Stocks to BUY: Brokerage increased target on 7 stocks including Nerolac Paints, Solar Industries, Trent – see report – Market

ELARA has advised Accumulate on Kansai Nerolac Paints with a target price of ₹240. According to the brokerage, the company’s income in the third quarter was less than expected, mainly due to weak demand for decorative paints. However, the industrial coatings segment remains strong due to auto and infrastructure.

Long monsoon and short festive season will impact growth. Decorative growth is expected to be mid-single digits in the fourth quarter. Margin guidance remains intact at 13–14%. FY27–28 earnings estimates have been cut due to lower topline and valuations have been rolled up to 25x FY28 PE.

Goldman Sachs Report on Solar Industries

Goldman Sachs has maintained Buy rating on Solar Industries and given a target price of ₹18,900. According to the brokerage, Q3FY26 performance was better than expected. The execution of the Pinaka missile system in Q4 is expected to boost defense revenues. International business can benefit from Africa’s mining sector. The non-defense business in India is expected to see 10–12% volume growth and around 15% revenue growth. Over 20% EPS CAGR is seen possible due to strong order book and FY26–28 EPS estimates have been raised by 2–3%.

Morgan Stanley’s opinion on Aptus Value Housing Finance

Morgan Stanley has given Overweight rating on Aptus Value Housing Finance and has kept the target price at ₹420. In the third quarter, the company’s adjusted profit was 5% better than expected and ROE stood at 20%. Loan spreads stood at 8.9% and other income was above estimates. AUM has grown 21% YoY and management has given 20–21% growth guidance for FY26. However, some stressed loans have increased during the festive season. Despite this, the brokerage believes that the stock’s valuation at around 13x NTM PE is attractive.

Citi’s report on Devyani International

Citi has maintained Buy advisory on Devyani International with a target price of ₹192. The company’s revenue grew 11% year-over-year and EBITDA was better than estimates. SSG saw improvement, rising to -2.9% from -4.2%, whereas it had turned positive in January. Both Pizza Hut and KFC brands have shown signs of initial demand recovery. Gross margin has improved due to operating leverage. Citi believes that the QSR sector may benefit the most from the recovery in discretionary spending.

Citi’s opinion on Trent

Citi has maintained Sell rating on Trent with a target price of ₹4,350. The company’s revenue growth was around estimates, while EBITDA and adjusted profit were better than expected. The improvement in EBITDA margin has been driven by increased gross margin. However, the brokerage said the quality of earnings remained weak as other income contributed significantly to the profit. Going forward, rising rent and employee costs may put pressure on margins. The growth of the Zudio brand is also slowing down as the pace of adding new stores has slowed down.

Citi’s report on Emami

Citi has advised Buy on Emami and kept the target price at ₹665. The company’s revenue grew 10% year-on-year in the third quarter, with contributions from all segments. Domestic business got support from winter products. International business also recorded 9% growth on INR basis. EBITDA margin has improved due to operating leverage. The brokerage believes that the company’s focus on premium products and innovation will support growth going forward.

Citi’s view on India IT services sector

According to Citi, Cognizant’s revenue growth in Q4 was 4.9% and guidance of 6.5% growth has been given for CY26. However, the demand environment is still weak and discretionary spending remains under pressure. Growth in new bookings remained limited and deal durations were getting longer. Margins have remained stable due to cost control. NSE IT index has underperformed NIFTY by about 24% in the last 12 months. For this reason Citi remains cautious on the Indian IT services sector.

Citi’s report on India Defense Manufacturing

According to Citi, the shortlist for the AMCA project has been announced as per media reports. This includes the joint venture of L&T–Bharat Electronics, Tata Advanced Systems and Bharat Forge–BEL. The final winner will be selected after RFP and prototype evaluation. HAL has not been shortlisted for the next tranche, but the brokerage says this will not impact HAL’s existing order book.

Citi’s India Equity Strategy

Citi says third-quarter results were overall in line with expectations and EBITDA growth was about 9% year-on-year. Macro sentiment is improving due to softening of inflation and trade deals. The market is being supported by manufacturing and infrastructure spending. Valuations look fine on both absolute and relative basis. Citi is constructive on the Indian stock market and its NIFTY December 2026 target shows about 12% upside.

Citi’s second report on Aptus Value Housing Finance

Citi has given Buy rating on Aptus Value Housing Finance and has kept the target price at ₹350. Credit costs have increased by 56 basis points due to aggressive write-offs. AUM growth was 21% annually. Spreads remain stable due to low funding costs. ROA and ROE are still strong. Even though the growth guidance has been reduced slightly, the brokerage believes that the medium term outlook remains strong.

Disclaimer: This article is for informational purposes only and should not be construed as investment advice in any way. ET NOW Swadesh recommends its readers and viewers to consult their financial advisors before taking any money-related decisions.