Broker Radar for August 19

Check out the stock commentaries and recommendations from brokerage houses.

Aug 19, 2019 03:08 IST India Infoline News Service

CLSA maintained ‘Buy’ on Maruti Suzuki; cut TP to Rs7,200 from Rs7,400.
  • Cut the financial year 2020-21 EPS by 8-10% on lower volumes.
  • Demand weak but passenger vehicles better placed for recovery. Demand recovery should lift margins; commodity prices tailwind.
  • Maruti is the best way to play Indian auto recovery.
Credit Suisse on financial stocks:
  • Credit growth now slowing at private banks along with non-banking finance companies.
  • Non-corporate slippages inch up, recoveries remain low.
  • ICICI Bank, Axis Bank and HDFC Bank are preferred picks. HDFC, LIC Housing, MM Financial have preferred NBFC picks.

JP Morgan maintained ‘Overweight’ on Indian Hotels with a TP of Rs175.
  • Sufficient margin levers to deliver double-digit earnings growth.
  • Significant focus on cost improvement to drive margin improvement.
  • Expect the hotel cycle to improve in the second half of the financial year 2020 onwards.
  • Focus on growing the network in an asset-light manner
JP Morgan maintained ‘Neutral’ on Lemon Tree Hotels; cut TP to Rs62 from Rs78.
  • Cautious of a potentially soft second quarter and new asset commissioning impact.
  • Time for another long-term visit may be some time away.
  • Expect ARRs to improve in the seasonally strong second half of the financial year 2020.
Source: Media reports

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