Travel stocks are under pressure today after Prime Minister Narendra Modi signalled a revival in teh Covid playbook amid teh ongoing geopolitical tensions. He emphasised that patriotism is not only about sacrificing one’s life for the nation, but also about living responsibly and fulfilling duties towards the country during difficult times.

As of 9:45 am, Yatra was lagging the most, trading lower by 5.44%, followed by Thomas Cook, which fell 3.97%, Make My Trip, which fell 3.27%, and TBO Tek which slumped 2.48%. Ixigo, IRCTC, and BLS International also saw cuts of around 2%.

The Prime Minister appealed to citizens to help conserve foreign exchange reserves by avoiding unnecessary foreign travel, overseas vacations and foreign weddings, and choosing domestic tourism and celebrations within India. This directly impacts travel stocks.

Additionally, he urged citizens to reduce petrol and diesel consumption by sing metros and public transport wherever available, and opting for car-pooling when private vehicles are necessary. He added that citizens should prefer railway transport for movement of goods, and increase the use of electric vehicles wherever possible. 

ALSO READ: Modi Urges Citizens To Curb Petrol Use Over Middle East Conflict; Calls For Covid-Era Measures

Essential Business Intelligence,
Continuous LIVE TV,
Sharp Market Insights,
Practical Personal Finance Advice and
Latest Stories — On NDTV Profit.

Shares of State Bank of India (SBI) Ltd. are under pressure once again on Monday, with the stock currently trading with cuts of more than 3% compared to Friday’s closing price of Rs 1,019. 

SBI had emerged as the biggest Nifty loser on Friday, closing the day with a drawdown of almost 6%. In fact, since Wednesday’s close, the stock has fallen more than 10%.

Much of the pressure in SBI shares comes on the back of the lender’s sub-par performance in the fourth quarter, where NII failed to meet expectations while margins compressed. 

There were some positives, including the stable asset quality, which remains in two-decadal low levels. And despite the relatively modest growth numbers, brokerages and analysts have largely appeared bullish on SBI.

Should you buy SBI?

Speaking to NDTV Profit, Vice President, Equity Technical Research and Wealth Management, Motilal Oswal, believes investors should avoid bottom-fishing.

“The near term trend for the stocks seems sideways and the stock has not participated in the recent upmove in markets. The stock has resistance around Rs. 1120 while immediate support is placed around Rs. 975. Considering the recent relative underperformance traders should avoid bottom fishing and wait for any trend reversal signs,” he said.

Ambareesh Baliga, an independent market analyst, who looks at the fundamental side of things, has advised investors to wait it out before buying not just SBI but PSU stocks as a whole.

Most brokerages, meanwhile, have given SBI a positive rating even after the Q4 earnings.

Macquarie on SBI

• Maintains Outperform with target price of Rs 1150
• PAT missed estimates
• Weak margins spooks confidence
• Earnings miss driven by weak margins and trading losses
• NIM impacted by higher proportion of floating book
• FY27 NIM guidance ~3% with expectation of yield stabilisation and better CASA mix
• FY27 loan growth guidance maintained at 13–15%
• Asset quality remains a bright spot

HSBC on SBI

• Maintain Buy; Hike TP to Rs 1170 from Rs 1120
• Margins a must for re-rating
• Q4 results saw a sharp QoQ decline in NIM/NII
• Performance on core fees / opex / asset quality was robust
• Cut EPS by 0.4-1.7% for FY27/28 to reflect the NIM pressure, offset by stronger fee and controlled expenses

CLSA on SBI

• Maintain Outperform with TP of Rs 1275
• NIM spoils the party
• Good performance on everything except NIM
• Strong and balanced loan growth performance
• Big miss on NIM; asset quality steady
• Temporary setback, but medium-term story unchanged

J.P. Morgan on State Bank of India
Maintains OVERWEIGHT | TP Rs. 1,225 (cut from Rs. 1,260)

• 4QFY26 results reflects strong advances growth and stable asset quality
• Domestic NIM fell due to lower yields from repo‑linked loans
• PAT aided by domestic NII and controlled opex but cost/income ratio declined.
• Asset quality remained stable, Credit costs helped offset margin pressure.
• Management guided for FY27 domestic NIM of ~3%
• Margins to be supported by loan repricing, RAM yield and low deposit costs.

Citi on SBI

• Maintained Buy Target price retained at Rs1,230
• NIM contracted due to EBLR/MCLR repricing and higher floating rate loan mix
• cost of deposits eased only slightly to 5.04% vs 5.07%
• GNPA improved to 1.49% vs 1.82% FY25 driven by aggressive write-offs
• Management sees no asset quality concerns and maintains 50bps credit cost guidance
• Earnings estimates cut by 3–4% for FY27E/FY28E due to NIM pressure

Jefferies on SBI

• Buy rating maintained; Target price at Rs1,300 unchanged
• Weak Q4 is a temporary blip and outlook remains intact
• NIM missed estimates due to lower yields on corporate lending
• expects NIMs have bottomed and can stabilize in FY27
• Loan growth expected to sustain at 13–14% aiding topline
• Stock remains among top picks

ALSO READ: Stock Picks Today: Titan, SBI, Swiggy, Hyundai, Lupin And More On Brokerages’ Radar

Essential Business Intelligence,
Continuous LIVE TV,
Sharp Market Insights,
Practical Personal Finance Advice and
Latest Stories — On NDTV Profit.

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Systematix Report

Systematix has revised its target price on Lupin Ltd. to Rs 2,408 (Rs 2454 earlier) on FY28E EPS with a multiple pf 25x and retain ‘Hold’ and lowers its EPS forecast for FY28 by 2%.

The near-term earnings growth may be a challenge for Lupin as they should see impact of competition in their largest portfolio product (gTolvaptan) in FY27.

Potentially gMirabegron may also see competition in FY27 (brokerage’s current expectation is H2-FY28) However Systematix sees recovery in growth post FY28 as they monetize their biosimilar pipeline (Pegfilgrastim, ranibizumab, etanercept) and get additional approvals in the respiratory inhaler space (gDulera).

Company is also looking to file other respiratory inhalers like Spiriva Respimat, Symbicort, Advair HFA which could be monetized over the next two-four years.

Nirmal Bang expects Lupin to deliver revenue/Ebitda/PAT growth of 4%/-8%/-13% respectively over FY26-28E.

Lupin Q4 Earnings Highlights

Lupin reported Q4 FY26 revenue of Rs 74,747 million, up 32% YoY and 4% QoQ. Ebitda at Rs 21,711 mn, surged by 68% YoY and down 1% QoQ.

Ebitda margin at 29%, expanded by 625 bps YoY and down by 178 bps QoQ. Lupin reported profit after tax of Rs 14,603 mn, showing a growth of 89% YoY and reduced 24% QoQ. PAT margin stood at 19.5%, up 591 bps YoY and down by 314 bps QoQ.

Click on the attachment to read the full report:

ALSO READ: Hyundai Motor India Shares: Nirmal Bang Maintains ‘Hold’ After Q4, Sees Limited Upside Despite Growth Visibility

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Essential Business Intelligence,
Continuous LIVE TV,
Sharp Market Insights,
Practical Personal Finance Advice and
Latest Stories — On NDTV Profit.