Shriram Finance, Nykaa, and Other Key Stocks to Monitor
Jefferies has issued a buy recommendation for Shriram Finance, setting a target price of Rs 1,220, citing strong demand for commercial vehicles. The company anticipates an 18-20% growth in assets under management (AUM) for FY27-28, with positive trends in collections and net interest margins. Meanwhile, Macquarie has downgraded Nykaa to an underperform rating with a target price of Rs 210, highlighting challenges in replicating the success of its beauty brands. JP Morgan maintains a neutral stance on Interglobe Aviation, projecting a target price of Rs 4,630 amid rising fuel costs. UBS has initiated coverage of Pine Labs with a target price of Rs 250, while Citigroup has a buy rating for Orkla India, targeting Rs 750, based on its strong market presence in the food and beverages sector.
Shriram Finance: Positive Outlook Amid Strong Demand
Jefferies has expressed confidence in Shriram Finance, assigning a buy rating with a target price of Rs 1,220. Analysts from Jefferies noted that discussions with the company’s management revealed robust demand for commercial vehicles, including used ones. The company has reiterated its guidance for an 18-20% growth in assets under management (AUM) for the fiscal years 2027 and 2028. Analysts expect that the cost of finance could decrease by 80 basis points, which would enhance spreads by approximately 20-25 basis points by FY28. Furthermore, collections have been strong, and analysts predict that AUM growth will reach 18% in FY27 as new disbursements for commercial vehicles increase. The net interest margins are also anticipated to expand, potentially exceeding expectations.
Nykaa Faces Challenges Despite Beauty Brand Success
Macquarie has downgraded Nykaa to an underperform rating, setting a target price of Rs 210. Analysts pointed out that while Nykaa’s beauty segment has shown promising growth, particularly with the Dot & Key skincare line, replicating this success across other owned brands may prove difficult. The analysts believe that driving sales for third-party brands on Nykaa.com will be challenging, which could hinder overall growth. The company’s performance in the beauty sector has been a bright spot, but the analysts are cautious about its ability to sustain momentum in a competitive market.
Interglobe Aviation: Cautious Outlook Amid Rising Costs
JP Morgan has maintained a neutral rating on Interglobe Aviation, also known as Indigo, with a target price of Rs 4,630. Analysts remain wary of the company’s prospects, citing ongoing challenges from both fuel and non-fuel costs. They noted that domestic air traffic growth has slowed significantly, dropping from 4.4% year-on-year in January 2026 to zero in February 2026. International traffic growth has also moderated. Analysts have revised earnings per share (EPS) estimates downward by 13% and 14% for FY26 and FY27, respectively, due to rising fuel costs. They expect a modest EPS cut of 4% in FY28 as oil prices are projected to stabilize.
Pine Labs and Orkla India: New Ratings and Market Insights
UBS has initiated coverage of Pine Labs, setting a target price of Rs 250. The company is recognized as a leading B2B payment platform, particularly among large enterprises. Analysts highlighted Pine Labs’ scalable monetization and strong profitability, arguing that its current valuation is unjustified compared to competitors like Paytm. Meanwhile, Citigroup has initiated a buy rating for Orkla India, targeting Rs 750. Analysts noted that Orkla is a significant player in the food and beverages sector, particularly in spices, with a strong market presence in South India. They expect margin expansion driven by a favorable product mix and operational efficiencies, although risks such as commodity price volatility and regional competition remain.
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