Ambit turns selective: Strategy behind 2 high-growth ‘Buy’ calls and 1 crucial ‘Sell’ 

Across the three calls, Ambit stayed constructive on counters where it saw longer growth visibility and operating leverage. However, the brokerage house is cautious on stocks where expectations and valuations have already captured execution gains.

1. Ambit stays positive on Blackbuck as scale-up continues

Ambit retained its ‘Buy’ rating on Blackbuck and kept its target price at Rs 870, implying about 64% upside.

The brokerage said fourth-quarter results came broadly in line on revenue and margins, supported by expansion across both core and emerging businesses.

Net revenue increased to Rs 159.9 crore in 4QFY26 from Rs 121.8 crore in 4QFY25, up 31% year-on-year. Core revenue grew 29% while growth businesses expanded 52% on a net basis. Adjusted EBITDA margin stood at 31.4%. PAT came in at Rs 65.7 crore and included a deferred tax benefit.

Ambit also highlighted continued traction in tolling, with tolling gross transaction value rising to Rs 7,094 crore in 4QFY26 from Rs 5,861 crore a year earlier, while monthly transacting users rose 13% to 8.66 lakh. Vehicle financing disbursals increased 25% quarter-on-quarter to Rs 600 crore and telematics continued expanding through AIS-140 mandates across states.

“Blackbuck reported results in line with expectations on both revenue/margins,” Ambit said.

Superloads remains an important growth lever

Ambit said the Superloads business continued expanding, particularly in Bengaluru and Hyderabad.

According to the brokerage, operating economics improved as execution matured across markets and it expects the business to gain traction as newer geographies scale.

“We continue to be positive on Blackbuck given that the scope for scale-up in Superloads business is significant,” Ambit said.

2. Ambit keeps ‘Sell’ on GE Vernova T&D despite margin beat

Ambit maintained its ‘Sell’ rating on GE Vernova T&D and lowered its target price to Rs 4,450 from Rs 4,600, implying only about 1% upside.

The brokerage said the company delivered a stronger quarter operationally but argued that risks outweigh incremental positives.

Order intake stood at Rs 8,610 crore in 4QFY26 against Ambit’s estimate of Rs 10,758 crore. Revenue rose to Rs 1,637 crore while gross margin reached 47%, supported by exports contributing 33% of revenue. EBITDA margin came in at 27.2% and adjusted net income reached Rs 351.8 crore.

Ambit said domestic extra high voltage ordering remains subdued while the high-voltage direct current opportunity remains back-ended and dependent on execution and order conversion.

“Margins appear to have peaked,” Ambit said.

Export momentum remains critical for GE Vernova T&D

Ambit said exports continue to remain the key growth lever.

Base export orders grew 15% to 20% year-on-year despite the absence of mega-order wins and exports formed 33% of FY26 revenue.

At the same time, the brokerage warned that export wins remain uneven and the parent’s transformer capacity expansion in Vietnam could limit incremental export allocation to India over time.

“Valuations leave little room for execution misses, with export ramp-up, sustained premium margins, successful HVDC execution, and regular HVDC project wins look already priced in. Maintain Sell,” Ambit said.

3. MakeMyTrip remains a ‘Buy’ despite travel disruption

Ambit retained its ‘Buy’ rating on MakeMyTrip while reducing its target price to $71 from $73, implying nearly 69% upside. Just to remind our readers, the stock is not listed in the Indian markets. It is listed on the Nasdaq. 

The brokerage said revenue and margins exceeded estimates in the fourth quarter despite pressure from geopolitical developments and elevated airfares.

Revenue stood at $282 million in 4QFY26 and grew 8% year-on-year. Adjusted EBIT margin improved to 16.5%, exceeding Ambit’s estimate by 90 basis points. Revenue performance was supported by air ticketing and hotels.

Ambit said outbound travel and hotels saw pressure from geopolitical developments and elevated fares, with weakness extending into the first quarter. At the same time, stronger domestic hotel demand, bus traction and changing outbound travel patterns helped cushion the slowdown.

“Recent weakness is transitory, not structural,” Ambit said.

Profitability remains central to Ambit’s MakeMyTrip thesis

Ambit said its long-term view on MakeMyTrip remains unchanged.

The brokerage expects the company to benefit from market leadership and rising online penetration across travel categories while profitability improves as non-air contribution increases.

Management also said an India listing remains under evaluation as a long-term strategic initiative.

“Long-term thesis of MMYT benefiting from dominant market leadership, with rising online penetration across travel categories, along with sustained profitability improvement as non-air proportions rise from 70% to 83% over FY26-41E, stays intact,” Ambit said.

Conclusion

Ambit’s latest stock calls showed a preference for businesses where growth visibility remains stronger and operating momentum still has room to play out.

Disclaimer: The investment ratings, target prices, and market commentary discussed in this report are based on institutional research analysis and do not constitute direct buy, sell, or hold recommendations for retail investors. Equity investments are subject to significant market risks, and individual financial strategies or tax positions can vary widely. Readers are strongly advised to consult a SEBI-registered investment advisor before making any specific stock allocation decisions.

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