Stock Market Today Highlights, Nov 9: Stock markets end higher amid easing crude oil prices, buying in banks
GS on Divis Labs
Buy, TP Rs 11700
2Q Revenue/EBITDA grew +35%/+76% yoy, significantly ahead of GS/street expectations (+21%/+38% vs GSe), primarily driven by Custom synthesis (CS), which grew 54% yoy (+34% vs GSe), while Generics also improved (+12% yoy, +4% vs GSe) on healthy volume growth, despite pricing pressure persisting in certain product categories.
EBITDA margin came in at 42.6% (+535bps vs GSe, +989bps yoy) driven by better mix (higher CS), backward integration benefits at Unit 3, & operating leverage.
Raise FY27-29E EPS by up to 17% to factor in Q2 beat
JPM on Divis Labs
OW, TP raised to Rs 12500
Strong 2QFY27, with revenue/EBITDA up 35%/76% YoY and beating consensus by 15%/33%, driven by custom synthesis (+54% YoY) on continued validation-batch supplies.
What lies ahead is conversion of validation into commercialization across three dedicated programs (one nearing commercialization; two progressing over next few quarters subject to customer qualification & regulatory clearance) & peptides scaling as Divi’s adds multi-tonne capacity via multiple 3,000-litre SPPS reactors and targets a top-three integrated global position in peptides
For context, largest player in peptides – WuXi Apptec – has >100KL peptide capacity & has targeted TIDES revenues of $2.5bn in CY26, underscoring size of the opportunity.
Against this backdrop, raise our FY27–29 earnings forecasts by 18-30%
CLSA on Tata Steel
O-P, TP Rs 225
2Q Ebitda (+14% QoQ/+18% YoY) was ahead of estimate on India and Netherlands profitability, while UK remained a drag
Expect earnings momentum to strengthen in 2H, supported by higher India volume and prices, improving Netherlands operations and the UK moving towards breakeven (guided by 4QFY27).
It expects India 3Q realisations to be up c.Rs3,500/t QoQ, partly offset by ~US$15/t higher coal costs.
Near-term growth will be supported by downstream mix improvement, higher iron ore sales and structural cost savings, before upstream capacity comes on stream.
Kotak Inst Eqt on Tata Steel
Upgrade to Add, TP Rs 200
TATA’s 2QFY27 operating performance was in line, with strong India earnings offsetting persistent weakness in Europe.
An increasing focus on downstream expansion and strategic sales of surplus iron ore should aid domestic margins in the medium term.
In Netherlands, unresolved regulatory resolutions continue to cloud visibility on decarbonization investments
Raise earnings estimates on higher domestic steel spreads
Nuvama on Tata Steel
Upgrade to Buy, TP 219
Inline stdlne EBITDA; +9.6% QoQ led by vols (+16%).
EBITDA/tn INR 17.2k.
Mgmt guided INR 3.5k/$20 QoQ/tn +ve pricng for steel/coal in3Q; implying better profits in 3Q.
Netherlands EBITDA ++ amid higher steel prices & lower CoP (DSP restart).
UK losses widened due to lower vols; can breakeven in 4Q.
Raised FY27E/28E EBITDA by 2%/9% to factor higher prices & iron ore sales.
GS on Tata Steel
Neutral, TP Rs 215
On the Q2FY27 earnings call, management highlighted three themes:
1) Profitability outlook of domestic operations;
2) Business continuity and emerging challenges at European operations
3) Structural cost take-out efforts.
However, for investors Tata Steel presents a mixed bag of very efficient domestic operations with the highest EBITDA/t among coverage cos in India & steady focus on downstream and value-added products, juxtaposed with European operations, where uncertainty and challenging market conditions prevail.
On positive front, management guided for an increase in domestic realization by INR 3,500/t QoQ, sufficient to absorb higher coking coal cost (on consumption basis) of USD 15/t QoQ. However, per management, cost take-out in FY27 is likely to be challenged by lower volume in European operations.
Net debt/EBITDA at 2.4x remains within the guidance of 2.5x and going forward, downstream operations (rather than volumes) are likely to drive the domestic profitability until NINL expansion is completed by FY30E.
At this juncture, believe that risk-reward remains balanced.
CITI on Bharti Airtel
Buy, TP Rs 2390
In a notable reversal, Bharti has reinstated its Rs299 recharge plan 3 months after withdrawing it in Aug’26.
While earlier plan offered 1.5 GB/day of data, relaunched version provides 1 GB/day.
Move reflects Bharti’s response to competitive pressures, as peers did not follow its earlier tariff action, as well as elevated churn during 2Q.
Churn increased from 2.6% to 2.9% qoq, resulting in net subscriber additions slowing sharply qoq from +3.3m to +0.7m
Decision underscores challenges of implementing unilateral tariff actions in prepaid smartphone segment, where competitive intensity remains highest
It suggests that pricing discipline is difficult to sustain without broader industry participation.
Note that based on certain assumptions around Bharti’s subscriber mix, had estimated the Aug’26 move could potentially benefit ARPU by c.Rs4/mth (EPS benefit of c.2%).
Bharti recently reported ARPU improvement from Rs264 to Rs271 in 2Q.
CITI on Hindalco
Neutral, TP cut to Rs 1050
2Q consol EBITDA rose 42% yoy/ fell 8% qoq.
India upstream: Rs70bn vs. Rs73.9bn in 1Q, India downstream: Rs3.3bn vs. Rs3bn, Copper: Rs16.7bn vs. Rs9.2bn, Novelis:Rs48.6bn vs. Rs48.8bn.
India upstream EBITDA/t: $2,125 vs. $2,331 in 1Q, should decline (spot $3,050 vs. $3,227 in 1Q).
Key highlights: (1) net D/EBITDA 1.8x vs. 1.95x, (2) Novelis insurance recovery at $1.3bn ($900m to date) out of $1.8bn, (3) India 2Q COP up 5%, 3Q to rise by another ~5% (costs should decline in 4Q), (4) FY28 hedge position: 26% at $3,168/t.
Neutral, LME upside from spot likely limited (LME est CY27 $3,000, spot $3,070).
Upsides such as (1) Bay Minette profitability, (2) India expansion, (3) captive coal, are back ended.
MS on Hindalco
Maintains OVERWEIGHT rating; Target Price at ₹1,140
Consolidated EBITDA of ₹128 billion beats Morgan Stanley’s estimate and consensus
Domestic EBITDA of ₹90 billion comes 13% above the house estimate
Copper EBITDA of ₹16.7 billion beats the house estimate by 60%
Copper performance benefits from strong demand, higher sulphuric acid prices and one-time gains
Consolidated PAT of ₹75 billion misses the house estimate of ₹81 billion
Net debt-to-EBITDA eases to 1.80x from 1.95x
CITI on Siemens
Neutral, TP Rs 3875
Q2 ahead of Citi estimates across revenue, EBITDA and PAT.
Orders rose 38% YoY to Rs62.3bn (with reported growth benefitting from price hikes), 4% ahead of Citie, & backlog increased 12% YoY to Rs470bn.
Revenue grew 17% YoY to Rs57.3bn, 5% ahead of Citie, with growth led by smart infra and mobility.
EBITDA margin recovered QoQ to 10.9% from 8.3%(adjusted for mobility one-off) in JuneQ26, albeit down c150bps YoY given continuing commodity and FX headwinds.
QoQ margin recovery in smart infra was a clear positive – believe this partly reflects price hike impact apart from operating leverage.
While mobility margins also recovered QoQ, mobility margins have historically been more volatile versus smart infra.
EBITDA at Rs6.3bn was 24% ahead of Citie.
Overall, robust orders and sequential EBITDA margin are encouraging though gross margins remain a monitorable – sustainability of EBITDA margin improvement would be key.
Jefferies on Honasa
Buy, TP Raised to Rs 700
Delivered strongest growth since listing, with broad-based momentum across brands & channels driving a sharp margin beat; EBITDA/PAT doubled YoY.
Mamaearth grew in high teens, while TDC & younger brands are scaling rapidly; distribution expansion provides visibility on the future runway for newer brands.
Focus on innovation stays strong, with further portfolio expansion planned in the near term.
Commentary stays positive.
Raise earnings by 10-16%
CITI on Honasa
Sell. TP Rs 390
Delivered another strong quarter, with revenue/EBITDA growing 36%/95% YoY, supported by 31% underlying volume growth.
Growth was broad-based: Mamaearth sustained high-teens growth, younger brands grew 45%+, while general and modern trade secondary sales grew 40%+
EBITDA margin expanded 390bps YoY to 12.7%, largely reflecting favourable channel mix and operating leverage; however, advertising remained elevated at 33.5% of sales and gross margin declined 60bps YoY.
Management expects margins to remain around 12.5% in 2H and reiterated its four-year aspiration of 15%, while acknowledging that annual progress could moderate to 50-70bps during periods of higher reinvestment.
While improving outlet productivity and share gains strengthen near-term outlook, believe sustainability remains key as comparables rise and investments across brands, categories and distribution continue.
Current valuation (at 49x FY28 P/E) appears to price in sustained high growth and margin expansion despite intensifying competition.
GS on Voltas
Sell, TP Rs 1025
2QFY27 revenue in line, but earnings missed GSe and EBITDA quality was weak:
UCP delivered strong volume-led growth, but margin recovery below expectations:
Strong market share gains across Room AC and Voltbek
EMPS margin was aided by one-off write-back, while Engineering Products and Services stayed strong
Additional price hike in RAC has been taken in October; management expects UCP margins to improve from 4Q
Nomura on Voltas
Neutral, TP Rs 1199
Risks remain to likely margin recovery
2Q margins miss across; focus on leadership, localization & competition can delay likely margin recovery
Continue to maintain 25%/15%y-y AC industry volume growth in FY27F/28F on warmer weather conditions & low base, driving 31%/22% y-y UCP revenue growth for
Voltas.
However, focus on market share over profitability in RAC and rising competition will likely lead to risks to the expected margin recovery.
Hence, cut UCP margin estimates to 5.7%/7.5%/8% over FY27-29F (-130/-100/-100bps).
This leads to 12%/7%/7% EPS cut
JPM on Thermax
Upgrade to OW, TP Rs 3491
Stock price is down 50% from its peak in June reflecting weak 1HFY27 earnings, margin pressures due to commodity inflation, cost overruns on certain projects, losses in renewables business & concerns around legacy project execution
Sharp stock price correction is factoring-in these concerns
Margin pressure is also bottoming-out as evidenced by sharp sequential recovery in margins (from 3.0% in 1Q to 7% in 2Q)
While 1Q and 2Q order inflows have been volatile (partially due to the uncertain environment), co is in fray for large orders
Four-quarter average order inflow (a more stable metric) was up 32% y/y, pointing to underlying strength in capex & industrial demand
Order backlog is up 16% y/y to Rs142.5bn & legacy government/FGD project drag will reduce materially by end-FY27
Rs70bn+ 2H revenue expectation versus Rs50.6bn in 1H, along with execution of relatively higher-margin international shipments, should drive better fixed-cost absorption and recovery in profitability
Forward indicators are also improving, with deferred Industrial Products orders moving into 3Q and strong demand and capacity expansion at TBWES (Utility Scale Boiler Business)
Believe improving earnings trajectory, strong order backlog and inflows make the risk-reward attractive.
Jefferies on Thermax
Buy, TP cut to Rs 4020
Sept Qtr EBITDA was 19% below estimates as margins missed by 170 bps at 6.9% due to higher commodity prices and shipment delays
1HFY27 order flow fell 4% YoY though management was confident of a pickup in 2H to surpass FY26 order flow.
Order book is up 16% YoY and provides revenue visibility for FY27E-29E
Lower FY28E-30E EPS by 1-17% and FY27E by 22%, but look forward to margin uptick ahead.
GS on Amagi Media
Buy, TP Rs 635
Earnings momentum has been solid, with elevated revenue growth, sustained higher operating leverage, & strong free cash conversion.
Additionally, company has been making investments in new AI products across the video value chain, including enabling clients to expand audience/revenue and improve cost structures, which believe should continue to increase Amagi’s TAM and extend growth durability.
In its 2QFY27 earnings call, management was confident in sustaining c.20%+ constant Fx revenue growth over medium term, with 40%+ of incremental margins
See room for significant earnings compounding; forecast 50% FY26-30E EBITDA CAGR for Amagi, driven by 20%+ revenue growth and margins more than doubling vs. FY26 levels
Kotak Inst Eqt on Amagi Media
Upgrade to Buy, TP Rs 715
Amagi reported a robust quarter.
Revenue grew at 21% adjusted for revenue accounting in the base quarter.
Growth has sustained above 20% range for third consecutive quarter and is likely to remain comfortably in this range in 2HFY27.
Adjusted EBITDA margin expanded 540 bps yoy to 16.5%, normalized for timing benefits of certain investments
Expect operating leverage to drive 760 bps adjusted EBITDA margin expansion during FY2026-29E to 17.9%
Eaise FY2028-29E EPS by ~3%
GS on Azad Eng
Buy, TP Rs 3125
Revenue increased 31% YoY & 11% QoQ to INR 1.91bn, 2% above estimate
Sequential improvement reflects continued revenue momentum amid ongoing capacity ramp-up.
EBITDA increased 38% YoY & 12% QoQ to INR 723mn, 4% above estimate
EBITDA margin expanded 177bps YoY and 56bps QoQ to 37.9%, 42bps above estimate.
Gross margin improved 738bps YoY and 120bps QoQ to 95.6%, 409bps above estimate, supported by a favorable movement in inventory-related costs.
Per management, revenue is likely to hit an annual rate of INR 13bn by FY28E, more than 2x the FY26 level.
GS on Data Patterns
Neutral TP Rs 4165
Q2FY27 performance was a miss across all key operating parameters, with revenue, EBITDA and PAT below our estimates by 10%, 47% and 52%, respectively.
On positive side, order inflows were strong at INR 9.3bn in Q2FY27, taking H1FY27 inflows to INR 10.5bn (nearly 3x YoY)
Confirmed order book stood at INR 17.4bn, with an additional INR 9.6bn of negotiated orders awaiting formalization, implying a combined order book and pipeline of INR 27bn.
Management maintained its FY27 guidance of 25% revenue growth and 35-40% EBITDA margin, implying a sharp H2FY27 execution ramp-up
At current market price, believe that risk-reward is balanced as sharp uptick in order accretion is offset by weak execution/margins in past two quarters.
JPM on Gujarat Energy
Upgrade to OW, TP Rs 300
Stock (Gujarat Gas prior to the merger) is effectively down 39% YTD, underperforming the NIFTY c.34%
See two reasons:
1) concerns that elevated natural gas prices reduce both CGD and gas trading volumes (this has partially happened)
2) a reduction in multiples given the new gas trading business (c.40% of 2QFY27 EBITDA) can be more volatile
Stock is currently at less than 8x FY28E P/E (JPMe) & do not expect further valuation downside.
Propane has recently become cheaper than natural gas, which hurt GUJENERG’s volumes in 2Q.
While this drag may continue, natural gas prices should come off in medium term, it conflict in Middle East ends & large anticipated additions to global LNG capacity come through.
Nomura on Gujarat Energy
Buy, TP Rs 325
2Q misses high expectations, valuation attractive
CGD volumes may grow in double digits
Asset-light trading business generates healthy cash
GEL remains a deep value buy, but near-term earnings headwinds may persist
JPM on Jubilant FoodWorks
Neutral, TP Rs 520
Q2 standalone EBITDA (+12.4% y/y) offered a marginal beat vs expectations.
Management is cautiously optimistic on the outlook (relying more on own initiatives vs broader industry momentum), targeting 5-7% LFL growth for FY27, with Q3 tracking to plan and delivery momentum remaining healthy
Dine-in/takeaway (growth turned positive but still soft), innovation (to support ticket size) and calibrated pricing should provide incremental growth levers.
On margins, despite commodity and operating-cost inflation, JUBI intends to deliver improvement through pricing, lower discounting, mix and cost efficiencies – reduction in losses on new formats is tracking ahead of expectations but stiff COGS/fuel and wage inflation have stalled margin progression for Domino’s.
Popeyes posted 8% q/q revenue growth (11 new stores added) and remains a key medium-term growth engine, although expansion will stay disciplined until restaurant-level economics strengthen.
CLSA on Jubilant FoodWorks
O-P, TP Rs 550
Reported 11.5% standalone sales growth in 2QFY27 and 4.1% Domino’s India LFL.
Ebitda grew 12.4% YoY, with margin expanding 16bps YoY to 19.8%, broadly in line with CLe
Management maintained its 5-7% LFL guidance for FY27 implying an acceleration in 2H.
Popeyes sustained strong momentum with 53% LFL and 122% revenue growth.
Innovation products are gaining traction, with contribution nearing double digits and superior margins.
Dominos turkey saw positive transaction growth.
Gross margin was in line with our expectations but 39bps better than consensus.
