February 26, 2026

TOP NEWS

Hindustan Zinc: Silver increased sharply to one months high at $90/ Ounce. Positive

KSB pumps: Revenue up 7.9% at Rs 784 crore versus Rs 726 crore. Ebitda up 31.7% at Rs 130 crore versus Rs 98.4 crore. Margin up 300 bps at 16.5% versus 13.5%. Net Profit up 10.8% at Rs 81 crore versus Rs 73.1 crore.

Shaily Engineering:  The company has secured a Rs 423-crore manufacturing and commercial supply agreement from a large domestic pharmaceutical company for pen injectors. The four-year contract has been awarded by a domestic entity.

Aditya Infotech: In a block deal, Dixon Technologies sold a 3.8% stake in Aditya InfoTech for Rs 661 crore. Motilal Oswal Mutual Fund and Kotak Mahindra Mutual Fund picked up shares worth Rs 180 crore each, while other buyers included Axis Mutual Fund, HDFC Life Insurance and 360 One Mutual Fund.

E2E networks: Company launches a Qualified Institutional Placement on February 25, 2026, with an indicative issue size of Rs 100 crore and a green shoe option of Rs 30 crore. The QIB launch price at Rs 2,630/ share is at 3% premium to CMP of Rs 2,563. Positive read through for E2E networks.

Gravita India: Company have raised the capacity of its lead recycling operation in Mundra, Gujarat, by 80,300 MTPA, bringing the total capacity to 1,45,100 MTPA. The company committed ₹49 crore from internal accruals for the plant's purchase and commissioning. The development aligns with the company's objective of improving recycling capabilities and meeting rising demand for environmentally friendly lead products. Positive

Nalco: Company has launched a new IA91 Grade Aluminium alloy ingot. IA91 is a high-performance, silicon-based casting alloy engineered to deliver an optimal balance of castability, mechanical strength, and corrosion resistance. Positive

Coal India: Seven mining dumps have been identified by South Eastern Coalfields Ltd., a division of Coal India Ltd., for possible rare earth element extraction. Due to China's dominance in global supply chains, rare earth elements—which are essential for high-tech industries like electronics, renewable energy, and defense—have become a strategic priority for India. Positive

Union Bank of India: The bank has had its long-term and short-term issuer default ratings affirmed by Fitch Ratings at BBB- with a Stable outlook and F3, respectively, while its viability rating was upgraded to bb, alongside an upgrade to its long-term ex-government support rating to BB. Fitch’s actions reflect sustained improvements in the bank’s asset quality, capitalisation, and profitability. Positive

Bank of India: Fitch Ratings has affirmed Bank of India's (BOI) Long-Term Issuer Default Rating (IDR) at 'BBB-' with a Stable outlook, while upgrading its Viability Rating (VR) to 'bb' from 'bb-'. The upgrade reflects BOI's improved risk profile and financial performance, including better asset quality and profitability, supported by strong government backing. Positive

MACRO WRAP

·        The main theme overnight was risk-on. Tech stocks once again led the advance in US equities. US Treasury yields were stable, and the USD was slightly softer. The DJIA, the S&P500, and the Nasdaq Composite Index rose 0.6%, 0.8%, and 1.3% respectively. The Eurostoxx 50 rose 0.9%.

·        The Dollar Index dipped 0.2% to 97.70, the US 2Y yield edged up 1bp to 3.47% and the 10Y yield rose 2bp to 4.05%. Brent crude oil prices rose 0.1% to USD70.85. Gold rose 0.4% to USD5,165. Silver rose 2.4% to USD89.23.

·        BoJ Governor Ueda hinted at a potential rate hike, keeping the March and April meetings open for action. Rate increases depend on hitting a 2% inflation target by late fiscal 2026, with the timeline potentially moved up by strong wage gains. Decisions will follow data analysis by March and April, amid speculation of an April hike.

·        US 30-year fixed mortgage rate fell to 6.09%, the lowest since September 2022, according to the Mortgage Bankers Association. Applications grew 0.4%, with refinancing up 4.1% but purchases down 4.7%. Lower rates help affordability, but home prices are higher than last year amid economic uncertainty. Sentimentally negative for broader market

·        Germany's economy grew 0.3% in Q4 2025, rebounding from previous stagnation due to easing inflation and lower borrowing costs. Household consumption rose by 0.5%, government spending by 1.1%, and construction investment by 1.6%. Inventory and external demand slightly trimmed growth. Annually, Q4 growth was 0.4%, with full-year GDP up 0.2% after a 0.5% decline in 2024.

·        Data watch: US  to see, the weekly US initial jobless claims will be eyed, Fed Vice Chair for Supervision Michelle Bowman (voter) testifies before the Senate Banking Committee on bank supervision.

INVESTMENT CALL

Review Q3FY2026: NBFCs, Insurance, AMCs, and Diversified Financials

NBFCs and AMCs; Resilient Q3, HFC underperformed, Insurance: Mix Q3

·    NBFC: Festive demand, buoyancy in rural economy and GST rate cuts, drove credit volumes, especially in Vehicle financing. NIMs (Vehicle, gold and diversified) improved on benign funding cost resulting into healthy PPOP growth. Yet, a surge in credit cost offset PPOP growth, impacting profitability in few cases. The VF segment outperformed on GST cut, while HFC underperformed due to higher prepayments/BT. Q4 is expected to be better in terms of AUM growth, asset quality and profitability.

·    Insurers: New business in individual segment, especially protection business and retail health saw good growth momentum on GST rationalization. Motor insurance premiums also reported improved trajectory on improved vehicle sales.

·    AMCs and diversified cos: NAM India gained market share along with good operational performance, while other capital market players like BSE India reported strong topline and bottom-line growth.

·    Top Preferred Picks: NBFCs: Aditya Birla Capital, CIFC, MMFS, HUDCO; Insurance: Max Financial, ICICI Lombard; Others: NAM India.

Stock update: IPCA Labs result update –      Formulations business enlivens Q3

Reco: Buy                  Reco. Price: Rs. 1,523                  Price Target: Rs. 1,726

·        Revenue grew modestly at 6.6% YoY to Rs.2,392.50 crore, driven by domestic formulations and exports, though it dipped sequentially. Net profit surged 31% year-on-year to Rs.326.27 crore amid margin expansion.

·        Domestic market set to outperform IPM via chronic therapies, with Semaglutide in-licensing targeting GLP-1 diabetes/obesity demand. Export formulations to continue ~13% y-o-y growth, countering API weakness via EU/UK, US, and branded generics momentum.​

·        Acceleration from FY27/28 through EU/RoW approvals (in 10-12 months) and US launches, with supply chain efficiencies lifting beyond initial 8-9% pace.

·        We value the stock at 45x, ~10% above its 5-year avg – one yr forward rating of 41.2x, on FY28E EPS of Rs. 38.4 and retain a Buy rating with a PT of 1,726 . 

Valuation (Consolidated)                                                                                         Rs. crore

Results (Consolidated)                                                                                         Rs. crore                                                   

Stock update: Zydus Lifesciences Ltd result update – All-round growth: Valuation uptick eyed

Reco: HOLD                 Reco. Price: Rs. 919                  Price Target: Rs. 990

• Growth was strong across markets – US and North America grew 16%, while India clocked a 14% y-o-y. US generics pipeline looks strong.
• Zydus acquired Agenus Inc’s biologics facilities for US based CDMO services.
• It also partnered with Formycon for Keytruda biosimilar’s (FYB206) commercialisation in North America.
• The cost of integration of acquisitions will weigh on near term margins. A quick ramp up of innovation business can lead to valuation upgrades. We value the stock at 20x, marginally above the five-year average one-year fwd P/E on FY28E EPS of Rs.49.5 and assign HOLD with a price target of Rs. 990.

Valuation (Consolidated)                                                                                         Rs. crore

Results (Consolidated)                                                                                         Rs. crore                                                   

OTHER NEWS

Indian Railway Finance Corporation: The Government of India, the promoter, is not exercising the oversubscription option to the extent of 26.13 crore equity shares (2% of paid-up equity) since there is under subscription of 1.18 crore equity shares of the company as on the T Day (February 25). Hence, accordingly, the total offer size will be base offer size of up to 26.13 crore shares (2 percent equity). Additionally, the company has signed a loan agreement with the consortium of Sumitomo Mitsui Banking Corporation and MUFG Bank (Gift City branches) in New Delhi for raising External Commercial Borrowing loan of JPY equivalent $400 million

SBI Life Insurance Company: The Board has declared an interim dividend on equity shares of the company of Rs 2.7 per share for FY2026.

Tata Capital Ltd | Non-banking financial company, said its wholly owned subsidiary, Tata Capital Housing Finance Ltd, has approved a ₹650.02 crore rights issue of equity shares to its parent. The issue, comprising shares of ₹10 each, will be undertaken in one or more tranches, the company said.

Vedanta: Company's board-constituted Committee of Directors has approved the issuance of unsecured, rated, listed and redeemable non-convertible debentures (NCDs) aggregating up to ₹3,000 crore through a private placement. Positive