Nuvama Downgrades Voltas Amid Weak Demand
Nuvama has downgraded its rating on Voltas, setting a target price of Rs 1,170 due to concerns regarding weak near-term demand and high channel inventory. Analysts highlighted that the company anticipates a gradual recovery in the third quarter of FY26, facilitated by pre-buying ahead of expected price increases.
Voltas Faces Mounting challenges
Nuvama’s analysis indicates that Voltas is facing weak near-term demand mainly because of elevated channel inventory, which currently stands at around 45 days. Demand usually softens in November and December. Nonetheless, Voltas remains hopeful for a sequential improvement in FY26’s third quarter, driven by pre-buying in anticipation of price hikes resulting from cost inflation. Consequently, analysts have revised their earnings per share (EPS) estimates, cutting FY26 and FY27 projections by 12% and 3%, respectively, to reflect reduced margin expectations.
SBI Cards Shines with Asset Quality Improvement
Kotak Institutional Equities has given an “add” rating to SBI Cards, with a target price of Rs 975. Analysts noted that the company’s management is optimistic about improving asset quality, predicted to stem from a decrease in the formation of special mention accounts. The recovery in consumer spending is expected to support market share retention. Loan growth is projected to be gradual, while the cost-income ratio is expected to stabilize between 55% and 57%. This positive outlook reflects SBI Cards’ strategic focus on enhancing its financial health and operational efficiency.
Dalmia Bharat Expects Volume Growth Despite Pricing Pressures
CLSA has assigned Dalmia Bharat an “outperform” rating and targets a price of Rs 2,650. Analysts expect the company to achieve high-single-digit volume growth in FY26’s third quarter, as sequential improvements in November and December follow a lengthy monsoon season. However, challenges persist in pricing, especially in the eastern region, where prices have declined by around 3-4% on a blended basis. This pricing pressure is likely to impact margins for the quarter. Dalmia Bharat has committed to a disciplined pricing strategy, avoiding aggressive discounting to gain market share while focusing on organic growth. Their Jaisalmer greenfield expansion, currently advancing in land acquisition and clearances, is seen as a significant opportunity, having acquired limestone reserves at a 20% premium.
HCL Technologies and Divis Laboratories Maintain Steady Ratings
Morgan Stanley has retained an equal weight rating on HCL Technologies, setting a target price of Rs 1,680. The company recently announced an asset acquisition from HPE in the telecom services sector. However, analysts believe the financial impact of this acquisition may be minimal for HCL, as the deal’s total cash consideration is $160 million, including incentives. Specific financial details regarding the revenues or margins of the acquired assets have not been disclosed. On the other hand, Citigroup continues to support Divis Laboratories with a buy rating and a target price of Rs 9,140. Analysts pointed out that the anticipated U.S. Biosecure Act’s passage could benefit Indian Contract Development and Manufacturing Organizations (CDMOs) as global pharmaceutical companies diversify their supply chains.
Digihunt is not a financial advisor, and this is not investment advice.