Analysts Bullish on SBI Life
Morgan Stanley (MS) has given an Overweight rating on SBI Life with a Target Price of Rs1,910 per share. The management is confident of achieving early teens Individual APE growth in FY25 and sustaining it in FY26. This growth will be primarily driven by strong agency growth of over 25%. The company expects the SBI channel APE to grow by only 10% in FY26. It has also emphasized a focus on shifting the product mix away from ULIP to higher-margin products. The management anticipates an FY26 VNB margin of 26.5-28%. However, the positive impact of the product mix shift may be offset by a higher agency mix. SBI Life’s pure protection product on SBI’s YONO app is gaining traction, and the company is looking to raise the sum assured to Rs5-7 million from Rs2-4 million.
Positive Outlook on ICICI Lombard
MS has given an Overweight rating on ICICI Lombard with a Target Price of Rs1,910 per share. The management expects industry premium growth of 8.5% in FY26, with the company likely to deliver 100-200 bps higher growth led by fire, commercial lines, and retail health. The company expects motor third-party price hikes to be muted on a headline basis, with select segments witnessing hikes and cuts. Many insurers are expected to lower commissions or lower growth in segments due to compliance with EOM limits in FY26. The company aims to improve the combined ratio from the current 102%, which could help it migrate from a sustainable 16-18% ROE to 18-20%.
Latest Insights on AMCs
HSBC analysis reveals that net flows in equity and hybrid funds for the industry declined MoM in February 2025, although gross SIP flows remained resilient. Large AMCs are gaining market share in their top schemes, with relative scheme performance and distribution being key differentiators. The outlook for equity AUM growth remains weak, with pressure on net flows and muted MTM gains.
Investors Favorable on BEL
Nomura has a Buy rating on BEL with a Target Price of Rs363 per share. The company has witnessed a significant increase in ordering activities in Q4FY25, with order inflows worth Rs72 billion received so far compared to Rs98 billion in 9MFY25. The total order inflows in FY25 have reached Rs170 billion, nearing the guidance of Rs250 billion. BEL is on track to achieve its guided order inflows as it is in the final stages of negotiations with multiple customers. The increasing defense spending by Europe could be a positive factor for BEL, given its strong collaborations with major OEMs. The stock currently trades at 35x/30x FY26/FY27 EPS.
Expert Views on Cement Sector
Jefferies reports that the Tamil Nadu Government has notified a new Rs160/ton tax on limestone mining, which translates to an additional cost of Rs140-160/ton on cement produced in the state. This announcement, specific to Tamil Nadu, may set a precedent for other states. South-focused players like Dalmia and Ramco are expected to face an impact of Rs40-70/ton on EBITDA, necessitating price hikes in the region.
CLSA’s Latest Analysis on IndusInd Bank
CLSA maintains an Outperform rating on IndusInd Bank but has revised the Target Price to Rs900 per share from Rs1,300 per share. The past few days have been tumultuous for the bank, with a one-year extension for the MD and a net worth hit of Rs15 billion due to an accounting gap. Investors are concerned about potential uncertainties in the coming quarters related to management continuity and undisclosed issues. In case a PSU banker is appointed, sentiment for the stock could turn more negative. The invocation of the promoter’s stock pledge by lenders would further add to the uncertainty. Despite these challenges, CLSA believes that the bank’s fundamentals will eventually take over. Two near-term positives include a recovery in microfinance and margin respite from better banking system liquidity and rate cuts.
MS Bullish on Dr Agarwal’s Healthcare
MS has initiated an Overweight call on Dr Agarwal’s Healthcare with a Target Price of Rs502 per share. The eyecare industry in India has a high TAM, high barriers to entry, and high returns due to its asset-light nature. Dr Agarwal’s, as the segment’s leading brand backed by a doctor-promoter team, is well positioned to outperform its peers. The company’s revenues are at 1.7x the level of its closest competitor, and it is forecasted to achieve 19% revenue and EBITDA CAGRs for F25-27e.
Optimistic Outlook on Adani Green Energy
Macquarie has initiated an Outperform call on Adani Green Energy with a Target Price of Rs1,200 per share. The company is leading India’s energy transition with a targeted 50GW capacity by FY30, compared to the current 12GW. A more conservative pathway suggests a 25% EBITDA CAGR over the next five years. Despite recent declines in PPA tariffs, the company is offsetting them with an increasing share of higher-tariff merchant capacities. Adani Green Energy’s heavy capex is supported by steady cash flows, with expectations of generating $1.8 billion in annual operating cash flow against a cumulative capex requirement of over $10 billion through FY30. The net debt/EBITDA is expected to decline to 5x by FY30 from the current 7x.
Macquarie Positive on REC
Macquarie has an Outperform rating on REC with a Target Price of Rs700, reflecting a 74% upside potential. The company is expected to see 15% growth every year and reach Rs10 trillion by 2030, with 30% of the total from renewable projects, 50-55% from generation and distribution, and the remainder from logistics and infrastructure. Out of the Rs3.98 trillion of MOUs signed in the last two years, Rs1.9 trillion has been sanctioned, with the rest expected to be sanctioned in 2025 and 2026, driving significant growth. The company has already sanctioned 3 crore smart meters, with an additional 4 crore in the pipeline. Better financial positions for discoms are expected from 2026 onwards.
UBS’s Perspective on Telecom and Hospitality
UBS retains a Neutral rating on Bharti Airtel’s India business, with limited upcoming positive catalysts. The target prices are set at Rs440 for Indus Tower, Rs12.1 for Idea, and Rs1,705 for Bharti Airtel. UBS also maintains a Buy rating on Indian Hotels with a raised Target Price of Rs925. The company is well placed to benefit from positive demand trends, and it expects the supply growth to be capped at 4-5%, leading to a 1-2% increase in the FY26-27E EBITDA.
JPM’s Analysis on Tata Steel
JPM has an Overweight rating on Tata Steel with a revised Target Price of Rs180 per share. Europe steel spreads have witnessed an 18% QoQ increase and a 60% rise on a spot basis, not yet incorporated in consensus estimates. JPM believes Tata’s Europe business should reach EBITDA breakeven in 1QFY26.
