Buy or Hold? Here's how analysts are rating 7 midcap stocks from Delhivery to Cera

Logistics, air conditioners, engines, tyres, electronics manufacturing, cement and sanitaryware - this quarter's midcap earnings were a mixed bag. Five Buys, two Neutrals, and some very different stories behind the numbers. Here's the full breakdown.
Companies covered by Motilal Oswal Financial Services here: Delhivery, Blue Star, Kirloskar Oil Engines, Apollo Tyres, Kaynes Technologies, The Ramco Cements, Cera Sanitaryware.

Delhivery grew revenue 28% and parcel volumes jumped 55%, but profit collapsed to ₹319 million from ₹911 million a year ago. The culprit: minimum wage hikes across four states, election-related labor shortages, and a lag in passing on higher fuel costs to customers.

The good news - management says those costs are now being passed through to customers, which should show up in next quarter's numbers. Core margin targets for Express and PTL businesses remain unchanged, and analysts still see strong growth ahead.

Rating: Buy | Target: ₹570 | Express Parcel volume growth: 55% YoY

Blue Star had a rough quarter. Profit fell 21% and margins shrank as the company couldn't fully pass on a 13% jump in input costs, competitors were sitting on cheaper inventory, so Blue Star only managed a 5% price hike. It also lost a bit of market share early in the quarter before clawing some back.

Management's plan for the next 6-9 months: protect market share while slowly rebuilding profitability in room air conditioners. The B2B business, backed by a healthy order book, remains a steadier performer.

Rating: Neutral | Target: ₹1,580 | Operating margin: 5.2% (down 1.5pp YoY)

Kirloskar Oil Engines missed profit estimates this quarter as margins came under pressure, but revenue still grew a solid 16%, led by power generation and industrial demand. Exports were the weak spot, hit by disruption in Middle East markets.

The company has been raising prices in stages, which should help margins catch up in coming quarters. Employee costs rose due to salary hikes and new hiring, but analysts expect that to be absorbed as revenue grows. The company also gained market share during the quarter.

Rating: Buy | Target: ₹2,800 | Revenue growth: 16% YoY

Apollo Tyres beat profit expectations, even as raw material costs pushed margins down 150 basis points to 11.7%. Other income gave an extra boost to the bottom line this quarter.

Margins are expected to stay under pressure through the rest of FY27, but analysts expect a full recovery in FY28 as costs normalize and restructuring benefits in Europe start to kick in. At current valuations, the stock looks reasonably priced compared to peers.

Rating: Buy | Target: ₹528 | Consolidated EBITDA margin: 11.7%

Kaynes had a strong quarter, with profit growing 31%, beating estimates, powered by 48% growth in its core electronics manufacturing business. That growth easily offset a decline in its smart-metering segment. Automotive, industrials, aerospace, medical and railways businesses all posted big gains.

Working capital did stretch out as the company stockpiled components to guard against supply chain delays, but that's expected to normalize as inventory gets used up. Kaynes is targeting cash-positive status by the end of FY27.
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Rating: Buy | Target: ₹5,000 | Core EMS business growth: 48% YoY

The Ramco Cements grew revenue 10% and cement volumes 12%, even with state elections disrupting demand in key markets. But profit still fell 74% year-on-year as margins came under pressure - though both revenue and profit beat what analysts had penciled in.

The company continues selling off non-core assets, having raised ₹11 billion over the past two years, and is expanding capacity to about 31 million tonnes through plant upgrades and a new brownfield project in Andhra Pradesh.

Rating: Neutral | Target: ₹900 | Cement volume growth: 12% YoY

Cera Sanitaryware grew revenue 16%, driven by solid volume growth in both sanitaryware and faucetware, plus modest price hikes. But profit dipped 3% as a one-time employee wage settlement weighed on margins this quarter.

The bright spot: working capital improved sharply, dropping 25 days, thanks to leaner inventory and faster collections. Analysts expect margins to recover as the one-time cost fades, with healthy volume growth continuing through FY28.
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Rating: Buy | Target: ₹7,384 | Revenue growth: 16% YoY

Source: Motilal Oswal Financial Services research notes. This is a summary of analyst commentary, not investment advice. Do your own research before making any investment decision.