Sun Pharma, Eicher Motors, Max Healthcare, Aurobindo Pharma, Info Edge, LTM: Target prices

Sun Pharmaceutical Industries Ltd, Max Healthcare Institute Ltd, Eicher Motors Ltd, Info Edge Ltd and 
LTM (erstwhile LTIMindtree Ltd) are among a handful of coverage stocks where MOFSL came out with individual reports on Monday. The domestic brokerage suggested ‘Buy’ on Sun Pharma, Max Healthcare, Aurobindo Pharma and LTM while suggesting ‘Neutral’ on Eicher Motors and Info Edge.  

Sun Pharma | Buy | Target price: 2,210 | Upside potential: 15%

MOFSL said Sun Pharma delivered an in-line revenue in Q4FY26, whereas Ebitda and PAT came in lower than expectations– a 14-20 per cent miss, dragged down by higher marketing spending and lower milestone income. The brokerage said Sun Pharma remains on track to expand its innovative medicines portfolio through product filing with USFDA, commercial partnerships, and increasing reach. 

“Further, superior execution in branded generics positions Sun Pharma well to outperform the industry. These benefits would be offset to some extent by ongoing price erosion in the US generics segment. Accordingly, we build in 12 per cent earnings CAGR over FY26-28,” MOFSL said.

Eicher Motors | Neutral | Target price: Rs 6,912 | Downside potential: 1%

MOFSL said Eicher Motors’s 4QFY26 consolidated profit was largely in line with its estimates. Royal Enfield and VECV both performed in line with its expectations, and both entities are showcasing Ebitda margin expansion YoY, MOFSL said.

“Given management’s focus on volume growth and the recent upsurge in input costs, we expect margins to remain under pressure. Overall, we expect EIM to post a 14 per cent earnings CAGR. At 31.6 times/27.6 times FY27E/FY28E, the stock appears fairly valued. Reiterate Neutral with a target of Rs 6,912,” it said.

LTM | Buy | Target price: Rs 5,400 | Upside potential: 35%

LTM Ltd, erstwhile LTIMindtree, announced the acquisition of Randstad’s technology services business in Europe and Australia with annual revenue of $500 million, adding 10 per cent to LTM’s revenue base. MOFSL said the acquired business has 2,900 billable employees with a strong onsite/nearshore presence, largely in Europe (78 per cent of revenue) and Australia (22 per cent). 

“Its revenue has declined 12 per cent over the last two years due to the macroeconomic weakness in Europe, some client insourcing via GCCs, and pruning of smaller accounts, though LTM management sees scope to stabilize and grow through cross-sell and offshore mix addition,” MOFSL said. 

The brokerage said the next 12–18 months could see more M&A focused on building such capabilities. 

Max Healthcare | Buy | Target price: Rs 1,200 | Upside potential: 17%

MOFSL said Max Healthcare delivered lower-than-expected revenue in 4QFY26 due to a higher tax rate, even as Ebitda came in line with estimate, implying improved profitability. The stoppage of sale of certain chemotherapy drugs impacted the overall performance of the company in Q4, the second consecutive quarter of subdued YoY revenue growth.

“Compared to robust earnings growth YoY over FY22-24, Max Healthcare reported lower earnings growth YoY in FY25/FY26. Having said this, brownfield bed additions at Max Smart, Nanavati and Mohali would drive up earnings growth in the near term. Its greenfield project in Gurgaon would drive
growth from FY28 onward,” MOFSL said. 

Aurobindo Pharma | Buy | Target price: Rs 1,200 | Upside potential: 17%

MOFSL said Aurobindo Pharma posted largely in-line revenue and Ebitda for the quarter. Adjusted PAT was slightly below expectations because of higher depreciation, interest costs, and lower other income for 4QFY26. That said, Aurobindo Pharma achieved the highest quarterly gross margin over the past 36 quarters. The drug maker delivered the highest YoY growth in revenue from the EU segment.

“We expect a 15 per cent/16 per cent/22 per cent CAGR in revenue/Ebitda/PAT for Aurobindo over FY26-28, led by 1) an enhanced product pipeline in the US, 2) increased penetration and additional offerings in the EU market, 3) the increase in in-house manufacturing/external sales of PEN-g/6-APA, and 4) the addition of the Lannett acquisition,” MOFSL said.

Info Edge | Neutral | Target price: Rs 1,050 | Upside potential: 9% 

Following Info Edge’s Q4 results, MOFSL tweaked its estimates by 3 per cent for FY27/28E. While growth remains steady across recruitment and 99acres, recruitment continues to track at 10 per cent growth, limiting the scope for any sharp acceleration, MOFSL said.

“At the same time, we do not see a meaningful step-up in margins in the near term, given continued investments and only moderate growth. In our opinion, most of the near-term growth is already factored into current valuations, leaving limited room for re-rating,” MOFSL said.