Wipro
With a price target of Rs 180, the brokerage implies a downside potential of 21% from the last close of Rs 202.51 on the BSE. The information technology major is likely to report another year of organic revenue decline in FY26, mainly due to its higher exposure to consulting within the revenue mix and delays in deal ramp ups. Growth is expected to improve slightly as recently won deals begin to ramp up, and the company may benefit from a broader demand recovery. However, its underperformance relative to peers is likely to persist.
Over FY26–28E, Wipro is expected to deliver a revenue CAGR of around 2% in constant currency terms, with organic growth of about 1%, the lowest within the coverage universe. Margins are projected to decline by around 30 basis points to 16.9% in FY27 and remain largely range bound at around 16% through FY28, resulting in a recurring EPS CAGR of roughly 1.5% over FY26–28E.
The FY26 and FY27 EPS estimates are about 3–4% below consensus expectations, and there appears to be limited scope for positive surprises. With modest earnings growth, higher dividend yields of over 5% would be needed to make the stock more attractive. At the current dividend yield of around 4%, the stock may face further derating.
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Hyundai Motor India
The brokerage sees no upside from current levels as its price target of Rs 1,900 is nearly in line with Thursday’s closing price of Rs 1,904. While Jefferies remains positive on passenger vehicle demand, supported by tailwinds such as the recent GST cut, easing liquidity and expected government wage hikes, the competitive landscape in passenger vehicles has changed significantly in recent years.
Improved SUV portfolios from Mahindra & Mahindra and Tata Motors, the entry of Kia, and the growing presence of Toyota have pushed the market shares of the top two OEMs, Maruti Suzuki and Hyundai, to 13 year and 25 year lows respectively in 9MFY26.Hyundai has lost its number two position in the Indian passenger vehicle market for the first time since FY09. Its market share has fallen from a peak of 17.5% in FY20 to 12.6% in 9MFY26, with declines across both SUVs and passenger cars. The company’s share in the car segment has dropped from 19% in FY16 to 11% in 9MFY26, while its SUV share has slipped from 20% in FY21 to 13% in 9MFY26. It also lags in the EV segment, holding just a 3% share in 11MFY26.
The company also faces a relatively weak product pipeline over the next two years, says Jefferies in its latest note. While Hyundai plans to introduce seven new models by FY30, only two are expected to be launched in FY27–28, with the remaining five scheduled for FY29–30. In addition, a weak third quarter, rising commodity prices and intensifying competition for the Creta SUV have weighed on Hyundai’s margin outlook.
Cipla
Near term revenue from the US is expected to decline sharply as two of Cipla’s top three products face increased competition, while another key product, Lanreotide, is dealing with supply challenges from its partnered CDMO firm, says Jefferies. The drop in US sales is likely to result in a 15% YoY decline in adjusted PAT for FY27.
Cipla’s near term US pipeline also appears limited and is unlikely to offset the decline from its top three products. Importantly, pipeline visibility depends on the successful clearance of the Indore plant, which is currently under a warning letter from the US FDA, as well as progress in partnered peptide products.
Given this backdrop, analysts believe consensus estimates remain relatively elevated and carry meaningful downside risk. The stock is valued at 20x FY27 PE, and Jefferies maintains an underperform rating.
On the other hand, Jefferies has added SBI, Star Health, Groww, Bharat Forge, JSW Steel, Eternal and Max Healthcare as new inclusions in its Bottom-up Analyst Top Ideas list.
(Disclaimer: Recommendations, suggestions, views and opinions given by experts are their own. These do not represent the views of The Economic Times)