Hindustan Zinc, Adani Green: Brokerages Issue New Stock Ratings

Leading brokerages have issued fresh ratings and updated target prices for several key Indian stocks across diverse sectors today. Noteworthy calls include HSBC maintaining a ‘Buy’ on Hindustan Zinc and Jefferies initiating coverage on Anthem Bioscience with a ‘Buy’ rating.

Morgan Stanley also commenced coverage on Adani Green with an ‘Overweight’ rating, signaling strong confidence in the clean energy platform’s growth trajectory.

Brokerage Initiations and Upgrades

Jefferies initiated a ‘Buy’ rating for Anthem Bioscience, setting a target price of Rs 1050. The firm highlighted Anthem Bioscience as a high-growth Indian Contract Research, Development, and Manufacturing Organization (CRDMO).

• Anthem Bioscience exhibits industry-leading manufacturing capabilities.
• The company boasts the highest EBITDA margin and Return on Capital Employed (ROCE) among Indian CRDMOs.
• Jefferies projects an 18% revenue CAGR and 20% PAT CAGR for FY26-29E, driven by existing contracts and a robust late-phase projects pipeline.

Morgan Stanley initiated an ‘Overweight’ rating for Adani Green, assigning a target price of Rs 1525. Adani Green is recognized as India’s leading clean energy platform, demonstrating strong execution across various clean technologies.

Its improving portfolio quality is expected to support better cash flow, offering strong returns visibility and one of the sector’s most robust capacity and earnings growth profiles.

Key Stock Revisions

HSBC maintained its ‘Buy’ rating for Hindustan Zinc, with a target price of Rs 770. The brokerage noted the stock’s surprising underperformance despite strong LME zinc prices.

• Potential upside risks to consensus estimates include improving silver prices.
• A weak Indian Rupee and strong sulfuric acid prices further support this outlook.

For Crompton Consumer, Jefferies maintained a ‘Buy’ rating with a target price of Rs 330, while Citi also upheld a ‘Buy’ with a target of Rs 400. The company aims to double sales in five years and achieve an operating margin of 11-12%.

• Citi targets a 15% CAGR over FY26-31.
• New businesses such as Wires and Solar Rooftop are expected to contribute 20% of FY31 revenue.

Jefferies maintained a ‘Buy’ rating for Titagarh Rail Systems, setting a target price of Rs 990. This follows the company’s inclusion in the Approved Vendor category of Indian Railways for traction motors.

• This inclusion is estimated to provide 4-5% annual revenue accretion.
• It facilitates the company’s move up the technology value chain through backward integration.

Financial Sector Outlook

Bernstein’s outlook on the Financials sector suggests a broadly supportive macro backdrop in India. Growth is rebounding, and fundamentals for the sector remain firm.

The banking sector is anticipated to sustain healthy growth in FY27, bolstered by robust liquidity conditions and a recovery in nominal credit growth. Margin outlook remains stable, and asset quality is expected to remain benign, with Private Banks likely to continue narrowing the growth gap with Public Sector Banks (PSBs).