Brokerages Raise Targets for SBI, M&M, Adani Ports, Paytm; Mixed View on Kaynes Tech

Leading brokerages have issued new assessments for key Indian stocks based on their latest financial results.

Morgan Stanley maintains an equal-weight rating on State Bank of India, raising its target price to Rs 1,025. The bank reported a 5% higher net interest income than estimates for July-September (Q2FY26), along with strong fee income and profit after tax (PAT) that exceeded expectations by 15%. Asset quality remained robust, and earnings per share (EPS) estimates for FY26-FY28 were raised.

Jefferies has upgraded Mahindra & Mahindra Limited to a 'Buy' rating with a target price of Rs 4,300. The auto major achieved its 14th consecutive quarter of double-digit EBITDA growth, with Q2FY26 EBITDA rising 23% year-on-year, surpassing estimates. M&M also raised its FY26 outlook for tractors and light commercial vehicles (LCVs), anticipating double-digit growth across segments and noting market share gains.

HSBC initiated a 'Buy' rating on Adani Ports and Special Economic Zone Limited with a target price of Rs 1,700. Analysts noted continued improvement in return on capital employed (ROCE) across its businesses, driven by robust demand and market share gains, supporting its ambition for 1,000 million metric tons throughput by 2030.

Citigroup assigned a 'Buy' rating to Paytm (One97 Communications Limited) with a target price of Rs 1,500. The firm highlighted strong growth in credit on UPI and improved device economics due to declining costs, leading to a solid beat on EBITDA and EBIT. Paytm's outlook for growth and EBIT margins is viewed as robust.

CLSA has maintained a 'Hold' rating on Kaynes Technology India Limited, slightly reducing its target price to Rs 6,375 from Rs 6,410. While the company's Q2FY26 top line and margins were in line and revenue guidance was maintained, concerns persist regarding low cash flow conversion and a significant increase in working capital due to receivables. This could pose risks for future funding rounds.

Impact This news is largely positive for State Bank of India, Mahindra & Mahindra Limited, Adani Ports and Special Economic Zone Limited, and Paytm (One97 Communications Limited), potentially driving stock price appreciation and boosting investor confidence. The cautious outlook for Kaynes Technology India Limited suggests potential headwinds despite its growth trajectory. Overall, it reflects strong analyst conviction in key sectors like banking, automotive, logistics, and fintech, while highlighting specific operational challenges in electronics manufacturing services. Rating: 8/10.

Difficult Terms Net Interest Income (NII): The difference between interest income generated by a bank and interest paid out. Profit After Tax (PAT): Profit remaining after all expenses and taxes are deducted. Asset Quality: Refers to the riskiness of a bank's assets, especially loans. Good quality means low default risk. Earnings Per Share (EPS): A company's profit divided by its number of outstanding shares, indicating profitability per share. EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization, a measure of operating performance. Return on Capital Employed (ROCE): Measures how efficiently a company uses its capital to generate profits. Throughput: The amount of material handled or processed by a system, like a port, in a given time. Rerating: A change in a stock's valuation multiple due to improved fundamentals or market sentiment. UPI: Unified Payments Interface, an instant payment system in India. EBIT: Earnings Before Interest and Taxes. Working Capital: Current assets minus current liabilities, indicating operational liquidity. Receivables: Money owed to a company by its customers. Free Cash Flow (FCF): Cash a company generates after covering operational and capital expenses.