CLSA, Motilal Oswal Initiate Coverage: Vedanta Aluminium, Textiles in Focus

A host of domestic and global brokerages have initiated coverage on select Indian stocks across sectors such as power, textiles and metals. CLSA started coverage on Vedanta Aluminium with an Outperform rating and a target price of Rs 540, implying more than 16% upside. The brokerage cited support from a higher-for-longer aluminium cycle and strong operational tailwinds.

Citi initiated coverage on an e-commerce stock with a Buy rating and a target of Rs 210, indicating around 12% upside. It highlighted strong positioning in India's e-commerce expansion beyond Tier-1 cities, a large long-tail seller network, and a zero-commission logistics model.

Jefferies initiated coverage on an industrial stock with a Hold rating and a target price of Rs 6,000, implying about 19% upside. It values the stock at 65x FY28 earnings and expects strong EPS growth of 35-36% CAGR over FY26-29E, though it sees stronger compounding in peers like Hitachi and Siemens.

Motilal Oswal assigned Buy ratings to several textile and industrial companies. On one stock, the brokerage set a target of Rs 1,110 (29% upside), expecting benefits from capacity expansion in India and improved Africa operations after AGOA renewal. It forecasts revenue, EBITDA and PAT CAGR of 18%, 33% and 73%, respectively. On another, it gave a target of Rs 670 (42% upside), highlighting a strategic shift toward a garment-led model and growth from advanced materials. A third stock received a target of Rs 2,300 (11% upside) driven by capacity expansion across India, Bangladesh, Vietnam and Indonesia. On utility bedding and domestic bed linen, the broker set a target of Rs 550 (27% upside), projecting revenue, EBITDA and PAT CAGR of 20%, 44% and 90%. A home-textiles stock got a target of Rs 200 (18% upside), supported by lower tariffs and potential trade agreements with the UK and EU.

Equirus initiated coverage on a luxury-market stock with a target price of Rs 3,117, implying 29% upside. It noted India's luxury market is expected to expand from $10 billion in FY25 to $30 billion by FY30, driven by rising affluent households and wealth creation.

The breadth of initiations across metals, e-commerce, industrials and textiles signals broad confidence among domestic and global brokerages in select Indian sectors, though the wide range of implied upside–from 11% to 42%–leaves room for selectivity.