..... . VALI disclosures . .....: 28/02/26, The Indian equity markets remained under pressure this week, with the Sensex declining around 2.35% over the past five sessions and the Nifty slipping about 2.26%.

Saturday, February 28, 2026

28/02/26, The Indian equity markets remained under pressure this week, with the Sensex declining around 2.35% over the past five sessions and the Nifty slipping about 2.26%.

This week, leading brokerage firms such as Jefferies, Motilal Oswal, Nuvama Institutional Equities, CLSA and JM Financial released their stock recommendations. Based on their latest reports, we have shortlisted 10 stocks spanning multiple sectors that have attracted 'Buy' calls.

Motilal Oswal on Kaynes Technology

Motilal Oswal has a 'Buy' rating on Kaynes Technology with a target of Rs 8,200, implying over 115% upside. The brokerage believes government approvals for its advanced circuit board plant in Tamil Nadu will strengthen its position in the electronics manufacturing space.

The Rs 3,700 crore project is expected to reduce dependence on imports and improve margins over time, particularly as the company expands in industrial, automotive and smart meter segments. The brokerage sees backward integration and rising domestic manufacturing demand as key long-term drivers.

Motilal Oswal on Dixon Technologies

Motilal Oswal has set a target of Rs 22,500 on Dixon Technologies, suggesting upside of around 113%. The brokerage points to new partnerships in mobile phones and premium lighting, along with plans to manufacture key components such as camera modules and displays in-house.

Jefferies on Eternal

Jefferies has given a 'Buy' rating to Eternal with a target price of Rs 480, indicating 78% upside. The stock has corrected recently, falling nearly 6% intraday and over 10% in the past five sessions, which the brokerage believes offers a better entry point.

The brokerage said, "Food delivery is expected to sustain approx. 20% growth with modest margin expansion." It added that "Food delivery continues to be the cash engine," while long-term margins are guided at 5-6%. Improving operating leverage and disciplined cost control are expected to support profitability.

Motilal Oswal on Cyient DLM

Motilal Oswal has given Cyient DLM a 'Buy' rating with a target price of Rs 550, indicating 68% upside. Though recent revenue moderated due to completion of large orders, the total order book has risen to Rs 2,350 crore, providing revenue visibility.

The brokerage expects improved momentum in the coming quarters, driven by demand in industrial and automotive segments. New global client additions in medical and industrial motors are also expected to support growth.

Nuvama on Waaree Energies

Nuvama has set a target price of Rs 3,867 on Waaree Energies, indicating nearly 43% upside. A key concern was the preliminary 126% US countervailing duty on solar module imports from India.

However, the brokerage highlighted that "The tariff is imposed based on the place of origin of the cell and not the manufacturing location of the module." Since Waaree sources cells from regions facing only 10% tariffs, it does not expect a material impact. The report also said contracts include pass through clauses, reducing risk and protecting margins.

Jefferies on Muthoot Finance

Jefferies has maintained a 'Buy' rating on Muthoot Finance with a target price of Rs 4,750, implying around 35% upside. The brokerage believes the recent correction in the stock has made valuations more attractive.

"Post stock price correction, risk reward seems attractive for Muthoot Finance," the report added. It added, "We continue to see healthy growth with scope for more consensus earnings upgrades at Muthoot Finance." Jefferies notes that valuations at 3.2x FY27e book value and 13x FY27e earnings "seem reasonable," supported by steady gold loan demand.

CLSA on Tata Consultancy Services

CLSA has rated Tata Consultancy Services 'Outperform' with a 12-month target of Rs 3,593, suggesting 33.7% upside. The brokerage's view is supported by steady SaaS implementation demand and strong growth guidance from ServiceNow.

CLSA titled its report Business-as-usual for SIs and said, "Narratives aside, SaaS implementation remains key growth driver." It also noted that ServiceNow grew 20.5% year-on-year in constant currency in FY25 and has guided for 19.5%-20% growth in FY26, which could support system integrators like TCS.

JM Financial on PhysicsWallah

JM Financial has initiated coverage on Physicswallah with a 'Buy' rating and a target price of Rs 110, implying nearly 24% upside from current levels. The brokerage expects the edtech firm to clock a revenue CAGR of 28% between FY25 and FY28, with growth driven by both online (around 30%) and offline (about 27%) segments.

The report said "the digital segment remains the primary workhorse and valuation anchor," noting that nearly 96% of the implied valuation comes from the online business and cash, highlighting the central role of its digital platform in driving future growth.

JM Financial on Infosys

JM Financial has maintained a 'Buy' on Infosys with a 12-month target of Rs 1,660, implying about 19% upside from current levels.

The brokerage said, "AI is structurally expansionary for Infosys," noting that the $300-400 billion AI services opportunity by 2030 could offset deflationary pressures. AI-related revenues currently account for around 5.5% of total revenue and are growing quickly, while large deal wins remain intact.

JM Financial on Urban Company

JM Financial has initiated coverage on Urban Company with a 'Buy' rating and a March 2027 target price of Rs 125, about 16% higher than the current price of Rs 108. The brokerage values the business at around Rs 15,800 crore using a sum-of-the-parts method, assigning different multiples to its India consumer services, Native product line, international operations and InstaHelp segment.

The firm expects revenue to grow at a 31% compounded annual rate between FY25 and FY28. While profitability may take time, JM Financial believes the company is gradually moving in that direction as scale improves, though it cautions that the journey could remain uneven.

Conclusion

The brokerage ratings are based on the earnings visibility of the companies. The management commentary and the outlook for the sectors also support the positive ratings.

Report by Financial Express

Disclaimer: This article provides factual analysis only and is not, and should not be construed as, an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor.

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Trade Cycles

The four important features of Trade Cycle are (i) Recovery, (ii) Boom, (iii) Recession, and (iv) Depression!

The trades cycle or business cycle are cyclical fluctuations of an economy. A full trade cycle has got four phases: (i) Recovery, (ii) Boom, (iii) Recession, and (iv) depression. The upward phase of a trade cycle or prosperity is divided into two stages—recovery and boom, and the downward phase of a trade cycle is also divided into two stages—recession and depression.

Phases of Trade Cycle:

The phases of trade cycle are explained with a diagram:

(1) Recovery:

In the early period of recovery, entrepreneurs increase the level of investment which in turn increases employment and income. Employment increases purchasing power and this leads to an increase in demand for consumer goods.

As a result, demand for goods will press upon their supply and it shall, thereby, lead to a rise in prices. The demand for consumer’s goods shall encourage the demand for producer’s goods.

The rise in prices shall depend upon the gestation period of investment. The longer the period of investment, the higher shall be the price rise. The rise of prices shall bring about a change in the distribution of income. Rent, wages, interest do not rise in the same proportion as prices.

Consequently, the margin of profit improves. The wholesale prices rise more than retail prices. The prices of raw materials rise more than the prices of semi-finished goods and the prices of semi-finished goods use more than the prices of finished goods.

(2) Boom:

The rate of investment increases still further. Owing to the spread of a wave of optimism in business, the level of production increases and the boom gathers momentum. More investment is possible only through credit creation. During a period of boom, the economy surpasses the level of full employment and enters a stage of over full employment.

(3) Recession:

The orders for raw materials are reduced on the onset of a recession. The rate of investment in producers’ goods industries and housing construction declines. Liquidity preference rises in society and owing to a contraction of money supply, the prices falls. A wave of pessimism spreads in business and those markets which were sometime before sellers markets become buyer’s markets now.

(4) Depression:

The main feature of a depression is a general fall in economic activity. Production, employment and income decline. The prices fall and the main factor responsible for it is, a fall in the purchasing power.

The distribution of national income changes. As the costs are rigid in nature, the margin of profit declines. Machines are not used to their full capacity in factories, because effective demand is much less. The prices of finished goods fall less than the prices of raw materials.

✳Reality Tips to Traders

1)Trading in the stock market is a marathon. 2)Protecting your capital is key. (Learn to protect first) 3)Making 0 on the day is better than losing 50k 4)Losses happen; they are part of this business. 5)It’s not you vs. the market. It’s you VS you. 6)You are your biggest enemy; learn to be mentally disciplined. 7)Don’t follow the majority; follow the correct path. 8)Traders without a stop loss end up not being traders for long. 9)There is always another trade. 10)The big money is made waiting for the right set-ups. 11)Waiting for the right trade is the most powerful strategy. 12)It is better to cut a loss than to wait to be proven right. 13)Position sizing can make or break you. 14)Worry about the downside before you even think about the upside. 15)Don’t listen to headlines

..BANKING TERMINOLOGY

There are various types of Banks: PSU Banks, Private Banks, Co-operative/Regional Banks, Small Finance Banks and Foreign Banks. When you deposit money in a bank, let's say the bank gives you an interest rate of 4%. But when the bank lends out this money, they lend it out at say, 12%. The difference of 8% in the above scenario is effectively the profit of the bank! The loans that do not pay interest for 90 days are known as Non-performing Assets. Banks have to provide for such bad loans. Structure of a Bank Asset for a Bank: The asset portion of a bank's capital includes cash, government securities, and interest-earning loans (e.g., mortgages, letters of credit, and inter-bank loans). Liabilities for a Bank: The bank's main liabilities are its capital (including cash reserves and, often, subordinated debt) and deposits. The latter may be from domestic or foreign sources (corporations and firms, private individuals, other banks, and even governments). Banks are required to maintain Liquidity with the Reserve Bank of India: SLR (Statutory Liquidity Ratio): It is the money a bank needs to preserve in the form of cash, gold or government Bonds before providing credit customers. This limitation is added by RBI on banks to make funds available to customers on-demand at your earliest convenience. Banks are required to maintain SLR at 18%. CRR (Cash Reserve Ratio): Banks are required to hold a certain proportion of their deposits in the form of cash. Banks don’t hold these as cash with themselves, but deposit such amounts with RBI / currency chests. CRR rate is at 4.5% currently. Repo Rate: The rate at which the RBI lends short-term money to the banks. The RBI through its Monetary Policy committee changes the repo rate to balance growth and Inflation. Reverse Repo rate: The rate at which banks park their short-term excess liquidity with the RBI. Now let us understand various terminologies for Banks Net Interest Income (NII): This is the spread the bank makes on its lending. It is calculated as Interest Income – Interest Expended Net Interest Margin (NIM): This is the spread the bank makes on its lending. It is the earning which is left after deducting the cost paid to depositors from its yields on Loans. This is denoted in % terms. The formula is Yield on Loans – Cost of funds Capital Adequacy Ratio (CAR): The capital adequacy ratio (CAR) is a measure of a bank's available capital expressed as a percentage of a bank's risk-weighted credit exposures. Essentially, it is the Capital that is available to lend. Tier I Capital – In simple words this capital is freely available with the bank to lend out. Tier II Capital- This is the capital tied up somewhere and is less freely available to lend. In case of an adverse event, the bank can use this capital to lend. Under Basel III norms, a bank’s tier 1+tier 2 capital must be a minimum of 8% of its risk-weighted holdings. The minimum capital adequacy ratio, also including the capital conservation buffer, is 10.5%. Current Account Saving Account (CASA)- There is no interest paid on the Current Account and a small interest rate is paid on a savings account. The combination of both is called CASA which shows the liabilities of the bank on which it pays relatively less interest. Deposits: Bank deposits are a savings product that customers can use to hold an amount of money at a bank for a specified length of time. In return, the financial institution will pay the customer the relevant amount of interest, based on how much they choose to deposit and for how long. Now let us come to NPA. Gross NPA (GNPA): It is the total loans on which no payment has been paid for 90 days or more. GNPA % is usually shown in each Bank’s quarterly results. The percentage is basically the GNPA amount as a % of the total advances. Slippages: Slippages denote the fresh amount of loans that have turned bad in a year. The slippage ratio of a bank is calculated as Fresh accretion of NPAs during the year /Total standard assets at the beginning of the year multiplied by 100. Provisioning Coverage Ratio (PCR): This is the ratio of provisioning to GNPA and indicates the extent of funds a bank has kept aside to cover loan losses. For Instance, a company has GNPAs of Rs 100 and they have set aside 50 Rs, then the PCR is 50%. Net NPA (NNPA): The total figure left after deducting provisions made for bad loans from GNPA. (GNPA – Provisions+upgrades/writeoffs = NNPA) Special Mention Account (SMA) SMA-0 is a category in which stress with respect to the principal and interest has remained overdue for a period of 0 to 30 days. SMA-1 is a category in which stress with respect to the principal and interest has remained overdue for a period of 30-60 days. SMA-2 is a category in which stress with respect to the principal and interest has remained overdue for a period of 60-90 days

..... . VALI disclosures . .....

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Saturday, February 28, 2026

28/02/26, The Indian equity markets remained under pressure this week, with the Sensex declining around 2.35% over the past five sessions and the Nifty slipping about 2.26%.

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03/02/26, why market is closed today

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