Morgan Stanley Maintains Overweight Rating on Reliance Industries
Morgan Stanley has reaffirmed its overweight rating on Reliance Industries (RIL), setting a target price of Rs 1,803. Analysts point to a significant 15-year green ammonia agreement signed with Samsung C&T, valued at approximately $3 billion. This deal is seen as a key monetization step for RIL's investments in new energy, aligning with the company's broader hydrogen and decarbonization strategy.
The new energy segment of RIL is currently valued at around $20 billion. Analysts anticipate further growth in RIL's energy earnings and note that the stock is trading at a substantial discount of about 62% compared to its industry peers.
HDFC Securities Initiates Coverage on Ask Automotive
HDFC Securities has commenced coverage of Ask Automotive with an add rating and a target price of Rs 480. The company is valued at approximately 22 times its expected earnings per share (EPS) for March 2028. Analysts highlight that premiumization and electrification trends are driving higher content per vehicle, with electric vehicles (EVs) offering 30% to 40% more content than internal combustion engine (ICE) vehicles.
Export mix is expected to support margin expansion, and the exit from wheel assembly is projected to bolster margins beyond FY27. However, near-term challenges include higher raw material costs and potential impacts on export demand due to geopolitical tensions.
Nomura Issues Buy Rating on Mahindra & Mahindra
Nomura has assigned a buy rating to Mahindra & Mahindra (M&M) with a target price of Rs 4,666. Analysts, after attending the company's US Investor Day, report that management expects robust performance across segments. Passenger vehicles (PVs) are growing at 19% year-to-date in FY26, fueled by new launches and sustained SUV demand, while light commercial vehicles (LCVs) are up 17% YTD due to a strong replacement cycle.
Tractor demand remains strong at 23% FY26 YTD, with management noting no clear historical correlation with El Niño, though the Indian monsoon is a key variable to monitor. The company plans to manage commodity pressures through hedging, pricing strategies, and a favorable product mix. M&M's EV business is EBITDA-positive, with margins expected to improve from PLI benefits on models like XEV 9E and 9S starting FY27, and a doubling of annual volumes is anticipated to drive EBIT breakeven.
Jefferies Recommends Buy on Max Healthcare
Jefferies has issued a buy rating for Max Healthcare with a target price of Rs 1,320. Following a management meeting, analysts noted that one-off issues affecting the October-December quarter have been resolved, and expansion plans are largely on track. Management expressed no concerns about capacity additions in the Delhi-NCR region, citing it as highly underserved.
The company is open to acquisitions to strengthen its presence in existing markets and enter new regions, although this is not a core strategy.
Goldman Sachs Adjusts Rating on Larsen & Toubro
Goldman Sachs has maintained a buy rating on Larsen & Toubro (L&T) but revised the target price down to Rs 4,420 from Rs 4,950. The stock has declined 18% since March 2, compared to a 7% drop in the Sensex, driven by concerns over project execution in West Asia and potential reduced capital expenditure in the region impacting L&T's prospect base for FY27.
Analysts acknowledge near-term execution concerns but believe the medium-term prospect base is unlikely to change significantly, despite possible deferrals due to ongoing conflicts. They expect lower revenue for the January-March quarter (Q4FY26) due to slower execution in late March 2025 and anticipate weak execution carrying into the April-June quarter (Q1FY27). Core order inflow for FY27E is projected to decrease from 7.7% to 1.1%, assuming minimal ordering in the international business for one month.
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