BoFA Sec on Pidilite
U-P, TP raised to Rs 1475
Good 4Q. However, business dynamics are changing – need to see how it navigates macro volatility & cost push.
With 40-50% input cost inflation, margin could head to the low-end of guided range, despite two price hikes already taken.
Price elasticity and competition remain other watchouts
Moreover, stock valuation leaves no upside
GS on Pidilite
Buy, TP Rs 1700
Delivered a very strong 4QFY26 with 15% revenue growth entirely driven by underlying volume growth
Management stated that there has been no channel stocking up, & demand trends in month of April have also remained very strong similar to 4QFY26
Growth is a combination of healthy growth in core adhesives portfolio & stronger growth in segments like tile adhesives and waterproofing.
Co facing 40-50% input cost inflation, initiated ~12-13% price increases
CITI on Britannia
Buy, TP cut to Rs 6500
Reported a soft 4Q, with revenue & EBITDA each growing 6%.
Performance was impacted by
(1) West Asia conflict disrupting exports (earlier manufactured in Oman), with a 2–2.5% drag in 4Q
(2) continued dual pricing in market as Parle maintained odd price points (Rs4.5/Rs9) post GST cuts
Co is shifting export manufacturing to Mundra (Gujarat), expected by mid-May; hence, a 2–3% impact could persist in 1Q
Expect pricing distortions to ease as industry players take hikes to offset commodity inflation.
Overall believe pressures should abate in the near term, with growth improving from 2Q
CLSA on Britanna
Hold, TP Rs 5569
Consolidated sales growth of 7.1%, below estimates.
PBT missed estimate by 14% driven by lower sales growth and a lower-than-expected Ebitda margin as investment in brand building continue, with other expenses up 17%.
Volume grew 5.5% YoY as low price-point packs (60%-65% of India business) were under pressure during the quarter in the wholesale and rural channels due to dual pricing.
Also, while first two months of 4QFY26 saw c.9% growth, logistics challenges at BRIT’s unit in Oman had an impact March.
BRIT has taken corrective measures moving production to the plant in Mundhra and expects international business to recover halfway through 1QFY27.
BoFA Sec on Britannia
Neutral, TP cut to Rs 5820
4Q growth/earnings missed, impacted by competitive pressure (dual pricing in LUPs hurt transactions) & overseas supply issue.
BRIT is taking corrective actions, but +ve GST cut narratives haven’t played out (perhaps timing of mgmt. change?).
Cut earnings 3%
Growth is likely to inch up- commodities/competition/execution are watchouts
Macquarie on ABB
Downgrade to U-P from Neutral, TP 5470
1Q results were significantly below estimates with EBITDA /PAT decline of 27%/25% even as sales grew 6%. Margin dropped 580bps YoY.
Margin declined due to slow execution, higher input costs, and adverse revenue mix & forex movement. Margin recovery could take a while.
New orders (+25% YoY) were led by a large order as base orders saw slower 9% growth.
Trim EBITDA margin by 50bps in each of CY26E/CY27E/CY28E & lower PAT 6%/6%/8%
Jefferies on ABB
Downgrade to U-P, TP Rs 5915
ABB restated March Qtr financials to reflect sale of robotics business.
EBIT ex-robotics missed estimates by 29%.
Ex-robotics, EBITDA margins were down 576 bps YoY at 12.8% on weak gross margins as rising commodity costs could not be passed through
Believe industrial capex growth ex Power T&D will continue to be subdued.
Hence margin recovery for ABB to previous highs of 18-19% is unlikely.
BoFA Sec on ABB
U-P, TP Rs 4764
ABB India completed the divestment of its robotics business; ex robotics revenue growth slowed to 6% YoY (4.3% miss on BofAe)
Margins contracted 576bps YoY on raw material cost inflation and revenue mix, while order growth remained strong at 25% YoY
Cut est on margin pressure & robotics segment divestment; valuations remain expensive
CITI on ABB
Sell, TP Rs 5200
EBITDA fell 19%YoY & 16% below comparable estimate on margin miss
Margin miss, which reminds us of YoY contraction seen in JuneQ25, was due to the impact of commodity inflation, INR depreciation, competitive pressures, select price drops & execution slippages on ME conflict impact.
Orders were strong (+25%YoY), though believe same is already priced in
CITI on MGL
Buy, TP Rs 1400
MGL reported 4Q EBITDA at Rs2.6bn (-26% qoq), in line with estimates.
While volumes were slightly ahead (+6% yoy), this was offset by slightly weaker-than-expected margins.
Reported net income at Rs1.3bn (-35% qoq) was also largely in line.
FY26 EPS was Rs86/sh (FY25: Rs105/sh).
MGL declared a final divi. of Rs18/sh (full year divi. of Rs30/sh).
While LNG supply disruptions linked to Middle East tensions continue to pose risks to near-term volumes & margins, recent gov’t policy initiatives remain supportive of longer-term CGD sector growth, keeping us positively inclined on stock
BoFA Sec on MGL
Buy, TP Rs 1330
4Q EBITDA at INR2.6bn missed consensus by 13%; volumes grew +6% YoY, but gas-cost/FX volatility hit margins amid disruptions
Near-term EBITDA margins likely below 4Q on higher blended gas costs (pooled/Brent-linked gas) and INR depreciation
Recent policy changes to aid growth especially in D-PNG and I&C-PNG segments; FY27 capex guided at INR12bn
Jefferies On Mahanagar Gas
Recommendation Underperform; Target ₹1,020, Earlier Target ₹900
EBITDA down 22% year-on-year, 6% below estimates
Margins sharply impacted due to rising gas costs and higher opex
Volume growth slowed to 6% with decline for 3 consecutive quarters
Qatar North Field expansion delayed to late CY2027–early CY2028
FY27E PAT cut by 23% and FY28E PAT cut by 7%
Estimate 17% YoY decline in PAT for FY27
Jefferies on Adani Energy Solutions
Recommendation Buy; Target ₹1,665, Earlier Target ₹900
Growth outlook is reinforced by healthy order book and steady distribution growth
EBITDA delivery is expected to remain robust
Capital structure remains manageable
Downside Risks: Inability to maintain interest rates, Market share loss
Jefferies on Cement Sector
Top picks UltraTech Cement, JK Cement
Cement sector showing early signs of capital discipline
Leading players reducing expansion to address weak capacity utilisation
Capex discipline emerging with Shree cement (Rs 3,000 cr to Rs 1,500 cr) and Ambuja cements (30–35% cut, delay in 140 MTPA)
Shift from volume to profitability focus, sustainability depends on discipline in upcycle
BofA On Escorts Kubota
Recommendation Neutral, Target ₹3,500, Earlier Target ₹3,700
Cycle and costs cap near term upside
Tractor cycle softening warrants a pause near term even as mid-term prospects are promising
Margin drag seems larger than expected
Morgan Stanley On Urban Company
Recommendation Underweight, Target ₹128, Earlier Target ₹120
Q4: Strengthening the moat
Good execution and strong intent to win Instant services market
Biggest takeaway is moats in the business have become even stronger than before
Think battle for the Instant market is now becoming a serious one with strong capital raising by private peers
Think investment could stay elevated for a longer period
