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Informist, Thursday, Jul. 23, 2026                                      Tel +91 (22) 6985-4000

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Equity Alert: Brokerages raise Nestle India price aim after Q1 earnings beat

 

MUMBAI--0855 IST--Multiple brokerages raised their target prices on the stock of Nestle India after the company detailed its June quarter on Wednesday. For Apr-Jun, the fast-moving consumer goods major outperformed the Street's view and reported a 48% on-year jump in its net profit at INR 9.75 billion, led by sales volume growth across all four of its business segments. The company's revenues for the June quarter rose 25% to INR 63.78 billion.

 

Systematix Shares and Stocks raised its price aim on the stock by 11% to INR 1,620. The brokerage also raised its financial year 2026-27 (Apr-Jun) revenue and earnings per share estimates by 3% and 7%, respectively, factoring in the company's outperformance in the June quarter. The brokerage sees gross profit margin benefiting from high pricing potential in key categories, the company's leadership position, and an improvement in product mix led by premiumisation. It also expects distribution expansion, penetration gains, and product launches to support growth, with launches in the noodles segment. However, the company's growth could decelerate progressively over the nine months ending December as goods and services tax-related benefits phase out from the December quarter and growth in Maggi normalises off a high base from the September quarter, the brokerage highlighted. Further, rich valuations further limit a more positive outlook, the brokerage said, highlighting that the stock trades at a price-to-earnings multiple which is 71 times the estimates for FY27.

 

Prabhudas Lilladher also raised its target price on the stock to INR 1,606, up 7% and retained its "accumulate" recommendation. The brokerage expects growth to moderate in the second half of FY27 on a normalisation in the base. However, the brokerage does not factor in any demand impact or input cost inflation due to the potential fallout from El Nio. It anticipates that margins have very limited room for an upside as coffee, cocoa, and palm oil might become volatile due to super El Nio globally. The brokerage estimates earnings per share to grow at a compounded annual rate of 17.8% over FY26–FY28. It expects steady but moderate returns given high valuations. Brokerage Nuvama Institutional Equities also raised its FY27 and FY28 earnings per share estimates for Nestle India by 7% and 8%, respectively, and increased its target price by 11% to INR 1815.

 

Nirmal Bang Institutional Equities remained constructive on the company's long-term prospects. The brokerage increased its price aim on the stock to INR 1540 from INR 1492 and maintained its "hold" recommendation, appreciating the growth recovery seen in the June quarter with double-digit sales growth across all categories.

 

Emkay Global Financial Services retained its target price on the stock with a "reduce" recommendation. The brokerage believes the stock has already priced in its superior operating performance in the June quarter during which the company's EBITDA grew 40%. The brokerage expects the FMCG player's margin to be under pressure in the September quarter due to higher input costs and sees growth slowing in the second half of FY27 due to a high base. (Shruti Nair)

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Equity Alert: Dr Reddy's Q1 earnings miss view, brokerages trim estimates

 

MUMBAI--0845 IST--Dr. Reddy's Laboratories reported a weak set of earnings for the June quarter, primarily due to lower Lenalidomide and generic Revlimid sales, price erosion in the US and Europe, and issues related to the supply of Semaglutide. Analysts were cautious about the company's trajectory for 2026–27 (Apr-Mar). That growth is dependent on Semaglutide supply resuming and approval for Abatacept is the consensus view. Nearly all brokerages trimmed their earnings estimates for the stock. 

 

Dr. Reddy's expects its earnings before interest, tax, depreciation, and amortisation margin for the September quarter to be around 20%, excluding contribution from Semaglutide, the management said in a post-earnings analyst conference call. The company earlier saw its EBITDA margin near 22–25%. 

 

The launch of cancer drug Bosutinib in the US provides medium-term support, but is unlikely to completely offset near-term earnings challenges from delays in commercial supply of Semaglutide and lower manufacturing utilisation, Nirmal Bang Institutional Equities said in a report. The brokerage downgraded the stock to 'sell' and cut its target price by 18% to INR 1,098 from INR 1,335. Nirmal Bang expects the company's revenue to rise about 13% in FY27 and resumption of Semaglutide supply is expected to lead to a sequential improvement. Its EBITDA margin is seen at around 19% over FY27-28. "...the company is well positioned to pursue value-accretive inorganic opportunities across generics, biosimilars and innovation," Nirmal Bang said.

 

Meanwhile, Canada is expected to remain a three-player market comprising Dr. Reddy's, Apotex, and Novo Nordisk over the next several months, with Sandoz still awaiting approval, Nuvama Institutional Equities said. The brokerage revised its earnings per share estimates for the company downwards by 5% for FY27 and for earnings before interest, tax, depreciation, and amortisation by 11%. Nuvama reduced its target price on the stock by 7% to INR 1,365 while retaining its 'buy' stance. Margin recovery depends on new drug launches, restarting Semaglutide supply, and clearance for Abatacept, Nuvama said.

 

The Hyderabad-headquartered company's EBITDA margin missed Emkay Global Financial Services' estimate for the second quarter in a row. For the June quarter, the brokerage had expected EBITDA margin, ex-Semaglutide, to be 13.3% and this was 350 basis points lower than its expectation. The company's selling, general, and administrative spend led to the miss on EBTIDA margin, Emkay Global said, while adding that consensus earnings downgrades are likely to follow. "...we do not see the current downgrade cycle ebbing in the near term, in the absence of a meaningful positive catalyst," the brokerage said. Emkay Global trimmed its earnings estimates for FY27 and FY28 by about 8% and 6?ch. It revised its target price on the stock to INR 1,200 from INR 1,300 while maintaining its 'reduce' rating. 

 

The pharmaceutical major reported a near 69% on-year fall in consolidated net profit for the June quarter at INR 4.44 billion. This is the third consecutive quarterly decline in its bottom line. Revenue, meanwhile, fell 5.5% year-on-year to INR 81.00 billion. Dr. Reddy's reported its earnings after the market closed for trading. On Wednesday, shares of the company closed 2% lower at INR 1,182.80 on the NSE.  (Ruchira Kagita)

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Equity Alert: Seen opening lower Thu; crude oil prices at $96/bbl

 

MUMBAI--0840 IST--Domestic equity indices are expected to open lower for a fourth straight session Thursday due to further escalation in the US-Iran war and a rise in crude oil prices to $96 a barrel, their highest level in over a month. The US military Wednesday announced it was conducting strikes for a 12th consecutive night against Iran as both sides largely targeted civilian infrastructure. Shares of Infosys, Cipla, and InterGlobe Aviation will be in focus as they will announce their June quarter results later in the day.

 

At 0837 IST, the September futures contract of Brent Crude oil was over 2% higher at $96.09 a barrel. It touched $96.43 a barrel, the highest level in over one month. This was over 32% higher than its pre-war levels. "Rising crude prices have again become a pain point for Indian equities," Rupak De, senior technical analyst at LKP Securities, said. "As crude sustains above the 50EMA (exponential moving average), the Indian Nifty is set to break below the 50EMA. It looks like the Nifty and crude oil are again moving inversely to each other."

 

The July contract of the GIFT Nifty suggested a lower opening for the market Thursday. At 0838 IST, the GIFT Nifty was largely flat from Wednesday's close at 23877. It was down nearly 120 points from the Nifty 50's previous close. "On the lower end, the fall might extend towards 23600-23700 if the Nifty falls below 23900. On the higher end, near-term resistance is seen at 24100,' Rupak said. He expects volatility to remain in the market after a lower opening due to the expiry of the Sensex's weekly derivatives contract.

 

On the earnings front, Cipla is likely to post an over 34% on-year fall in its bottom line at INR 8.52 billion for the June quarter, while its revenues are expected to rise marginally on year to INR 71.04 billion. IndiGo airline operator InterGlobe Aviation's bottom line is likely to see a sharp fall in the reporting quarter as the US-Iran war led to higher costs. The company is expected to report a net profit of INR 12.30 billion for the June quarter, down 43% on year. Its top line is likely to rise 18% on year to INR 242.64 billion.

 

Information technology major Infosys will also detail its June quarter earnings later in the day. Despite a rise in revenue, Infosys is expected to post a sequential decline in its consolidated net profit for the reporting quarter due to investment and acquisition costs. Its consolidated net profit for the June quarter is expected to decline over 7% sequentially to INR 78.67 billion and revenue is likely to rise over 4% sequentially and nearly 15% on year to INR 484.45 billion.

 

Shares of Dr.Reddy's Laboratories will also be in the spotlight as the company announced its June quarter results Wednesday post market hours. It reported a nearly 69% on-year fall in its consolidated net profit at INR 4.44 billion. Revenues were reported at INR 81 billion, down 5.5% on year. Both the financial metrics of the company failed to meet the Street's view. Brokerages cut their target price on the stock and downgraded their recommendations.

 

Brokerage Emkay Global Financial Services trimmed Dr Reddy's target price by 8% to INR 1,200 and retained a 'reduce' recommendation on the stock. Meanwhile, Nirmal Bang Institutional Equities downgraded its recommendation on the stock to 'sell' from 'hold', and cut its target price by 18%. The brokerage turned cautious on the stock after a disruption in the manufacturing of semaglutide. Nuvama also trimmed its target price on Dr. Reddy's by 7% to INR 1,365 and retained its 'buy' recommendation. The company's near-term growth depends on the resumption of semaglutide supply and the approval for Abatacept in the December quarter.  (Arundathi A R)

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Equity Alert: Asian mkts open up; US tech cos' capex plans to boost chipmakers

 

MUMBAI--0750 IST--Asian indices opened higher Thursday after US technology companies announced capital expenditure plans, which will likely benefit chipmakers in the region. Rising crude oil prices due to the West Asia war have raised concerns about inflation. This has pushed short-term US Treasury yields to 17-week highs as investors suspect the US Federal Reserve is likely to raise interest rates sooner rather than later.

 

South Korea's KOSPI rose 3.1% and was the best performer among its peers. SK Hynix and Samsung Electronics were both around 3% higher. Shares of Samsung Electro-Mechanics rose more than 8% after the company said that it had signed a $200 million contract to supply multilayer ceramic capacitors. The other party to the contract was not disclosed.

 

South Korea's GDP grew 0.6% in Apr-Jun sequentially on a seasonally adjusted basis, faster than a median estimate of 0.4% in a Reuters poll. South Korea's economic ‌growth was driven by a semiconductor export boom which offset a decline in construction investment, advance estimates from the Bank of Korea said Thursday. 

 

The Bank of Korea is expected to raise its key rate to 3.25% in the first quarter of 2027 and keep it there until at least the end of next year, according to median forecasts in a Reuters poll. "As long as we see quarterly (growth) rate that is higher than minus 0.1% in the second half, on an average, it would be possible to see annual growth of 3%" this year, Reuters quoted a Korean central bank official in a news conference, as saying.

 

Australia's S&P/ASX 200 rose marginally. Shares of Macquarie traded around a percent higher Thursday. The company announced on Thursday that Greg Ward, currently head of banking and financial services, will succeed Shemara Wikramanayake as CEO in November.

 

Following were the levels of key indices in the region at 0750 IST:

 

Index	Level	Change in %
Nikkei 225 Day	66533.57	0.6
TOPIX FIRST SECTION	4054.72	0.5
S&P/ASX 200 Index	8878.1	0.6
KOSPI Index	7005.14	3.1
Hang Seng Index	25097.18	0.8
CSI 300 Index	4723.96	0.1
FTSE Singapore Strait Times	5578.22	(-)0.3

 

(Deesha Jadhav)

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Equity Alert: US markets close lower ahead of Alphabet earnings

 

MUMBAI--0701 IST--Indices in the US closed lower Wednesday as investors anticipated earnings of the first of the "Magnificent Seven" mega-cap companies and grappled with concerns over spending on artificial intelligence and rising oil prices. The Dow Jones Industrial Average and S&P 500 both closed slightly lower and the Nasdaq Composite fell the most. Google parent Alphabet's shares fell after the company said it will spend $205 billion on capital expenditure in 2026. This announcement comes amidst growing investor unease about AI spending. 

 

Texas Instruments fell in extended trading despite reporting higher than expected earnings for the June quarter. Tesla fell 3?ter it reported negative cash flow for the June quarter, a first in more than two years. The Philadelphia SE Semiconductor index closed slightly higher. 

 

Pest control company Rollins fell 10?ter its June quarter results fell short of the Street's expectations. The image, footage, and music platform company Shutterstock fell 10?ter it suspended its dividend and its Chief Executive Officer resigned as a consequence of the failed deal with Getty Images. The clinical research organisation Medspace Holdings closed 19% higher after the company reported June quarter results above the Street's estimates.

 

Uber has cut 10% jobs in its customer service segment in order to streamline operations, according to Bloomberg. Investors await the earnings for Intel, Dow Chemicals, American Airlines, T-Mobile, Union Pacific and Norfolk Southern, which are due later in the day. Weekly jobless claims will be released later in the day.

 

Following were the levels of major US indices Wednesday:

 

Index	Level	Change in %
Dow Jones Industrial Average	52218.58	(-)0.1
NASDAQ Composite	25690.90	(-)0.6
S&P 500	7498.96	(-)0.1

 

(Deesha Jadhav)

 

US$1 = INR 96.48

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Avishek Dutta

 

All prices from National Stock Exchange, unless otherwise specified.

All percentage changes for share prices are rounded off to the nearest whole number; percentage changes for index values are rounded off to one decimal place.

All times are Indian Standard Time.

 

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NYSE: New York Stock Exchange
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