Broker Radar for March 27

Check out the stock commentaries and recommendations from brokerage houses.

Mar 27, 2019 08:03 IST India Infoline News Service

Morgan Stanley maintained ‘Underweight’ on Mindtree with a TP of Rs761.
  • Lack of alignment between founders and L&T group has created uncertainty on the deal outcome.
  • Important to monitor: Mindtree's independent committee’s recommendation on May 10.
  • Best-case could be an alignment between the founders of Mindtree and L&T.
JPMorgan maintained ‘Overweight’ on Infosys with a TP of Rs750.
  • Guidance should reduce stock price volatility, but the perception among investors that guidance makes the Infosys stock more volatile is gaining ground.
  • Impact on intrinsic shareholder returns is immaterial irrespective of guidance.
  • Expect Infosys to guide for 8-10% CC growth and EBIT margin of 21-23% for 2019-20.

Macquarie upgraded to ‘Outperform’ from ‘Neutral’ on Strides Pharma; hiked a TP to Rs532 from Rs486.
  • Expect the US to be a key margin driver aided by market share gains and strong launch pipeline.
  • Expect strong visibility in regulated markets and improved margins in branded Africa.
  • Expect lower debt and improved Ebitda to net profit translation from April.
BofAML downgraded to ‘Underperform’ from ‘Neutral’ on Pidilite; hiked a TP to Rs1,080 from Rs920.
  • Stock baking in aggressive growth; minimal room for error.
  • Strong volume growth to sustain and 2019-20 EPS growth to be optically strong due to a low base.
  • Cut EPS estimates by 12-17% to factor in weaker margins and roll forward the target.
BofAML downgraded to ‘Neutral’ from ‘Buy’ on Power Grid Corp
  • Maintained a TP at Rs225. Slowing EPS growth and high valuation offer limited upside.
  • See risk of litigations from IPPs to pay relinquishments.
  • Any dispute could put 60% of Power Grid’s EPS under risk.
Deutsche Bank maintained ‘Sell’ on Jain Irrigation; cut a TP to Rs56 from Rs65.
  • Caught in a debt trap as working capital and interest payments are eating into cash flows.
  • Net debt rising due to aggressive growth pursuit; Leverage rise to 4.1 times.
  • Core retail micro irrigation business remains challenged.
HSBC maintained ‘Buy’ on GAIL with a TP of Rs487.
  • Concerns on GAIL’s LNG portfolio are overdone.
  • Key catalyst of tariff hike appears overlooked.
  • Earnings outlook remains robust; Valuations attractive.
HSBC maintained ‘Hold’ on Tech Mahindra; hiked a TP to Rs840 from Rs780.
  • 5G opportunity is distant, while pressure on legacy business could impact growth.
  • Margins are up 600 bps in 2 years; near peak levels with limited upside.
  • Stock reasonably priced, with limited upside triggers.
Source: Media Reports

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