Tilaknagar Industries slides 2% post Q2 results; brokerages stay bullish despite margin miss
The stock is well off its 52-week high of ₹607.80 hit in September and is now down over 10 per cent in the past year, though it remains up 120 per cent over three years.
Tilaknagar Industries experienced a 1.98% drop in its stock price on Monday, trading at ₹471.35 after reporting weaker-than-expected Q2FY27 results. The stock opened at ₹465, reached a low of ₹436.75, and later recovered somewhat. By mid-session, 14.80 lakh shares were traded, worth ₹67.79 crore. Buy orders made up around 61% of the total order flow, indicating some accumulation at lower levels.
Despite the margin miss, brokerages remained bullish on the stock, retaining their BUY ratings with varying target prices. Choice Institutional Equities reduced its target to ₹650 from ₹680, citing increased EBITDA margins pressure from higher input costs due to geopolitical disruptions. Conversely, JM Financial's Mehul Desai raised the target to ₹580 from ₹540, expecting the valuation to reach September 2028 levels with a 35x earnings multiple.
The company's integration with IB is progressing well, with secondary volumes growing 8.5% quarter-over-quarter. The margin contraction of 82 basis points YoY to 14.3% is primarily attributed to inflationary pressures on glass packaging and ENA costs, while the West Asia crisis adds an extra ₹250 million in input costs per quarter.
Analysts anticipate margin improvements through IB integration gains, upcoming pricing revisions, and potential UK-India FTA benefits.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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