Jubilant Foodworks Downgraded
CLSA analysts issued an 'underperform' rating for Jubilant Foodworks, setting a target price of Rs 477. The brokerage noted that the company had fallen
short of sales expectations. The earnings before interest, taxes, depreciation, and amortization (EBITDA) margin saw a slight increase compared to the previous period, although it was still below the consensus estimates. According to the analysts, the company's sales per store experienced a growth of 4.3% year-over-year (YoY), with Domino's India reporting a like-for-like (LFL) growth of 9.1%. Analysts also considered that the early festive season bolstered demand during the July-September quarter (Q2FY26) and in October.
Voltas Maintains Buy
Jefferies maintained a 'buy' rating for Voltas, setting a target price of Rs 1,670. The analysts highlighted that the company's Q2FY26 performance did not meet expectations, affected by lower margins. Consolidated sales were reported at Rs 2,340 crore, reflecting a 10% YoY decrease, which aligned with the estimates. However, the operating profit margin (OPM) of 3% was lower than anticipated, which in turn impacted the profit after tax (PAT). The analysts indicated that poor operating leverage, higher marketing expenses, and under-absorption at new facilities contributed to the margin challenges.
Muthoot Finance Upgraded
Bernstein upgraded Muthoot Finance to an 'outperform' rating, with a target price of Rs 3,400. Analysts stated that Q2FY26 was another strong quarter for the company, as its assets under management (AUM) continued to show robust growth. Furthermore, the net interest margin (NIM) expanded further due to increased recoveries, and the return on assets (ROE) surpassed 30%, with earnings per share (EPS) growing by 87%.
Alkem Laboratories Holds
HSBC maintained a 'hold' rating on Alkem Laboratories and raised the target price to Rs 5,170. Analysts indicated that the company's Q2FY26 results were better than anticipated due to reduced R&D costs, while India and US sales met expectations, and the rest of the world saw solid sales growth. Alkem projected EBITDA margins of 19.5%-20% for FY26, down from 22.5% in H1FY26, due to increased spending on R&D and newer initiatives. The analysts anticipated that it would take some time before the new initiatives showed substantial results.
Eicher Motors Downgraded
Kotak initiated a 'sell' rating on Eicher Motors, setting a target price of Rs 5,750. According to analysts, the company's reported quarter was in line with expectations. They anticipated that its volume growth would continue in the coming quarters. However, they believed that the average selling price (ASP) of its products and profitability would remain below expectations. The analysts noted that valuations at 34 times one-year forward price-to-earnings for the domestic two-wheeler business were considered expensive.
