Broker Radar for February 11

Check out the stock commentaries and recommendations from brokerage houses.

Feb 11, 2019 08:02 IST India Infoline News Service

CLSA maintained ‘Outperform’ on Aurobindo Pharma with a TP of Rs820 
  • December quarter was in line and reported a healthy growth in the US region.
  • Focus in 2019-20 will be to integrate recent acquisitions.
  • Performance of these acquisitions could drive a rerating.
CLSA  maintained ‘Buy’ on Sun TV with a TP of Rs770
  • Big beat on subscriptions, advertisement revenues and movies.
  • Growing focus on SunNxt. Management confident of breaking even in two years.
  • Stock inexpensive at a 30% discount to five-year average.
CLSA maintained ‘Buy’ on Dr. Lal PathLabs with a TP of Rs1,320 
  • Margin missed in December quarter; Volume-led growth focus to continue.
  • City-specific approach to expand in West and South.
  • Catalysts: Kolkata region growth and volume/realisation growth.
CLSA maintained ‘Sell’ on United Spirits ; cut TP to Rs450 from Rs500
  • Negatives: rising input prices, difficulty in product price hikes.
  • Recent commentary from USL, Diageo and Radico Khaitan points to uncertainty ahead.
  • Stress on state fiscal adds to further risks of higher taxation on liquor.
 CLSA maintained ‘Buy’ on Gujarat Gas ; cut TP to Rs150 from Rs156. 
  • Big beat driven by margin surprise.
  • Volume growth disappoints.
  • Soft LNG price is a tailwind for 2019.
Nomura downgraded Cummins India to ‘Neutral’ from ‘Buy’; cut TP to Rs765 from Rs890
  • Weaker exports and poll-related infra award slowdown to impact gross margins.
  • Turning cautious on weak export outlook.
  • Revival in infra awarding activity is a key upside risk.
Citi  maintained ‘Buy’ on Balkrishna Industries with a TP of Rs1,200
  • December quarter review: Operationally in-line;
  • Net profit hit by forex losses.
  • Unchanged volume guidance somewhat allays demand concerns.
  • Expect healthy RoEs and if volumes recover stock could rerate. 
JPMorgan maintained ‘Neutral’ on Alkem Labs; hiked TP to Rs1,800 from Rs1,750
  • December quarter missed estimates on weak India revenue;
  • International report another strong quarter 
  • Management expects normalization in India business in coming quarters. 
  • Mid-term margin outlook of 18% seem to indicate gradual improvement.
CLSA maintained ‘Sell’ on BPCL; hiked TP to Rs 300 from Rs 240
  • Strong refining and lower inventory loss drive December quarter’s earnings beat estimates.
  • Marketing segment sees market share losses in key fuels.
  • Weak benchmark GRMs and upcoming elections are headwinds.
Source: Media Reports

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