Broker Radar for January 25

Check out the stock commentaries and recommendations from brokerage houses.

Jan 25, 2019 08:01 IST India Infoline News Service

Stock Broker Working At Office
CLSA maintained ‘Buy’ on Yes Bank; hiked TP to Rs280 from Rs260.
  • Steady operating results and IL&FS pushes-up NPLs.
  • New CEO comes with strong corporate banking experience.
  • Clarity on strategy and capital raise could drive a rerating.
UBS Maintained ‘Sell’ on Yes Bank with a TP of Rs150.
  • CEO announcement positive; NPL and liabilities still a concern.
  •  RBI divergence report a key near-term catalyst.
  •  Due to NPL risks and wholesale funding believe risk-reward is unfavourable.
• Macquarie maintained ‘Outperform’ on Yes Bank with with a TP of Rs310.
  • Appointment of Ravneet Gill removes the uncertainty.
  • December quarter’s net profit down due to miss on other income and provisions taken against IL&FS exposure.
  • Catalyst: divergence report, new MD’s strategic directions.
CLSA Maintained ‘Sell’ on UltraTech Cement with a TP of Rs3,150.
  • December quarter results were results broadly in-line – net earnings ahead.
  • Unit Ebitda down to multi-quarter low.
  • Management commentary was more cautious on cement pricing.
Macquarie maintained ‘Outperform’ on Ultratech Cement with a TP of Rs4,420.
  • December quarter reivew: Weak margins, but worst behind.
  • Cost deflation to benefit from Q4, demand remains robust.
  • UltraTech to outperform market growth and gain market share in the next two financial years.
Investec maintained ‘Buy’ on Ultratech Cement; cut TP to Rs4,118 from Rs4,284.
  • EBITDA complicated on arms-length Binani transfer, lack of disclosures.
  • Management turned less optimistic noting surplus capacity and challenging price environment.
  • Preferred large cap play; to trade at premium valuations going forward.
UBS on Indian Auto Sector
  • See potential headwinds to demand growth with safety norms for premium two wheelers and BS-VI.
  • Expect 10-20% price increases for two wheelers over FY18-21 causing a slowdown in all segments.
  • Bosch is not a material gainer from BS-VI as it has a limited presence in exhaust after treatment.
  • Ashok will need to adopt selective catalytic reduction system; it may see sharper cost increases.
  • Petrol to offset diesel decline in car market.
  • HeroMoto Corp: Downgraded to ‘Sell’ from ‘Buy’; cut TP to Rs2,650 from Rs3,500.
  • Bosch: Downgraded to ‘Sell’ from ‘Neutral’; cut TP to Rs15,500 from Rs21,000.
  • Ashok Leyland: Maintained ‘Sell’; cut TP to Rs80 from Rs95.
  • Eicher Motors: Maintained ‘Sell’; cut TP to Rs19,000 from Rs20,000.
  • Bajaj Auto: Maintained ‘Sell’; cut TP to Rs2,300 from Rs2,400.
  • Maruti Suzuki: Maintained ‘Buy’ with a TP of Rs9,000.
  • M&M: Maintained ‘Buy’ with a TP of Rs950.
Investec Maintained ‘Buy’on PNB Housing; hiked TP to Rs960 from Rs935.
  • Good performance in a volatile environment.
  • Strong loan growth; Stable asset quality.
  • Spreads decline due to increase in cost of funds.
  • CLSA Maintained ‘Buy ‘on Colgate with a TP of Rs1,575.
  • December quarter marked acceleration in growth rates with healthy margins.
  • There may be some concern on margins in near term due to rise in key input prices.
  • Remain assured on Colgate’s pricing power and see no risk to earnings forecasts.
(As per media reports)

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