A couple of brokerages have come out with reports on a dozen on companies, mostly after September quarter results. They included AU Small Finance Bank (AU SFB), Coforge Ltd, SRF Ltd, TVS Motor Company Ltd, Pidilite Ltd and Sona BLW Precision Forgings Ltd. Others included Amber Enterprises, Birlasoft and SBI Life. Here's what they said on the stocks:
TVS Motor Company | Nomura India | Target price: Rs 2,611 Nomura India said a slowing industry growth is a risk to watch out for. While it expects TVS Motor Company to outperform the industry, elevated discounts can affect average selling price and margin estimates further, it warned.
Higher export growth can offset domestic weakness to some extent. "We largely maintain FY25-27 volume growth of 14 per cent/13 per cent/10 per cent YoY. We lower our ASP assumptions by 2 per cent for FY25F-27 to factor in lower ASP for the iQube EV and Raider bike. Consequently, we lower our FY25/26/27 Ebitda margins by 50 bps to 11.8 per cent/12.1 per cent/12.5 per cent; and revise down EPS estimates by 7-8 per cent," it said.
Coforge | MOFSL | Target price: Rs 10,000
MOFSL said Coforge's organic business is in great shape, and its executable order book over the next 12 months (up 18 per cent YoY) provides confidence in FY25 growth. The IT firm's presence in high growth verticals in a recovering demand environment positions it as a growth leader alongside Persistent Systems, the brokerage added.
"We believe the company’s healthy executable order book and a rebound in BFS client spending bode well for its organic business. Cigniti could prove to be an effective long-term asset," it said.
Escorts Kubota | Nuvama | Target price: 4,650 Escorts Kubota Ltd has announced the sale of its Railway division for Rs 1,600 crore, representing a valuation of FY26E EV/Ebit of 7 times. The objective of the sale is to align with the vision of Global Kubota, and exit from non-core businesses. Following this, Nuvama has reduced its FY26–27 EPS estimates by 5–8 per cent as the loss of Railway profit may be only partially offset by increase in other income.
"Despite this development, we retain positive view on robust mediumterm prospects due to Global Kubota’s support in the form of a merger of Kubota India trading entity, technology support and opening up of export opportunities. We expect revenue/EPS CAGR of 17 per cent/20 per cent over FY24–27E," it said.
Escorts has retain ‘Buy’ with a target price of Rs 4,650 against Rs 5,000 earlier.
SBI Life | Nomura India | Target price: Rs 1,835
Nomura India has maintained 'Buy' rating on SBI Life with a target price of Rs 1,835. SBI Life has maintained its leadership position among private players, with a market share of 16 per cent (2Q25) and is well-entrenched for growth in FY25F, given that cross-sell opportunities for SBI customers are significant and that SBI Life's investment in the agency business are substantial, the brokerage said.
"We estimate the company’s APE/VNB to post 16 per cent/13 per cent CAGRs for FY24-27F and maintain our Buy rating, with our target price at Rs 1,835, implying a 2.2 times FY26F EV. The stock currently trades at 2.1 times FY26F EV," it said.
Birlasoft | Nirmal Bang | Target price: Rs 744 Birlasoft reported below expected Q2 performance with sharp contraction in margins and revenue growth of 2.6 per cent QoQ after sharp Q1 decline. This is on the back of a change in strategy to build higher annuity revenue pipeline through winning low margins and flexible pricing vendor consolidations deals. This will remove the instability in top line, but will keep margins under pressure till H1FY26, Nirmal Bang said.
It said the company’s strong partnership with the likes of Oracle and SAP places it positively in the ERP segment. But the other parts of the businesses were unstable in Q2, where short-term margin hit by pricing strategies in consolidation deals will expand its wallet share and the revenue stability.
"This short term margin pain will likely to bring sustainable growth for the longer term. We find this is an apt strategy in the tight business environment to acquire growth in BFSI for stability when Manufacturing & Life sciences remain weak," it said.
SRF | Nirmal Bang | Target price: Rs 2,000 Nirmal Bang said SRF’s Q2FY25 operating performance came significantly below overall estimates on account of continued weakness in Specialty Chemicals.
While the brokerage is structurally positive on the complex fluorination space, near-term global uncertainty and competitive challenges could offer a better entry point, it said. Nirmal Bang has downgraded SRF to 'Sell' after earnings revision and rolling forward the valuation to September 2-26E using SoTP methodology and a revised target of Rs 2,000.
AU SFB | MOFSL | Target price: MOFSL said AU SFB reported a healthy quarter characterised by steady earnings driven by higher other income and controlled opex. Margins for the merged entity surprised, as the bank witnessed a 5 bps sequential expansion in margin. Management expects margin to remain at 6 per cent, driven by better asset yields and strong traction across business segments.
On the business front, loans and deposits grew at a healthy rate, and thus the C/D ratio eased sharply to 86.5 per cent. Asset quality deteriorated, resulting in higher-than-estimated provisions. The management expects credit cost to remain elevated and anticipates finishing the full year around the same levels as in 1H, with 5-10 bps variance.
"The conversion to a universal bank will further enable healthy growth and strengthen its market position. Reiterate BUY with a target price of Rs 830," it said.
Sona BLW Precision Forging Ltd | Nuvama | target price: Rs 780 Nuvama has Sona BLW has announced EPS-accretive acquisition of Escorts’ Railway division, which implies a reasonable FY26E EV/Ebit valuation of 7 times. This acquisition leads to diversification to the Railway space, which has considerable entry barriers.
"This acquired entity is the market leader in braking systems, and also supplies couplers, suspension and other parts. Furthermore, it’s RoCE is 35 per cent. We expect this entity to contribute 17 per cent/1 per cent% to Sona’s FY27E revenue/Ebitda," it said.
Nuvama retained its ‘Buy’ rating on Sona BLW with an unchanged TP of Rs 780 based on 50 times Sep-26E EPS for core and 25 times September 2026E EPS for the Railway business.
Pidilite | MOFSL | Neutral MOFSL said Pidilite's consolidated Q2 sales grew at slow pace of 5 per cent YoY to Rs 3,240 crore against an estimate of Rs 3,290 crore), partially impacted by extended monsoon. Revenue on LFL basis (excluding Pidilite USA and Pulvitec Brazil in previous year) grew 7 per cent.
The underlying volume growth remained strong at 8 per cent growth against 9.6 per cent in Q1FY25. The UVG was 6 per cent for C&B businesses and 21 per cent for B2B businesses. Rural markets continued to outpace urban markets, it noted while retaining neutral on the stock for now.
Amber Enterprises | Nuvama | Target price: Rs 7,000
Amber Enterprises delivered a standout Q2FY25 performance, with revenue surging 82 per cent YoY to Rs 16,85 crore, beating consensus estimates by 40 per cent. This was driven by strong growth in both Consumer Durables (up 75 per cent) and Electronics (up 99 per cent). Ebitda shot up 91 per cent YoY to Rs 113 crore, with margins improving 30 bps. PAT came in at Rs 19.20 crore, far surpassing expectations, signaling robust off-season demand for RACs amid low channel inventories. Given a diversified portfolio and multiple themes in place, Nuvama anticipated a strong uptick beyond FY25.
"We are valuing Amber at 40 times December 2026E EPS and raising TP to Rs 7,000 (earlier Rs 6,100); retain ‘BUY’," it said.