Broker Radar for March 13

Check out the stock commentaries and recommendations from brokerage houses.

Mar 13, 2019 02:03 IST India Infoline News Service

Citi maintained ‘Buy’ on Maruti Suzuki and hiked a TP to Rs8,300 from Rs7,600.
  • Increase valuation multiple as we believe that earnings downgrades could trough over 2019-20.
  • Falling fuel prices and interest rates also, bolster confidence.
  • Expect slight volume pick up post elections and into the festive season.
Citi maintained ‘Neutral’ on Kotak Mahindra Bank with a TP of Rs1,340.
  • Promoters willing to cut stake by May 2020.
  • RBI concerned about its authority being undermined.
  • Believe that potential options for dilution are raise capital, stake sale or acquisition.
HSBC maintained ‘Hold’ on Tata Motors and hiked a TP to Rs190 from Rs170.
  • See limited downside to FY20/21 JLR volume estimates now. Margins remain highly contingent on cost-cutting and Brexit.
  • Valuing JLR at a premium to peers such as BMW.
Credit Suisse maintained on Pidilite ‘Neutral’; hiked a TP to Rs1,125 from Rs950.
  • Strong outlook for 2019-20 as margin pressures are behind.
  • Gross margins should see a significant improvement starting March quarter Price hikes and lower input cost to aid margins.
HSBC initiated ‘Reduce’ on Ramco Cement with a TP of Rs540.
  • Pricing power is elusive, along with the rest of the industry.
  • Will struggle to raise prices much above cost inflation to improve returns.
  • Capex programme to raise grinding capacity does not improve backward integration.
CLSA upgraded to ‘Buy’ from ‘Sell’ on DLF; hiked a TP to Rs229 from Rs167.
  • Leasing business to deliver double-digit growth with stable balance sheet.
  • Development business has achieved stability.
  • Higher price target reflects higher value to land-bank and lower capital rates.
CLSA maintained ‘Outperform’ on Nestle; hiked a TP to Rs11,750 from Rs11,500.
  • Annual report shows advertisement spends at a 15-year high.
  • Multi-year high return ratios; double-digit growth in FCF.
  • Commentary suggests that virtuous cycle of growth has begun at Nestle.
HSBC maintained ‘Hold’ on CG Power with a TP of Rs34.
  • CG Power made a series of announcements oriented towards generating greater investor confidence.
  • Step in right direction, but it leaves some ambiguity and there is still a lot to be done.
  • Investors still looking for clarity on sale of Hungary operations.
Citi maintained ‘Buy’ on Dilip Buildcon; hiked a TP to Rs761 from Rs725.
  • Guidance for 2019-20: Margins in 17-18% band; sales at Rs11,500cr.
  • Management expects significant order wins in the second half of the next financial year.
  • Expects improvement in balance sheet with net debt to equity guidance of 0.7-0.8 times in 2019-20.
Source: Media Reports

Related Story