Broker Buzz: Asian Paints, Tata Steel, HAL Surge on Analyst Upgrades! See New Targets!

Author

Aditi Singh | Whalesbook News Team

Detailed Coverage:

Analysts are closely watching India's corporate performance, with several major firms issuing updated ratings and price targets.

Jefferies has initiated a 'buy' rating on Asian Paints, raising its target price to ₹3,300. They highlighted the company's strong performance in the July-September quarter (Q2FY26), driven by domestic volume growth in its Damp Defence waterproofing solution and market share gains, attributed to investments in branding and innovation. Margin expansion was also noted as a positive factor, despite intense market competition.

Morgan Stanley maintains an 'overweight' rating on Tata Steel with a target of ₹200. The brokerage noted that the company's standalone EBITDA exceeded estimates due to effective cost control. Consolidated EBITDA and profit after tax (PAT) also performed better than expectations. However, net debt saw an increase, partly due to foreign exchange fluctuations. The company also reported achieving 94% of its planned savings in the first half of FY26.

Nomura has given a 'buy' rating to Hindustan Aeronautics, setting a target price of ₹6,100. While acknowledging that execution was better than estimates, margins were lower in the reported quarter. PAT was in line with expectations, as higher other income compensated for operational misses. The company has maintained its FY26E margin guidance.

HSBC has issued a 'reduce' rating on Honasa Consumer (Mamaearth), setting a target price of ₹264. Analysts observed that Mamaearth's growth turned positive in Q2FY26, with its emerging brands showing stable year-on-year growth of 20%. Revenue growth remained consistent, adjusted for reporting changes. The brokerage has raised PAT estimates for fiscal years 2027 and 2028.

Elara Capital recommends a 'buy' on Balrampur Chini Mills, with a slightly reduced target price of ₹584 from ₹602. The company reported robust sugar and distillery volumes in Q2FY26. Near-term margins were impacted by higher sugarcane SAP (State Advised Price) and ethanol-related delays. Analysts foresee FY27 as a transition year, with recovery expected from FY28. Positive developments regarding Polylactic Acid (PLA), a biodegradable plastic derived from sugarcane, contributed to margin gains and a solid balance sheet.

**Impact** This news, featuring multiple analyst reports and target price revisions for prominent Indian companies across different sectors, can significantly influence investor sentiment and trading decisions for these specific stocks and potentially impact the broader market indices if investor confidence shifts. The ratings and targets provide guidance for investment strategies.

Rating: 8/10

**Difficult Terms:** * **Damp Defence**: A product line by Asian Paints, likely a waterproofing solution to protect surfaces from moisture damage. * **Volume Growth**: An increase in the quantity of goods or services sold by a company. * **Share Gains**: When a company increases its proportion of total sales within its market. * **Margin Expansion**: An increase in a company's profit margin, indicating it is keeping a larger percentage of its revenue as profit. * **EBITDA**: Earnings Before Interest, Taxes, Depreciation, and Amortization. A measure of a company's operating performance. * **PAT**: Profit After Tax. The net profit of a company after all taxes have been deducted. * **Execution**: The process of carrying out or implementing a plan or task. * **Operational Miss**: When a company's operational performance falls short of expectations or targets. * **FY26E / FY27 / FY28**: Fiscal Year 2026 Estimated, Fiscal Year 2027, and Fiscal Year 2028, referring to future financial periods. * **SAP**: State Advised Price, often refers to the minimum support price set by state governments for agricultural commodities like sugarcane. * **Ethanol Delay**: Delays in the production or supply of ethanol, a biofuel often derived from agricultural products like sugarcane. * **Polylactic Acid (PLA)**: A biodegradable and biocompatible plastic derived from renewable resources like corn starch or sugarcane. * **Biodegradable Plastic**: Plastic materials that can break down naturally into simpler components through the action of living organisms.