Morgan Stanley, Jefferies, HSBC, JP Morgan, Nomura Issue Stock Recommendations
Brokers Maintain Buy/Overweight Ratings on Bajaj Finance, Navin Fluorine, IIFL Finance, Waaree Engineering; Neutral on Federal Bank
L'essentiel
Morgan Stanley maintained overweight on Bajaj Finance (target Rs 1,120) with Q4FY26 adjusted PBT up 26% YoY; Jefferies set buy on Navin Fluorine (target Rs 8,385) citing 19% EBITDA and 30% PAT growth; HSBC upgraded IIFL Finance (target Rs 550) with 18% RoE; JP Morgan neutral on Federal Bank (target Rs 305) with 11% profit growth; Nomura buy on Waaree Engineering (target Rs 3,750) despite margin pressures.
Résumé généré par IA
Pourquoi c'est important
This article summarizes Q4FY26 earnings results and brokerage recommendations for five Indian financial and industrial companies. The NBFC sector shows improved credit quality while specialty chemicals and CDMO segments demonstrate strong growth.
Morgan Stanley maintained its overweight rating on Bajaj Finance with the target price at Rs 1,120 against Rs 1,090 earlier. Analysts said the NBFC major's adjusted profit before tax for the Jan-March quarter (Q4FY26) was up 26% on the year (YoY) and was ahead of estimates. The company's credit costs improved sharply with lower bad loan formation. The management guided FY27 assets under management (AUM) growth at 22-24% while net credit cost guidance for the year was at 145-160 basis points (100 basis points = 1 percentage point).
Jefferies has a buy rating on Navin Fluorine with a target price of Rs 8,385. Analysts said that in Q4FY26, the company reported strong beat with earnings before interest, taxes, depreciation and amortisation (EBITDA) growth of 19% and profit after tax (PAT) growth at 30% (both ahead of their estimates), driven by strength in specialty chemicals and contract development & manufacturing organisation (CDMO) segments. Multi-year contracts in CDMO and agro-chemicals, potential ramp-up of data center cooling products and R32 capacity expansion provide visibility on earnings growth over FY27-FY28. The company's balance sheet is net cash positive.
HSBC has a buy on IIFL Finance with a target price of Rs 550. Analysts said the company reported robust Q4FY26 numbers with healthy assets under management (AUM) growth, improvement in asset quality, and a healthy return on equity (RoE) of about 18%. IIFL Finance is in a strong earnings upcycle as it would benefit from MFI cyclicality and growth recovery in housing finance, they said. Analysts also lifted the company's FY27-FY28 earnings estimates on the back of lower credit cost expectations.
JP Morgan has a neutral rating on Federal Bank with a target price of Rs 305. Analysts said the bank's Q4FY26 core net profits of Rs 1,150 crore rose 11% YoY, which was broadly in line with estimates. Recurring net interest income (NII) rose 14% YoY to Rs 2,720 crore, with core net interest margin (NIM) rising by 2 basis points in the quarter to 3.20%. The lender maintains 19.72% market share in remittances as of April-Dec of FY26, a metric that the analysts will track closely in the light of the ongoing West Asia conflict. At current valuations, the stock appears fairly valued.
Nomura has a buy on Waaree Engineering with a target price of Rs 3,750. Analysts said that the company's Q4FY26 revenue beat their and consensus estimates by 12%, led by higher volumes. However, EBITDA missed all estimates as gross margin contracted sharply. The company's management shared EBITDA guidance of Rs 7,000 crore – Rs 7,700 crore for FY27 and its board approved a fundraise of Rs 10,000 crore.
