Major Brokerage Firms Issue Key Stock Recommendations and Target Price Updates
In a significant development for the Indian equity markets, several prominent brokerage houses have released crucial stock recommendations and target price updates, highlighting growth trajectories and potential risks for key companies across sectors.
Nomura Initiates Coverage on Lloyd Metals with Bullish Outlook
Nomura has commenced its coverage of Lloyd Metals and Energy Limited (LMEL) with a target price of Rs 1,600 per share. Analysts emphasized that the company is undergoing a strategic transformation from a pure-play mining entity to a more stable and diversified business model. This shift is supported by low-cost iron ore assets extending to 2057, vertical integration into steel production, predictable earnings from mine developer and operator (MDO) contracts, and diversification into copper operations.
Financial projections indicate robust growth, with consolidated EBITDA estimated to surge from Rs 1,900 crore in FY25 to Rs 10,900 crore by FY28, implying a compound annual growth rate of 77%. However, analysts cautioned about potential risks including delays in steel capacity expansion, political instability in the Democratic Republic of the Congo affecting copper ventures, challenges in beneficiation of banded hematite quartzite (BHQ) ore, and resurgence of Naxal activities in operational regions.
BoFA Securities Upgrades Vedanta to Buy Rating
Bank of America Securities (BoFA) has upgraded Vedanta from neutral to buy, raising the target price to Rs 840 from Rs 480. The upgrade is driven by a bullish outlook on aluminium prices, supportive silver market conditions, and an attractive dividend yield. Additionally, significant deleveraging efforts at the parent company level have minimized risks related to increased brand-fee rates or inter-corporate loans.
BoFA has revised its EBITDA estimates for FY26 to FY28 upward by 16-21%, incorporating higher aluminium price forecasts, increased fair value of Hindustan Zinc, rupee depreciation benefits, and a reduced holding company discount of 5% compared to 15% previously.
Jefferies Maintains Buy on Adani Enterprises
Jefferies has reiterated its buy recommendation on Adani Enterprises with a target price of Rs 2,750. Analysts identified FY27 as a pivotal ramp-up year for the conglomerate, driven by scaling operations at airports (particularly Navi Mumbai Airport), copper smelter utilization improvements, and the Ganga Expressway project. The company is also focusing on expanding its solar manufacturing capabilities.
The recent capital raise has strengthened the balance sheet, while the data centre business aims to achieve 210 MW capacity within the next 18-20 months. Adani's strategic playbook continues to emphasize incubating new businesses and leveraging operational scale.
CLSA Assigns Outperform Rating to TCS
CLSA has assigned an outperform rating to Tata Consultancy Services (TCS) with a target price of Rs 3,593. This positive outlook is bolstered by TCS's partnership with ServiceNow to accelerate large-scale artificial intelligence adoption for enterprise clients. ServiceNow's strong growth, backed by a robust order book, suggests similar momentum for system integrators involved in SaaS implementation with platform partnerships.
ServiceNow's collaborations with foundation model companies like Anthropic and OpenAI are expected to enhance customer experience on the platform. However, CLSA noted that Tech Mahindra currently exhibits the strongest ServiceNow capabilities among Indian and global peers.
Elara Capital Upgrades Garden Reach Shipbuilders & Engineers
Elara Capital has upgraded Garden Reach Shipbuilders & Engineers (GRSE) from sell to reduce, raising the target price to Rs 2,300 from Rs 2,030. The upgrade follows a 32% increase in the value of the next generation corvette (NGC) order from the Indian Navy to Rs 33,000 crore. GRSE's order book is projected to reach a lifetime high of Rs 50,000 crore by March 2026.
Analysts foresee a defence order pipeline of Rs 1.5 lakh crore and non-defence orders of Rs 1 lakh crore over the next 12-18 months. Revenue generation is expected to commence in FY28, with the first ship delivery scheduled for FY31, followed by subsequent deliveries every six months. The company has announced a Rs 3,000 crore capital expenditure for greenfield expansion at Kandla and Bhavnagar. The target price is based on 35 times December 2027 core shipbuilding value plus cash value.
These brokerage actions reflect a dynamic assessment of corporate strategies, sectoral trends, and macroeconomic factors, providing investors with critical insights for portfolio decisions. The recommendations underscore both growth opportunities and inherent risks in the evolving market landscape.
