Analysts Issue Key Ratings on Adani, HAL, Aurobindo Pharma, and Other Stocks
In a series of significant analyst updates, several major Indian companies have received revised ratings and target prices, reflecting evolving market conditions and strategic developments. These calls span sectors from infrastructure and defense to pharmaceuticals and retail, offering insights into near-term challenges and long-term growth prospects.
Jefferies Maintains Buy on Adani Enterprises with Revised Target
Jefferies has reaffirmed its buy rating on Adani Enterprises, though it has prudently reduced the target price to Rs 2,600 from the previous Rs 2,750. This adjustment accounts for near-term headwinds impacting the company's airport business. Analysts noted that Adani Airports is experiencing softness in passenger traffic, which is delaying the ramp-up of the Navi Mumbai International Airport (NMIAL). However, they highlighted that non-aero revenues and airport-led real estate monetization initiatives continue to progress steadily, providing a buffer.
On a positive note, Jefferies emphasized that Adani's new energy division is capitalizing on global energy-security trends. The expansion of solar capacity at Mundra is projected to drive a meaningful uplift in EBITDA (earnings before interest, taxes, depreciation, and amortization) starting from FY27. Additionally, the copper and road businesses are expected to see accelerated growth during the same period. Factoring in geopolitical uncertainties, analysts have trimmed EBITDA estimates by 3-7%, but the overall outlook remains constructive.
Citigroup Bullish on HAL with F414 Engine Agreement
Citigroup has issued a buy rating on Hindustan Aeronautics Limited (HAL) with a target price of Rs 5,560. This optimism stems from a key development where HAL and GE Aerospace have finalized technical agreements for the co-production of F414 engines in India, a significant step forward since the initial Memorandum of Understanding (MoU) in 2023. Commercial negotiations are anticipated to conclude between December 2026 and March 2027.
The F414 engines are slated to power the Tejas Mk2 aircraft, with an order book exceeding 100 units, as well as the first two squadrons of the Advanced Medium Combat Aircraft (AMCA) Mk1. While analysts caution that timelines for commercial formalization and execution risks remain critical factors to monitor, they view this collaboration as a medium-term positive for HAL, enhancing its technological capabilities and order pipeline.
Macquarie Cautious on Aurobindo Pharma Despite Merck Expansion
Macquarie has assigned an underperform rating to Aurobindo Pharma with a target price of Rs 1,050. This stance comes even as the company's subsidiary, TheraNym Biologics, announced an expanded agreement with Merck to broaden their existing biologics contract manufacturing relationship, which began in May 2024. As part of this expansion, TheraNym will establish a greenfield biologics drug substance manufacturing facility featuring an aggregate bioreactor capacity of 60,000 liters, involving an investment of approximately $150–175 million.
Analysts acknowledged that this deal validates Aurobindo's expertise in biologics manufacturing across both drug substance and drug product segments. However, they tempered expectations by noting that any substantial financial benefits from the current contract are unlikely to materialize for another 3-4 years, justifying their cautious rating in the near term.
HSBC and Morgan Stanley on Retail and Finance Sectors
HSBC has maintained a buy rating on Trent but reduced the target price to Rs 4,800 from Rs 5,300. Analysts expressed confidence in Trent's ability to achieve around 200 store additions for its Zudio brand in FY26, despite some moderation in productivity. This expansion provides clear visibility for growth in FY27 and beyond. Key performance triggers include sustaining an 18-20% growth rate and mitigating risks from cannibalization or competitive pressures. HSBC estimates a 4% like-for-like growth for Zudio in FY27.
Morgan Stanley has kept its overweight rating on Aditya Birla Capital with a target price of Rs 405. The company's housing finance subsidiary reported robust loan growth of 48% year-on-year. While net interest income growth was strong but slightly below expectations, profit growth remained solid, supported by operating leverage. Asset quality showed improvement with reductions in gross and net non-performing assets (NPAs), and a significant decline in provisioning bolstered earnings. Analysts concluded that although operating performance was marginally below estimates, the overall trajectory is strong and promising.
Disclaimer: The recommendations and views expressed by analysts are their own and do not represent the views of any affiliated organizations. Investors are advised to conduct their own research before making financial decisions.
