Tata Technologies, Sun Pharma, and Other Key Stocks Highlighted by Brokers
JP Morgan has revised its rating on Tata Technologies, maintaining an underweight stance while lowering the target price from Rs 580 to Rs 570. The company’s performance for the April-June quarter showed mixed results, with revenue exceeding expectations but margins falling short. Analysts noted a gradual improvement in deal closures and ramp-ups during this period, anticipating continued growth into the next quarter as clients resume their research and development expenditures. Meanwhile, Goldman Sachs has upgraded its outlook on Ola Electric Mobility, raising the target price from Rs 60 to Rs 63, while JM Financial has initiated coverage of Kalyan Jewellers with a buy recommendation.
Tata Technologies: Mixed Performance and Revised Outlook
JP Morgan’s recent analysis of Tata Technologies highlights a mixed performance for the company in the April-June quarter. While the revenue figures surpassed expectations, the margins did not meet analysts’ forecasts. This led JP Morgan to maintain its underweight rating on the stock, reducing the target price to Rs 570 from the previous Rs 580. Analysts observed a gradual improvement in deal closures and ramp-ups over the quarter, suggesting a positive trend. They expect this momentum to carry into the July-September quarter, as clients are likely to restart their research and development spending after a period of inactivity. This renewed focus on R&D could provide a boost to Tata Technologies in the coming months.
Ola Electric Mobility: Upgraded Target Price
Goldman Sachs has expressed confidence in Ola Electric Mobility by maintaining a buy rating and increasing the target price from Rs 60 to Rs 63. The analysts noted that the company’s management provided a cautious revenue guidance for FY26, projecting a flat growth rate alongside a 5% EBITDA margin. Despite the modest outlook, Goldman Sachs acknowledged the management’s efforts to pivot the business towards achieving positive EBITDA and reaching free cash flow breakeven. However, analysts believe that the market will require more clarity regarding volume growth and market share execution to fully assess the company’s potential.
Kalyan Jewellers: New Coverage Initiated
In a recent move, JM Financial has initiated coverage of Kalyan Jewellers with a buy recommendation, setting a target price of Rs 700. Analysts are optimistic about the company’s prospects, citing the vast unorganised market in the jewellery sector as a significant growth opportunity. They believe that the competitive advantages established by Kalyan Jewellers will drive future growth. The company operates on an asset-light model for store expansion, which could further enhance its market position. This strategic approach may allow Kalyan Jewellers to capitalize on the growing demand in the jewellery market.
HCL Technologies and Sun Pharmaceuticals: Ratings and Expectations
Citigroup has maintained a neutral rating on HCL Technologies, lowering the target price from Rs 1,690 to Rs 1,650. Analysts noted that the company’s EBIT for the April-June period was approximately 7%, which fell short of expectations. The deal pipeline for HCL Technologies appears weak, and while the quarterly results showed decent revenue, margins were below par. This has led analysts to adopt a cautious stance on the tech sector as a whole. In contrast, Morgan Stanley has retained its overweight rating on Sun Pharmaceuticals, with a target price of Rs 1,960. The anticipated US launch and settlement for the drug Leqselvi is viewed as a positive development for the company, with projected sales of $61 million for FY26 and $83 million for FY27.
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