Bank of America Securities on Pidilite
Bank of America Securities has updated its investment view on Pidilite, raising the price target to Rs 1,475 following a strong fourth quarter. Despite good performance, the firm notes that the business dynamics are changing, particularly amid macroeconomic volatility and cost pressures. With input costs inflating by 40-50%, margins may trend toward the lower end of the guided range, even after two price hikes. Price elasticity and competition also pose risks. In contrast, Goldman Sachs has rated Pidilite as a “Buy” with a target price of Rs 1,700, highlighting a strong 15% revenue growth in 4Q FY26 due to underlying volume increases. The management has reported no channel stocking and solid demand trends continuing into April. Growth fueled by a healthy adhesives portfolio and increasing demand in tile adhesives and waterproofing was noted, along with a 12-13% price hike to combat input cost rises.
Citi on Britannia
Citi Research has given Britannia a “Buy” recommendation, although it has reduced its price target to Rs 6,500 following a lackluster fourth quarter, where revenue and EBITDA each grew by 6%. The performance was hindered by disruptions resulting from the conflict in West Asia, which impacted exports by 2-2.5% in 4Q. The company is shifting export manufacturing to Mundra, Gujarat, anticipated by mid-May, which may continue to affect operations in the first quarter. Citi expects pricing distortions to ease as industry players adjust prices to counter commodity inflation. CLSA reported a 7.1% sales growth for Britannia, below expectations. The company’s EBIT fell short of estimates, reflecting pressure from low-priced packs, dual pricing, and logistical challenges.
Bank of America Securities on Britannia
Bank of America Securities has a “Neutral” outlook on Britannia, cutting the target price to Rs 5,820. It cited missed growth and earnings, attributing the challenges to dual pricing’s impact on transactions and supply issues overseas. The report notes that management’s corrective measures are being executed but that positive expectations surrounding GST cuts have not materialized, with earnings revised down by 3%.
Macquarie on ABB
Macquarie has downgraded ABB to “Underperform” from “Neutral” with a price target of Rs 5,470 after significant underperformance in 1Q results, where EBITDA and PAT declined by 27% and 25%, respectively, despite a 6% sales growth. Margins fell due to slow execution and rising input costs. New orders grew by 25% but were driven by a large order, while base orders increased only 9%. Jefferies also downgraded ABB to “Underperform” with a target price of Rs 5,915, highlighting that ABB’s restated financials from the March quarter missed projections by 29%, indicating margin pressures.
Bank of America Securities on ABB
Bank of America Securities has rated ABB as “Underperform,” with a revised price target of Rs 4,764. The report observed that despite strong order growth, revenue growth for ABB slowed to 6% year-on-year. Margins contracted due to raw material cost inflation and adverse revenue mix. The valuation is seen as high, considering the pressures on margins.
Citi on Mahanagar Gas
Citi has assigned a “Buy” rating for Mahanagar Gas, setting a target price of Rs 1,400. The company’s 4Q EBITDA reached Rs 2.6 billion, aligning with estimates despite a 26% quarter-over-quarter decline. Volume growth of 6% was noted, though margins were slightly weaker than expected. Recent government policy changes are seen as beneficial for future growth, particularly in the CGD sector, despite near-term risks from LNG supply disruptions.
Jefferies on Mahanagar Gas
Jefferies has rated Mahanagar Gas as “Underperform,” with a target price of Rs 1,020, indicating a 22% year-on-year decline in EBITDA and a 6% miss against estimates. Rising gas costs and operational expenditures have significantly impacted margins. Volume growth has also slowed, and delays in the Qatar North Field expansion may affect outlooks for FY27.
Jefferies on Adani Energy Solutions
Jefferies recommends “Buy” for Adani Energy Solutions with a target of Rs 1,665, citing a healthy order book and steady distribution growth as supporting factors for robust EBITDA delivery. However, concerns remain regarding interest rates and market share loss.
Jefferies on the Cement Sector
Jefferies has identified UltraTech Cement and JK Cement as its top picks within a cement sector exhibiting signs of capital discipline. Leading players are reportedly reducing expansion efforts to address weak capacity utilization, indicating a shift in focus from volume to profitability.
Bank of America on Escorts Kubota
Bank of America has a “Neutral” rating on Escorts Kubota with a price target of Rs 3,500, noting that current tractor cycle softness may cap near-term upside, despite promising mid-term prospects. Margin pressures are larger than expected.
Morgan Stanley on Urban Company
Morgan Stanley has rated Urban Company as “Underweight” with a target of Rs 128, noting good execution and a strengthened market position in instant services amid increased capital raising by competitors. The firm flagged that investment requirements could remain substantial going forward.
