Motilal Oswal Financial Services (MOFSL) has released detailed reports and updated target prices for a selection of Indian equities after their fourth-quarter fiscal year 2026 (Q4FY26) financial results. The brokerage firm provided 'Buy' recommendations for Sun Pharmaceutical Industries Ltd, Max Healthcare Institute Ltd, Aurobindo Pharma Ltd, and LTM (formerly LTIMindtree Ltd), while assigning 'Neutral' ratings to Eicher Motors Ltd and Info Edge Ltd.
Sun Pharma: MOFSL Recommends 'Buy' with 15% Upside
MOFSL noted that Sun Pharma delivered in-line revenue for Q4FY26, though its EBITDA and PAT fell short of expectations by 14-20 percent. This miss was attributed to increased marketing expenditure and lower milestone income. Despite this, the brokerage believes Sun Pharma is well-positioned to expand its innovative medicines portfolio through new product filings with the USFDA, strategic commercial partnerships, and enhanced market reach. Superior execution in branded generics is expected to drive industry outperformance, partially offset by ongoing price erosion in the US generics sector. MOFSL projects a 12 percent earnings Compound Annual Growth Rate (CAGR) for Sun Pharma over FY26-28, setting a target price of Rs 2,210, indicating a 15 percent upside potential.
Eicher Motors: 'Neutral' Rating Maintained with Marginal Downside
Eicher Motors' consolidated profit for Q4FY26 largely met MOFSL's estimates. Both Royal Enfield and VECV divisions performed as anticipated, demonstrating year-on-year EBITDA margin expansion. However, MOFSL anticipates that margins will remain under pressure due to management's focus on volume growth and recent increases in input costs. The brokerage forecasts a 14 percent earnings CAGR for Eicher Motors. Given that the stock is trading at 31.6 times FY27E and 27.6 times FY28E earnings, it appears fairly valued. MOFSL reiterates a 'Neutral' rating with a target price of Rs 6,912, suggesting a 1 percent downside.
LTM (erstwhile LTIMindtree): Strong 'Buy' Post-Acquisition
LTM announced the acquisition of Randstad’s technology services business in Europe and Australia, a move expected to add $500 million in annual revenue, boosting LTM’s revenue base by 10 percent. The acquired business includes 2,900 billable employees with a significant onsite/nearshore presence, primarily in Europe (78 percent of revenue) and Australia (22 percent). While the acquired entity saw a 12 percent revenue decline over the past two years due to macroeconomic weakness and client insourcing, LTM management foresees opportunities for stabilization and growth through cross-selling and an increased offshore mix. MOFSL suggests the next 12-18 months could see further M&A activities aimed at capability building. The brokerage assigns a 'Buy' rating with a target price of Rs 5,400, implying a substantial 35 percent upside potential.
Max Healthcare: 'Buy' Despite Q4 Challenges
Max Healthcare delivered lower-than-expected revenue in Q4FY26, primarily due to a higher tax rate, although EBITDA aligned with estimates, indicating improved profitability. The company's overall performance in Q4 was impacted by the cessation of sales for certain chemotherapy drugs, marking the second consecutive quarter of subdued year-on-year revenue growth. While earnings growth was robust from FY22-24, Max Healthcare reported lower growth in FY25/FY26. Nevertheless, MOFSL expects brownfield bed additions at Max Smart, Nanavati, and Mohali to drive near-term earnings growth, with a greenfield project in Gurgaon contributing from FY28 onwards. The stock receives a 'Buy' rating with a target price of Rs 1,200, representing a 17 percent upside.
Aurobindo Pharma: 'Buy' on Robust Outlook
Aurobindo Pharma reported largely in-line revenue and EBITDA for the quarter. Adjusted PAT was slightly below expectations due to higher depreciation, interest costs, and lower other income. Notably, the drug maker achieved its highest quarterly gross margin in 36 quarters and recorded the highest year-on-year growth in its EU segment revenue. MOFSL projects a 15 percent, 16 percent, and 22 percent CAGR in revenue, EBITDA, and PAT, respectively, for Aurobindo over FY26-28. This growth is anticipated to be driven by an enhanced product pipeline in the US, increased penetration and offerings in the EU market, greater in-house manufacturing and external sales of PEN-g/6-APA, and the integration of the Lannett acquisition. MOFSL recommends a 'Buy' with a target price of Rs 1,200, indicating a 17 percent upside.
Info Edge: 'Neutral' as Growth is Priced In
Following Info Edge's Q4 results, MOFSL adjusted its estimates by 3 percent for FY27E/FY28E. While growth remains steady across its recruitment and 99acres segments, recruitment continues to track at a 10 percent growth rate, limiting the scope for any significant acceleration. MOFSL also does not foresee a meaningful step-up in margins in the near term, given ongoing investments and only moderate growth. The brokerage believes that most of the near-term growth potential is already factored into current valuations, leaving limited room for re-rating. Info Edge receives a 'Neutral' rating with a target price of Rs 1,050, suggesting a 9 percent upside.
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