Broker Radar for February 8

Check out the stock commentaries and recommendations from brokerage houses.

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

CLSA maintained ‘Sell’ on Tata Motors with a TP of Rs150.
  • Another big miss at JLR, a large asset impairment and weak commentary.
  • JLR: a weak demand outlook, a margin guidance cut and Brexit fears.
UBS maintained ‘Neutral’ on Tata Motors with a TP of Rs200.
  • December quarter review– China reset weighs on JLR margin;
  • India profitability holds up. Impairment supports future EPS but not cash flow.
  • Volume growth to remain elusive; company cuts margin guidance.
Nomura On RBI Monetary: RBI surprises with a 25 basis point rate cut
  • Neutral stance provides further policy flexibility.
  • RBI continues to sound optimistic, in contrast to our assessment of weak global growth.
  • Governor’s statement that “there is room to act” clearly suggests this is not a one and done cut.
CLSA maintained ‘Sell’ on Grasim Industries with a TP of Rs700.
  • Broadly in-line results despite cost pressures in VSF.
  • Grasim’s participation in Vodafone Idea rights issue will be limited to its shareholding.
  • Current capacity overhang of 31% is expected to narrow with demand remaining strong.
Morgan Stanley maintained ‘Equal-weight’ on Grasim Industries with a TP of Rs958.
  • Domestic VSF business remains on firm footing with strong demand growth and stable realisation.
  • Focus remains on share of value-added product in both businesses and capacity expansion.
  • Balance sheet is healthy with net cash of Rs1,000cr.
CLSA maintained ‘Buy’ on Cadila Healthcare; cut TP to Rs400 from Rs430.
  • December quarter results were ahead of estimates.
  • Well-identified long-term drivers, execution is the key.
HSBC maintained ‘Buy’ on Cadila Healthcare; cut TP to Rs400 from Rs420.
  • Cadila reported highest-ever quarterly U.S. sales with large contribution from gAndroGel.
  • Despite high sales base, believe the U.S. outlook remains steady on new launches.
  • Expect good execution in US, long-term pick-up in India and emerging markets.
(As per media reports)

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