May 19, 2026

TOP NEWS

War update: President Donald trump has said that upon request from Qatar, Saudi Arabia and UAE he has postponed a planned attack on Iran and also said that serious negotiations are now taking place. However, he said that he has instructed the US military to remain prepared for a full-scale attack on Iran if a deal is not reached. Amid this optimism oil prices have reached $ 109/ barrel.

Seamec: Sales up 58% to Rs 330 crore. EBITDA is up by 78% to Rs 162 crore and PAT Rs 103 crore up 153% yoy. Positive

GE Vernova T&D: Revenue take a jump of 42% yoy to Rs 1,637 crore. Operating profits up by 76% yoy to Rs 445 crore with significant improvement in margins of around 600 bps to 27.2% vs 21.9%. Net profit is up by 88% to Rs 352 crore. Also company has approved an additional investment of Rs 55 crore towards new capacity for disconnectors and drives for 362 kV Dead Tank Circuit Breakers. Positive

Puravankara : The company reported a sharp jump in fourth-quarter revenue and returned to profit, helped by higher project handovers and record sales bookings during the year. Company’s total income rose 173% year-on-year to Rs 1,541 crore in the January to March quarter, from Rs 564 crore a year earlier. Profit for the period stood at Rs 110 crore, compared with a loss of Rs 88 crore in the corresponding quarter last year. Positive

Afcons Infrastructure: The EPC and infra player slipped into loss of Rs 88.4 crore, while its revenue dropped 18.8 per cent YoY to Rs 2,613.8 crore for the January-March 2026 quarter. Ebitda plunged 85.4 per cent YoY to Rs 42.9 crore, while margins contracted significantly to 1.6 per cent for the reported period. Negative

Sun Pharma Advanced Research: The  company reported a landmark turnaround in FY26, posting a standalone profit of Rs.1,55,213 lakhs against a loss of Rs.34,522 lakhs in FY25, driven entirely by Rs.1,84,002 lakhs in other operating revenue from a Priority Review Voucher granted by the USFDA for Sezaby® and subsequently sold for USD 195 million. Consolidated profit for the period stood at Rs.1,55,320 lakhs, with total consolidated assets rising to Rs.2,17,086 lakhs from Rs.33,553 lakhs a year earlier. Positive

Hindustan Copper informed the exchanges that it has signed a Non-Disclosure and Confidentiality Agreement (NDA) with CODELCO and hired a Transaction Advisor to investigate prospects in Chile's mining industry, including possible acquisitions. Positive

The Reserve Bank of India (RBI) officially discontinued the requirement for commercial banks to maintain the Investment Fluctuation Reserve (IFR) effective May 18, 2026. By removing the obligation to lock away profits in a separate market-depreciation buffer, the RBI is effectively freeing up core capital across the banking sector. This grants significantly higher flexibility in managing investment risks and improves the immediate capital adequacy ratios (CRAR) of lenders. Positive for banks

MACRO WRAP

• President Donald Trump said the US has postponed a planned military strike on Iran that had been scheduled for Tuesday after requests from Qatar’s Emir Sheikh Tamim bin Hamad Al Thani, Saudi Crown Prince Mohammed bin Salman, and UAE President Mohamed bin Zayed Al Nahyan. Trump said negotiations are underway on a potential deal that would ensure Iran does not obtain nuclear weapons. US military to remain prepared for a “full, large scale assault” if an acceptable agreement is not reached.
• The US Treasury extended a sanctions waiver permitting the sale of Russian crude oil and petroleum products already loaded on tankers, days after the prior waiver lapsed. Treasury Secretary Bessent framed it as a measure to help stabilize the physical crude market and support vulnerable nations. Negative for crude and positive for USDINR
• Japan’s Q1 2026 GDP grew 2.1% annualized, beating the 1.7% consensus, with consumption up 0.3% q/q and net exports adding 0.3 ppt; the GDP deflator stayed at a stronger-than-expected 3.4%, bolstering the case for further BoJ hikes.
• Kevin Warsh will be sworn in as Fed Chair by President Trump on Friday at the White House, as Fed officials continue to signal patience on rate cuts amid persistent inflation concerns.
• The US NAHB/Wells Fargo Housing Market Index rose to 37 in May 2026 from 34 in April, beating forecasts of 35. Current sales, six‑month sales expectations, and buyer traffic each gained three points (to 40, 45, and 25, respectively). Builders cutting prices fell to 32% from 36%, though the average discount increased to 6% from 5%.
• The DJIA rose 0.3% while the S&P500 and the Nasdaq Composite Index fell 0.1% and 0.5% respectively. The Eurostoxx 50 rose 0.4%. The Dollar Index dipped 0.1% to 99.19 and EUR-USD gained 30 pips to 1.1660. The US 2Y yield fell 2.5bp to 4.04% and the 10Y yield dipped 1bp to 4.59%. The German 10Y yield fell 2bp to 3.15%. The UK 10Y yield fell 7bp to 5.10% and partly reversed the 18bp jump last Friday. Lower oil prices also provided some relief. However, it may be a relief rally rather than a fundamental shift in concerns over UK politics or fiscal sustainability.
• Data watch: Today’s focused on UK jobs report (Mar), US ADP weekly employment (week of 2 May) and US pending home sales.

INVESTMENT CALL

First cut: Triveni Turbine Q4FY2026 (Consolidated) results – In line performance

·         Revenues for Q4FY26 grew by 26% to Rs 680crore meeting our estimates of 25% revenue growth. Operating profit grew by 6% to Rs 128 crore. Margins were down by 354 bps on account of lower gross margins.

·         Order booking was up 19% yoy to Rs 747 crore.  Domestic order bookings were down 47% and contributed 31% of overall order booking during the quarter. Export order booking significantly jumped by 174% y-o-y to Rs 515 crore.

·         The Company is confident of its new product and technology introductions, which in turn provide visibility for healthy growth in the years to come.

·         View: Triveni Turbine Q4FY26 had a decent performance. We shall review our earnings estimates and come out with a detailed note post the conference call. Currently we have a Buy rating on the stock.

  Results (consolidated)                                                                                   Rs crore

Stock Update: Kirloskar Oil Engines Stock update – High end products to drive growth

Rating: Buy     Reco Price: Rs 1,699      Price Target: Rs 2,000

• Q4 numbers lagged our estimates; revenue growth was led by like powergen (30%), industrials (24%),  international B2B (10%) and distribution (20%). Operating profit grew 13%, while margins rose 48 bps to 12.6%.
• Demand revived particularly for power gensets. High HP products are seeing sustainable growth with demand traction improving. The management’s focus is also strategically shifts towards HHP segment.
• Additional capex plan of Rs 1400 crores to expand capacity by 20,000 engines will further strneghten the outlook for HHP segment. 
• We maintain our BUY rating for a TP of Rs 2,000, expecting company to maintain a strong long-term growth trajectory. Stock is reasonably valued at a P/E of 27/21x its FY2027/2028E earnings on CMP.

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Valuation                                                                      Rs Crore

Viewpoint: Allied Blenders and Distillers Q4FY26 (Consolidated) result update – Strong growth momentum to sustain

View: Positive                  Reco. Price: Rs. 528                 Price Target: Rs. 715

• Q4FY26 net revenue grew 9% y-o-y (volumes rose 9%) and OPM improved ~200 bps y-o-y to 16.8%. Higher depreciation and tax dragged PAT.
• Company eyes revenue growth of high teens in the next three years, with P&A portfolio contributing over 50% to volumes driven by investment in ICONiQ White, stabilization of other millennial brands, and the ABD Maestro portfolio.
• Management has guided for flat OPM y-o-y in FY27, a 300 bps rise in OPM by FY28, and a further 100 bps expansion in FY29 driven by backward integration, supply chain optimisation, and operating leverage.
• Stock trades at 46x/30x its FY27E/FY28E EPS, respectively. We stay Positive and maintain PT at Rs. 715.

Valuation (Consolidated)                                                                   Rs. crore

Results (Consolidated)                                                                               Rs. crore                                                   

Viewpoint: Chalet Hotels Q4FY26 (Consolidated) result update – On a strong growth path

View: Positive                  Reco. Price: Rs. 790                 Upside Potential: Rs. 30%

• Profitability beat estimates in Q4FY26, with EBITDA margin rising 136 bps y-o-y to 47.6% (versus 45.6% expected) and adjusted PAT rising 32% y-o-y to Rs. 163 crore against Rs. 127 crore expected. Revenue grew 7% y-o-y.
• Management eyes mid-double-digit room revenue growth for FY27, driven by mid-high single-digit RevPAR growth.
• Company has planned a capex of Rs. 3,000 crore over FY27–FY29 to expand both its hospitality and commercial real estate portfolios, with funding primarily through internal accruals.
• Stock trades at 14x/11x its FY27E/FY28E EV/EBIDTA, respectively. We stay Positive and expect an upside of 30% over the next 12 months.

Valuation (Consolidated)                                                   Rs. crore

Results (Consolidated)                                                                               Rs. crore                                                   

OTHER NEWS

Adani Enterprises: The Trump administration on Monday moved to dismiss criminal fraud charges against Indian billionaire Gautam ​Adani, while also settling alleged Iran sanctions violations involving one of ‌his companies. The U.S. Treasury Department said Adani Enterprises, part of Adani Group, had agreed ​to pay $275 million (around Rs 2,650 crore) vs earlier penalty of $384 million to ​resolve alleged sanctions ⁠violations, in which Adani Enterprises had bought shipments of liquefied petroleum gas from a Dubai-based trader purporting to supply Omani ​and Iraqi gas that had actually originated from Iran. Positive for Adani group companies. Positive

Lemon Tree Hotels (LTHL): The company has signed a Franchise Agreement viz. Keys Prima by Lemon Tree Hotels, Karnal in Haryana. The Hotel will feature 50 well rooms, a restaurant, banquet, conference hall, swimming pool and fitness center. With this signing, LTHL expands its footprint in Haryana to 13 hotels, including 11 operational and two upcoming properties. The property will be franchised under Lemon Tree Hotels Limited. Positive