Market Outlook: Why Analysts Are Turning Bullish
Over the past few weeks, several brokerages and market analysts have reiterated their positive outlook on a select group of Indian companies, including Eicher Motors, GMR Airports, Nykaa, and Dabur. These calls are not random: they are rooted in improving business fundamentals, clearer earnings visibility, and operational execution that, according to experts, offers meaningful upside over the next 12 – 24 months.
Eicher Motors: Reclaiming Momentum
What Experts Are Saying
- Jefferies has maintained a Buy rating on Eicher Motors, assigning a target price of ₹8,000, implying a substantial upside from current levels.
- The brokerage argues that Eicher (primarily through its Royal Enfield business) has re-entered a strong growth cycle. Royal Enfield volume shipments are rising sharply, both domestically and overseas.
- There’s also a capacity‐expansion play in motion: management is reportedly scaling up capacity from 1.2 million to 1.35 million units by debottlenecking, which could significantly boost production without proportionately increasing fixed costs.
- On margins, Jefferies expects EBITDA margins to remain relatively healthy (around 24.9–25.6%) over their forecast horizon.
- Emkay Global Financial also backs Eicher with a Buy rating, setting a target of ₹6,100, citing strong volume momentum, especially for Royal Enfield, and a willingness by management to prioritize volume growth over short-term margin expansion.
Why the Optimism Makes Sense
The combination of rising exports, capacity build-out, and a rebound in consumer demand (especially in premium motorcycling) offers Eicher a favorable risk-reward profile. While there may be short-term margin pressure (owing to product mix and spending), the long-term growth levers seem intact.
GMR Airports: Non-Aero Revenue as a Catalyst
What Experts Are Saying
- Jefferies continues to support GMR Airports Infrastructure with a Buy rating and a target price of ₹108, suggesting ~13% upside.
- The rationale: despite some softness in passenger numbers, GMR’s non-aero businesses (retail, commercial operations) are seeing strong traction, helping drive a “broad-based EBITDA surge.”
- In addition, Jefferies notes that a recent tariff increase at Delhi’s airport (Delhi International Airport / DIAL) is contributing to the strong financial performance.
- According to a more recent broker consensus (reported by the Times of India), Kotak Institutional Equities has also raised its target for GMR Airports to ₹107, highlighting improving leverage metrics and non-aero growth as core drivers.
Why the Call Holds Water
Airports are no longer just about passenger traffic. As aeronautical revenues become more volatile, non-aeronautical businesses (like duty-free retail, food and beverage, cargo, and real estate) are proving to be a stable and scalable source of earnings. GMR seems to be positioning itself to benefit from that shift, especially as capital expenditure moderates and operational leverage improves.
Nykaa: Beauty, Fashion, and the Path to Profitability
What Experts Are Saying
- Nuvama has maintained a Buy rating on Nykaa (FSN E-Commerce Ventures), raising its target price to ₹285 following a strong Q2 FY26 performance.
- Morgan Stanley is more aggressive, backing Nykaa with an Overweight rating and a target of ₹271.
- JM Financial continues to be bullish, calling Nykaa “one of the cleanest consumption-led plays in India.” They highlight strong momentum in both beauty (BPC) and fashion, and maintain a Buy with ₹260 as the target.
- On Q2 numbers, Nykaa delivered very strong growth: revenue from operations increased ~25% YoY, EBITDA grew ~53%, and GMV (gross merchandise value) rose ~30%.
Risks & Counterpoints
- Nomura (though somewhat mixed) raised its target to ₹262 but cautioned that valuation risks are real: they argue Nykaa’s current price already reflects much of the upside.
- Elara Securities warned that much of the recent rally may already price in the optimism, especially since fashion losses, while narrowing, are still non-trivial.
Why the Bulls Are Right (for Now)
Nykaa’s omnichannel strategy (online + physical), leaner operations, and improving fashion business provide a credible path toward higher-margin growth. If they can continue to monetize their loyal customer base and scale their premium/private brands, the long-term return potential is attractive.
Dabur India: Resilient Consumer Play
What Experts Are Saying
- Nuvama (India Equity Research) continues to endorse Dabur with a Buy rating and a 12-month target price of ₹635, per their April 2025 flash report.
- Mirae Asset Sharekhan also recommends a Buy for Dabur, assigning a target price of ₹623, citing strong rural reach, premiumization, and its entrenched brand presence.
- Motilal Oswal maintains a Buy call on Dabur with a TP of ₹635, believing in the long-term potential for margin expansion and stability.
- On the broker-aggregated front (TipRanks), Dabur is covered by multiple analysts: Jefferies (Buy, TP ₹610), Bank of America Securities (Buy, TP ₹575), and Phillip Securities (initiated with Buy, TP ₹630).
Challenges to Consider
- Despite these bullish calls, some recent quarterly results have disappointed. For instance, in its Q4 FY25 update, Dabur reported flat YoY revenue and pressures on EBITDA due to operating deleverage.
- There’s also the risk of consumption slowdown in rural markets or increased competition in FMCG categories, which could stress volume growth or force the company to increase marketing spend.
Why This Buy Call Is Logical
Dabur is a classic consumer staple with strong brand equity, diverse product portfolio, and deep rural penetration. In an uncertain economy, such names can act as defensive plays. Moreover, if management executes well, the company’s foray into premium products and rural growth could unlock significant value.
Synthesis & Strategic Implications for Investors
Putting all these calls together, a few themes emerge:
- Selective Consumption Recovery: The buy calls on Eicher and Nykaa suggest that analysts see differentiated playbooks — premium motorcycles for Eicher, beauty + fashion for Nykaa — as more resilient in the evolving macro environment.
- Shift to Non-Core Revenue Streams: GMR Airports exemplifies a broader trend where companies are leveraging non-core (non-aero) revenue streams to offset volatility in their traditional business.
- Margin Leverage & Operating Discipline: Across the names, brokers are not just betting on growth but on improving leverage and operating execution. Whether it’s Eicher scaling capacity, Nykaa narrowing loss-making verticals, or Dabur controlling costs, there’s a clear focus on margin improvement.
- Valuation Risk Is Non-Trivial: While the target prices indicate substantial upside, there’s a consistent note of caution — especially for Nykaa. High valuations, aggressive growth assumptions, and execution risk remain.
- Time Horizon Matters: These are not purely short-term trades. Many of the analysts’ target prices are based on 12 to 24 month horizons, implying a medium-term investment approach.
Conclusion
Market experts’ buy calls on Eicher Motors, GMR Airports, Nykaa, and Dabur appear to be grounded in strong business narratives and improving fundamentals rather than speculative hype. Each company represents a different part of the economic recovery — premium mobility, airport infrastructure, e-commerce-led consumer retail, and FMCG resilience.
However, the optimistic case is not without its risks: valuation remains a concern (especially for Nykaa), and macro headwinds could challenge consumer spending or capex plans. For investors, these calls may serve as building blocks for a differentiated, conviction-led portfolio, but they should be balanced with discipline, risk management, and a realistic assessment of execution risks.