Buy, Sell, Hold: 6 stocks are being tracked by analysts on March 28, 2018

Persistent Systems and ICICI Lombard, among others, are on investors’ radar on Wednesday.

BEL

Brokerage: Credit Suisse | Rating: Outperform | Target: Cut to Rs 175

The global research firm said that Q4 may reflect partial recovery. It sees 30% higher employee costs seem to be absorbed even as 9MFY18 margin is higher YoY. It is revising earnings estimates by 6 and 4 percent for FY18 and FY19, respectively.

Persistent Systems

Brokerage: Credit Suisse | Rating: Outperform | Target: Rs 960

Credit Suisse believes that its Q4 may be weak but medium-term story is intact. IP is a volatile element of the company’s business and hence can create nuances. It also continues to expect healthy revenue growth.

Brokerage: Morgan Stanley | Rating: Overweight | Target: Rs 1,025

The global brokerage firm said that the guidance for decline in IP revenue in Q4 has come as a negative surprise. It sees a potential 6% cut to FY18 EPS as most likely outcome.

ICICI Lombard

Brokerage: CLSA | Rating: Buy | Target: Rs 970

Over FY17-20, it sees 24% earnings CAGR led by premium growth & margin expansion. It expects the company to benefit from regulatory actions with the change in motor TP norms.

Motherson Sumi

Brokerage: Credit Suisse | Rating: Outperform | Target: Rs 440

The firm said that BS-VI implementation is likely to provide a big boost to wiring harness industry. It highlighted that the company is not too worried about topline slowdown at SMR and that it will return soon. For SMP, the margin can remain under pressure for few quarters as 2 large plants come on stream. It believes recent correction represents a good entry opportunity.

GSK Consumer

Brokerage: CLSA | Rating: Buy | Target: Rs 7,850

The brokerage said that acquisition of Novartis’ stake may lead to divestment of GSK Consumer. A change in ownership may increase focus & improve its growth trajectory. It added that the deal value will depend on distribution alliance.

M&M Fin

Brokerage: Deutsche Bank | Rating: Buy | Target: Rs 550

Recovery seems broad-based, with multiple growth drivers, it said, adding that the company has increased focus on CVs and used vehicles. Improving rural trends should result in better asset quality.

MORE WILL UPDATE SOON!!

Buy, Sell, Hold: 4 stocks and 1 sector are on analysts’ radar on March 15, 2018

Century Ply, Wipro and FMCG space, among others, are being tracked by investors on Thursday.

   

Strides Shasun

Brokerage: Macquarie | Rating: Outperform | Target: Rs 996

Macquarie said that the firm has received US FDA approval for HIV drug Efavirenz Tablets. Further, it expects Efavirenz to be a decent opportunity as co becomes second entrant post Mylan. It also expects Strides’ earnings momentum to pick up in FY19.

Wipro

Brokerage: Axis Capital | Rating: Hold | Target: Rs 300

Axis Capital said that the firm is in definitive agreement to divest hosted data centre services business to Ensono for $405 m. The firm also believes that divesture of ailing managed data center biz is a step in right direction.

Brokerage: Credit Suisse | Rating: Underperform | Target: Rs 290

The brokerage house said that the deal with Ensono is likely to close by Q1FY19.

Century Ply

Brokerage: CLSA | Rating: Buy | Target: Rs 420

CLSA said that it is seeing a rising preference for medium density fibre (mdf) over plywood. The firm’s MDF plant achieved cash breakeven earlier than expected. It expects to be the key growth driver going forward. It also sees newly-commissioned MDF plant to contribute 17 percent to revenue by FY20.

Shriram Transport

Brokerage: Jefferies

Jefferies believes that the company should benefit from stronger CV volumes. Despite rising bond yields, net interest margin should be stable, it said, adding that credit cost could fall, driving 34% EPS CAGR & 430 bps RoE expansion over FY18-20. The stocks’ valuation appears reasonable, it added.

FMCG

Brokerage: Goldman Sachs

The global investment bank forecasts rural income to grow at an 8.5% CAGR over the next five years. Further, it believes that packaged food and beverage segment will be the biggest beneficiary of increase in consumption spend.

Among stocks, it has a buy call on Britannia, but has downgraded HUL to sell. This is due to limited opportunity to expand its distribution. The brokerage has also downgraded Marico to Sell as it feels Saffola and value added hair oils face competitive pressures. It has upgraded Jubilant Food to buy for continued progress on driving SSSG growth. Colgate and Nestle have been upgraded to neutral post their underperformance.

Meanwhile, it is positive on retailers as the market there formalizes. Its top picks include Avenue Supermarts and Titan with a buy call.

MORE WILL UPDATE SOON!!

Buy, Sell, Hold: 5 stocks & 2 sectors are in focus on March 12, 2018

IDFC Bank, Coal India, and metals, among others, are being tracked by investors on Monday.

   

IDFC Bank

Brokerage: Credit Suisse | Rating: Neutral | Target: Rs 55

The global research firm observed that five non-banks transitioned to banks in last 3 years, but growth of IDFC Bank has stayed weak. The bank is challenged as its loan growth trajectory has not accelerated. Going forward, it expects corporate book to continue to contract, along with slow build up in retail liability. In fact, retail liability build-up is a concern even after its merger with Capital First.

Coal India

Brokerage: Nomura | Rating: Neutral

Nomura observed that the dividend for this fiscal at Rs 16.50 per share is broadly in line with the consensus. The total cash outgo due to the dividend is pegged at Rs 12,320 crore, while the government’s share of dividend will be Rs 10,120 crore. Nominal ‘final dividend’ cannot be ruled out this year, it said, adding that it has maintained earnings estimates for the stock.

ITC & USL

Brokerage: Deutsche Bank | Rating: Buy

The investment bank highlighted that there was no mention of cigarette & ENA taxation in GST meet, which provides an upside trigger. ITC remains a top pick in staples alongside HUL, Dabur, Nestle and GSK Consumer. Going forward, a reprieve for cigarette ind can trigger ITC’s P/E rerating in the interim.

Maruti Suzuki

Brokerage: Deutsche Bank | Rating: Buy | Target: Rs 10,000

Deutsche Bank observed that the stock has declined 10 percent YTD due to the overhang of potential negative surprises. Forex and raw materials pose a risk to margins, but the impact should be low, it feels. The company continues to be in a sweet spot in its model cycle, it said, adding that it has cut EPS forecastrs by 6-8 percent due to a reset in forex assumptions.

Gas

Brokerage: CLSA

CLSA believes that the sector is on the cusp of a paradigm shift. Further, actions being taken for free-market pricing hub for domestic gas. It believes that bringing gas under GST a big idea that may materialise soon. The focus essentially lies on expanding city gas business. It expects free market gas pricing hub to be a reality in a year.

Metals

Brokerage: CLSA

CLSA said that it prefers steel sector over aluminium. It has downgraded Hindalco to sell and prefers Vedanta. It has also cut FY19-20 EPS for Hindalco by 14-23 percent, while Vedanta's EPS estimate has been cut by 9-11 percent. The target for Hindalco is cut to Rs 205, while Vedanta’s target price is at Rs 410 from Rs 422.

MORE WILL UPDATE SOON!!

Buy, Sell, Hold: 6 stocks and 1 sector are on analysts’ radar on March 7, 2018

HCL Tech, Bharat Forge, Sun Pharma and financials sector are being tracked by investors on Wednesday.

HCL Tech

Brokerage: CLSA | Rating: Buy | Target: Rs 1,170

The brokerage house believes that the company is likely to see a growth recovery in IMS and said that apps & engineering are growing ahead of peers. There is a valuation discount to peers, which suggests that there are concerns on IP licensing strategy. Having said that, the firm offers absolute upside from growth & rerating, the report added.

USL

Brokerage: Morgan Stanley | Rating: Underweight | Target: Cut to Rs 3,250

The global research firm has cut FY18-F20 earnings estimates by 11-17% on account of weak Q3. At 43x F2020e P/E, risk reward appears balanced, it said, adding that amid uncertainty on the levy of GST on ENA, one could await a better entry opportunity.

Bharat Forge

Brokerage: Morgan Stanley | Rating: Equalweight | Target: Rs 659

Morgan Stanley said that NAFTA Class 8 Sales May Peak In 2018 With 26% Growth. Further, it sees a scope for decline in these sales by 5% in 2019 & 11% in 2020. Overall, it expects 30% growth in FY19/2018 NA truck exports.

Bharti Airtel

Brokerage: Nomura | Rating: Buy | Target: Cut to Rs 505

Nomura remains sanguine on earnings recovery In FY20. Further, deleveraging via asset monetisation should be another catalyst. At 7.4X, FY20 EV/EBITDA, stock is not cheap vs regional peers.

Sun Pharma

Brokerage: CLSA | Rating: Sell | Target: Rs 430

The brokerage house said that three observations for Halol related to deviation from certain ops & procedures. If the US FDA is satisfied with response, Halol plant could be upgraded to VAI. If upgraded, it would revive the approval cycle & warning letter

could be lifted.

In base case, it is building incremental revenue of $100 m/$150 m For FY19/20 From Halol, while in bull case it is building incremental contribution of $200 m/$300 m for FY19/20 From Halol. A delay in clearance beyond the estimated timelines could

delay US recovery.

Adani Ports

Brokerage: Goldman Sachs | Rating: Buy | Target: Rs 488

Higher containerisation & benefit of better connectivity will support growth, it said, adding that diverse geographic & cargo exposure limits potential impact from slowdown. The firm will continue to see market share gain, it said.

PSU Banks

Brokerage: Credit Suisse

Credit Suisse said bond hit will add to Q4 woes and over-ownership will weigh on earnings. It observed that PSU banks are staring at potential treasury loss of Rs 20,000 crore In Q4. The current 10 percent excess bond holdings are the highest in the last 12

years. It continues to prefer private over PSU banks.

NBFCs

Brokerage: Morgan Stanley

The firm observed that higher rates are here to stay and one must stick to non-bank NBFCs. It likes NBFCs structurally, but most will de-rate over the next year.

Banks

Brokerage: Jefferies

Jefferies continues to prefer private sector banks, especially corporate oriented ones. It is also positive on banks with greater moats around retail liability. It likes Yes, Axis, ICICI and HDFC Bank. It is perennially positive on HDFC Bank. Meanwhile, it said that private corp banks available at comparatively inexpensive valuations. Further, the Street is not pricing in recovery in earnings and is narrowly focusing on near term asset quality issues. It prefers private sector banks and said that valuation gap has opened up between SOE Banks & Private Sector Banks.

MORE WILL UPDATE SOON !!

Buy, Sell, Hold: PNB, Coal India among 4 stocks, 2 sectors in focus on February 21, 2018

PSU banks and IT stocks are also on investors’ radar on Wednesday.

  

Coal India

Brokerage: Macquarie | Rating: Outperform | Target: Rs 210

The global research firm said that the price-based auction would increase cost curve and benefit Coal India. Further, it believes there could be a record Q4 for this fiscal. The company should witness an all-time high EBITDA & should drive earnings upgrades, it said in report. Additionally, valuations at 6.7xEV/EBITDA FY20E makes risk-reward attractive.

Brokerage: Morgan Stanley

The global research firm said that from the company’s perspective, the key will be aggression in auction bids. Further, cost structure of these operations may be efficient relative to Coal India, it said, adding that still there could be a few years for mining to start.

Ambuja Cements

Brokerage: Credit Suisse | Rating: Underperform | Target: Raised to Rs 220

Credit Suisse said that it is cautious on the stock as demand trend is still weak. The stock is factoring in 3-yr upcycle whereas upcycle is yet to start, it said, adding that it has cut CY18 EPS estimate by 13% due to weak ASP.

Brokerage: Motilal Oswal | Rating: Neutral | Target: Rs 290

Motilal Oswal said that limited capacity addition could constrain volume growth. Further, volume is seen at CAGR of 5 percent over CY17-19. While it believes valuations appear expensive, it sees only 10 percent upside from current levels.

Brokerage: CLSA | Rating: Buy | Target: Rs 325

CLSA said that sharp sequential drop in unit costs is inexplicable and observed that some of the cost gains may not continue.

Punjab National Bank

Brokerage: Nomura

Nomura said that the alleged fraud highlights apparent flaws in PNB’s systems, controls, and audits. Further, the impact will not come only from write-offs, but also dilutions at low prices.

Hexaware

Brokerage: Credit Suisse | Rating: Neutral | Target: Raised to Rs 330

The global broking firm increased EPS estimates by 3-6% to account for Q4 results. Further, any potential stake sale by Baring could be an overhang, it said, adding that overall the company has good strategy execution, but have rich valuations.

IT

Brokerage: Nomura

Nomura said that over the last six years, tier-1 has not outperformed top end of Nasscom guidance. But it has retained its cautious stance on the sector and does not see material acceleration in growth in FY19.

Brokerage: Macquarie

Macquarie said that Nasscom’s FY19 guidance hints at marginal improvement. Further, it expects most large firms in India to grow at industry level in FY19. It expects headcount to remain lower than revenue growth rate.

PSU Banks

Brokerage: Nomura

The broking firm is positive on the sector and believes that worst of credit cycle is behind. Core PPOP performance for some banks will continue to improve. Having said that, nature of the alleged scam reduces our confidence level in PSU banks and recent developments may restrict a re-rating in the near-term. It expects operating performance of corporate banks to improve from H2CY18.

MORE WILL UPDATE SOON!!

Buy, Sell, Hold: 4 stocks are on analysts’ radar on February 19, 2018

Adani Ports, Titan, among others are being tracked by investors on Monday.

Adani Ports

Brokerage: CLSA | Rating: Buy | Target: Rs 505

CLSA said that fresh capex will not hurt our argument of the company tripling its dividend. Further, investments shall be self-financing if the company can seal JV deals in time.

Varun Beverages

Brokerage: CLSA | Rating: Buy | Target: Rs 885

CLSA said that off-season makes Q4 less relevant for the firm. It also said that Q4 contributes <5% of its full-year EBITDA. It also highlighted that the firm has been able to secure the rights for more territories. New Territories & products give the firm an opportunity to expand volume & market share.

HUL

Brokerage: Deutsche Bank | Rating: Buy | Target: Rs 1,700

The global investment bank said that the firm expects Q3 volume growth of 11% to sustain. Further, it said that the company plans judicious price increase to counter inflationary pressure.

Titan

Brokerage: Deutsche Bank | Rating: Buy | Target: Rs 970

The bank said that the firm is a big beneficiary of formalisation in jewellery sector. Further, it said that it has a strategy to launch new collections every quarter.

MORE WILL UPDATE SOON!!

Buy, Sell, Hold: 10 stocks are being tracked by analysts on February 5

Morgan Stanley has upgraded Ashok Leyland to Overweight from equal-weight and raised target price to Rs 151 from Rs 101.30 per share.

Ceat

Brokerage - Macquarie | Rating - Outperform | Target - Rs 2,200

Macquarie has maintained its Outperform rating on Ceat with a target price of Rs 2,200 per share as it expects volume growth to improve in Q4FY18 & FY19.

It believes company's EBITDA margin should improve going forward. The research house expects an EPS CAGR of 15 percent over FY17-20.

Brokerage - Deutsche Bank | Rating - Buy | Target - Rs 2,100

While having a Buy call on the stock with reduced target price at Rs 2,100 (from Rs 2,250 per share), Deutsche Bank said it cut FY18-20 EPS forecasts by 5-7 percent, though Q3 operating results were robust & in-line with expectations.

"We remain positive on Indian tyre companies as sector is seeing synchronised improvement. Constructive on company's medium-term growth on higher capacity, distribution," it said.

However, its preferred pick in sector is MRF.

Bayer CropScience

Brokerage - Investec | Rating - Hold | Target - Rs 3,900

Investec said Bayer CropScience's misplaced aggression leads to significant miss in Q3FY18.

The research house has Hold rating on the stock with reduced target price at Rs 3,900 from Rs 4,250 per share as valuations of 40.6x FY19 PE seems expensive.

Normal agri cycle, coupled with strong franchise should turn the tide, it believes.

IIFL Holdings

Brokerage - Credit Suisse | Rating - Outperform | Target - Rs 870

With maintaining Outperform rating on the stock with increased target price at Rs 870 (from Rs 640), Credit Suisse said IIFL Holdings' demerger could help reach better valuations.

Home loans, MSME & construction finance are key loan growth drivers, it feels.

Hindalco Industries

Brokerage - Macquarie | Rating - Outperform | Target - Rs 328

Macquarie said Hindalco Industries has reported Q3 standalone EBITDA 3 percent below its estimate due to cost inflation but company is better placed than peers during cost inflation.

Disciplined capital allocation & impressive cost management deserve premium valuation, it added.

Company remains its top pick in the metals coverage, Macquarie said while reiterating Outperform rating on the stock with target at Rs 328 per share.

Brokerage - Morgan Stanley | Rating - Overweight | Target - Rs 292

Morgan Stanley said strong aluminium price outlook & backward integration continued to support momentum.

Aluminium business EBITDA was a slight miss whereas copper business EBITDA was better-than-expected, it added.

Godrej Properties

Brokerage - Macquarie | Rating - Neutral | Target - Rs 858

Macquarie said key takeaway from Q3 results of Godrej Properties was strong momentum in business development.

The research house has retained its Neutral rating on the stock with increased price target at Rs 858 (from Rs 650) as there is no change to EPS.

Pick-up in sales and debt reduction are key risks to the stock, it said.

Preferred picks in the space are Prestige Estates & Phoenix Mills, it said.

Ashok Leyland

Brokerage - Morgan Stanley | Rating - Overweight | Target - Rs 151

Morgan Stanley has upgraded Ashok Leyland to Overweight from equal-weight and raised target price to Rs 151 from Rs 101.30 per share.

"Volume recovering and we are 13 percent above consensus for FY20e. M&HCV growth has picked up but discounts remain close to all-time highs," it said.

The research house further said the demand recovery and high capacity utilisation will lead to pricing recovery while lower electric vehicle risk for commercial vehicles will provide long-term support for the stock.

Brokerage - Credit Suisse | Rating - Underperform | Target - Rs 103

Credit Suisse said Q3 results were in-line with expectations and volume growth at 42 percent was strong.

While Q3 volumes supported by one-offs, January volume was also appear healthy, it added.

The research house is concerned on rising competitive intensity in space, given Tata’s aggression. It expects company's EBITDA margin to decline over 60/40 bps in FY18/19.

Credit Suisse has maintained Underperform rating on the stock with increased target price at Rs 103 from Rs 98 per share.

Bajaj Auto

Brokerage - Morgan Stanley | Rating - Overweight | Target - Rs 3,785

Morgan Stanley said Bajaj Auto's Q3 results were tad below estimates and leverage gain should drive Q4 margin. Topline growth was 2.5 percent below forecast, it added.

The research house expects domestic motorcycle run-rate to pick up, aided by demand recovery, new launches.

Thyrocare

Brokerage - Nomura | Rating - Buy | Target - Rs 851

Nomura said Thyrocare's Q3 revenue/EBITDA/net profit growth at 5.5/14/3 percent was ahead of estimates. Pick-up in diagnostic services at 18 percent YoY is encouraging, it added.

It thinks long-term growth expectation will be key determinant of stock performance and expects over 20 percent revenue growth going forward with higher volume demand.

The research house has maintained Buy rating on the stock with target at Rs 851 per share.

Union Bank of India

Brokerage - Macquarie | Rating - Underperform | Target - Rs 101

Macquarie said Union Bank of India has reported yet another quarter of high provisions. Guidance on credit cost & slippages remain high while margin has been lowered, it added.

It expects full-year losses for FY18 at Rs 3,200 crore versus earlier estimates of Rs 550 crore loss.

FY19-20 EPS estimates cut of 52/21 percent look high due to small base, it feels.

National Company Law Tribunal case resolution is key catalyst for the stock.

The research house has maintained Underperform rating on the stock with reduced target price at Rs 101 from Rs 112 per share.

Brokerage - Nomura | Rating - Buy | Target - Rs 165

Nomura has upgraded Union Bank of India to Buy from Neutral but cut target price to Rs 165 from Rs 190 per share.

"Valuations get undemanding and the worst on asset quality is behind us," it said. It expects return on equities to normalise to over 9-9.5 percent.

Brokerage - Credit Suisse | Rating - Neutral | Target - Rs 140

Credit Suisse has maintained its Neutral rating on the stock and slashed target price to Rs 140 from Rs 159 per share.

"While overall loan growth was weak, retail growth was strong at 18 percent YoY," it said. Return on equities will remain low even after corporate stress is provided for, it added.

Info Edge

Brokerage - Morgan Stanley | Rating - Overweight | Target - Rs 1,900

While having Overweight rating on the stock with target price at Rs 1,900 per share, Morgan Stanley said the company reported robust revenue in core business and Zomato remained one of company’s key strategic investments.

Overall, the research house tweaked estimates for FY18-20 and expects FY18 growth for 99Acres & Jeevansathi to be 20 percent YoY.

Brokerage - Credit Suisse | Rating - Neutral | Target - Rs 1,310

Credit Suisse has downgraded the stock to Neutral from Outperform but raised target price to Rs 1,310 from Rs 1,300 per share.

Margin was strong but marketing costs should pick-up again in Q4, it feels.

MORE WILL UPDATE SOON!!

Buy, Sell, Hold: 6 stocks & 1 sector are on investors’ radar on January 30, 2018

HDFC, Tech Mahindra and KPIT Tech, among others, are being tracked by analysts on Tuesday.

   

HDFC

Brokerage: CLSA | Rating: Buy | Target: Rs 2,200

The global research firm said that an uptick in lending activity will lead growth & RoE. But, a rise in interest rates is a potential risk to spreads. The risk, it said, is due to rise in rates which can be mitigated by hike in corporate lending rates.

Brokerage: Motilal Oswal | Rating: Buy | Target: Rs 2,260

Motilal Oswal said that the company’s AUM growth continues to surprise; spreads stable QoQ. Further, it said that the company reported a steady quarter, with core PBT up 13 percent year on year. It observed that the firm has continued to surprise positively on the opex front. Retail loan growth impressive, despite intense competition & high base.

Tech Mahindra

Brokerage: CLSA | Rating: Sell | Target: Raised to Rs 500

CLSA said that Q3 results were ahead of expectation despite drag in Telecom, BFSI. It has upgraded margin estimates by 30-90 basis points, which is driving FY19/20 EPS upgrades. It also observed that the company’s margin expansion comes at cost of delayed wage hikes, persistent redundancies.

Brokerage: Motilal | Rating: Buy | Target: Rs 700

Motilal Oswal said that the firm put up a good show on profitability; visibility on further improvement remains strong. Further, it felt that opinion of a re-rating has only grown stronger after Q3.

Brokerage: Credit Suisse | Rating: Outperform | Target: Raised to Rs 720

Credit Suisse said that FY19 P/E was reasonable at 15x with estimated 16% EBIT CAGR over FY18-20. Further, enterprise business was solidly poised and should be a beneficiary of cyclical tailwind. It also said that Q3 is demonstrating that turnaround is well on track.

Inox Leisure

Brokerage: CLSA | Rating: Buy | Target: Rs 330

CLSA reported that the screen addition was slower and is still awaiting e-tax exemption clarity. Further, content pipeline for the current quarter appears to be strong. But it has downgraded FY18/19 EPS estimates by 13/6 percent.

Emami

Brokerage: Citi | Rating: Buy | Target: Rs 1,270

Citi said that the company’s Q3 missed expectations on account of subdued topline performance. Meanwhile, wholesale is yet to fully normalise, coupled with pressures in CSD. Rural recovery & efforts on sales & distribution needed for volume rebound, it said.

Orient Cement

Brokerage: Motilal Oswal | Rating: Buy | Target: Rs 179

Motilal Oswal said that the firm’s dismal performance was due to weak realisation. Further, JP Associates’ asset acquisition would help co raise capacity by 38%. It values the company at EV/tonnne of USD 86 on FY20 estimates.

KPIT Tech

Brokerage: Axis Cap

The brokerage house values Birlasoft merger as neutral for the company. It added that deal values Birlasoft at par with KPIT despite strong growth.

Autos

Brokerage: CLSA

CLSA said that sequential trends strong in trucks but a tad weak in PVs/2-wheelers, adding that passenger vehicle (PV) volumes grew at a modest 5% yoy. It also expects PVs/2-wheelers to grow 10%/14% yoy in fy18 & trucks, 3%. For FY19, it is factoring in 10% industry growth. For M&HCVs, it sees 3 percent year on year growth in FY18, but sees upside risk if current volumes sustain.

MORE WILL UPDATE SOON!!

Buy, Sell, Hold: 11 stocks are in focus on January 22, 2018

Kotak Mahindra Bank, RIL and HDFC Bank, among others, are being tracked by investors on Monday.

  

Brokerage: Nomura | Rating: Neutral | Target: Rs 1,150

Nomura said that miss on margin was netted off by better-than-expected profitability of cap market related. It sees growth picking up and that the bank continued to deliver on extracting cost efficiency. The brokerage expects core RoEs to inch up to 16% by FY20. It prefers HDFC Bank given relatively reasonable valuations.

Brokerage: Macquarie | Rating: Neutral | Target: Rs 1,111

The global research firm observed that the bank had a stable quarter; subsidiaries shine as cons net profit beats estimates. Further, its arms Kotak Sec, Kotak Cap saw net profit growth of 80%/400% YoY. Additionally, standalone net profit was 20% ahead of its estimates. Macquarie likes the bank but its valuations leave limited potential for upside. Going forward, loan growth pick-up, superior subsidiary performance key catalysts for the stock.

Brokerage: Deutsche Bank | Rating: Hold | Target: Raised to Rs 1,100

The global investment bank observed that CASA traction remains strong, investment in digital improving efficiency. Further, a delay in economic recovery is a key downside risk for the stock. Fast, profitable growth after merger key upside risks for the stock.

Jubilant Foodworks

Brokerage: Macquarie | Rating: Outperform | Target: Raised to Rs 2,581

Macquarie said that massive operating leverage the most impressive among otherwise excellent q3 numbers. Even On 2-yr CAGR basis, same-store-sales growth was healthy. Further, it believes that better affordability & product quality will continue to drive SSSG growth. The company was 32-40% ahead of consensus earnings; FY18 EPS is ahead of consensus FY19.

Brokerage: CLSA | Rating: Buy | Target: Raised to Rs 2,800

CLSA said that the multi-quarter high same-store-sales growth & margins, while EPS upgrade cycle continues. Slow expansion for both brands was on expected lines.

HDFC Bank

Brokerage: CLSA | Rating: Buy | Target: Rs 2,340

The brokerage expects 20% CAGR in earnings over FY17-20. Q3 PAT was In-line; encouraged to see 32% yoy growth in operating profit. CASA growth slowed albeit on a high base. Further, a planned capital raise will aid scope for network expansion.

Brokerage: Macquarie | Rating: Outperform | Target: Raised to Rs 2,676

Macquarie said that the firm is a strong compounding story with no asset quality issues. It has raised earnings estimates by 2-4% for Fy18-20.

Brokerage: Nomura | Rating: Buy | Target: Unchanged at Rs 2,350

Nomura expects the firm to delivery best in class PPOP growth over FY17-20. Current valuations of 18x fy20 EPS are not demanding.

Kansai Nerolac

Brokerage: CLSA | Rating: Outperform

CLSA said that impact of higher input prices evident in the company’s Q3, while margin is at multi-quarter low. Further hardening in input prices remains a concern. It also expects the company to offset hardening of input prices with price hikes. CLSA has trimmed forecasts by 2-3 percent.

ITC

Brokerage: Jefferies | Rating: Buy | Target: Raised to Rs 320

The brokerage observed that risk-reward for the stocks is favourable. Further, single-digit tax increase in cigarettes in budget will re-rate the stock.

Brokerage: Macquarie | Rating: Neutral | Target: Rs 304

The brokerage said that cigarettes volume remains under pressure and have cut estimates by 2 percent due to lower realisation. There is limited downside for the stock, have valuation support at current levels.

Brokerage: Deutsche Bank | Rating: Buy | Target: Raised to Rs 350

Deutsche Bank said that cigarette volume decline of 4% qoq was in-line with estimates. A high probability of rational tax increase may a potential re-rating event.

Reliance Industries

Brokerage: Deutsche Bank | Rating: Buy | Target: Rs 1,150

The global investment bank said that strong petchem performance drives EBITDA growth. Further, Jio’s result reflects continued momentum in subscriber additions. It expects EBITDA growth of 41% CAGR over FY17-19.

Brokerage: Credit Suisse | Target: Neutral | Target: Raised to Rs 855

Credit Suisse said that robust EBITDA growth to continue as expansions ramp up. It also raised FY18/19 estimates by 15/9 percent.

Adani Ports

Brokerage: Credit Suisse | Rating: Outperform | Target: Raised to Rs 480

The global research firm said that positive exim sector momentum buoys prospects.

ICICI Pru

Brokerage: Nomura| Rating: Buy | Target: Raised to Rs 540

The brokerage said that it is the preferred life insurance pick. VNB Margin Surprisingly Expands To 13.7% In 9MFY18 From 10.1% In FY17. It expects FY18 margin at 14.7% & long-term expectation at 16-16.5%.

HDFC Life

Brokerage: Nomura | Rating: Buy | Target: Rs 450

Nomura said that it expects steady performance to continue. Further, the firm is a long-term compounder with 20%+ roev. Current valuations should restrict near-term share performance

Wipro

Brokerage: Macquarie | Rating: Neutral | Target: Cut to Rs 290

Client-specific issues may keep co away from industrial level growth for 2-3 quarters. Management is optimistic on macro outlook for CY18.

Brokerage: Credit Suisse | Target: Neutral | Target: Rs 270

Credit Suisse said that Europe & financial performed well while energy has struggled. Client generating revenue of at least $50 m has increased 41 from 33.

HCL Tech

Brokerage: Macquarie | Rating: Outperform | Target: Rs 1,140

Macquarie said that pick up in deal momentum & continued investment in IP partnerships key takeaways. Further, it marginally lower EPS By 1%.

MORE WILL UPDATE SOON!!