CLSA on NTPC
CLSA has issued an Outperform recommendation for NTPC with a target price of Rs 459. The company’s FY26 consolidated PAT increased by 18% despite a decline in generation, contrasting with peer performances; JSW faced losses while Adani Power’s recurring PBT decreased by 4%. The 18% YoY rise in consolidated PAT was supported by an 11% YoY growth in regulated equity (RegEq), complemented by operational efficiency indicated by a 17 basis points YoY increase in coal Plant Availability Factor (PAF), and a favorable regulatory regime expected between FY25-29 focused on energy security.
The firm has announced a substantial US$31 billion Capex plan spanning FY27-29, which is nearly double the previous commitment. This capital expenditure will fund the construction of 19GW in regulated projects and 15GW of non-fossil energy projects, pushing NTPC’s total installed capacity to 89GW. Notably, the company reports that 59% of its 60GW non-fossil energy vision is now operational or under development. Analysts expect profits to enhance the ROE by 130 basis points between FY26-29.
Jefferies on NTPC
Jefferies has assigned a Buy rating with a target price of Rs 470 for NTPC. The firm’s recent one-time remeasurement of deferred taxes reported in March makes year-over-year comparisons challenging; nevertheless, FY26 PAT surpassed estimates by 14%, driven by an actual capacity addition of 8.1 GW compared to the expected 7.1 GW. Consequently, Jefferies raised its FY27E-28E EPS projections by 6-8%.
The management maintained its guidance for a 9.6 GW capacity addition in FY27 but reduced the FY28E forecast from 10.6 GW to 10 GW. Analysts expect the capacity ramp-up to be a significant driver for re-rating in the near future.
Bernstein on NTPC
Bernstein has rated NTPC as Outperform with a target price of Rs 430, emphasizing that the execution has met expectations. The firm highlights NTPC as one of the few reasonably valued utility companies available. However, it raised concerns regarding potential losses in market share to private players and the company’s slower pace in securing new thermal awards, particularly regarding renewable energy targets for FY27, where grid limitations may pose challenges.
JPMorgan on LTM
JPMorgan downgraded LTM to Neutral, lowering the target price from Rs 5100 to Rs 4500. The company announced its intention to acquire Randstad’s technology and consulting services business across Europe and Australia. This unit, with revenues of €469 million, has significantly declined in the last two years, operating at low EBITDA margins of 4-5%, which may impact LTM’s margins negatively.
LTM is also set to manage contracts related to the establishment of a Global Capability Center (GCC) for Randstad in India while entering a reverse contract for subcontracting needs. While management asserts that there will be no EPS dilution from these three contracts, the acquisition itself may induce 2% dilution due to amortization costs and reduced interest income. The lack of clear synergies between the two firms raises concerns about management’s strategic direction and the potential diversion of focus during the integration process.
HSBC on LTIMindtree
HSBC has issued a Buy recommendation for LTIMindtree with a target price of Rs 5250. The management foresees limited impact on margins owing to its acquisition strategies, emphasizing enhanced capabilities in the European market and a stronger position in Australia’s banking sector as catalysts for medium-term growth. The acquisition aligns with LTIMindtree’s five-year strategic goals, ensuring a promising outlook.
CLSA on Sterlite Technologies
CLSA has given Sterlite Technologies an Outperform rating, raising the target price to Rs 655 from a previous Rs 405, attributing this increase to a recent $1 billion order from a US hyperscaler. This order, which pertains to the company’s AI DC optical products, is expected to support a remarkable 49% CAGR in EBITDA. The anticipated multi-year data center boom in North America and India is projected to significantly enhance growth forecasts for Sterlite Technologies.
