BrainBees Solutions (Rating: Buy, Fair Value: Rs. 350)
BrainBees Solutions, operator of Firstcry, reported a 12% year-on-year revenue growth in the fourth quarter, driven by an 11.4% increase in its India multi-channel business, a 9.5% rise in international sales, and a 15% growth in GlobalBees. However, the India EBITDA margin decreased by 202 basis points to 7.3% due to raw material price inflation, increased discounting, and investments in quick commerce. The company has revised its margin estimates downward for the India segment. Earnings reductions and a roll-forward to June 2028 have led to a new Sum-of-the-Parts (SoTP) based fair value estimation of Rs. 350, down from Rs. 430. Despite current challenges, the stock reflects potential value.
Jubilant Ingrevia (Rating: Buy, Fair Value: Rs. 940)
Jubilant Ingrevia (JIL) showcased considerable improvement in its fourth-quarter results, primarily attributed to growth in its Specialty Chemicals segment. Management anticipates over 20% EBITDA growth in FY2027, with sequential improvement from the first quarter, bolstered by a Rs. 15 billion order book. The earnings per share (EPS) estimates have been increased by 3-5%, resulting in a revised SoTP-based fair value of Rs. 940, a rise from Rs. 880. The recommendation remains a Buy.
Aditya Birla Fashion & Retail (Rating: Reduce, Fair Value: Rs. 65)
ABFRL reported a revenue increase of 16% year-on-year, driven by a 19% rise in Pantaloons revenue and a 12.2% increase in its ethnic and TMRW businesses. The EBITDA stood at Rs. 2.0 billion, yielding a margin of 9.9%, a reduction of 200 basis points from the previous year. The company consumed Rs. 14.4 billion in cash during FY2026, resulting in a net debt of Rs. 1.5 billion as of March 2026. The focus will shift to profitability in core businesses and managing losses in new ventures to maintain manageable debt levels. The recommendation is to Reduce, with a fair value of Rs. 65, down from Rs. 70.
TCS (Rating: Buy, Fair Value: Rs. 3100)
TCS’s annual report elaborated on its strategy to harness opportunities arising from enterprise AI adoption across a full-stack model from infrastructure to intelligence. Notable developments include a revenue decline in TCS e-Serve International due to a ramp-down in its top account, while sustained growth was observed in Diligenta, despite the absence of mega deals. The transition in the Postbank engagement led to decreased performance in TCS Technology Solutions GmbH; however, new projects mitigated some losses. With client-specific issues now largely resolved, TCS is well-positioned for revenue alignment with peers. The recommendation remains a Buy.
CEAT (Rating: Reduce, Fair Value: Rs. 3350)
During its recent investor meeting, CEAT outlined its objective of maintaining leadership in the two-wheeler and four-wheeler aftermarket segments by FY2031, along with plans to enhance commercial radial scaling and raise international revenues to 33%. The integration of the Camso portfolio will occur gradually, aiming for full brand transition by September 2028. Domestic volume growth is projected to moderate to 5-7% year-on-year in FY2027, due to increased pricing pressures in the replacement market. Raw material challenges pose additional risks. The recommendation is to Reduce.
KEC International (Rating: Reduce, Fair Value: Rs. 510)
KEC reiterated its guidance for FY2027, targeting 12-15% topline growth with an order intake goal of Rs. 300 billion. The management expressed confidence in growth, supported by a Rs. 400 billion order backlog and a pipeline of Rs. 1.8 trillion. However, profitability guidance has been withheld due to supply chain disruptions related to the West Asia conflict, which are expected to impact execution and elevate costs. Given that commentary aligns with the fourth-quarter earnings call, existing estimates and a fair value of Rs. 510 remain unchanged. The recommendation is to Reduce.
Diversified Financials (Sector View: Attractive)
The rise in bond yields and policy rates is anticipated to increase borrowing costs for non-banking financial companies (NBFCs). The incremental cost of funds is projected to rise by 30-50 basis points since February 2026, though a high base effect may benefit average costs in the near term. Net Interest Margin (NIM) pressures are likely to become more pronounced in the second half of FY2027, reflecting the effects of increasing bond yields and potential policy rate hikes, somewhat mitigated by changes in business mix and competitive intensity. NCD redemption is expected to remain low at 2-4% for FY2027 and increase in FY2028.
Real Estate (Sector View: Attractive)
Commercial real estate in major Indian cities experienced slight moderation in the fourth quarter, with net absorption at 10.1 million square feet, a 5% year-on-year increase, while new supply decreased to 4.4 million square feet, a 56% year-on-year drop. This resulted in historically low vacancy rates of 11.5%, down 227 basis points year-on-year. Demand continues to be driven by Global Capability Centers (GCCs) and flexible office operators, despite a declining share from technology services. Market rents are rising, and occupancy levels across Real Estate Investment Trusts (REITs) have surpassed 90%, with many targeting 93-94% occupancy by the end of FY2027. Ongoing large acquisitions and a strong construction pipeline may support double-digit earnings growth, although price performance improvements have led to reduced distribution yields, currently forecasted at 5.5-7% for FY2027.
