Morgan Stanley, Goldman Sachs, Macquarie, Jefferies, HDFC Securities on RIL, Indigo, Asian Paints, Cummins, Heidelberg Cement

Morgan Stanley maintained its overweight rating on Reliance Industries with the target price at Rs 1,803. Analysts said RIL is deploying $15 billion annual operating cash flows with shorter monetisation cycles now the new norm. New energy and AI infrastructure flagged as key value drivers funded by existing businesses. Kutch land assets of 550,000 acres support RIL’s 1GW data centre and new PVC facility. Battery giga-factory to be on stream from this year with 40 GWh initial capacity which is scalable to 100 GWh. The company’s green hydrogen target is at 3 million tonne per annum equivalent by 2032. RIL’s net debt to earnings before interest, taxes, depreciation, and amortisation (EBITDA) is at 1.3x with around 30% of its debt maturing within the next one year is a monitorable. The company’s consolidated cost of funding down around 7 basis points (100 basis points, or bps = 1 percentage point) to 7.2% in FY26.

Goldman Sachs maintained its buy rating on Interglobe Aviation (Indigo) with the target price at Rs 5,200. Analysts said that the company’s Jan-March (Q4FY26) pre-tax loss was at Rs 2,100 crore, better than Goldman Sachs estimate of Rs 3,590 crore. Indigo’s costs excluding foreign exchange were below estimates with supplementary rentals and airport fees key positive surprises. The company’s revenue per seat was slightly ahead of estimates while the cost per seat was at Rs 4.85 against an estimate of Rs 5.24. For Q1FY27, the company gave a guidance of 3-4% capacity growth with passenger revenue per seat up mid-teens on the year (YoY). No full-year FY27 capacity guidance was provided by the company. Analysts said its elevated costs remained an overhang. Also the entire Indian aviation sector except Indigo facing weak profitability and balance sheet stress.

Macquarie has a buy recommendation on Asian Paints with the target price at Rs 3,000. Analysts said that the company’s Q4FY26 EBIDA beat led by better-than-expected sales growth. The management expects 11%+ price hikes to flow through to realisation. The company intends to use cost control to maintain the FY27 standalone EBIDA margin at 18-20%. They said that the drag from mix change will likely be at 3-4%.

Jefferies has a buy recommendation on Cummins India with the scaled-up target price at Rs 7,100, from Rs 4,975 earlier. Analysts said there are margin tailwinds ahead. The company is seeing rising share of higher margin distribution business and higher contribution of data centres. The company is also going for indigenization of higher import content for engine upgrade.

HDFC Securities has a reduce rating on Heidelberg Cement India with the target price at Rs 170. Analysts said the company is operating at about 94% clinker utilisation, with no major expansion plans in place. Continued market share loss and intensifying competition in the central region remain key concerns for analysts. They estimated modest volume and EBITDA growth of about 3% and about 8% respectively over FY26–FY28. The company’s Q4FY26 volume rose about 8% YoY while revenue per tonne increased by about 2%, and the cost per tonne declined about 3% on the quarter (QoQ). Unit EBITDA improved by Rs 219 per tonne QoQ to Rs 649 per tonne.

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