Broker Radar for September 11

Check out the stock commentaries and recommendations from brokerage houses.

Sep 11, 2019 03:09 IST India Infoline News Service

CLSA maintained ‘Sell’ on Ashok Leyland; cut TP to Rs40 from Rs50.
  • Truck slowdown intensifying; risk of an elongated down cycle.
  • Past two truck down cycles lasted 27-28 months.
  • Too early and too expensive to call for a stock bottom.
Credit Suisse maintained ‘Outperform’ on Tech Mahindra; hiked TP to Rs800 from Rs730.
  • Hike EPS estimates by 3-7% for FY20-22 due to higher growth and recent INR depreciation.
  • Telecom business is amidst a strong recovery since the last four quarters.
  • The confident telecom business is well placed to achieve high single-digit growth in the current financial year.
Jefferies maintained ‘Buy’ on UPL; cut TP to Rs745 from Rs780.
  • Choppy near term; robust long term. Interim hiccups should be ironed out by business synergies & accretive cash flows. 
  • Cut EPS estimates by 13%, 5% and 3% for the current and the next two financial years respectively to factor in a slower pace of synergy accruals and higher adjustments.
HSBC maintained ‘Buy’ on Escorts; cut TP to Rs770 from Rs980.
  • Tractor demand may bottom out in H2 as 3 states should see pick up in monsoons.
  • The slowdown in construction activity leads to falling in rural labour prices which is negative.
  • TP cut led by lower valuation multiple due to demand deterioration.
Macquarie maintained ‘Outperform’ on NCC; cut TP to Rs108 from Rs122.
  • Affordable housing project to start in December quarter. Balance sheet in decent shape; working capital to gradually reduce.
  • Cut EPS by 16% and 10% respectively for the current and the next financial year to factor in the slowdown in Andhra Pradesh.
  • Still remains best mid-cap pick in the construction space.
HSBC maintained ‘Hold’ on Glenmark Pharma; cut TP to Rs435 from Rs480.
  • Efforts were ongoing to unlock value after reorganising business in three distinct entities.
  • Stake sale in API and non-core assets to reduce debt but timing is uncertain.
  • Notable operational performance and value unlocking key trigger.
Goldman Sachs upgraded to ‘Buy’ from ‘Neutral’ on Bandhan Bank; hiked TP to Rs615 from Rs594.
  • Asset quality overdone; benefit from moderating interest rates.
  • Benign asset quality and healthy loan growth to drive profitability.
  • Expect net profit CAGR of 30% over FY20-22 largely on higher margins.
Source: Media reports

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