Saksoft Ltd: Temporary headwinds, normalization in sight - Company Update
04 Feb 2026
Blog
We maintain our "BUY" rating with a revised target price of Rs 285 (vs 325). Saksoft delivered weak results –
a) topline growth saw a de-growth of 3% despite the favourable currency mix,
b) Top 2 clients have cut spends in Q3, the pain could be seen in Q4 as well, and
c) EBITDA margins declined QoQ on higher employee costs.
Emerging vertical (Hi-tech) and retail saw de-growth in Q3, while BFS was stable. We have cut our estimates over FY27E–FY28E and now expect the company to grow in mid-teens over vs its decadal average of 20%+.
Revenue declines QoQ despite currency tailwinds:
The company posted a 3% QoQ de-growth, 10.6% YoY growth led slowdown in spending by top 2 clients. Slower spends along with lack of new deal wins (1 mn$+) has led to sluggish growth in Q3. The company has won couple of new deals, but deal size is lower at <0.5 mn$. Revenue from top 5 clients increased to 42% in 9MFY26 vs. 40% in FY25, contribution from top 10 clients increased to 58% vs. 55% in FY25 and contribution from top 20 clients increased to 70% vs. 69% in FY25.
EBITDA margins to remain at the lower end of 18-19%
Margins declined by 140 bps QoQ on the back of higher employee expenses. Lower other expenses aided margins in Q3. We expect margins to normalize in the lower end 18-19% over the next few quarters. Utilization came in at 83% due to loss of revenue, we expect it return to 85% levels over the next few quarters.
Outlook
Saksoft’s lower dependence on discretionary spends has enabled them to sustain double-digit growth despite a sluggish global demand environment. Since Saksoft’s dependence on top 20 clients is close to 70%, any decline in spends will have larger impact on its growth trajectory going forward. We expect things to normalize by Q1FY27, but it might take longer to return to 20%+ growth trajectory.
Valuation
We expect 11.9%/15.3%/16.2%Revenue/EBITDA/PAT CAGR between FY25-28E. We have retained our target multiple of 20x and expect the company to return to normal growth trajectory from Q1FY27. We have cut our earnings by 13.3% CAGR FY26-28e. We value the company at 20x Dec28 PE, resulting in a TP of Rs 285. We do not factor in any acquisitions in our base case.
Key risks:
- Slowdown in any of the 4 key segments for the company
- Lower spends by SMBs in US & Europe.
- Continued spending decline across top clients and inability to win new deals.
Company website: https://www.saksoft.com/
| Rating | BUY |
|---|---|
| CMP* | INR 172 |
| Target Price | INR 285 |
| Upside | 66% |
*CMP is as per report published date
Click to download the full Saksoft Ltd Q3FY26 Company Update
Analyst:
- Vinay Menon - Senior Research Analyst, Institutional Equities (NISM-201600112117)
- Miloni Mehta - Research Associate, Institutional Equities (NISM-201800127664)
FAQs on Saksoft Ltd Q3FY26 Company Update
Here are key investor questions addressing near-term challenges, growth outlook and valuation based on our institutional equity research perspective.
1. What is the current investment view on Saksoft?
The stock is rated BUY with a target price of ₹285, implying ~66% upside from current levels.
2. Why did the company report weak recent performance?
Growth was impacted by reduced spending from the top two clients, slower deal wins and higher employee costs, which also affected margins.
3. When is performance expected to improve?
Spending is expected to stabilize and growth normalize by Q1FY27, supported by utilization recovery and steady demand in core verticals like BFSI.
4. What is the medium-term growth outlook?
The company is expected to deliver mid-teen revenue growth over FY25–28E with EBITDA margins stabilizing in the 18–19% range.
5. What are the key risks to the investment case?
Risks include further spending cuts by large clients, slowdown in key verticals, weaker SMB technology budgets in the US/Europe and delays in large deal wins.
Before You Trade, Strengthen Your Foundations with These Guides
- For a stronger understanding of indicators such as RSI, VWAP, and trendlines, check our 👉 Technical Analysis Fundamentals section.
- Want to refine your risk-reward planning? Explore our insights on 👉 Position Sizing & Risk Management Strategies.
Disclaimer: - Investments in securities market are subject to market risk, read all the related document carefully before investing. https://www.mnclgroup.com/research-disclaimer
Related Blog
FIEM Industries - Riding the tailwinds of 2W boom | Q1FY27 Company Update
FIEM’s 1QFY27 performance was largely in line with our estimates, driven by strong demand for 2W including EV, continued shift towards premiumization (Led replacing halogen) and addition of new models. However, the margins were under pressure due t...
Jubilant Agri & Consumer Products Ltd. - Strong Quarter; Sticking to Continued Growth Trajectory | Q1FY27 Company Update
Jubilant Agri & Consumer Products (JACPL) reported a strong Q1FY27 performance, ahead of our estimates, driven by healthy traction across both the adhesive and industrial polymer businesses. Margins were better than our expectations, supported by...
Landmark Cars - Growth intact; After-sales ramp-up to drive the next leg | Q1FY27 Company Update
Landmark Cars delivered a strong Q1FY27 performance, with revenue ahead of our estimates. Though gross margins contracted to an all-time low, the company continued to demonstrate strong operating discipline, with lower employee and other expenses abs...
TD Power Systems Ltd - Powering ahead on AI and export momentum | Q1FY27 Company update
TD Power delivered a strong Q1FY27 performance, reinforcing our constructive view on the company’s structural growth opportunity and strengthening confidence in its medium-term earnings trajectory. Robust execution, healthy export-led order momentu...
Ecos Mobility Ltd - Strong business growth; but margin pressure persists | Q1FY27 Company Update
ECOS Mobility reported revenue growth ahead of our estimates in Q1FY27, supported by healthy volume growth, continued client additions and steady traction across both ETS and CCR businesses. However, profitability remained under pressure, with sustai...
ESAB India Ltd - Healthy growth, sharper margins | Q1FY27 Company Update
ESAB India delivered a strong Q1FY27, with healthy revenue growth and robust operating leverage driving sharp improvement in margins and profitability. We remain constructive on its medium-term outlook, supported by its premium portfolio and structur...
IFGL Refractories - Domestic muted; overseas subsidiaries shine | Q1FY27 Company Upda
IFGL’s 1QFY27 revenue was a beat to our estimates due to better than expected turnaround at subsidiaries, especially the US subsidiary EI ceramics. Margins were a miss to our estimate due to RM and gas cost pressure along with the Middle East war d...
Triveni Turbine Ltd - Margins stumble; exports accelerate; H2 recovery remains | Q1FY27 Company update
Triveni Turbine delivered a resilient Q1FY27 performance, with topline growth comfortably ahead of estimates despite near-term margin dislocation from adverse order mix, strategic low-margin execution and deferred export dispatches amid elevated frei...
Carysil Ltd - Scaling up growth; Earnings outlook strengthens | Q1FY27 Company Update
Carysil delivered a strong Q1FY27 performance, with revenue coming in ahead of our estimates, supported by robust domestic growth, healthy export demand and improving contribution from stainless steel sinks, faucets and appliances. More importantly, ...
Venus Pipes & Tubes - In-line performance | Q1FY27 Company Update
Venus’ 1QFY27 was largely in line with our estimates. Revenue was strong, supported by a sharp rebound in domestic demand and high traction in welded pipes, while margins were stable on favourable product mix. Venus has a well-diversified robust or...
Godawari Power & Ispat - Project Delays | Q1FY27 Company Update
1QFY27 performance with a beat due to better than expected pellet offtake and realization. However, margins were lower than expected due to high dependence on external sourcing of iron ore and high gas cost. We continue to remain positive on GPIL’s...
Goldiam International Ltd - Strong B2B Execution; ORIGEM expansion turns calibrated | Q1FY27 Company Update
Goldiam International delivered a stellar Q1FY27 performance, with revenue materially ahead of our estimates, reinforcing the strength of its core B2BC export franchise and the structural opportunity in lab-grown diamond jewellery. B2BC momentum rema...
Entero Healthcare Ltd - Organic growth takes centre stage; margin expansion accelerates | Q1FY27 Company Update
Entero Healthcare Solutions delivered a strong Q1FY27 performance, with revenue coming in ahead of our estimates, supported by robust organic growth and continued scale-up of the existing distribution platform. More importantly, profitability remaine...
Cello World - Steel & Glassware ramp-up key to revival | Q1FY27 Company Update
Cello World’s Q1FY27 revenue came below our estimates impacted by weakness in consumerware and moulded furniture, while strong growth in writing instruments following the CELLO PENS acquisition provided partial support. Consumerware continued to fa...
JNK India Ltd - Diversification provides improved growth visibility | Q1FY27 Company Update
JNK’s 1QFY27 performance was a miss to our revenue estimates, due to a seasonally slow start to the year. Margins were strong for the heating equipment business, although it was dragged down by an operating loss at the Chemdist JV. We expect order ...
Saksoft Ltd - Broadly in-line; maintain buy | Q1FY27 Company Update
Saksoft’s Q1FY27 performance was broadly in line with our expectations. Revenue stood at Rs 2.5bn, down 0.2% YoY , due to continued demand softness and cautious client decision-making while EBITDA margin remained resilient at 18.3% despite muted gr...
SJS Enterprises Ltd - In-line Performance | Q1FY27 Company Update
SJS’ 1QFY27 performance was in line with our estimates, maintaining its legacy of outperformance to the underlying auto industry growth. SJS maintained its leading profitability with margins > 28% due to ramp up in exports, premiumization and op...
RHI Magnesita India - Excellent Performance | Q1FY27 Company Update
RHIM’s 1QFY27 performance was beat to our estimates due to better than expected price surcharge and operating efficiencies, leading to robust margins, despite ongoing input cost inflation. RHIM has also gained market share at steel plants and added...
Viyash Scientific Ltd - Formulations drive robust growth | Q1FY27 Company Update
Viyash’s Q1FY27 was a beat to our estimates, driven by surge in formulation business, especially in Europe, India and Emerging markets. API witnessed a slowdown in growth to 3% yoy. However, the Q1FY27 results proved the sustenance of high margins ...
La Opala RG - Cautiously optimistic | Q1FY27 Company Update
La Opala RG reported a better-than-anticipated Q1FY27 performance, with revenue growth returning to high single digits after an extended period of subdued demand, albeit aided by a favourable base. The recovery was largely driven by the domestic b...
Ratnamani Metals & Tubes Ltd - Weak Quarter | Q1FY27 Company Update
Ratnamani Metals & Tubes’ (RMT) 1QFY27 results missed our estimates, due to poor performance at the pipes & tubes business. Slowdown in new project spending in domestic markets and disruption in Middle East were the main reasons for degrowt...
Mrs Bectors Food - Strong quarter; Baking Multi-Year Growth | Q1FY26 Company Update
Mrs Bectors reported a better-than-expected Q1FY27 performance, with healthy growth across both biscuits and bakery. The biscuit business delivered strong growth, supported by a recovery in exports, while the bakery business continued to benefit from...
Kirloskar Ferrous Industries Ltd. - Navigating challenging times | Q1FY27 Company Update
Q1FY27 was a miss to our revenue estimates, due to lower than expected sales volumes and pricing across pig iron, tubes and alloy steel. This along with high operating expenses has led to contraction in EBITDA estimates. We expect some more price hik...
The Anup Engineering Ltd. - Not Out of the Woods Yet | Q1FY27 Company Update
The Anup Engineering reported a weak Q1FY27, with revenue/EBITDA/PAT missing our estimates by 35.0%/73.5%/97.7%, respectively. The ongoing war in the Middle East has led to supply-chain disruptions, slower executions, and elevated costs. The steep dr...
Mayur Uniquoters - Export Momentum Accelerates | Q1FY27 Company Update
Mayur Uniquoters reported a strong Q1FY27 performance, with revenue and earnings came ahead of our estimates. Growth was led by a sharp scale-up in the export OEM business and a richer value-added product mix, while gross-margin expansion and operati...
Sundram Fasteners Ltd - Export recovery surprises positively | Q1FY27 Company Update
Sundram Fasteners’ (SFL) 1QFY27 performance was stronger than expected, led by recovery in exports while domestic performance remained in-line with the underlying industry. 1QFY27 margins were under pressure due to high RM and indirect cost. SFL ha...
R Systems - Stable Quarter | Q2CY26 Company Update
R Systems’ Q2CY26 results were broadly in line with expectations, with revenue growing 1.2% QoQ in USD (4.7% QoQ in INR), supported by improving execution and AI-led deal conversions. EBITDA margin expanded to 18.4%, aided by operating leverage and...
Rashi Peripherals - Another record quarter | Q1FY27 Company Update
Rashi’s Q1FY27 earnings were ahead of our estimates, driven by strong ASP growth in PCs along with continued traction in Peripherals. PES (66% of revenue) benefited from price hikes taken by brands in Q4. PC prices are up 20-50% across segmen...
ASK Automotive Ltd. - New business addition drives re-rating | Q1FY26 Company Update
ASK’s performance in 1QFY27 was beat to our expectations primarily due to pass on of alloy steel inflation, while the growth was broad-based with industry outperformance across ALPS, Advanced Braking Systems and Safety Controls. Margin were compres...
Wonderla Holidays - Chennai Strengthens Medium-Term Visibility | Q1FY27 Company Update
Wonderla Holidays Ltd. reported a better-than-expected Q1FY27 performance, led by a strong scale-up at the newly commissioned Chennai park and healthy traction across mature parks, though growth at the mature parks was partly aided by a favorable bas...
Happy Forgings Ltd - On a high growth trajectory; fairly priced | Q1FY27 Company Update
1QFY27 was another strong quarter with robust revenue growth and margin expansion led by favorable product mix, operating leverage and strong domestic demand. Domestic CV, tractor, PV and industrial segments continued to witness healthy momentum, whi...
Inox India Ltd - Looking beyond a soft quarter; growth acceleration ahead | Q1FY27 Company update
INOX India delivered a mixed Q1FY27 performance, with revenue impacted by temporary logistics disruptions, while management reiterated FY27 revenue growth and margin guidance, indicating intact demand. The company reported record quarterly order infl...
Ethos Ltd. - Expanding reach, elevating the mix | Q1FY27 Company Update
Ethos reported a robust Q1FY27 performance, with revenue growth exceeding our estimates, supported by healthy store expansion and strong SSSG of 13%. Gross margins also recovered meaningfully, aided by currency stabilization and selective price hikes...
Sri Lotus Developers and Realty - Robust Presales; Luxury redevelopment Momentum Gathers Pace | Q1FY27 Company Update
Sri Lotus delivered an impressive start to FY27E with robust operational execution, exceptional presales momentum and healthy profitability, while reiterating its ambitious FY27E guidance. Strong traction across recently launched projects, an expandi...
Pricol Ltd - Large business additions drive re-rating | Q1FY27 Company update
Pricol delivered a beat to MNCL estimates in 1QFY27, led by new launches (Tata Motors PV, Hero and Force Motors). Margins surprised positively as the RM cost pressure was more than offset by operational efficiencies in the subsidiary business. Pricol...
Aditya Vision Ltd - Scaling beyond core markets | Q1FY27 Company Update
Aditya Vision Ltd reported a strong Q1FY27 performance, with revenue growth ahead of our estimates, led by robust AC sales, an 18% SSSG and continued market-share gains across its operating geographies. Profitability also improved meaningfully, suppo...
Indegene Ltd - Broadly in-line; maintain buy | Q1FY27 Company Update
Indegene’s Q1FY27 earnings were in-line with our estimates, driven by broad based revenue growth across EMS and ECM segments. Total clients crossed the 100 mark, while the number of USD 10mn+ clients increased to 12 from 10 sequentially.EBITDA marg...
Redington Ltd - All-round beat | Q1FY27 Company update
Redington’s Q1FY27 results were ahead of our estimates across all parameters. The company delivered another strong quarter, driven by broad-based growth across India (63% YoY), robust execution in large enterprise and data center projects (Rs 10bn)...
Netweb Technologies India Ltd - AI systems drive growth; margins beat estimate | Q1FY27 Company update
Netweb delivered a strong Q1FY27, beating our estimates on the back of better-than-expected execution of IndiaAI Mission orders. Revenue stood at Rs 8.1bn, with the base business growing 28.3% YoY and IndiaAI Mission contributing Rs 4.3bn during the ...
Ivalue Infosolutions - Stable set in a seasonally weak quarter | Q1FY27 Company Update
Ivalue Infosolutions’ Q1FY27 earnings were ahead of our estimates, driven by strong execution in the Data Center segment and an improvement in gross margins. Revenue was below our estimates as a few deals spilled over into Q2, while the quarter lac...
Aurionpro solutions Ltd - Another subdued quarter | Q1FY27 Company Update
Aurionpro Solutions’ Q1FY27 earnings were below our expectations due to delayed deal closures in its ME banking business and a slower new deal pipeline across India and APAC. The TIG segment continued its strong growth trajectory led by robust exec...
INOX India Ltd - FY26 Annual Report Analysis - Record FY26, Acceleration Ahead
INOX India's FY26 annual report analysis reassures the company’s strong positioning at the intersection of several structural, policy-backed global themes (LNG, hydrogen, semiconductors, space/deep-science) with a fortress balance sheet to fund gro...
Kirloskar Pneumatic - Slow start to the new fiscal | Company Update
Kirloskar Pneumatic’s (KPCL) Q1FY27 missed our estimates due to slower than expected execution of orders, driven by delay in order finalization and Middle East crisis. These projects are expected to be completed in 2QFY27E, which along with a healt...
TD Power Systems Ltd - FY26 Annual Report Analysis - Positive Readthrough | Company Update
TD Power Systems Ltd (TDPS)'s FY26 Annual Report presents the company as an operationally strong, conservatively financed engineering exporter riding a genuine structural demand tailwind (AI/data-center power generation) with credible near-term visib...
Jubilant Agri & Consumer Products ltd. -Scaling Up for the Next Growth Cycle - Company Update
Jubilant Agri & Consumer products (JACPL) reported a strong Q4FY26 revenue performance, ahead of our estimates, driven by healthy traction across both performance polymers/chemicals and agri divisions. However, profitability remained below our es...
The Anup Engineering - Middle East Crisis Clouds Near-Term Outlook - Company Update
The Anup Engineering reported a weak Q4FY26 with revenue/EBITDA/PAT sharply missing our estimates by 15.7%/30.7%/20.5%, respectively, impacted by adverse project mix, raw material inflation, and execution challenges. EBITDA margin declined 398bps YoY...
IFGL Refractories Ltd. - Domestic muted; overseas subsidiaries shine - Company Update
IFGL’s 4QFY26 consol. revenue was below our estimates due to lower than expected growth in the standalone business, impacted by fierce competition and overcapacity in domestic markets. However, turnaround in the overseas subsidiaries led to a beat ...
FIEM Industries Ltd. - Strong Execution and Margin Resilience - Company Update
FIEM’s 4QFY26 performance was largely in line with our estimates and outperformed its customer weighted average production growth (driven by high proportion of LED lighting and new model launches). Further, they reported robust margins at 14.6% due...
La Opala RG - Near term pain, recovery building - Company Update
La Opala reported a weak Q4FY26 performance, with revenue and earnings below our estimates, impacted by subdued consumer sentiment, sharp export disruption and rising competitive intensity in the domestic opalware market. Export performance was mater...
RHI Magnesita India Ltd. - Tough quarter; Price hikes to the rescue - Company Update
RHIM’s 4QFY26 performance was below our estimates due to weaker than expected offtake and higher than expected operating expenses, driven by elevated RM (Magnesia), high freight cost and INR depreciation. The market share gains in steel & iron ...
Ecos Mobility Ltd - Well-positioned to drive India's corporate mobility growth - Company Update
ECOS Mobility reported a steady Q4FY26 performance, with healthy revenue growth across ETS (Employee Transportation Services) and CCR (Chauffeured Car Rental) divisions, though profitability remained below our estimates. The company continues to bene...
Mrs Bectors Food - Short-term headwinds; long term growth intact- Company Update
Mrs. Bectors reported a largely in-line Q4FY26 performance. The quarter was impacted by near-term weakness in the biscuits segment, led by GST 2.0-related pricing reset, delayed industry transition and elevated competitive intensity. Bakery also witn...
Cello World - Capacity ramp-up key to recovery - Company Update
Cello World reported a largely in-line Q4FY26 revenue performance; however, profitability remained below our estimates. The company continues to navigate a challenging operating environment, marked by subdued consumer demand, elevated raw material pr...
Goldiam International - B2B Cash cow, ORIGEM the next growth engine - Company Update
Goldiam International reported a strong Q4FY26 performance, with revenue and earnings ahead of our estimates, driven by healthy traction in its core B2B export business and continued scale-up in lab-grown diamond jewellery. The company continues to s...
Landmark Cars - Consolidation to drive profitable growth - Company Update
Landmark Cars reported a strong Q4FY26 performance, with revenue and earnings beat our estimates. The company delivered its best-ever EBITDA and after-sales service margins, driven by improved utilisation of recently opened workshops, better asset sw...
Saksoft Ltd - Weakness across top clients drags earnings - Company Update
Saksoft’s Q4FY26 numbers were below our estimates on account of continued stress seen among top 2 clients. Though the company added a client in the ‘USD 0.5mn’ category, overall spends continue to remain under pressure. We expect recovery from ...
Entero Healthcare Ltd - Consolidation Engine Gains Momentum - Company Update
Entero Healthcare reported a strong Q4FY26, with revenue and earnings ahead of our estimates, driven by healthy organic growth and acquisition-led scale-up. The co. continued to outperform IPM at 1.4x, supported by its pan-India distribution platform...
Viyash Scientific Ltd. - Sustains high margins, focus on new growth avenues - Company Update
Viyash’s Q4FY26 was a beat to our estimates, driven by surge in formulation business, especially in Europe, India and USA. API witnessed a slowdown in growth to 5% yoy. However, the Q4FY26 results proved the sustenance of high margins for the merge...
JNK India Ltd. - Growth visibility strengthens - Company Update
JNK’s 4QFY26 performance was a beat to our estimates driven by better execution of Reliance & HPCL orders and incremental contribution from Chemdist JV. Margins improved due to ramp-up of high-margin orders (Reliance, HPCL) and diminishing lega...
Godawari Power & Ispat Ltd. - Excellent performance - Company Update
4QFY26 performance with a miss on revenue but strong beat on margins due to higher pellet contribution, price hikes across all products and increased captive iron ore usage. The long-awaited pellet story has now started reflecting in the financials a...
Carysil Ltd - Expanding capacity, deepening global partnerships - Company Update
Carysil Ltd reported a strong Q4FY26 performance, with revenue and earnings ahead of our estimates, largely driven by better realizations across key verticals. Margins too witnessed healthy expansion, supported by improved product mix and operating e...
Ratnamani Metals and Tubes Ltd. - Recovery in sight - Company Update
Ratnamani Metals & Tubes’ (RMT) Q4FY26 results missed our estimates, due to higher than expected operating expenses and lack of operational efficiencies. The pipes & tubes business reported weak results due to weak order book, disruption in...
Triveni Turbine Ltd. - Growth in Exports and Aftermarket keeps Outlook Healthy - Company update
Triveni Turbine reported a healthy Q4FY26 with revenue materially ahead of estimates driven by strong export-led execution, though margins were impacted by adverse mix, strategic low-margin project execution and forex MTM losses. Demand visibility re...
TD Power Systems - Robust quarter; Large Generator Bet Strengthens Outlook | Company update
TD Power reported a strong Q4FY26 with revenue and EBITDA beating our estimates by 12.1% and 1.8%, respectively, driven by healthy execution and exports. Margins were impacted by a one-off penalty on delayed Turkey shipments; however, business moment...
Rashi Peripherals Ltd - Stellar all-round performance | Company Update
Rashi’s Q4FY26 earnings were ahead of our estimates, driven by strong ASP growth in peripherals along with improving traction for AI PCs. PES (58% of revenue) benefited from multiple tailwinds, including Windows 10 expiry-led replacement dema...
Sri Lotus Developers and Realty Ltd - Robust presales; luxury demand driving outperformance - Company update
Sri Lotus’s presales for FY26 were in-line with our estimates. Q4FY26 reinforced the company’s ability to deliver robust presales growth despite broader sector moderation, aided by healthy traction across newly launched luxury projects. The ma...
Kirloskar Ferrous Industries - Pricing power yet to fully reflect in spreads | Company Update
Q4FY26 was a miss to our revenue & EBITDA estimates, due to lower than expected sales volumes and pricing across several products. This along with high operating expenses has led to miss on EBITDA estimates. We expect substantial part of price hi...
R Systems International Ltd - Margins shine; growth to rebound - Company update
R Systems' Q1CY26 results were in line with our estimates. CC revenue growth was muted at 0.5% QoQ, weighed down by ME exposure (Novigo: ~50%), post-acquisition accounting adjustments, and slower deal wins. EBITDA margins came in slightly ahead our e...
SJS Enterprises Ltd - Premiumisation and Export-led Outperformance - Company Update
SJS’ 4QFY26 performance was beat to our estimates due to better than expected growth in 2W revenues. SJS maintained its leading profitability with margins > 28% due to ramp up in exports, premiumization and operating leverage. The only laggard w...
Sri Lotus Developers and Realty Ltd. ─ Strong Outlook, Relentless Focus on Growth | Q4FY26 Company Update
We remain bullish on Sri Lotus Developers, supported by its asset-light redevelopment model, strong execution track record, and increasing presence in high margin coastal luxury markets. Q4 is expected to be a standout, driven by robust execution, st...
Kirloskar Ferrous Industries - Shutdown and pricing weakness spoil the show | Company Update
We lower our TP to Rs570 (previously Rs620) and retain BUY rating for Kirloskar Ferrous Industries Ltd. (KFIL). The decrease in TP is mainly to account for change in earnings and a cut in valuation multiple (weak commodity spreads) . KFIL’s 3QFY26 ...
Goldiam International - From export strength to domestic scale - Company Update
We reiterate BUY on Goldiam International / revise target price to Rs. 515 (vs. Rs. 470 earlier) as we roll forward our valuation to Q3FY28E and upgrade estimates by ~5%, driven by stronger-than-expected execution. The company delivered its best-ever...
Ratnamani Metals and Tubes Ltd.: Core pipes weak; subsidiaries anchor margins - Company Update
We upgrade Ratnamani Metals to BUY (from Accumulate earlier); though revise our target price lower to Rs 2,460 given miss to our estimates and consequently the cut in our earnings. Q3FY26 saw core pipes business witness a sharp decline due to delayed...
Carysil Ltd: Crafting the future of modern kitchens - Company Update
We retain our BUY rating on Carysil Ltd with a revised target price of Rs 1,190 (earlier Rs 1,140), factoring in a rollover to Q3FY28E and a ~4% trim to FY27E–FY28E earnings. Strong traction in quartz and stainless-steel sinks, upcoming capacity ex...
Wonderla Holidays: Chennai Takes The Baton As Mature Parks Plateau - Company Update
We upgrade Wonderla Holidays to BUY from HOLD, as we revise earnings estimates upward by ~5% and roll forward our valuation to Q3FY28E. The company continued to deliver ARPU-led growth at mature parks during the quarter, while footfall growth remaine...
Rashi Peripherals Ltd: Stellar quarter - Company Update
We retain "BUY" rating and raise our target price to Rs. 610 (vs Rs 505 earlier). Rashi reported topline growth of 42.6% YoY in a seasonally weak quarter, on the back of strong sales volume & prices across PES segment (56% of revenue) and LIT (44...
Triveni Turbine: Worst likely behind, recovery pending - Company update
We upgrade our rating on Triveni Turbine to BUY, supported by improving execution visibility and a gradual recovery in order inflows. While new applications such as CO₂-based energy storage, MVR, and turbine servicing are likely to be incrementally...
The Anup Engineering: Through the Trough, Recovery in the offing - Company Update
We upgrade our rating on The Anup Engineering to BUY (previously HOLD) and revise our target price to Rs 2,515. The company is not yet out of the woods, with the market awaiting clear signs of a recovery in order inflows. That said, we believe the wo...
Saksoft Ltd: Temporary headwinds, normalization in sight - Company Update
We maintain our "BUY" rating with a revised target price of Rs 285 (vs 325). Saksoft delivered weak results – a) topline growth saw a de-growth of 3% despite the favourable currency mix, b) Top 2 clients have cut spends in Q3, the pain co...
Mayur Uniquoters: Riding export momentum - Company Update
We maintain our BUY rating on Mayur Uniquoters with a revised target price of Rs. 825 (earlier Rs. 770), as we roll forward our valuation to Q3 FY28E and upgrade our FY27E/FY28E earnings estimates by ~4%. The company delivered a robust operating perf...
TD Power Systems: Global demand fuelling growth visibility - Company Update
We upgrade TD Power to BUY / revise our target price upwards to Rs 875 (vs. Rs 840 earlier). Q3-FY26 results were a tad lower than our expectations and reflect timing issues rather than demand or competitive weakness. Going ahead, the Tumkur facility...
SJS Enterprises Ltd - Premiumisation and Export-led Outperformance - Company Update
We revise our target price on SJS Enterprises upwards to Rs2,190 to account for an increase in revenue/ margin estimates, and valuation roll-forward to Dec’27E. SJS delivered another quarter of strong industry outperformance, with record profitabil...
Sundram Fasteners Ltd.: Exports spoil the show - Company Update
We lower target price to Rs 1035 (previously Rs 1085) and maintain Accumulate rating for Sundram Fasteners Ltd. (SFL). We downward revise our multiple to account for extended weakness on exports including delay in EV order to North America, in turn l...
ASK Automotive Ltd. - Firing on all cylinders - Company Update
We upgrade ASK Automotive to BUY rating on attractive valuation and increase our TP to Rs590 (Rs525 previously). The increase in TP is largely driven by valuation rollover. ASK delivered a strong Q3, materially ahead of our expectations, led by broad...
Kirloskar Ferrous Ind. - Casting and tubes outperform, spreads spoil the show | Company Update
We lower our target price to Rs 620 (previously Rs690) and retain BUY rating for Kirloskar Ferrous Industries Ltd. (KFIL). The decrease in TP is mainly to account for weak commodity spreads and realization across end products . KFIL’s 2QFY26 perfor...
IFGL Refractories Ltd. - Domestic focus continues to payoff; overseas improving gradually | Company Update
We decrease target price to Rs 280 (previously Rs 300) but maintain BUY rating. The change in TP is mainly due to cut of earnings estimates. IFGL delivered another quarter of strong standalone growth as its domestic-focused strategy continues to gain...
Venus Pipes & Tubes Ltd. - Export and welded drives confidence | Company Update
We increase Target Price to Rs 2040 (previously Rs1,950) and retain BUY for Venus Pipes & Tubes (VENUS) due to attractive valuations. Increase in TP is primarily due to valuation roll forward. Revenue in 2QFY26 was strong, supported by a sharp re...
ESAB India - Encouraging quarter; growth in focus | Company Update
We retain Buy on ESAB India with TP revised upwards to Rs 6,850 (vs Rs 6,554 earlier) on valuation rollover. The company delivered a strong quarter, with overall growth hinting at signs of recovery supported by margin gains. ESAB continues to o...
The Anup Engineering - All eyes on cash conversion | Company Update
We maintain our HOLD rating on Anup Engineering but increase TP to Rs 2,475 (vs Rs 2,375 earlier) considering steady operational performance and an unchanged growth outlook coupled with valuation rollover. The impact from higher taxes was anticipated...
Rashi Peripherals Ltd – Turns cashflow positive
We retain "BUY" rating with a Target Price of Rs. 505 (vs Rs 525 earlier). Rashi Peripherals ltd reported decent topline growth, on the back of strong sales from the PES segment (PCs, Desktops). Our dealer checks suggest demand is improving for AI-en...
Wonderla Holidays - Chennai on Track; Expansion Visibility Low | MNCL Research Update
We reiterate our HOLD rating on Wonderla Holidays Ltd while revising our target multiple downwards to 18x (from ~20x) and rolling forward our valuation to Q2FY28E. In a seasonally weak quarter, the company delivered a better-than-expected topline, pr...
R Systems International - Strong growth tempered by higher SG&A & RSU costs | MNCL Research Update
We maintain our "BUY" and retain our target price to Rs 620. R Systems delivered higher than expected topline growth (7.9% vs our estimate of 3.5% in INR terms). EBITDA was in line with our estimates / margins dipped 70bps QoQ on the back of higher R...
SJS Enterprises Ltd - Designed to outperform | MNCL Research Update
We revise our target price on SJS Enterprises upwards to Rs1,930 to account for an increase in revenue/ margin estimates, valuation roll-forward to Sept’27E and target multiple expansion. SJS delivered another quarter of strong industry outperforma...
Channel checks - Opalware and Glassware - Borosil Sets the Benchmark in Opalware Retail
We conducted channel checks across key markets in Western and Northern India to gauge demand trends (qualitative aspects) in the Opalware and Glassware categories. We also analysed balance sheet / profitability trends (quantitative parts) across key ...
Goldiam International - LGD Momentum builds; ORIGEM scaling | Company Update
We reiterate our BUY rating on Goldiam International with a target price of Rs. Rs.470. Despite near-term uncertainty around U.S. tariff implications, the company has delivered an exemplary performance driven by robust topline growth and increasing w...
ASK Automotive Ltd – Meets Expectations; ALPS & Aftermarket to Drive Growth | MNCL Research Company Update
We retain ACCUMULATE on ASK Automotive while lowering our target price to Rs 525. The lowering of TP follows downward revision in our revenue and margin estimates, partially offset by valuation rollover. ASK delivered a strong Q2, broadly in line wit...
Sundram Fasteners Ltd. - Steady Domestic Momentum Offsets Export Weakness; upgrade to Accumulate - Company Update
We increase target price to Rs 1085 (previously Rs1030) and upgrade our rating to Accumulate for Sundram Fasteners Ltd. (SFL) due to steep correction in share price. Increase in TP is mainly due to valuation roll forward. SFL’s performance in 2QFY2...
JNK India Ltd – End of Overhang, Execution to Drive Growth | Q2FY26
Our interaction with JNK India led to the following conclusions: JNK India’s legacy low-margin orders (NRL, IOCL) delayed by site and client issues are expected to conclude largely by Q2FY26, with minor spillover into Q3FY26. From Q3FY26, high-marg...
Ratnamani Metals and Tubes Ltd. - Subsidiaries outperform | Company Update
We increase target price to Rs 2710 (previously 2690) and upgrade to Accumulate rating. Increase in target price is due to valuation roll forward. In 2QFY26, the core pipes business saw modest growth as strong offtake was offset by weak realizations....
