May 11, 2026

TOP NEWS

War update: President Donald Trump has called Tehran’s response to the proposal “totally unacceptable". Israeli Prime Minister Benjamin Netanyahu said the war was far from over, insisting more action was needed to eliminate Iran’s enriched uranium stockpile, dismantle enrichment facilities and curb Tehran’s proxy networks and ballistic missile program. Amid the tensions brent crude has spiked 105$ per barel.

Atlanta Electricals: Highest ever quarterly revenue at Rs 748 crore up 82% yoy. Operating margins touched 20% and PAT up by 129% yoy. Balance sheet is fully deleveraged. Order book stood at Rs 2,493 crore with increasing mix towards high voltage transformer segments.

Sambhav Steel Tubes: Company delivered a landmark performance in FY2026, achieving its highest-ever annual financial results. Revenue, EBITDA, and PAT for FY2026 grew by 60%, 79%, and 147%, respectively, from last year, reflecting strong operational execution, disciplined cost management, and improving profitability.  Q4 Net Profit Rs 53.3 Cr vs 16.6 Cr (YoY), Q4 Revenue Rs 685 Cr vs 495 Cr (YoY). Positive

MCX Q4FY26 :  Revenue ₹889 Cr (+205% YoY & +34% QoQ), Total Income ₹925 Cr (+189% YoY & +33% QoQ),EBITDA ₹703 Cr (+271% YoY & +33% QoQ), EBITDA Margin 76% (vs 59% YoY & 76% QoQ), PBT ₹682 Cr (+305% YoY & +36% QoQ), PAT ₹530 Cr (+291% YoY & +32% QoQ).  FY26: Revenue ₹2,302 Cr (+107% YoY)  , Total Income ₹2,429 Cr (+101% YoY), EBITDA ₹1,774 Cr (+133% YoY), EBITDA Margin 73% (vs 63% YoY), PBT ₹1,690 Cr (+142% YoY), PAT ₹1,332 Cr (+138% YoY). Average Daily Turnover (ADT) ₹5.4 Lakh Cr (+145% YoY).

Rain Industries Limited reported a strong turnaround in Q1CY26, posting a net profit of ₹158 crore versus a loss of ₹115 crore last year. Revenue grew 20% YoY to ₹4,521 crore, while adjusted EBITDA increased 65% YoY to ₹715 crore with margins improving sharply to 14.5% from 7.4%. The company highlighted improving performance across its carbon, advanced materials, and cement businesses, while also focusing on alternative raw material sourcing and cost optimization initiatives.

ABB India: Reported a 25% yoy decline of PAT to Rs 342 crore in Q1CY26. Decline in profitability to an adverse revenue mix, execution of lower-margin orders, elevated input costs amid forex volatility, and slower project execution. Revenues grew by 6% to Rs 3,184 crore.  EBITDA margin contracted to 12.8% from 18.6%, while PBT margin fell to 14.5% from 20.4%. Weak results.

RESULTS PREVIEW

MACRO WRAP

• Over the weekend, the fragile truce between the US and Iran faced setbacks. President Donald Trump and Iranian officials rejected each other’s latest proposals to end the 10-week conflict. The US President called the response as “TOTALLY UNACCEPTABLE.” This development has reversed some of the optimism seen during the previous week. Brent oil prices are higher by 3% to USD104 in early Asian hours. Nuclear issues would continue to be discussed over the next month, although Iran has shown a willingness to dilute its highly enriched uranium and send its stockpile to a third-party nation, albeit with a right to receive it back if negotiations fail. Sentimentally negative for global markets
• China’s factory-gate prices rose at the fastest pace since the pandemic, as the Iran war drives up global costs. Producer prices increased 2.8% in April from a year earlier, up from 0.5% in March and above the 1.8% consensus, according to the National Bureau of Statistics. Consumer inflation also rose unexpectedly to 1.2% from 1%. The yuan gained up to 0.2% past 6.8 per dollar, while long-dated bond futures fell. Officials cited higher commodity prices and stronger domestic demand, but weak consumption and rising input costs are squeezing corporate margins, with the purchase price index rising 3.5%, the widest gap with selling prices since August 2024. Positive for metals mining sectors
• China’s exports and imports surpassed consensus forecasts in Apr. In USD terms, exports rebounded to +14.1% y/y (Bloomberg est.: 8.4%; Mar: 2.5%), while imports remained elevated at +25.3% y/y (Bloomberg est.: 20.0%; Mar: 27.8%). The monthly trade surplus widened to US$84.82bn, recovering from a 13-month low of US$51.13bn in Mar. Positive for metals mining sectors
• US nonfarm payrolls beat expectations in April, rising 115k (est. 65k). The net revision to the prior two months was modest at -16k, leaving the three-month average at +48k, broadly consistent with balance between labour demand and supply. The unemployment rate remained steady at 4.3% as the participation rate edged down 0.1ppts. Positive for USD
• The Michigan Consumer Sentiment Index hit a record low of 48.2 in early May 2026, below April and forecasts, as current conditions slumped on price concerns. About one-third of consumers cited gas prices and 30% tariffs; year-ahead and long-run inflation expectations eased to 4.5% and 3.4%.
• US year-ahead inflation expectations eased to 4.5% in May 2026 from 4.7% in April, while the five-year outlook dipped to 3.4% from 3.5%, University of Michigan data showed
• DJIA was flat but rose 0.2% for the week. The S&P500 and the Nasdaq Composite Index rose 0.8% and 1.7% respectively last Friday but gained 2.3% and 4.5% respectively for the week. The Dollar Index fell 0.2% to 97.90 last Friday and dropped 0.3% for the week. The US 2Y yield fell nearly 3bp to 3.89% last Friday but rose almost 1bp for the week. The US 10Y yield fell over 3bp to 4.35% last Friday and fell 2bp for the week. Brent crude oil prices rose 1.2% to USD101.29 last Friday but fell 6.4% for the week. Gold rose 0.6% to USD4,715 last Friday and rose 2.2% for the week.

INVESTMENT CALL

First Cut: Bank of India Q4FY26: Healthy operating performance

• Bank of India (BoI) reported a strong Q4 FY26 performance with net profit rising nearly 14.8% year-on-year (YoY) to ₹3,016 crore.
• Net Interest Income (NII) increased by 11.01% YoY to ₹6,730 crore on the bank of stable NIMs, while Core operating profit jumped over 20% YoY
• Asset Quality improved as Gross NPA (GNPA) declined to 1.98% from 2.26% in Q3 FY26 while Net NPA (NNPA)declined to 0.56% from 0.60% in Q3 FY26.
• Bank of India reported strong loan growth for Q4 FY26, with gross global advances increasing by 15.69% year-on-year (YoY) to reach ₹7.70 lakh crore. This performance was largely driven by robust demand in the Retail, Agriculture, and MSME (RAM) segments
• The board recommended a dividend of ₹4.65 per equity share.

Actual vs Estimates

First cut: Tata Consumer Products Q4FY26 (Consolidated) results – Strong Q4; beat on all fronts

·     Revenues grew by 17.9% y-o-y to Rs. 5,434 crore, beating our expectation of Rs. 5,266 crore. India beverage revenues grew by 4% y-o-y (Packaged beverages volume growth of 4%), India foods business grew by 21% y-o-y (volume growth of 15%), international and non-branded businesses grew by 11% and 41% y-o-y on CC terms, respectively. Growth businesses recorded robust growth of 33% y-o-y in Q4 and surpassed Rs. 4,000 crore revenue in FY26.

·     Gross margin fell by 65 bps y-o-y to 41.3%, while OPM rose by 111 bps y-o-y to 14.6%. OPM came in higher than our expectation of 14%.

·     Operating profit improved by 27.6% y-o-y to Rs. 762 crore and adjusted PAT grew by 32.5% y-o-y to Rs. 462 crore (beating our expectation of Rs. 374 crore). The board has recommended a dividend of Rs. 10 per share for FY26.

·     View: We shall review our earnings estimates and come out with a detailed note soon. Currently we have a Buy rating on the stock.

Results (Consolidated)                                                                         Rs. crore

Actual vs estimates                                                   Rs. crore

Stock update: Radico Khaitan Q4FY26 (Consolidated) result update – Strong Q4; outlook positive

Reco: Buy                  Reco. Price: Rs. 3,476                 Price Target: Rs. 4,050

• Q4FY26 numbers were strong as robust volume growth powered a 15% y-o-y revenue growth, while OPM rose 531 bps y-o-y to 18.9%, leading to a 93% y-o-y growth in the adjusted PAT.
• FY27 P&A volumes to grow by 20%, regular segment expected to post volume growth of 3-5%, while the non-IMFL business is expected to grow by 7-8%.
• OPM is likely to rise by ~125 bps in FY27, driven by price hikes of (60 bps), premiumisation (over 200 bps), operating efficiencies and FTA, which will largely mitigate the cost push.
• The stock trades at 59x/47x its FY27E/FY28E earnings, respectively. We retain a Buy with a revised PT of Rs. 4,050.

Valuation (Consolidated)                                                   Rs. crore

Results (Consolidated)                                                                               Rs. crore                                                   

Stock Update: Bluestar Q4FY26 Results – Positive outlook

Rating: BUY     Reco Price: Rs 1,736    Price Target: Rs 2,000

• Revenues rose 1.3%, with all segments growing by lower single digits. But the recovery in RAC volumes are seen from April.
• Operating profit grew 17% as OPM rose 107 bps, which in turn was because unitary products’ margins expanded 200 bps.
• Room air-conditioner business saw reasonable growth with primary demand picking up in March and channels across all regions stocking up for summer.
• Stock trades at 48x/40x its FY2027/FY2028 EPS, respectively. We retain a Buy rating with a revised PT of Rs. 2,000

Valuation                                                        Rs Crore

  Result Summary                                                               Rs Crore

Sector Snapshot

Hospitals benefit from government schemes driving volumes, improving payer mixes, and a new capex cycle post-deleveraging, ensuring demand soaks up expansions. This structural tailwind supports resilient chains with scale advantages. Below are the companies we have released initiating coverage on :

Apollo Hospitals: Scale & Diversification Moat : CMP – 7,820, PT – Rs 9,418

Apollo's unmatched network spans metros and tier-2s, delivering brand recall, procurement leverage, and referral depth no peer matches. Diversified pharmacies and diagnostics add stability beyond cyclical hospitals. Rationale: Premium valuation justified by leadership, demerger unlocking non-core value, and mid-teens growth visibility from disciplined expansions—strong buy for ecosystem dominance.

Global Health (Medanta): Brand & Greenfield Moat : CMP – 1,214, PT – Rs 1,494

Medanta's premium multispecialty brand commands high pricing in low-penetration North/East, with proven quick ramps at greenfields ensuring EBITDA positivity fast. Cash generation funds bed doublings debt-light. Rationale: Long-term growth story warrants above-peer multiples for superior cash discipline and tier-2 entries—buy on execution track record.

Rainbow Children's Medicare: Niche Specialization Moat : CMP – 1,292, PT – Rs 1,534

Rainbow's pure-play pediatric focus builds family loyalty and low price-sensitivity, powered by efficient hub-spoke scaling into NCR fertility hotspots. Best-in-class capital efficiency minimizes funding needs. Rationale: Niche moat and financial strength support premium re-rating via North expansion—buy for sticky, high-margin model.

Yatharth Hospitals: Acquisition & Mix Shift Moat CMP – 823, PT – Rs 1,015

Yatharth's North India footprint grows via value acquisitions, with rising complex cases and payer upgrades driving leverage despite lower entry ARPOB. Lower costs sustain parity margins. Rationale: Outpacing growth and FCF catalysts justify multiples for consolidation play—buy on re-rating potential

OTHER NEWS

Lemon Tree Hotels (LTHL): The company has announced the launch of its latest property, Keys Select by Lemon Tree Hotels, Amritsar. The opening strengthens LTHL’s North India footprint with brand’s third hotel in Punjab. The hotel features 50 well-appointed rooms, Keys Café, a boardroom and a fitness center. Positive

Gravita India: Company to expand lead recycling capacity at its Jaipur facility by 42,000 mtpa; the project involves an investment of Rs 30 crore and targets completion by June 2026. Positive

JSW Steel: The company has been declared as a preferred bidder for the Goa mineral block with 96 MT of iron ore resources. The mineral block has an estimated iron ore resource of 96 million tonnes. JSW Steel said it will take all required steps as per the tender document to obtain the Letter of Intent and necessary statutory clearances. Positive

Midwest Ltd: The company is reportedly leading the consortium for the Rare Earth Elements Project in Kerala.