Broker Radar for May 27

Check out the stock commentaries and recommendations from brokerage houses.

May 27, 2019 02:05 IST India Infoline News Service

CLSA on NBFC:
  • Tighter liquidity norms to put pressure on margins/growth.
  • NBFCs with ALM gaps, lower ratings, and higher funding cost are worse off.
  • Negative spreads on G-Secs can be in a wide 200-400 basis points range. HDFC remains our top pick in this space.
CLSA maintained ‘Sell’ on Ashok Leyland with a TP of Rs65.
  • Subdued Q4; stock too expensive for a looming downturn. Product mix weakening post new axle norms.
  • Market share peaking after year years of gains; competition to intensify in a slowdown.
Jefferies maintained ‘Buy’ on IGL with a TP of Rs340.
  • Volume growth stronger than expected; margins below estimates.
  • Expected margins to improve but rise in gross margins were offset by higher staff costs.
Nomura maintained ‘Buy’ on IGL with a TP of Rs400.
  • March quarter review is ahead driven by solid 17%volume growth.
  • Remains a key beneficiary of the government’s/judiciary’s focus on the pollution in Delhi NCR.
  • IGL could surprise with higher volume growth for longer.
Jefferies maintained ‘Hold’ on Whirlpool; cut price target to Rs1,560 from Rs1,625.
  • March quarter review: Steady quarter; most positives priced in at current valuations. Management indicated softness in demand in March and a possibility of commodity headwinds going ahead.
  • Cut FY20/21 EPS estimates by 3-4%, factoring in concerns from the rising competition, amidst softness in demand environment.
Deutsche Bank Research maintained ‘Buy’ on Grasim with a TP of Rs1,075.
  • March quarter results disappointed on weaker margins.
  • VSF margin impacted by large capacity addition by Sateri. Capacity expansion to be RoE accretive.
CLSA maintained ‘Buy’ on Dish TV; cut TP to Rs60 from Rs70.
  • March quarter results were below estimates impacted by TRAIs new tariff regime. Migration impacts ARPU and additions.
  • Essel Group deleveraging will be a key trigger for the stock.
  • Management has guided for 2019-20 margins to expand by 180 basis points to 35%.
Source: Media reports

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