Broker Radar for June 20

Check out the stock commentaries and recommendations from brokerage houses.

Jun 20, 2019 02:06 IST India Infoline News Service

CLSA on HDFC-Apollo Munich:
  • Acquisition to help HDFC deepen its presence in health insurance.
  • Synergies and cost savings post-merger will be key to improve profitability.
  • Combined entity might need capital infusion to support growth.
CLSA maintained ‘Sell’ on Asian Paints with a TP of Rs1,285.
  • Slight deterioration of RoE and working capital has seen in 2018-19; Strong FCF Several new launches – outlook a bit cautious.
  • Margin optics to undergo a change.
Goldman Sachs upgraded to ‘Neutral’ from ‘Sell’ on Vodafone Idea; maintained TP at Rs12.
  • Upgrade as risk-reward balance post recent correction. Market share remains under pressure.
  • Existing cash to help meet capex/debt/interest obligations till 2020-21.
  • Free cash flow to stay negative until 2021-22.
Citi upgraded to ‘Buy’ from ‘Neutral’ on Tata Power; cut TP to Rs76 from Rs77.
  • Upgrade on stock underperformance; stock is not expensive any more.
  • Mundra UMPP resolution has reached its end game.
  • Non-core asset divestment set to pick up the pace.
Nomura maintained ‘Neutral’ on Adani Ports; hiked TP to Rs460 from Rs380.
  • Lowering promoter pledge and commitment to higher dividend payout policy are positives.
  • Improving the financial health of Adani Power reduces the need for support from Adani Ports.
  • Strong growth outlook already priced in.
UBS on Oil & Gas: Refining and crude face uncertainties, RIL and OMCs could be safe havens.
  • Emerge as prime beneficiaries of IMO 2020 regulations. Integration of refining into marketing could improve their ability to absorb earnings bumps.
  • See easing political headwinds post the May general elections.
  • BPCL: Maintained ‘Buy’; hiked TP to Rs600 from Rs415. 
  • HPCL: Maintained ‘Buy’; hiked TP to Rs445 from Rs315.
  • IOCL: Maintained ‘Buy’; hiked TP to Rs200 from Rs185. 
  • Chennai Petroleum: Maintained ‘Buy’; cut TP to Rs370 from Rs400.
  • MRPL: Maintained ‘Neutral’; cut TP to Rs68 from Rs83.
  • Reliance Industries: Maintained ‘Buy’ with a TP of Rs1,500.
Nomura maintained ‘Buy’ on LIC Housing Finance; hiked TP to Rs 640 from Rs 500.
  • Liquidity is not challenged; rate cycle favourable.
  • Core mortgage growth should gradually pick-up.
  • Asset quality has been a dampener.

Source: Media reports

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