Kotak Mahindra Bank, JSW Steel, Jindal Steel, Shree Cement, Nuvoco, AU SFB: Brokerage outlook, share price targets

HDFC Securities has maintained its 'BUY' rating on Kotak Mahindra Bank, JSW Steel, Jindal Steel and Nuvoco Vistas Corporation, while upgrading Shree Cement to 'BUY' from 'ADD'. The brokerage, however, maintained a 'REDUCE' rating on AU Small Finance Bank, citing margin pressures.

Here is a look at the domestic brokerage's outlook and target prices for these stocks following their Q2 FY27 earnings.

Kotak Mahindra Bank

For Kotak Mahindra Bank, HDFC Securities revised the sum-of-the-parts (SOTP)-based target price to Rs 480. The bank's Q2 FY27 earnings met expectations, supported by improved volume growth and better asset quality, which partly offset net interest margin (NIM) compression.

Loan growth stood at 25 per cent year-on-year (YoY), while growth remained healthy at around 19 per cent after adjusting for FCNR(B) deposits and the transfer from KMIL. The brokerage, however, flagged sub-optimal capital deployment and a relatively low return on equity (RoE) of around 12 per cent as concerns.

JSW Steel

The brokerage kept an unchanged target price of Rs 1,410 for JSW Steel. The company reported 13 per cent YoY like-for-like consolidated volume growth in Q2 FY27, excluding BPSL assets. (Bhushan Power & Steel Ltd or BPSL is a steel-making company acquired by JSW Steel via the insolvency resolution process.)

However, margins contracted by Rs 1,400 per tonne sequentially to Rs 13,600 per tonne due to lower realisations and higher coking coal prices. HDFC Securities expects steel price increases and efficiency gains to support margins, while JSW Steel retained its FY27 volume growth guidance of 8 per cent on a like-for-like basis.

Jindal Steel

HDFC Securities also kept the target price unchanged at Rs 1,210 for Jindal Steel. It noted that volumes rose 27 per cent YoY, supported by capacity expansion, while unit EBITDA declined by around Rs 1,100 per tonne sequentially (quarter-on-quarter) to Rs 10,800 per tonne due to higher operating and freight costs.

The brokerage expects firmer steel prices, an improved product mix and cost optimisation to support margin recovery. The commissioning of the slurry pipeline is expected to reduce operating costs by around Rs 500 per tonne from Q3 FY27.

Shree Cement

The brokerage upgraded Shree Cement and raised its target price to Rs 28,400. Strong volume growth and healthy margins, alongside the recent stock price correction, supported the upgrade. Standalone volumes increased 18 per cent YoY in Q2 FY27, while consolidated volumes rose 14 per cent.

Nuvoco Vistas

On Nuvoco Vistas, the brokerage kept the target price unchanged at Rs 445. Volumes grew 9 per cent YoY, but unit EBITDA fell to Rs 871 per tonne sequentially. Recent cement price increases are expected to offset rising input costs and support margins.

AU Small Finance Bank

HDFC Securities maintained 'REDUCE' on AU Small Finance Bank with a revised target price of Rs 900. Although earnings beat estimates, the brokerage expects margins to remain under pressure amid a changing loan mix. Loan and deposit growth stood at 28 per cent and 29 per cent, respectively.