Analysts have adjusted their outlook on several Indian companies following their recent quarterly earnings reports, with BSE Ltd. and Eicher Motors receiving increased price targets due to strong performance.
Investec has maintained a buy rating on BSE Ltd., the company behind Asia's oldest stock exchange, raising the target price to ₹2345 from an earlier figure. This decision comes after BSE Ltd. reported earnings that surpassed expectations, driven by its core business and a growing market share in options trading. The firm emphasized BSE's effective market share management and an improved premium-to-notional ratio, which are key factors contributing to its profitability.
In the insurance sector, Emkay revised its rating for Life Insurance Corporation of India (LIC) to Buy from Hold, setting a new price target at ₹760. Despite concerns over slower growth and persistent operational costs, Emkay suggests that these structural issues are already reflected in the stock's price. The brokerage firm also points to LIC's higher surplus generation, which could lead to an increase in dividend payouts.
The automotive industry also saw some positive sentiment as CLSA continued its buy ratings for both Ashok Leyland and Eicher Motors after their second-quarter results. While CLSA reduced the target price for Ashok Leyland to ₹238 due to lower earnings and an increased tax rate, it remains optimistic about an improvement in the company's EBITDA margin in the second half of the year.
Eicher Motors, known for its Royal Enfield motorcycles, saw its target price upgraded to ₹4252 by CLSA. The firm attributes this boost to strong demand for Royal Enfield bikes and the impressive performance of its VECV commercial vehicle business.
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