CLSA Downgrades Dixon Technologies Amid Memory Market Squeeze
In a significant move, CLSA has downgraded Dixon Technologies from outperform to hold, slashing its target price to Rs 12,100 from Rs 15,800. Analysts attribute this downgrade to mounting risks in the memory industry, which is entering a super cycle driven by artificial intelligence's demand for high-bandwidth memory (HBM) and DDR5. This surge is tightening supply and escalating costs for mainstream storage, creating a global squeeze that India, heavily reliant on imports, is particularly vulnerable to.
Memory manufacturers are prioritizing high-margin AI-grade memory, leading to a sharp increase in memory prices. Analysts warn that this could inflate average selling prices for smartphones by 10-25%, disproportionately affecting the lower-end consumer segment. Consequently, smartphone volumes are at risk, prompting concerns over medium-term growth visibility and justifying the stock downgrade.
Jefferies Issues Buy on Alkem Labs with Medtech Focus
Jefferies has initiated a buy rating on Alkem Labs with a target price of Rs 6,550. The firm's analysts highlight Alkem's strategic moves in the Medtech sector, including recent discussions on their Medtech strategy and the acquisition of Occlutech. Over the past two years, Alkem has built divisions through inorganic routes, focusing initially on orthopedics and now expanding into cardiac segments.
The company plans to consolidate these acquisitions and scale up organically. Although the Medtech business is currently nascent, management envisions sales reaching Rs 1,000 crore over the next five years, with EBITDA margins of 20-25%, signaling strong growth potential.
Motilal Oswal Bullish on Tata Steel Amid Domestic Demand Surge
Motilal Oswal Securities has maintained a buy rating on Tata Steel with a target price of Rs 240. Analysts remain constructive due to a robust domestic demand outlook, price support from safeguard duties, ongoing capacity expansions, and a gradual turnaround in its European operations. They expect these capacity expansions to drive earnings amid an upswing in demand.
Additionally, steel prices are anticipated to recover, supported by factors such as safeguard duties, the Carbon Border Adjustment Mechanism (CABM), and supply discipline in China. Analysts also project breakeven for Tata Steel's European operations, further bolstering the positive outlook.
Citigroup Sees Value in LIC Housing Finance
Citigroup has issued a buy rating on LIC Housing Finance with a target price of Rs 730. Analysts believe the stock is the least expensive in its sector and has been conspicuously overlooked, following pronounced underperformance over the past 3, 6, and 12 months. The current price reflects conservative assumptions of 11.5% return on equity (RoE) and 4% loan growth in the medium-to-long term, creating a compelling entry valuation for patient investors.
Management is actively recalibrating strategy by enhancing distribution, elevating agent productivity, scaling direct and lead generation efforts, exploring co-lending opportunities, and expanding capacity in the self-employed and affordable housing segments. With limited downside risk, analysts view the risk-reward profile as highly attractive.
Goldman Sachs Raises Target for Eicher Motors
Goldman Sachs has upgraded its buy rating on Eicher Motors, raising the target price to Rs 9,200 from Rs 8,600. This adjustment follows the GST cuts in September 2025 on sub-350cc motorcycles, which have boosted Eicher's Hunter 350cc model to a steady volume run rate of 20,000 units per month in the domestic market, up from 15,000 units a year ago.
Analysts expect part of the announced capacity acceleration over the next 24 months to support further volume growth for the Hunter 350cc, especially heading into a pay commission phase in FY28 and beyond. Consequently, they have raised earnings per share (EPS) estimates for FY26 to FY28 by up to 3%, reflecting optimism about sustained performance.
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