Broker Radar for May 15

Check out the stock commentaries and recommendations from brokerage houses.

May 15, 2019 02:05 IST India Infoline News Service

CLSA maintained ‘Outperform’ on Nestle with a TP of Rs11,750.
  • March quarter results were below estimates; weak margins.
  • Decent domestic revenue growth.
  • Gross margins contracted to 6-quarter low signalling input cost pressures.
Credit Suisse initiated ‘Outperform’ on Aarti Industries with a TP of Rs2,000.
  • To benefit from the structural, upcycle underway in the Indian chemicals industry.
  • Strong track record makes it a preferred partner for clients.
  • Higher volumes from the several capex initiatives to drive EBIT.
Credit Suisse initiated ‘Outperform’ on PI Industries with a TP of Rs1,300.
  • Order backlog unwinding to be a key driver. Increased R&D activity to result into revenue.
  • Tailwinds for a key product Pyroxasulfone.
CLSA maintained ‘Buy’ on Westlife Development; cut TP to Rs450 from Rs550.
  • March quarter earnings were slightly ahead on better than expected margins.
  • SSSG at 5.6% was the key disappointment.
  • Cut estimates for the current and the next financial year on growth concerns and lower SSSG.
UBS maintained ‘Neutral’ on SRF; hiked TP to Rs2,760 from Rs2,560.
  • Strong comeback by chemical segment.
  • Headwinds in packaging and technical textile segment.
  • Increase estimates on better specialty chemical division.
Morgan Stanley maintained ‘Overweight’ on Edelweiss with a TP of Rs235.
  • Net profit was in-line with estimates.
  • Credit business – some sequential pickup in asset growth, stable bad loans and likely drop in impairment costs.
  • Franchise & advisory businesses – moderation in growth.
Macquarie maintained ‘Outperform’ on Pidilite Industries with a TP of Rs1,474.
  • Growth moderation in domestic market.
  • Gross margin continues to remain under pressure.
  • Expect recovery in sales growth in domestic market post elections.
Source: Media Reports

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