CLSA on NTPC

O-P, TP Rs 459

FY26 rec. PAT (consolidated) grew 18% despite a decline in its generation while its peer JSW was in losses and Adani Power’s recurring PBT was down 4%

FY26 Consolidated PAT was up 18% YoY driven by regulated equity (RegEq) growth of 11% YoY (parent: up 4% YoY), operational efficiency with a 17bp YoY rise in coal PAF and a supportive FY25-29 regulatory regime for energy security

Key was its US$31bn Capex plan over FY27-29 (c.2x) led by under construction of 19GW in regulated and 15GW of non-fossil (NFE) projects for an installed 89GW, plus its entry into BESS.

It now has 59% of its 60GW NFE vision operating or under construction, solidifying its transition path

Expect PAT growth to drive up its ROE 130bps over FY26-29CL.

Jefferies on NTPC

Buy TP Rs 470

NTPC did a one-time remeasurement of deferred taxes in March Qtr, hence YoY numbers are not comparable.

FY26 PAT was 14% above estimates led by 8.1 GW capacity addition vs 7.1 GW estimate

Raise FY27E-28E EPS by 6-8% to factor the beat.

Management retained 9.6 GW FY27E addition guidance but lowered FY28E from 10.6 GW to 10 GW

Lower FY27E-28E addition to 8.1-10.2 GW from 9.1-12.1 GW.

Capacity ramp-up is a key re-rating driver ahead.

Bernstein On NTPC

Recommendation Outperform; Target ₹430

Execution in line with our expectation

One of the few reasonably valued utilities left

Renewables – Big target for FY27 but grid could be a limitation

Concerns is that NTPC might be ceding ground to private players and is going slow on new thermal award

JPM on LTM

Downgrade to N, TP cut to Rs 4500 from Rs 5100

LTM announced that it has issued an offer to acquire Randstad’s technology and consulting services business in Europe and Australia.

Revenues of these entities (€469m) have declined sharply in the past two years while estimate business operates at much lower 4-5% Ebitda margins, given its onshore-heavy nature, which should be materially margin-dilutive.

LTM has also announced concomitant contracts to take over and build a GCC for Randstad in India and a reverse contract to Randstad to support LTM’s subcon needs

While, across three contracts, management doesn’t see any EPS dilution, estimate acquisition alone could drive 2% EPS dilution due to amortization costs and lower interest income.

Moreover, don’t see obvious horizontal service line or vertical synergies, given its focus on digital engineering and cybersecurity rather than core IT Services, which LTM focuses on.

Cross-sell opportunities as they exist should be limited by different buying centers for engineering and IT services

Acquisition price appears to be modest at €160m on a EV/Sales basis (0.34x), but not on implied profit multiples (8x EBITDA, 13-15x EBIT), given global/EU peer multiples.

More than price paid, see this acquisition as a sign that organic growth opportunities are drying up and management is being forced to evaluate unusual acquisitions to bulk up rather than thoughtfully add capabilities. Fear management distraction, due to closure of the acquisition by 3Q27 and ekeing out of synergies after that, could weigh on execution.

Moderate organic revenues/EPS by 1-2%, cut target PE multiple from 21x to 19x

HSBC On LTIMindtree

Recommendation Buy; Target ₹5250

Management expects limited margin impact

Europe business scale-up and stronger presence in Australia banking aiding medium-term growth

Acquisition aligned with LTIM’s five-year strategy

CLSA On Sterlite Tech

Recommendation Outperform; Target ₹655, Earlier Target ₹405

$1 billion order from US hyperscaler

Win for STL’s AI DC optical products; offers 49% EBITDA CAGR

Multi-year datacentre boom in North America and India

Significant increases to forecast growth