Share Market Highlights 5th August 2025: Sensex drops 308 points ahead of RBI policy decision; RIL, HDFC Bank major drags

Jefferies on Indusind

Buy, TP Rs 920

Appointed Rajiv Anand as next MD & CEO for 3 yrs Given his longstanding stint at Axis Bank, where he was DMD, see this as a key positive for Indusind Bank

Reorganization of top mgmt team may be the key initial steps

Will watch out for joiners from Axis/other banks

Improved fee/asset and operating efficiency, besides credibility, will be key expectations

Emkay on Indusind

Maintain Reduce with TP of Rs 700

Positive leadership transition, though near term hurdles persist

Appointment of a seasoned private banker raises hopes of an early turnaround

Near term caution still warranted around margins/asset quality

New MD & CEO will have a tough task rebuilding the leadership team, reorienting the bank’s asset/liability mix, reinforcing governance standards, and restoring stakeholders’ confidence, before setting off a turnaround for the bank once again

Believe clarity on the long-term strategic direction may take some more time

Citi on Indusind

Sell, TP Rs 765

IIB Board appoints Rajiv Anand as MD & CEO for 3 yrs effective 25th Aug

Key +ves

1] Seasoned private sector banker with >35 yrs experience

2] Track record in scaling retail & corp businesses & domain expertise in capital markets, treasury & AMC

Appointment adds credibility at the top

Driving Stability, Steering RoA Turnaround Will be Key

Nuvama on ABB India

Target Price cut to Rs5,400 from Rs6,650; Downgrade to Hold from Buy

Weak large-ticket order inflows amid cyclical slowdown

Margin pressures expected to continue; EPS cut by 11% (CY25E) and 9% (CY26E)

P/E revised to 55x from 65x; Valuation rolled over to Jun-27E

PAT margin guidance (12-15%) depends on quarterly Ol of Rs3,800-4,000 Cr

Private capex revival and order pipeline key to upside

Antique on ABB India

Target Price cut to Rs5,863 from Rs7,040; Maintain Buy

Weak quarter with disappointing order inflow

CY25/26 earnings estimates trimmed by 13% and 20%

Margins under pressure; near-term challenges expected to continue

Revenue moderation likely amid slowdown in ordering activity

MOSL on ABB India

Target price Rs6,000 vs Rs6,700 earlier (maintain Buy)

Weakness to persist a bit longer

Results impacted by fore fluctuation and higher costs due to QCO implementation

Ordering activity weak, hopes lie on 2HCY25

Cut estimates by 15%/8%/2% for CY25/26/27 to factor in lower margins

Currently trading at 63.7x/53.6x/45.6x CY25E/CY26E/CY27E earnings

ABB may see near-term underperformance due to margin pressure and slow orders from private and government sectors

Expect revenue/EBITDA/PAT CAR of 14%/19%/18% over CY25-27

In the long run, expect ABB to improve margins once QCO implementation stabilizes

Re-rating to higher multiples depends on a clear uptrend in inflows and margins

Jefferies on Shree Cement

Maintain Buy; Hike TP to Rs 35150 from Rs 34000

Slight miss on Q1 EBITDA on weaker volumes

Unit EBITDA came in ahead on stronger reaslisations

Continues to focus on profitability over pushing volumes

Macquarie on AB Capital

Maintain Outperform with TP of Rs 335

On a strong footing

NBFC: PAT in line; ABHFL: Operating leverage drove ROA expansion

Credit costs stable. Stress increases in unsecured SME space

ABSLI: positive surprise on margins

UBS on MCX

Buy, TP Rs 10,000

Con Call 3 key points

focus on launching new products, including cash-settled index options increase in retail participation, particularly in bullion efforts to enhance liquidity in electricity derivatives Board approved stock split of 1:5

Macquarie on Escorts Kubota

Maintain Outperform with TP of Rs 3634

Modest EBITDA beat

New product launch to aid market share gains

Export momentum remains strong, led by supplies to its parent

Believe Escorts will gain market share in H2 led by new model launch and a favourable base

Medium term, export growth bodes well for earnings

GS on Marico

Maintain Buy; Hike TP to Rs 800 from Rs 780

Strong broad based volume growth acceleration to 9%, highest among FMCG peers

VAHO turnaround a key positive

New businesses surpassed rpassed growth metric expectations, company set aggressive targets for FY28 growth and profitability

Unprecedented inflation in copra pushes out margin recovery to FY27

Jefferies on LIC Housing

Maintain Hold; Cut TP to Rs 635 from Rs 650

Q1 Results Miss

See NIM Pressure Ahead, But Valuations Offer Support

See muted EPS CAGR and 12-13% ROE over FY25-28

Avendus on LIC Housing

Target price Rs606 vs Rs584 (maintain Reduce)

Expect FY26 loan growth at modest 7% led by lower disbursement momentum

Expect margins to decline to 2.6% with policy rate cuts

No near-term operating leverage; opex to assets to remain largely flat at ~50bps

With better recoveries, expect FY26 Gross Stage-3 to decline to 2.2% from 2.5% in FY25

Expect FY26 RoA & RoE at 1.7% and 14.2% respectively

With modest growth and margin pressure, value at 0.7x Jun-27E

Factoring largely flat earnings CAR and 13% BV CAGR over FY25-27E

GS on PNB Housing

Buy, TP Rs 1386

View recent de-rating as overdone & presents an attractive entry point given

1) Stable asset quality

2) Expansion in lending spreads despite intensifying competition

3) Disbursement growth in affordable/emerging markets biz (+30% / +32% YoY in 1Q

Macquarie on Aurobindo Pharma

Maintain Underperform with TP of Rs 1010

Q1FY26 all-round miss

Revenue miss driven by lower-than-expected revenue for the US and API businesses

EBITDA miss driven by the revenue miss and lower-than-expected gross margin

PAT miss was driven by the EBITDA miss and higher-than-expected tax expense

Macquarie on USL

U-P, TP Rs 1250

Pre-1Q largely inline; prestige performance encouraging

Expect 2% Ebitda decline in 1QFY26E

Like healthy growth in prestige segment but remain concerned about impact from sharp tax hike in Maharashtra

Jefferies on TBO Tek

Maintain Buy; Hike TP to Rs 1625 from Rs 1400

Turbulent Q1; better times ahead

Quarter was impacted by a number of geopoltical events impacting the regional travel demand

Margins were impacted by neg operating leverage & front loading of costs related to mkt expansion

MS on Bajaj Finance

Maintain Overweight with TP of Rs 1050

Takeaways from Non-Deal Roadshow

Reiterated growth corridor of 24-25% and cited that it would provide a further update following Q2 results

See idiosyncratic growth drivers like gold loans, consumer B2B and unsecured B2C

Macquarie on Kansai Nerolac

Maintain Neutral with TP of Rs 255

Q1 miss on weaker decorative performance

Like continued industry-leading performance in automotive coatings and strong growth in performance coatings

Margin weakness in Q1 makes us concerned about EBITDA margin target for FY26

CLSA on Sona BLW

Maintain Outperform; Cut TP to Rs 566 from Rs 582

Tough quarter as expected

Much of the headwinds were concentrated this quarter

Most of the headwinds would be limited to this quarter and improve gradually in coming quarters