Stock Market Highlights 25th Nov 2025:Stock markets slip for third session as profit-taking persists near record highs

Jefferies on LG Electronics

Initiate Buy, TP Rs 1900

View LGEL as a strong play on India discretionary, given its diversified mix.

Strong moats, i.e., market leadership in multiple products, premium brand recall, new launches, entrenched distribution and backward integration result in industry-leading margins and high return ratios.

Notable B/S cash can support future growth.

Despite this, LGEL trades at 43x FY27e, 10-15% below peers HAVL, BLSTR

JPM ON RIL

OW, TP Rs 1,727 from Rs1,695

RIL is up 27% YTD, outperforming the NIFTY 17%.

Yet, retain positive bias into 2026 for three key reasons:

Valuations relative to peers (DMART, BHARTI) are still attractive; Est RIL still trades at a c.15% holding co discount to these;

Earnings drag from weak refining / petchem through FY24/25 is over

Forecast earnings growth should be much better

Current refining strength has potential to drive upgrades;

Catalysts in 2026 (Jio IPO / tariff increase; new energy commissioning; more stable retail growth) can be supportive of stock.

Investec on OMCs

Downgrade to Sell from Hold; prefer to play refining upcycle through RIL

Investor interest in OMCs has surged alongside sharp rise in refining margins – Singapore GRMs have doubled in less than two months to ~USD 13/bbl.

However, this strength reflects only part of the picture.

OMC profitability is far more sensitive to marketing margins, which have weakened materially

Same diesel cracks that are lifting refining margins have pushed diesel marketing margins from about Rs4/L a month ago into negative territory, despite soft crude.

If diesel cracks remain elevated, they could significantly erode earnings

With OMC stocks already up 20–25% since Oct-25, market seems to be overlooking this risk

BPCL – Sell, TP Rs 330

HPCL – sell, TP Rs 425

IOC – Sell, TP Rs 145

CITI on Max Health

Buy, TP Rs 1460

Management meet key takeaways:

1) Mgmt. expects a strong growth trajectory, supported by rising occupancy, improving case mix, and improving profitability at Dwarka and Noida;

2) The insurance cashless issue is fully resolved with forward tariff corrections;

3) The recent CGHS price revision provides a structural uplift to ARPOB and margins with full impact seen in FY27E;

4) Three major brownfield projects are commissioning in Q3 with no EBITDA drag.

Jefferies on Lupin

Buy, TP Rs 2300

NDR takeaways

1) Confident of sustaining US$1bn US revenue and 24-25% Ebitda margin for FY27 despite incremental competition in top products,

2) Biosimilars to be the next big growth engine,

3) Investments in specialty assets to continue,

4) Contribution of complex generics and specialty to increase to 70% of US sales by FY30 (below 25% in FY25)

5) Targeting 200-300bps outperformance vs industry growth in India.

JPM on Pipe Cos

Since 12th November, ASTRA and SI have corrected 9%/11% ([vs NIFTY500 down 1%) following three negative developments around PVC prices

OW view on ASTRA and SI was predicated on

(1) sustained market share gains by ASTRA/SI,

(2) industry demand recovering in 2H, and

(3) some pricing support from ADD on PVC resin.

While market share gains have surprised to upside, industry demand remains muted for now, and uncertainty on PVC prices has increased.

In this context, continue to prefer ASTRA over SI (despite its substantial recent outperformance vs SI), given the margin self-help and renewed volume focus by ASTRA, while SI’s performance improvement requires a broader industry demand recovery and PVC price stability, in our view.

Macquarie on HDFC Bank

Target Price ₹1200; Recommendation: Outperform

Clear messaging from HDFC Bank was that it is seeing good growth traction post GST rate cuts.

Retained guidance for loan growth to be faster than the system in FY27.

Well-placed due to prudent provisioning and contingent buffers; no major impact expected from new ECL norms.

MS on Deepak Nitrite

Maintains Overweight; cuts target price to Rs2,017 (from Rs2,110)

Estimates revised after Q2 FY26 and management commentary

Advanced Intermediates remain weak on soft demand and heavy competition

Phenolics steady; solvent capacity addition delayed to end-Q4 FY26

EBITDA cut by 7% (FY26) and 6% (FY27); EPS lowered 10% (FY26), 9% (FY27), 6% (FY28)

Higher depreciation/interest factored in as new capacities scale up

Bull case TP: 2,350; bear case TP: 21,525 (assumes slow recovery in Advanced Intermediates)

MOSL on Blue Star

Initiates coverage with Neutral; target price Rs1,950

RAC market share rising to ~14%; aiming for ~15% by FY27

Near-term RAC demand soft due to mild summer & GST-led delays

Long-term RAC growth intact with low penetration and strong structural drivers

Strong leadership in commercial refrigeration; robust order book in MEP/CAC supports growth

Margin expansion expected via operating leverage and efficiencies

UCP revenue to dip in FY26 but rebound strongly thereafter

Exports weak near term; scale-up expected post FY27

Valuation seen fair after recent rerating

HSBC on Tata Motors PV

Target Price ₹400 (earlier ₹466); Recommendation: Hold

Downside risks for JLR outweigh upside for India PV.

Challenges include US tariffs, aging portfolio, China luxury tax, cyber-attack impact, and soft EU demand.

Positively, Sierra launch and PLI benefits for EV models expected in Q3–Q4.

CLSA Global Equity Strategy

“India: little carrot, all stick”

2026 thesis developing: India remains a refuge amid global AI rotation.

Market has undergone a 14-month adjustment—lower GDP expectations, EPS reset, weaker rupee, foreign outflows, equity-supply peak.

Valuations now modestly cheaper, enabling potential re-engagement in 2026