Nuvama Institutional Equities has recently revised its ratings for three major Indian companies, upgrading Tata Steel Ltd, Hindalco Industries Ltd, and Power Grid Corporation of India Ltd (PGCIL) to a 'BUY' recommendation. This comes after a thorough review of their strong Q2 FY27 financial performances, which also led to increased 12-month target prices for each stock.
Tata Steel Sees Target Price Increase to ₹219
Tata Steel reported a standalone EBITDA of ₹10,320 crore in Q2 FY27, marking a 9.6 percent sequential increase and slightly exceeding Nuvama's estimate of ₹9,900 crore. This robust performance was driven by higher sales volumes, which successfully counteracted the impact of lower steel prices and increased production costs. Nuvama has now raised Tata Steel's target price to ₹219 from the previous ₹209.
The brokerage anticipates a significant improvement in Q3 FY27 India EBITDA per tonne, projecting an increase of approximately ₹2,400 quarter-on-quarter due to higher prices. Furthermore, European operations are expected to benefit from improved prices and volumes starting in Q4 FY27. Nuvama has adjusted its FY27 and FY28 EBITDA estimates upwards by 2 percent and 9 percent, respectively, factoring in these positive trends and higher iron ore sales.
Hindalco Industries Target Raised to ₹1,184 Amid Strong Aluminium Performance
Hindalco Industries, including its Utkal Alumina operations, delivered a Q2 FY27 EBITDA of ₹8,450 crore, substantially surpassing Nuvama's estimate of ₹7,080 crore. This strong showing was attributed to higher aluminium volumes, enhanced value addition, and favorable sulphuric acid prices. Following these results, Nuvama has upgraded Hindalco to 'BUY' and increased its target price to ₹1,184 from ₹1,108.
The brokerage noted that Hindalco has strategically hedged 26 percent of its FY28 estimated volume at $3,168 per tonne, mitigating potential earnings downside from any future fall in aluminium prices. Nuvama also expects Novelis' earnings and cash flow to strengthen from Q4 FY27 onwards. Consequently, FY27 and FY28 EBITDA estimates have been raised by 4-5 percent, primarily driven by higher anticipated copper profits.
Power Grid Corporation Gets Upgrade to ₹300 Target Price
Power Grid Corporation of India (PGCIL) also received a 'BUY' upgrade from Nuvama, with its target price lifted to ₹300 from ₹283. The company's Q2 consolidated Profit After Tax (PAT) grew by 8.4 percent year-on-year to ₹3,870 crore. This growth was supported by higher other income and a reduced tax rate, even as revenue and EBITDA increased by 3 percent and 7 percent, respectively, despite a 12 percent rise in gross assets.
Nuvama estimated PGCIL's Q2 core Return on Equity (RoE) at 14.3 percent. The brokerage highlighted that the stock had undergone a 19 percent correction since May 2026, presenting an attractive entry point. Nuvama's newly introduced FY29 estimates imply a 6.5 percent EPS CAGR and a consistent 14-15 percent core RoE over the FY26-FY29 period.