TCS, IndusInd Bank and MAS Financial Services, among others, are being tracked by investors on Friday.
Tata Consultancy Services
Deutsche Bank: Rating - Buy | Target - Rs 3,000
As December quarter results were in-line, which means the recovery is on track, Deutsche Bank said while maintaining Buy call on the stock with a target price of Rs 3,000 per share.
Ex-BFSI (banking, financial services and insurance), company has reported a strong revenue growth of 2.4 percent QoQ while the robust growth in digital revenue and turnaround seen in retail & CPG are key positives, the research house said.
However, the decline in Asia Pacific revenue and muted revenue growth in Americas are key negatives, it added.
Management expects BFSI to improve in 2018.
Kotak Securities: Rating - Reduce | Target - Rs 2,700
Kotak Securities has maintained its Reduce rating on the stock, but upped target price to Rs 2,700 due to rollover and marginal change in multiple.
Numbers were in-line on growth & profitability. FY19 setup looks promising and current valuations bake in cyclical uptick, it said.
The research house made a few changes to EPS resulting in 1 percent cut.
Credit Suisse: Rating - Neutral | Target - Rs 2,350
Credit Suisse also said Q3 numbers were in-line, with retail segment bouncing back but not financial services.
It feels the management sounds comfortable with the outlook barring financial services but the growth momentum continues to be soft in the US.
TCS reported 10 basis points expansion in margin at 25.2 percent for Q3. Margin may fall short of targeted range of 26-28 percent on currency woes in FY18, Credit Suisse feels.
UBS: Rating - Buy | Target - Rs 3,000
While maintaining Buy rating on the stock with a target price at Rs 3,000 per share, UBS said numbers were in-line, with retail segment picking up but banking declining.
It expects muted reaction to results and concerned about decline in banking segment.
Sharp decline in IT services spending may result in downward revisions to earnings estimates, it feels.
Management expects retail to return to double digit growth and is confident of achieving 26-28 percent constant currency margins.
JP Morgan: Rating - Neutral | Target - Rs 2,700
While retaining neutral rating with a target price at Rs 2,700 per share, JPMorgan said Q3 results were in-line with estimates and weakness in BFSI dragged revenue growth.
Current valuation appears punchy, factoring in hopes of a demand improvement.
IndusInd Bank
Brokerage: Macquarie | Rating: Outperform | Target: Raised to Rs 1,962
Macquarie said that the bank continues to report steady, in-line numbers. Further, acquisition of Bharat Financial Inclusion is progressing smoothly & likely to be completed by Q2FY19. It also observed that CASA deposits forming 43% of overall deposits is very positive. Bharat Financial merger and non-CV retail growth and proposed insurance foray as key catalysts.
Brokerage: Nomura | Rating: Buy | Target: Rs 1,950
Nomura said that sharp uptick in vehicle loan growth & strong CASA growth were key highlights in Q3. Further, SMA-2 book of less than Rs 1,000 crore provides comfort w.r.t divergence-related negative surprises. An improvement in credit RWA/loans aiding further margin improvement. The bank is also fast closing its liability gap with larger private banks.
Brokerage: Kotak Sec | Rating: Reduce | Target: Rs 1,750
Kotak Securities observed that retail segment shone, while yields were under pressure. A strong overall performance was seen and broadly stable trends were seen in impairment ratios. Current valuations are closer to fair value even as business remains on a strong footing.
Brokerage: Quant | Rating: Accumulate | Target: Rs 1,994
Quant said that margin remained stable primarily from improvement in liability franchise. Meanwhile, asset quality was stable with total stress on the book increasing 6 bps qoq. It remains constructive on bank considering healthy & stable performance outlook. Slowdown in loan growth & further stress in asset quality are key risks.
Brokerage: Citi | Rating: Buy | Target: Rs 2,060
Citi said that the bank continues to see strong operating trends across balancesheet growth. The firm its top pick in Indian financial sector.
Brokerage: Prabhudas Lilladher | Rating: Buy | Target: Cut to Rs 1,915
The brokerage observed that CASA continues to grow but growth intensity was lower due to demonetisation base effect. Lower corporate slippages led to lower credit cost of 60 bps, it added.
MAS Financial
Brokerage: Motilal Oswal | Rating: Initiate Coverage | Rating: Rs 740
The brokerage house said that the company is an efficient player in high product segment. It expects the company to deliver 25% AUM over fy17-20, resulting in 25% EPS CAGR. Further, better margin, op efficiency & controlled credit cost may drive roa improvement of 60 bps. It believes that the company has all the ingredients of a good investment.
Sun TV
Brokerage: BofAML | Rating: Initiate Coverage with Buy
The global research firm expects subscription growth to pick-up to 24% cagr for the next 3 years. Further, upside optionality from NewRIO (Reference Interconnect Order) Regulation/IPL.
Shree Cement
Brokerage: Emkay | Rating: Buy | Target: Rs 22,001
The brokerage said that expansion will drive growth. But, operating performance is below our estimate. It has downgraded FY18/19/20 EPS estimates by 17.6%/13.3%/13.1% to factor in energy costs. It prefers the company due to its efficient cost structure and superior capital allocation.
MORE WILL UPDATE SOON!!
0 comments:
Post a Comment