Kamal Ghorui
Morgan Stanley has an equal weight rating on ITC with the target price at Rs 346. Analysts said the sharp tax increases are unprecedented and are leading to uncertainty. ITC shares are down 25% so far in the year against a 10% loss in sensex. They believe incremental pricing actions and impact on volumes and earnings before interest and taxes (EBIT) growth in April-June quarter (Q1FY27) could be a key catalyst.HSBC has upgraded Max Healthcare to buy with the target price raised to Rs 1,125 from Rs 1,060. Analysts said they expect Max Healthcare has ample growth drivers to support earnings growth. They expect the compounded annual growth rate (CAGR) for its earnings per share (EPS) for the FY26 – FY28 period would be 28.5%. The robust growth outlook and execution outweigh short-term issues. The positives for the stock include net addition of 2,240 beds (43% capacity addition) between now and FY28, of which 60% will be brownfield beds; economies of scale benefit from brownfield additions; scale-up of recent large format hospitals at Noida and Dwarka; and access to a large pool of CGHS patients which has been helping it to quickly fill occupancy and cover fixed costs at new hospitals.UBS initiated its rating on Coforge with a neutral rating and a target price at Rs 1,240. Analysts feel Coforge has consistently delivered strong growth driven by execution, with organic growth of about 13-15% over FY24-FY25 (overall growth of about 15-30%). They estimate revenue CAGR of 15% over FY26-FY28. The stock has corrected 35% YTD, with price-earnings growth ratio of 0.8x seeming attractive. However, analysts have some concerns, which include the acquisitive nature of the company (concerns persist around dilution and integration); a relatively weaker positioning for GenAI as per VECTOR framework. Hence analysts believe the risk-reward is balanced for now.Macquarie has an outperform rating on L&T with the target price at Rs 4,910. Analysts said that none of L&T’s project sites have been hit in the West Asian conflict so far. 95% of the sites continue to operate with 5% sites stalled by the company or by the client due to risk factors such as proximity to a military base etc. The stalled 5% sites currently did not contribute significantly to L&T’s revenue. However, the company’s deputy MD has flagged logistics and supply chain as key challenges and highlighted revenue risk including deferment, if the situation does not get resolved in three months as the company generally keeps three-month’s supply at site. The stock has corrected over 22% over the last month, and analysts see significant value at the current level.Goldman Sachs maintained its buy rating on InterGlobe Aviation (Indigo) with a revised target price of Rs 5,200 (cut from Rs 6,000). Analysts cut estimates sharply due to higher fuel costs. They also feel West Asia traffic weakness is impacting near term outlook for the company. They also feel there could be some industry consolidation due to supply constraints. The company’s net cash balance sheet is seen as a key strength. Analysts also expect market share gains as weaker players exit.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)
