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ICICI Bank

Key Rationales

• ICICI Bank presents a strong long-term opportunity, driven by consistent execution, solid core performance, and a focus on superior risk-adjusted returns through its “One Bank One RoE” & “Customer-360” strategies.

• The bank’s robust loan growth in FY25 (13.3% YoY), healthy deposit accretion (14% YoY), and stable CASA ratio of 38.4% underscore its strength. Improvement in asset quality—with GNPA/NNPA at 1.67%/0.39%—reflects prudent underwriting, supported by a solid contingency buffer of Rs 131b.

• We estimate RoA/RoE to improve to 2.3%/17.5% by FY27, driven by better NIM trajectory, contained credit costs, and rising fee income.

Punjab National Bank 

Key Rationales

• Recent rate cut will pressurize NIMs in near term. However, due to repricing of bulk deposits and shift toward retail and MSME lending will support margin improvement in H2FY26.

• PNB delivered a strong FY25 performance, with PAT doubling YoY to Rs 166.3b (up 102%), driven by improved other income and lower tax outgo. PNB continues to strengthen its core operations, which could eventually lead to rerating potential.

• With renewed focus on RAM segments, improving operating leverage, and digital push, PNB is wellplaced to capitalize on credit demand revival. We expect RoA/RoE at 1.05%/15.5% in FY27E.

Shriram Finance

Key Rationales

• Shriram Finance (SHFL) is well-placed to benefit from a declining rate cycle, with ~30% borrowings due for repricing in FY26. Normalization of surplus liquidity (~Rs310b to ~Rs19b) will support NIM expansion, estimated to rise to 8.6% by FY27.

• A strategic shift to higher-yielding non-auto products (PL, MSME, gold loans) strengthens diversification & supports blended yield improvement. Its expanded rural footprint (750+ branches) will aid disbursement growth and deepen customer penetration over the next 12–18 months.

• We estimate ~19% PAT CAGR over FY25–27E and RoA/RoE of 3.3%/17% by FY27, driven by improved product mix, scale, and operating leverage

CAMS

Key Rationales

• CAMS operates in a duopoly with high entry barriers and sticky clients. Even with softer AUM yields, scale & efficiency in operations provide room for sustained margins and long-term profitability.

• While mutual fund servicing remains the core, CAMS is rapidly diversifying with strong traction in digital payment services (CAMSPay), alternatives (AIF servicing), and KYC infrastructure. These high-growth, high-potential segments are building a robust second growth engine.

• CAMS stands at the center of India’s financial ecosystem evolution—offering both core stability and expansion into new-age services. We expect revenue/PAT to post a CAGR of 12%/13% over FY25-27E

Niva Bupa Health Insurance

Key Rationales

• Niva Bupa, the third-largest insurer in retail health space with a 9.4% market share in FY25, is one of the fastest-growing players, achieving a CAGR of ~34% (FY22-25). It’s well-positioned to capitalize on growing demand with a strong brand, distribution network, and diverse product offerings.

• Network of 10,000+ hospitals enables seamless cashless claims, building strong trust & mkt. presence. It focus on geographic expansion & innovative products for middle & lower-middleclass segments.

• We estimate a 25% GWP and 32% PAT CAGR over FY25– 28, driven by scale, operating leverage, and structural tailwinds in India’s health insurance sector.

Mahindra & Mahindra

Key Rationales

• Mahindra & Mahindra is well-positioned for long term growth, supported by a robust product pipeline planned by 2030, with key launches slated for CY26.

• Mngt expects to outperform the UV industry in FY26, aided by full-year contributions from recent launches like Thar Roxx, XUV 3XO, and new EVs.

• A favorable rural recovery & strong presence in core markets are likely to drive tractor segment outperformance, even as the industry sees high single-digit growth

• We estimate MM to post ~13% revenue/EBITDA CAGR over FY25–27E, with EPS growth of 15–20% and RoE at 18%.

Divi's Laboratories

Key Rationales

• Mgmt. expects double-digit revenue growth, aided by Unit III commissioning and long-term CDMO contracts in the peptide/GLP segment. Generics momentum & easing raw material costs support earnings visibility.

• In FY25, Divi’s revenue/EBITDA/PAT rose 19%/33.5%/35% YoY to Rs94b/ Rs30b/Rs21b.The company recently signed a supply agreement for advanced intermediaries with a global pharma firm, expecting meaningful revenue contribution.

• We raise FY26/27 EPS and model 25% earnings CAGR over FY25–27, on superior execution in generics segment & strong capabilities in peptides space.

MAX Healthcare

Key Rationales

• MAXH is well-positioned as a leading multi-specialty hospital chain, with plans to add 3,600+ beds over 3–4 years through brownfield expansion and strategic acquisitions.

• The Jaypee Hospital acquisition boosts its North India presence, while rising insurance coverage, PPPs, and medical infra investments support long-term growth.

• For FY25, revenue/EBITDA/PAT grew 27%/22%/10% to Rs 86.2b/Rs 22.85/Rs 14.7b, aided by volume expansion & 42% YoY growth in Max Labs. Ramp-up of Lucknow, Nagpur, Jaypee units to enhance profitability & reach. We expect a 17%/24% revenue/PAT CAGR over FY25-27.

Hindustan Aeronautics

Key Rationales

• Hindustan Aeronautics (HAL) is strategically positioned for sustained long-term growth, supported by a record FY25 order book of Rs1.89t, nearly double prior year, & strong future pipeline valued at ~Rs1t to materialize over 1-2 years.

• Key growth drivers include manufacturing scaleup, sustained ROH orders (~Rs 200b annually), new programs like Tejas Mk1A, Su-30 avionics upgrade, LCH Prachand deliveries, and upcoming Tejas Mk2 production.

• We estimate HAL’s revenue/PAT to grow at a 21%/14% CAGR over FY25-27, with EBITDA margins stable near 29%, supported by indigenization and operational efficiency

KAYNES Technology

Key Rationales

• KAYNES is poised for strong FY26 growth with a revenue target of Rs 45b, driven by higher-margin new orders, operating leverage, and expansion across key verticals such as automotive, aerospace, industrial, and medical.

• HDI PCB & OSAT commercialization is planned for 4QFY26. Chennai PCB facility targets ~30% margin (global clients) while OSAT is expected to deliver ~20%. Combined revenue target is Rs 25B in FY27, doubling to Rs 50B by FY28.

• Recent acquisitions have enhanced its global presence & opened new growth opportunities, with future focus on high-margin ODMs. We estimate a CAGR of 57%/61%/70% in revenue/EBITDA/adj. PAT over FY25-FY27.

JK Cement 

Key Rationales

• JKCE plans to double its grey cement capacity by FY30 through greenfield and brownfield projects across India. This expansion will strengthen its market position and enhance its pan-India presence.

• All-India average cement price was up ~5% QoQ in 1QFY26, aided by price hikes in Apr-May’25. This augurs well for cement companies. Mgmt. aims to achieve ~20mt grey cement volume (~12% YoY growth) in FY26. We raise FY26/27E EBITDA on higher volume and better profitability.

• We estimate JKCE's revenue/EBITDA/PAT CAGR at 15%/21%/33% over FY25-27, driven by strong volume growth and profitability. We maintain a buy, as JKCE is well-positioned among mid-sized cement firms.

Polycab India

Key Rationales

• The Cables & Wires (C&W) business saw healthy demand and margin gains, while the FMEG segment turned profitable, aided by richer mix and better cost absorption.

• In FY25, revenue/EBITDA/PAT grew 24%/19%/13% YoY. Domestic biz grew 27% YoY; cable growth outpaced wire growth in FY25. Polycab targets +10% of revenue from exports over next 5 years (~6% in FY25).

• We expected 16%+ CAGR in revenue/EBITDA/PAT over FY25–27 and improving free cash flow, Polycab remains well-positioned for sustainable growth. We reiterate our BUY rating on Polycab (40x FY27E EPS), as strong execution across segments drove robust performance.

COFORGE

Key Rationales

• COFORGE has reiterated its target of reaching USD2b revenue by FY27, driven by strong organic momentum and cross-selling opportunities from Cigniti.

• We expect Q1FY26 revenue to grow ~7% QoQ in CC terms, driven by strong organic momentum and steady rampup of the Sabre deal, along with contributions from recent acquisitions. As most one-offs are now behind, we expect EBITDA margin to expand by 100–120bps over the next 12–18 months.

• COFORGE remains our top mid-tier IT pick for its scalability and profitability outlook. We expect revenue/EBIT/adj. PAT to grow by 56%/30%/67.5% YoY in 1QFY26.

Radico Khaitan

Key Rationales

• Radico Khaitan is well poised for long-term growth through aggressive expansion in the premium & luxury spirits segment, leveraging strong brand with leading products like 8PM, Magic Moments, & Rampur Single Malt. It commands an 8% mkt. share in Prestige & Above (P&A) segment, with rising consumer premiumization.

• In FY25, It delivered Rs 48bn revenue with 31mn cases, reflecting strong scale and consistent value creation evidenced by 25x returns over 10 years. Radico’s diverse portfolio and premiumisation strategy offers visible long-term earnings growth in India’s evolving IMFL mkt.

• We estimate revenue/EBITDA/APAT CAGR of 16%/22%/30% over FY25-FY28, supported by margin expansion and operating leverage.

Eternal

Key Rationales

• In FY25, Eternal's robust performance was driven by Blinkit's explosive GOV growth (+134% YoY), though profitability remains pressured by aggressive darkstore expansion and rising competition.

• Zomato exited its 10-minute food delivery to focus on Blinkit, citing weak consumer experience, though food delivery growth lags guidance. Mgmt. expects competitive intensity to persist, delaying Blinkit's breakeven to FY27.

• However, the long-term opportunity in quick commerce remains compelling, with Eternal wellpositioned as a market leader. We maintain our BUY rating, as we believe Blinkit's scale and first-mover advantage justify near-term losses. Investors should brace for volatility but stay focused on the structural growth story

Bharti Airtel

Key Rationales

• Bharti Airtel is well-positioned for long-term value creation, supported by its strong premiumization strategy.

• With capex intensity expected to decline in FY26 (following lower FY25 India capex of ~Rs 300b), Bharti is likely to generate robust free cash flows of ~Rs1t over FY26-27E, enabling balance sheet strength and improved shareholder returns.

• We model a 14%/17% CAGR in Bharti's consolidated revenue/EBITDA (FY25–28E) driven by an expected ~15% India wireless tariff hike (Dec'25), faster home broadband growth, & continued strong double-digit growth in Africa.

Trent Ltd

Key Rationales

• Trent aspires to grow 25%+ annually over the long term, aligned with our FY25–27E revenue CAGR through its differentiated proposition to drive repeat purchases from a critical mass of consumers while staying relevant to the evolving consumer needs.

• India’s retail market is set to hit $2.2t by 2034, led by young, urbanized, & digitally connected population.. Trent’s share still remains in low-single digits, which augurs well for the company.

• We remain positive on Trent for its robust footprint additions, long runway for growth in Star (presence in just 10 cities) & emerging categories like beauty and lab-grown diamonds. We expect FY25–27E CAGR of ~25–26% in revenue/EBITDA/PAT, driven by the continuation of robust area additions in Zudio.

Prestige Group

Key Rationales

• Prestige is a leading real estate developer with a strong base in South India and expanding presence in Mumbai and NCR, backed by a robust pre-sales track record.

• FY26 pre-sales guidance stands at Rs 270b, with a moderated GDV pipeline of Rs 420b, driven by large residential launches and commercial assets like BKC and Aerocity.

• The company maintains financial discipline with net debt at Rs 67b, Net D/E at 0.42x, and a lower borrowing cost of 10.3%. With growth in residential, commercial, and hospitality segments, the stock is poised for further re-rating.

TIME

Key Rationales

• TIME is the world’s largest manufacturer of large-size plastic drums, holding a 55%+ mkt share in India & strong presence in 10 countries. It pioneered intermediate bulk containers in India, now ranks 3rd globally & is 2nd largest maker of Type-IV composite LPG/CNG cylinders.

• We are optimistic about TIME’s value-added composite products, its stable industrial packaging business & strong financial discipline. With estimated annual FCF of Rs 4B+, the company aims to achieve net cash status by FY27E, supported by robust OCF/EBITDA (~60%).

• We estimate a CAGR of 15%/16%/23% over FY25–28E, driven by robust growth in the value-added products (VAP) segment and strong cash flows..

SRF Ltd

Key Rationales

• Despite macroeconomic challenges, SRF showed resilience, particularly in its specialty chemicals business, boosted by new products and higher demand for agrochemical intermediates.

• For FY26, SRF plans a capex of ~Rs 22–23b, which may rise during the year. Over the past 18 months, it achieved a 30% capacity increase through debottlenecking.

• The chemicals segment is expected to maintain growth in FY26, driven by a strong specialty order book, rising exports, & PTFE traction. The packaging business is improving with a focus on high-impact VAPs. We project an 18%/46% CAGR in revenue/PAT over FY25-27E.

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