Tata Motors, Marico, Asian Paints And More On Brokerages’ Radar

A host of global and domestic brokerages have released fresh views on Mankind Pharma, Divi’s Laboratories, Asian Paints, Marico, Tata Consumer, CG Power, Eternal, Aditya Vision, SRF, Tata Motors CV and Ashok Leyland ahead of the upcoming session.

They have also shared detailed commentary on the India-EU trade deal, its sectoral implications across autos, chemicals, pharma and textiles, alongside broader views on silver, competitive intensity in consumer staples, recovery prospects in pharma and chemicals, and evolving risk-reward dynamics across discretionary consumption.

UBS on Tata Motors CV

• UBS initiates coverage with a Buy rating and a target price of Rs 550.
• The CV business is positioned for resurgence post demerger.
• India operations are expected to remain resilient.
• Improving trucking volumes in Europe should support margins and cash flows.
• UBS prefers CVs over PVs and two-wheelers.

Jefferies on Mankind Pharma

• Jefferies maintains a Buy rating with a target price of Rs 2,900.
• The brokerage notes that most investors remain pessimistic on Mankind’s near-term recovery.
• The stock is currently pricing in just 10% revenue CAGR and 14% EBITDA CAGR over FY26–28E, which Jefferies believes is easily achievable.
• Inconsistency in acute therapies has weighed on growth in recent periods.
• A favourable base, a revamped field force, and hands-on founders are expected to support a turnaround.
• The stock trades at an attractive 22x Mar-27 EV/EBITDA.

Investec on SRF

• Investec maintains a Sell rating and hikes the target price to Rs 2,480 from Rs 1,500.
• Earnings momentum is seen slowing beyond the refrigerants segment.
• The brokerage believes SRF’s overall earnings momentum remains vulnerable.
• Specialty Chemicals and TTB businesses face sustained pricing pressure from China and limited near-term visibility.
• Elevated capex, uneven segment recovery, and an early-stage pharma scale-up further cloud earnings visibility.
• At 27x FY28E EPS, Investec maintains a Sell rating given the uncertain recovery in Specialty Chemicals.

Jefferies on Eternal

• Jefferies maintains a Buy rating with a target price of Rs 480, implying 86% upside.
• The stock is down 10% post Q3, which also coincided with a leadership change.
• Investor concerns centre on timing, given the company’s high-growth phase and the return of unvested ESOPs.
• Founder Deepinder stated he could have continued but stepped aside due to Indian sensitivities.
• Break-even timelines and intense quick-commerce competition remain key concerns.
• However, Deepinder’s continuation as Vice Chairman and Albinder’s elevation reinforce execution strength at Blinkit.

Investec on Aditya Vision

• Investec initiates coverage with a Buy rating and a target price of Rs 675.
• The brokerage highlights growing ambition supported by strong execution.
• The company is well positioned in the Hindi heartland, benefiting from rising consumer durables penetration.
• The business model is robust, with strong earnings visibility.
• Valuations appear attractive at current levels.
• Investec expects revenue and PAT CAGR of 21% and 25% respectively over FY25–28.
• Post-tax RoIC is expected to remain strong at around 20%.

Jefferies on Divi’s Laboratories

• Jefferies maintains a Buy rating with a target price of Rs 8,000.
• Divi’s is preparing to execute a new custom synthesis project.
• The new CS project could generate around $100 million in sales.
• The current generic version remains an important molecule for the company.
• The new CS project could more than offset the decline in Entresto-related gross profit.
• Ramp-up in nutraceutical capacity utilisation is expected to drive high growth.

Brokerages on Asian Paints

Jefferies on Asian Paints

• Jefferies maintains a Buy rating with a target price of Rs 3,300.
• Management commentary on volume growth was positive.
• Domestic volume growth moderated, partly due to seasonal factors.
• The key issue remains consolidated revenue growth, which was nearly half of volume growth.
• Competition continues to intensify, despite which the company reported EBITDA margins of around 20%.
• Management reiterated its focus on gaining market share and sustaining growth.

Morgan Stanley on Asian Paints

• Morgan Stanley maintains an Underweight rating with a target price of Rs 2,194.
• Q3 growth delivery fell short of consensus expectations and Q2 performance.
• Demand remained unsupportive due to a shorter festive season and prolonged monsoon.
• October demand was weak, while December exit trends improved, with January growth tracking similarly.
• Q4 volume growth guidance stands at 8–10%, with a negative mix of 4–5%, implying value growth of 5–6%.
• Competitive intensity is expected to remain high.
• Industrial coatings growth remains strong, and EBITDA margin guidance of 18–20% is maintained.

Citi on Asian Paints

• Citi maintains a Sell rating and hikes the target price to Rs 2,300 from Rs 2,250.
• Performance remained weak despite a low base.
• Competitive intensity stayed elevated, driven by new entrants and recent M&A.
• FY26–28E revenue estimates are cut by 3%.
• EPS estimates are raised by 1% due to benign raw material prices.

Jefferies on Tata Consumer Products

• Jefferies maintains a Hold rating with a target price of Rs 1,310.
• The quarter was strong, led by India operations.
• The India business delivered robust growth with underlying volume growth of 15%.
• Growth categories performed strongly, led by Sampann and NourishCo.
• International business saw margin pressure despite delivering double-digit growth.
• Management expressed confidence on growth and profitability, particularly in India.

Brokerages on Marico

Morgan Stanley on Marico

• Morgan Stanley maintains an Equal-weight rating with a target price of Rs 788.
• Q3 performance was in line with expectations, with consistent guidance and execution.
• The company targets mid-teens EBITDA growth in FY27 with 150–200 bps margin expansion.
• FY26 revenue growth of over 25% has been reiterated.
• India volume growth momentum is expected to sustain as pricing growth moderates.
• Management is confident of managing copra price correction through lower channel inventory.
• VAHO is expected to sustain double-digit revenue growth in the near to medium term.
• Foods business is expected to recover to double-digit organic growth over the next two quarters.

Jefferies on Marico

• Jefferies maintains a Buy rating and hikes the target price to Rs 900 from Rs 880.
• Growth momentum continues across categories.
• Performance was led by price hikes in Parachute, with volumes remaining resilient.
• VAHO and premium personal care maintained strong momentum.
• Foods had a softer quarter.
• International business delivered broad-based double-digit growth.

Jefferies on CG Power

• Jefferies maintains a Hold rating and cuts the target price to Rs 600 from Rs 725.
• Industrial segment performance remains weak.
• Q3 EBITDA missed estimates by 16%, driven by lower margins in Industrials.
• Power segment continues to drive profitability, with a robust outlook.
• Jefferies is not concerned about potential opening up to China given CG Power’s cost efficiency.
• However, concerns remain around Industrials dragging overall profit growth.

Brokerages on India-EU Trade Deal

Kotak on India–EU Trade Deal

• Kotak views the India–EU trade deal as promising and expects it to be effective from CY27/FY28.
• The agreement aims to stimulate both economies through lower tariffs, removal of non-tariff barriers, and higher trade volumes.
• Indian exporters stand to benefit from zero tariffs on most exports to the EU, particularly labour-intensive sectors.
• Greater EU access to India’s consumer market could increase competition in select domestic sectors.
• The deal also provides a medium- to long-term hedge against US tariff risks and geopolitical uncertainty.

Jefferies on India–EU Trade Deal

• Jefferies sees minimal impact of the EU deal on listed Indian OEMs.
• Most European OEM vehicles already attract lower duties.
• Most vehicles, excluding select high-priced models, are already manufactured in India or assembled via CKD kits with 16.5% import duty.
• Jefferies sees a buying opportunity in Mahindra & Mahindra.

Citi on India–EU Trade Deal

• Citi notes that the India–EU FTA will liberalise 96–99% of trade between the two regions.
• Sensitive issues such as CBAM, dairy, and select agricultural products are excluded.
• The deal should ease pressure on India’s labour-intensive exports and support China+1 diversification.
• Given the long ratification timeline, benefits are likely to be back-ended.
• Citi expects a modest impact on index earnings.
• Hospitals, chemicals, defence, and engineering goods could benefit.
• Autos and select consumer segments may face higher competition.
• Lower duties on EU car imports could increase competition in higher-end segments.

Avendus Spark on India–EU Trade Deal

• Avendus Spark expects textiles and apparel to gain competitiveness versus Bangladesh and Vietnam.
• Auto ancillaries and EV supply chains could see 5–7% export growth, though phased liberalisation may weigh on the PV luxury segment.
• Pharma generics and CDMO exports could benefit from improved market access.
• Engineering and capital goods may see incremental EU demand.
• Chemicals could see selective gains offset by ESG and compliance costs.
• IT services face modest direct impact, with upside from mobility and data adequacy.
• Processed foods may benefit, while sensitive agri segments remain protected.
• The FTA provides a hedge against US trade uncertainty.

JPMorgan on India–EU Trade Deal

• JPMorgan notes that while vehicle import tariffs have been cut, the uplift to vehicle imports into India is likely limited.
• Imported vehicles could rise by around 1 lakh units, primarily in luxury segments.
• This represents only about 2.4% of total demand.
• Overall impact on the domestic auto market is expected to be limited.

UBS on Ashok Leyland

• UBS maintains a Buy rating and hikes the target price to Rs 225 from Rs 177.
• Improving sector fundamentals and supportive pricing should help protect margins.
• The brokerage sees further upside potential.
• Indian CV OEMs warrant a re-rating given strengthening fundamentals.
• Volume and margin trends are expected to stabilise.

Citi on Silver

• Citi upgrades its 0–3 month silver price forecast to $150/oz from $100/oz.
• Silver, like gold, is being driven by capital allocation flows.
• The metal is behaving like “gold squared” or “gold on steroids”.
• Citi expects this trend to persist until silver looks expensive relative to gold.
• The brokerage sees 30–40% upside over the coming weeks.
• A reversion to historical ratios versus gold implies potential upside to $160–170/oz, or even ~$300/oz at historical peaks.

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