UBS has a ‘neutral’ rating on SBI with the target price at Rs 840. Analysts said the bank’s management has cut loan growth guidance and they feel net interest margin to be under pressure in the near term. However, UBS has kept its EPS estimates largely unchanged for FY26 and FY27.
CLSA has downgraded Kotak Mahindra Bank to ‘hold’ from ‘outperform’ but raised the target price to Rs 2,225 from Rs 2,125. Analysts said the bank had a mixed set of numbers in the Jan-March quarter. It missed CLSA’s pre-provision operating profit estimate, driven by lower net interest income and higher opex. They also said credit costs were higher as the bank strengthened its provision coverage ratio while loan growth moderated to low-teens.
Jefferies has maintained its ‘hold’ rating on Avenue Supermart (D-Mart) with the target price cut to Rs 4,100 from Rs 4,225 earlier. Analysts said D-Mart’s margin slippage came as a big negative surprise, with the management attributing the same to high competition.
Prabhudas Lilladher has given a ‘reduce’ rating on Indian Oil Corp with the target price at Rs 122. Analysts said although a strong gross refining margin (GRM) during the Jan-March quarter drove its earnings, the average Singapore GRM continues to remain weak at $3/barrel and the company is likely to report inventory losses amid sharp decline in Brent prices. Petchem weakness is also likely to persist and the company has indicated an under-recovery of Rs170/cylinder in April-June quarter on LPG.
InCred Equities has retained its ‘reduce’ rating on JSW Steel with the target price at Rs 766. Analysts said the Supreme Court’s ruling last week ordering the liquidation of Bhushan
Power & Steel (BPSL) has cast a shadow of uncertainty on the steel maker. They said JSW Steel’s earnings projections for FY26–27 appear to be overly optimistic. The stock is trading at an unrealistic valuation (trading at a near 18-year high on EV/EBITDA basis).
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