Brokerages Back Adani Ports, Hindalco, JSW Steel Amid Positive Momentum

On a morning when markets were still finding their footing, a cluster of brokerage houses released fresh research notes that painted an optimistic picture across five distinct corners of India's equity landscape. The stocks in focus—Adani Ports, Hindalco, JSW Steel, Mankind Pharma, and CarTrade—each had their own story to tell, but they shared a common thread: the analysts believed momentum was building.

Adani Ports drew the most attention. Jefferies raised its target price to Rs 2,160 from Rs 2,100, betting that a capacity crunch in India's port system would be the engine driving the next phase of gains. The brokerage lifted its earnings estimates for fiscal 2028 and 2029, now projecting a 15 percent compound annual growth rate in EBITDA through 2031. The logic was straightforward: Gujarat and Maharashtra's container ports faced a demand-supply gap that could hand market share to Adani. Beyond that, the Vizhinjam port in Kerala—still ramping up—promised to cut transit times and logistics costs, providing an additional lift. Nomura, maintaining its own buy rating with a target of Rs 1,930, pointed to cargo traffic growth of 16 percent year-over-year and management guidance suggesting healthy momentum would persist through 2031, with revenue and EBITDA expected to grow at 19 percent and 18 percent annually respectively.

In the metals space, Hindalco emerged as a compelling turnaround story. Morgan Stanley kept its overweight stance, pointing to a dramatic shift in the company's cost structure. Power expenses—a major line item for an aluminium producer—were expected to fall by nearly 30 percent, which would trim overall costs by 12 to 13 percent. The timing mattered. China's supply constraints, disruptions in the Middle East, and lower inventories on the London Metal Exchange were all expected to support aluminium prices at a moment when Hindalco's Oswego facility would be restarting. The brokerage also flagged insurance recoveries of $1.2 to $1.3 billion from fire-related losses, and predicted the company would turn cash positive by the end of the fourth quarter of fiscal 2027. JSW Steel, another metals play, received an overweight rating from Morgan Stanley with a target of Rs 1,330. The company was targeting 50 million tonnes of domestic crude steel capacity by 2030, with plans to expand its own mines and commission operations in Mozambique to cover half its coking coal needs. The goal was to hold EBITDA per tonne steady at Rs 11,000 to Rs 12,000 while keeping net debt below three times EBITDA.

Mankind Pharma, a pharmaceutical manufacturer, caught Jefferies' eye as a company "turning the corner." Volume growth was picking up, signaling recovery in acute therapies, while the chronic segment maintained steady distribution. The brokerage expected Bharat Serum, the company's export arm, to post high-teen growth in fiscal 2027, and saw the clinical pipeline as a source of long-term optionality. CarTrade, the automotive marketplace, had been punished by investor fears about artificial intelligence disruption. Kotak Institutional Equities upgraded the stock to buy and raised its target price to Rs 2,300, arguing that CarTrade's dealer network and value-added services would prove resilient. The upgrade was also driven by higher valuations assigned to the OLX business, which the brokerage expected to deliver steady growth in gross merchandise value, improving monetisation, and better margins through fiscal 2029.

Beyond individual stocks, the broader economic picture was also getting attention. HSBC noted that India's industrial production rose 4.9 percent year-over-year in April, beating expectations. Front-loading and inventory build-up had supported manufacturing growth, particularly in consumer goods. The new industrial production series showed stronger growth than the old one, though the brokerage cautioned that momentum had eased in fiscal 2026 due to softer manufacturing output. On the asset management side, Nomura expected Rs 313 billion in net equity inflows during May 2026, with Nippon Life India Asset Management continuing to capture flows well above its asset share, while HDFC Asset Management saw some moderation.

What tied these notes together was a sense that multiple headwinds were shifting. Capacity constraints were becoming opportunities. Cost pressures were easing. Demand was expected to remain steady through the end of the decade. For investors watching the market that morning, the message was clear: the brokerages saw reasons to lean in.