Key Stocks to Watch Today: Voltas, HCL Tech, and More
Nuvama has downgraded its rating on Voltas, setting a target price of Rs 1,170 amid concerns over weak near-term demand and high channel inventory. Analysts noted that the company anticipates a gradual recovery in the third quarter of FY26, driven by pre-buying ahead of expected price hikes. Meanwhile, Kotak Institutional Equities has given SBI Cards an “add” rating with a target price of Rs 975, citing improvements in asset quality and spending recovery. In contrast, CLSA has an “outperform” rating on Dalmia Bharat, forecasting volume growth despite pricing pressures. Additionally, Morgan Stanley has maintained an equal weight on HCL Technologies, while Citigroup continues to support Divis Laboratories with a buy rating, highlighting potential benefits from U.S. legislative changes.
Voltas Faces Downgrade Amid Weak Demand
Nuvama has issued a reduce rating for Voltas, setting a target price of Rs 1,170. Analysts have pointed out that the company is grappling with weak near-term demand, primarily due to elevated channel inventory, which currently stands at approximately 45 days. The analysts also noted that the demand typically softens during the months of November and December. However, Voltas is optimistic about a sequential improvement in the third quarter of FY26. This anticipated recovery is partly attributed to pre-buying activities by channels in anticipation of price increases driven by cost inflation. In light of these developments, analysts have revised their earnings per share (EPS) estimates for Voltas, cutting FY26 and FY27 projections by 12% and 3%, respectively, to reflect lower margin expectations.
SBI Cards Shows Promise with Improved Asset Quality
Kotak Institutional Equities has assigned an “add” rating to SBI Cards, with a target price of Rs 975. The analysts reported that the company’s management is optimistic about improving asset quality, which is expected to be driven by a decrease in the formation of special mention accounts. Additionally, there has been a recovery in consumer spending, which the management believes will help maintain market share. Loan growth is projected to be gradual, and the cost-income ratio is anticipated to stabilize between 55% and 57%. This positive outlook reflects the company’s strategic focus on enhancing its financial health and operational efficiency.
Dalmia Bharat Anticipates Volume Growth Despite Pricing Challenges
CLSA has given Dalmia Bharat an “outperform” rating, with a target price set at Rs 2,650. Analysts highlighted that the company expects to achieve high-single-digit volume growth in the third quarter of FY26. This growth is anticipated to be supported by sequential improvements in November and December, following a prolonged monsoon season. However, the company faces challenges with pricing, particularly in the eastern region, where prices have declined by approximately 3-4% on a blended basis. This pricing pressure is likely to impact the company’s margins for the quarter. Dalmia Bharat has reiterated its commitment to a disciplined pricing strategy, opting to avoid aggressive discounting to capture market share. The company is also focusing on organic growth, with its Jaisalmer greenfield expansion project being a significant opportunity, as it has acquired limestone reserves at a 20% premium and is in advanced stages of land acquisition and clearances.
HCL Technologies and Divis Laboratories Maintain Steady Ratings
Morgan Stanley has maintained an equal weight rating on HCL Technologies, setting a target price of Rs 1,680. The company recently announced the acquisition of assets from HPE in the telecom services sector. However, analysts believe that the financial impact of this acquisition may not be substantial for HCL Technologies, as the total cash consideration for the deal is $160 million, including incentives. The company has not disclosed specific financial details regarding the revenues or margins of the acquired assets. Meanwhile, Citigroup has reaffirmed its buy rating on Divis Laboratories, with a target price of Rs 9,140. Analysts noted that the U.S. Biosecure Act is likely to become law following Senate approval, which could benefit Indian Contract Development and Manufacturing Organizations (CDMOs) amid ongoing global supply-chain diversification by innovator pharmaceutical companies.
Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.
Follow Us on Twitter, Instagram, Facebook, & LinkedIn
