Broker Radar for January 24

Check out the stock commentaries and recommendations from brokerage houses.

Jan 24, 2019 02:01 IST India Infoline News Service

Stock Broker Working At Office
CLSA maintained ‘Outperform’ on Bharti Infratel with a TP of Rs315.
  • December quarter results were ahead of estimates; cost controls support margins.
  • Rise in rent per operator driving revenue surprise.
  • Expect tenancy growth to return.
UBS maintained ‘Buy’ on Bharti Infratel with a TP of Rs355.
  • December quarter beat estimates aided by better rental realisation and exit charge
  • Ebitda growth driven both by higher revenues and lower opex.
  • Shares are attractively valued.
CLSA maintained ‘Buy’ on ITC with a TP of Rs 400.
  • Operating performance broadly in-line.
  • Strong cigarette volume growth; estimate cigarette volume growth at 8%.
  • Strong FMCG and paperboard but Agri remains a drag.
Macquarie Maintained ‘Outperform’ on ITC with a TP of Rs376.
  • Cigarette volumes growth of 8% for December quarter; strong volume recovery is cornerstone of turnaround.
  • Believe pressure on cigarette margins will subside going forward.
  • Strong performance in rest of the businesses.
Macquarie Maintained ‘Underperform’ on United Spirits with a TP of Rs511
  • Operating income missed due to lower gross margin; consensus downgrades likely.
  • Believe pressure on gross margin is due to higher input cost inflation and lower pricing.
  • Expect A&P spend to remain high on higher competitive intensity.
JPMorgan Maintained ‘Overweight’ on United Spirits with a TP of Rs680.
  • Unexciting operational performance.
  • Gross margin moderation on a sequential basis was a negative.
  • Margins declined due to higher cost of goods, price reductions and higher trade spend.
Morgan Stanley Maintained ‘Overweight’ on United Spirits with a TP of Rs700.
  • Strong revenues, but margins disappoint.
  • Continue strong volume growth momentum in the 'Prestige and above' segment.
  • Flat gross margins, however, disappointed in December quarter.
JPMorgan maintained ‘Underweight’ on InterGlobe Aviation with a TP of Rs940.
  • Yield improved, but load factor was the offsetting factor in RASK.
  • Positive spread, however, below long cycle average levels.
  • Management commentary constructive on outlook as well.

Morgan Stanley Maintained ‘Overweight’ on Interglobe Aviation with a TP of Rs1,311.
  • Indigo's profits missed estimate on lower volumes.
  • Inflection in the yield trend is a larger positive.
  • Risk/reward is attractive at current levels.
CLSA Maintained ‘Buy’ on Oberoi Realty; hiked TP to Rs543 from Rs481.
  • Results below estimates on project mix change.
  • Price target hiked to reflect lower cap rates and discount rates.
 CLSA Maintained ‘Sell’ on Tata Motors with a TP of Rs150.
  • Tata’s India business value has cyclically peaked.
  •  Brexit uncertainty rising with no deal thus far and March deadline approaching.
  • JLR volumes remain under pressure.
Macquarie Maintained ‘Outperform’on Ujjivan; hiked TP to Rs350 from Rs290.
  • Strong performance across metrics.
  • Company did not see a liquidity crunch and foresees no impact from loan waivers.
  • No change to EPS; roll forward target to 2020-21.
JPMorgan Maintained ‘Neutral’ on Pidilite with a TP of Rs1,120.
  • Earnings miss on sharp margin contraction despite revenue beat.
  • Margin delivery weighed down by input cost inflation.
  • Margin miss likely drive earnings downgrades, but sequentially expect margins to start moving up.
(As per media reports) 

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