has guided for revenue of INR1t, margin of 11-14% and a dividend payout range of 20-40% during the same period.

TRSL is strategically positioned for sustained growth across India's rail sector, leveraging its integrated capabilities in freight, passenger, propulsion, and wheelset segments.

Sundram Fasteners Ltd (SFL), established in 1962 and headquartered in Chennai, India, is a flagship company of the TVS Group and a prominent player in the global automotive components industry. The company specializes in the manufacture of high-tensile fasteners(40% of revenue), powertrain components, and precision-engineered products, catering to both automotive and industrial sectors. With exports contributing 30% to its revenue, Sundram Fasteners has a strong presence in key international markets such as the U.S, Europe, and...

SEL’s consolidated revenue rose 17% YoY, led by SCD/DCD (up 6/7.7% YoY). EBITDA fell 5.3% YoY (on higher employee costs due to ongoing restructuring at SCS); SCD (global business) continues to clock double-digit EBITDAM (11.8% in Q1 vs 10.8/11.8% in Q4/Q3FY25).

Slightly lagging ARe of Rs1.79bn, ZF’s Q4 EBITDA rose 17% y/y to Rs1.73bn on less-than-expected revenue. The ADAS regulation draft notification is out, proposing ESC, AEBS and 4 ADAS functions from Oct’26, with content opportunity of >Rs65,000/vehicle for CVs (>3.5-tonne trucks and >5-tonne buses).

The company has shown steady growth in its core segments and is actively expanding its capacity and capabilities across areas like recycling, tubular batteries, and New Energy. However, it is currently navigating short-term margin pressures due to rising material and power costs. Timely commissioning of new energy projects and aggressive Chinese cell pricing to be considered as watchlist risks. We believe investment in key projects and...

Given the strong fundamentals and product diversification, we believe ZFCV will be a direct beneficiary in the long run owing to economic growth, a wider portfolio and government *over or under performance to benchmark index thrusts on infrastructure development. The firm is driven by higher AMT and ECAS penetration and strategic e-mobility initiatives, despite flat trailer volumes and adverse mix. Regulatory tailwinds (ESC, AIS 113, ADAS) and a robust product pipeline support future growth. EV segment momentum continues, with targeted solutions for independent bus OEMs. Hence, factoring in 14% earnings CAGR over FY25-27E. Having said that, we...

Tube Investments’ (TIINDIA) 2QFY26 PAT at INR1.86b came in line with our estimate of INR1.78b, even as EBITDA margin at 13.1% was ahead of our estimate of 12.2%.