Suzlon Energy, Kotak Bank, DRL: Top stocks with rating changes, FY26 earnings upgrades & downgrades

Suzlon Energy Ltd, Kotak Mahindra Bank Ltd, Dr Reddy's Laboratories Ltd (DRL) and Ashoka Buildcon Ltd are among a host of stocks where Nuvama suggested 'Buy' ratings post Q3 results against 'Reduce' or 'Hold' earlier. Symphony Ltd, IndusInd Bank, HCL Technologies Ltd are some of the stocks the domestic brokerage cut its ratings on.

Among the stocks under its purview, Nuvama turned buyer of stocks such as Muthoot Finance, SBI Card, Ashoka Buildcon, Whirlpool of India, Cummins India, SAIL and DRL. It was keeping 'Reduce' ratings on these stocks earlier.

Similarly, the brokerage suggested 'Buy' on Suzlon Energy, Coromandel International, KFIN Technologies, Ambuja Cements, Hindalco Industries, Jubilant Foodworks, Solar Industries, Jindal Stainless and Havells India against 'Hold' ratings earlier.

Greenlam Industries Ltd, Dixon Technologies Ltd, PI Industries, Aarti Industries, Zydus Life, Spandana Sphoorty Financial, Siemens and HCL Tech were some of the stocks the brokerage turned 'Hold' or 'Reduce' on from 'Buy' earlier.

In terms of FY26 earnings per share (EPS) changes, Mahanagar Gas saw 21 per cent increase in estimates, followed by PG Electroplast (21 per cent), Transformers and Rectifiers India (17 per cent), Adani Wilmar (16 per cent), UPL (14 per cent) and ONGC (12 per cent).

NMDC (down 69 per cent), Zomato (down 69 per cent), JTL Industries (down 57 per cent), Grasim (down 57 per cent), VIP Industries (down 57 per cent), and GSPL are some of the stocks where Nuvama cut earnings estimates drastically.

As far as the broader BSE500 earnings is concerned, excluding-OMCs, FY24 experienced strong profit growth of over 20 per cent despite weak demand (sub-10 per cent), owing to low credit costs and favourable input prices.

"However, this divergence now appears to be reconciling, with profit growth slowing sharply to 8 per cent in Q3FY25 (H1FY25: 9 per cent) while demand remained weak despite a low base. Profits for core companies (ex-BFSI and commodities) too have moderated to sub-10 per cent range.

A decelerating earnings amid still-high valuations despite correction warrant
caution, the brokerage said as it preferred large caps over smallcap and midcap stocks and maintained a defensive bias with private banks being the only key cyclical overweight.