Broker Radar for March 18

Check out the stock commentaries and recommendations from brokerage houses.

Mar 18, 2019 08:03 IST India Infoline News Service

CLSA maintained ‘Sell’ on Lupin; cut a TP to Rs730 from Rs760.
  • Lupin faces significant regulatory challenges.
  • Somerset accounts for 5-7% of total sales and 25% of ANDAs pending approvals.
  • Removing Somerset launches from estimates leads to 6-7% EPS cut for FY20-21.
CLSA on Cement:
  • 1% change in cement prices impacts FY20 EPS estimates by 5-8%.
  • Industry behaviour and discipline are key pricing drivers.
  • Strong demand should result in better pricing but trends suggest a limited correlation.
  • Pricing not exactly predictable and hence pricing volatility is here to stay. Positive on the sector with Ramco, Shree and ACC as top bets.
CLSA on Infrastructure:
  • Newly approved projects will support new order book till new government settles in.
  • Projects approvals are 64% infrastructure and 33% of power projects, and all are well-funded.
  • Business visibility is near an all-time high, stocks are trading at low valuations.
Source: Media reports

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