Articles By Edelweiss

751 Articles

ICICI Prudential Life: Maintain ‘buy’ with target price of Rs 790

ICICI Prudential Life (IPru Life) reported NBP/APE growth of 23%/27% YoY in Q4FY21, following 3 straight quarters of decline. March month’s APE growth of 108% YoY was a standout.

ICICI Prudential Life, APE growth, Positive investment variance, maintain buy, ULIP growth

Tata Power Rating: Buy; Primed for sustainable and clean growth

Sunrise segments pushing growth; huge scope to improve ESG rating given firm’s focus; TP raised to Rs 120; ‘Buy’ maintained

IT Sector: Q4FY21 preview- A robust fourth quarter in offing

1.5–5.2% q-o-q growth estimated in cc terms; upgrades in consensus forecasts likely

Meanwhile, Street would have to catch up with estimates revisions.

Initiate with ‘buy’ on Alkem Lab; target price Rs 3,315

Alkem boasts best-in-class domestic anti-infectives portfolio and leadership in multiple GI and vitamin sub-therapies. Its Chronic base is small, but growing at 18-20%.

Vedanta Rating: Hold; Edelweiss says concerns persist for the company

Despite sweetened deal, full tendering of shares may be difficult; near-term volatility is possible; ‘Hold’ retained

All in all, we retain ‘HOLD/SP’ on Vedanta with a TP of Rs 186, implying 3x Q1FY23e Ebitda. Our recommendation also factors in a dividend yield of 9%.

United Spirits Rating: Hold, Edelweiss says the worst is over for the company

Home delivery is structurally positive; competition, taxes are concerns; ‘Hold’ retained

We look forward to any strategic changes by Hina Nagarajan, who will take over as CEO from 1st July, 2021.

Analyst Corner: Maintain ‘buy’ on Coal India with target price of Rs 185

Coal India (CIL) posted a 7% YoY decrease each in its Feb-21 production and offtake. Key points Larger subsidiaries MCL and SECL lagged.

coal india

Vesuvius India Rating ‘Hold’; Performance was subdued in relative terms

Margins were hit sharply in CY20; company regaining market share is key; TP up to Rs 1,092; ‘Hold’ retained

Production at large steel mills has recovered from the pandemic-led uncertainty. We await VIL’s growth to catch up with large steel mills’ production led by its sharpened R&D focus and new product offerings.

Edelweiss maintains ‘buy/SO’ on ABFRL with target price of ₹224

The business of casualwear remains the group’s cash cow, generating ₹3bn in annual FCF for the last five years. Growth opportunities still available (targeting 3,750 new stores over FY21–26E) driven by new concepts such

Maintain ‘buy’ on Nestle India with TP of Rs 21,110

Nestlé India (Nestlé) has been among the most consistent performers, clocking double-digit domestic sales growth in 12 of the past 13 quarters.


Sunteck Realty Rating: Buy – A robust third quarter for the company

Strong launch pipeline is likely to boost sales; healthy leverage’s another positive; ‘Buy’ rating maintained

By H1FY22, SRL intends to launch projects in Vasai and Vasind as well as the new phase in Naigaon (Phase III).

Sadbhav Engineering Rating: Buy; execution, order book got a boost

Toll collections rose 11% y-o-y; outlook is positive; TP raised to Rs 94; ‘Buy’ maintained

Nestle India rating: Buy; revenues in line, margin slipped in the quarter

Double-digit growth in domestic revenue yet again; firm’s strategy panning out well; TP cut to Rs 21,110 due to margin miss; Buy retained

Shares of Nestle India Ltd on Tuesday settled at Rs 17,086.25 on BSE, down 0.02 per cent from the previous close.

Eicher Motors: Maintain ‘hold’ with TP of Rs 3,075

Q3FY21, Operating performance in line EIM’s standalone revenue and EBITDA of ~Rs 28bn and Rs 6.6bn, respectively, came broadly in line with our estimates.

Gujarat Gas Rating: buy- Results beat consensus view by a wide margin

Volumes were at an all-time high; FY21/22/23e EPS up 41/37/34%; TP raised to Rs 500; ‘Buy’ maintained

Q3 volumes came at 11.4mmscmd, which should rise to 11.8mmscmd in Q4FY21E.

NTPC: Retain ‘buy’ with a TP of Rs 145; performance is expected lines

In our view, the key concern — a deteriorating balance sheet profile — has begun to recede. Furthermore, capacity commercialisation of 11GW over the next two years is likely drive a strong 15% earnings CAGR. The stock’s


Bank of Baroda Rating: buy-Performance is on improving trajectory

Sustenance is key; 3/5/7% rise in FY21/22/23e BV; TP raised to Rs 88; ‘Buy’ retained

Asset quality outlook remains key risk to watch out for.

Infosys Rating: buy- Another strong performance by the company

Numbers were sound across verticals; mgmt has raised guidance; TP up to Rs 2,124 given the revenue growth, execution; ‘Buy’ retained

The company again raised its revenue guidance, to 4.5–5% (in cc); management also edged up the margin guidance to 24–24.5%.

Real Estate: Q4CY20 buoyancy is likely to be sustained

Quarter saw 72/52% q-o-q growth in housing sales and office leasing; DLF and Brigade are the top picks

Still some distance to cover—While demand showed signs of recovery (up 52% q-o-q in Q4CY20), it was still down 44% y-o-y compared to CY19 peak.

Maintain ‘buy’ on Wipro with increased TP of Rs 550

Outlook and valuation: Solid execution; maintain ‘BUY’. The strategy execution by the new CEO is now beginning to bear fruit. The stock is trading at 20.7x FY22E.

Wipro, wipro shares, investment in wipro shares

Analyst Corner: Maintain ‘buy’ on Nestle India with TP of Rs 21,796

With normalcy fast returning in modern trade (MT) and out-of-home (OOH) consumption, along with consolidation in favour of more trusted brands within home consumption, we believe Nestle is by far the best placed foods company


Analyst corner: Maintain ‘hold’ on Avenue Supermarts with TP of Rs 2,864

In addition to opening fulfilment centres and entering Pune, DMart entered three more cities during the quarter.

Dmart, Avenue Supermarts, EBITDA margin t, Maintain Hold, EBITDA jumping 16%YoY

Adani Ports and SEZ Rating: buy- Momentum in volumes is likely to be sustained

Recovery far sharper than expected; Covid-19 has boosted firm’s dominance; FY21-23e EPS up 10%; TP raised to Rs 600; Buy retained

We believe the volume rebound is less attributable to pent-up demand and is sustainable.

Dabur India Rating: Buy- Multiple positive levers are in place

Focus on market share gains visible; firm likely to clock strong volume growth in CY21; TP revised to Rs 665; ‘Buy’ maintained

We believe Dabur is well placed to capitalise on consumers’ rising preference for herbal & natural products and e-commerce.

Analyst Corner: ‘Buy’ on Indraprastha Gas with TP of Rs 593

The new MD believes recent open access regulation is favourable for CGD incumbents as well, which will sustain profitability.

Indraprastha Gas,CNG

Jindal Stainless rating: Buy; merger of JSHL to help firm attain critical mass

Stronger B/S and simplified capital structure expected to be additional drivers; Buy retained with TP of Rs 85

Coal India: Maintain ‘buy’ with target price of Rs 158

Coal India’s (CIL’s) December 2020 operating performance was subdued with offtake down 2% year on year (YoY) to 52.6mt, while production volume was slightly up at 58.3mt.

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