Broker Stock Recommendations for February 26, 2026: Buy or Sell Insights
Nomura has initiated coverage of Lloyd Metals with a target price set at Rs 1,600, highlighting the company’s transition from a pure-play miner to a diversified business model. Analysts project that Lloyd Metals will see a significant increase in earnings, with an estimated EBITDA of Rs 10,900 crore by FY28, up from Rs 1,900 crore in FY25. Meanwhile, BoFA Securities has upgraded Vedanta’s rating to “buy,” raising its target price to Rs 840, citing favorable market conditions for aluminum and silver. Jefferies has also issued a buy recommendation for Adani Enterprises, forecasting a target price of Rs 2,750, while CLSA has set a target price of Rs 3,593 for TCS, emphasizing its partnership with ServiceNow to enhance AI adoption. Lastly, Elara Capital has upgraded Garden Reach Shipbuilders & Engineers, increasing its target price to Rs 2,300, driven by a robust order pipeline from the Indian Navy.
Lloyd Metals: A Shift Towards Diversification
Nomura’s coverage of Lloyd Metals marks a significant milestone for the company, which is transitioning from a traditional mining operation to a more stable and diversified business model. Analysts believe that the company’s low-cost iron ore assets, which are expected to remain viable until 2057, will play a crucial role in this transformation. The integration into steel production and diversification into copper mining are also seen as key factors that will stabilize earnings. Analysts project that Lloyd Metals will achieve a consolidated EBITDA of Rs 10,900 crore by FY28, reflecting a remarkable compounded annual growth rate of 77% from Rs 1,900 crore in FY25. However, potential risks include delays in steel capacity expansion, political instability in the Democratic Republic of the Congo affecting copper operations, and challenges related to BHQ beneficiation processes.
Vedanta’s Upgraded Outlook
BoFA Securities has upgraded Vedanta’s stock rating from neutral to buy, raising the target price significantly from Rs 480 to Rs 840. This upgrade is based on a bullish outlook for aluminum prices and supportive silver market conditions, which are expected to enhance the company’s profitability. Analysts have also noted that a substantial reduction in debt at the parent company level minimizes risks associated with potential increases in brand-fee rates or inter-corporate loans. The firm has adjusted its EBITDA forecasts for FY26-28 upwards by 16-21%, reflecting higher aluminum price expectations, a depreciating rupee, and a revised holding company discount. This positive outlook underscores Vedanta’s strong market position and operational resilience.
Adani Enterprises: Growth Prospects Ahead
Jefferies has issued a buy recommendation for Adani Enterprises, setting a target price of Rs 2,750. Analysts view FY27 as a pivotal year for the company, driven by significant developments in various sectors, including airport expansions, particularly at Navi Mumbai Airport, and increased utilization of its copper smelter. The company is also focusing on expanding its solar manufacturing capabilities. A recent capital raise is expected to bolster the company’s balance sheet, providing additional resources for growth. Furthermore, Adani Enterprises is targeting a 210 MW capacity for its data center business over the next 18 to 20 months, indicating a strategic push into new industries and leveraging operational efficiencies.
TCS and GRSE: Strategic Partnerships and Growth
CLSA has given TCS an outperform rating with a target price of Rs 3,593, highlighting the company’s partnership with ServiceNow to accelerate AI adoption across enterprises. This collaboration is expected to enhance TCS’s growth prospects, given ServiceNow’s strong order book and its partnerships with leading foundation model companies like Anthropic and OpenAI. In contrast, Elara Capital has upgraded Garden Reach Shipbuilders & Engineers (GRSE) from sell to reduce, raising its target price to Rs 2,300. The upgrade is attributed to a significant increase in the value of the next-generation corvette order from the Indian Navy, which has risen by 32% to Rs 33,000 crore. Analysts anticipate that GRSE’s order book will reach a lifetime high of Rs 50,000 crore by March 2026, supported by a robust defense order pipeline.
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