Daijiworld Media Network - Mumbai
Mumbai, Mar 6: Several brokerage firms have shared their latest outlook on major Indian companies, with positive ratings on Larsen & Toubro and Aditya Birla Capital, while maintaining a cautious stance on Sun Pharmaceutical Industries.
Global brokerage Jefferies has maintained a “buy” rating on Larsen & Toubro but lowered its target price to Rs 4,500 from Rs 4,715 earlier. Analysts noted that global engineering and construction firms with exposure to West Asia, including L&T, have declined between 10% and 24% since tensions involving Iran, the US and Israel escalated.
About 37% of L&T’s order book comes from the West Asian region, with Saudi Arabia accounting for more than 75% of that share. Analysts said a month-long work disruption in the region could impact the company’s FY26 earnings per share by around 6–8%. However, if conditions stabilise in West Asia, L&T is expected to recover most of its share price losses, supported by strong order inflows, stable margins and its five-year strategic plan expected to be unveiled in May 2026.
Meanwhile, BofA Securities has a “buy” rating on Aditya Birla Capital with a target price of Rs 380. Analysts said the company is witnessing strong growth momentum in lending, particularly in the MSME segment supported by government initiatives. The housing finance business is also seeing improved retail penetration.
The brokerage noted that Aditya Birla Capital is focusing on gaining market share, while the asset management business is witnessing moderation in equity market share losses. The insurance segment is also recording strong premium growth. The company is targeting a return on assets of 2.5% for its NBFC business and around 2–2.2% for housing finance in the coming quarters.
On the other hand, Goldman Sachs has retained a “sell” rating on Sun Pharmaceutical Industries with a target price of Rs 1,550. Analysts said innovative medicines continue to remain a key growth driver for the company, while emerging markets and other global regions have shown sustained outperformance.
In the domestic market, the company aims to grow in line with or slightly ahead of the overall industry. Analysts added that the company has minimal exposure to West Asia, and its operations in Israel have continued without disruption despite ongoing regional tensions.
Kotak Institutional Equities has assigned an “add” rating to Bajaj Finance with a target price of Rs 1,100. The brokerage said investors focusing too heavily on short-term credit trends may overlook the structural transformation underway at the company, particularly the increasing use of artificial intelligence in financial operations.
According to analysts, Bajaj Finance is transitioning from experimentation with financial AI tools to measurable business outcomes, which could support sustained growth and strong return on equity despite its large balance sheet.
Meanwhile, Motilal Oswal Financial Services has maintained a “neutral” rating on Havells India with a target price of Rs 1,490. Analysts expect short-term softness in performance followed by recovery in the medium term.
Strong demand continues in the cables and wires segment, though margins may remain under pressure in the near term. In the Lloyd division, inventory normalisation is currently underway, while recovery in demand is yet to pick up. Pricing actions in electrical consumer durables, switchgear and lighting divisions are helping support margins amid mixed demand conditions.