Edelweiss

Articles By Edelweiss

585 Articles

Analyst corner | Maintain ‘buy’ on PVR, target price Rs 2,100

The company’s standalone performance also remained strong with NBOC, F&B and ad revenue jumping ~25%, ~31% and ~9% YoY, respectively, propelling revenue ~24% YoY.

Analyst corner, PVR, target price, PVR price, PVR share price, market news

ACC Rating | Buy — A stellar performance by the company

Calibrating 9mCY19 performance and the estimated recovery, we see limited risk to our CY19e and CY20e earnings. We also introduce CY21e earnings with modest 4% y-o-y Ebitda growth, implying flat Ebitda/t.

ACC, ACC cement, Rating, performance, company news, market news

Stock corner: Retain ‘buy’ on Mindtree, revised target price of Rs 853

We are enthused by the new management’s capability and believe Mindtree is firmly set to clock robust growth going forward. Led by the strong revenue momentum, despite corporate upheavals, we revise up FY20/FY21E revenue 3.

Stock corner, Mindtree, target price, EBITDA, market news, Mindtree share, Mindtree news, Mindtree News

Stock corner: Retain ‘hold’ on Wipro, target price of Rs 264

Digital’s revenue contribution at ~40% is comparable with industry leaders and the 16% QoQ growth in Q2FY20 more than makes up for revenue decline in the legacy business.

Markets News

Stock corner: Maintain ‘buy’ on HUL with target price of Rs 2,250

The company has partially ploughed back savings in gross margin into ad spends.

hul, hindustan unilever limited, hindustan unilever limited buy rating, HUL net profits, hul shares, hul stocks News

Stock corner: Maintain ‘reduce’ on Bharat Forge, target price Rs 370

Apart from doubling of defence and aerospace revenues (`4.8 bn in FY19), management estimates new artillery gun contracts to add ~`15-20 bn p.a. revenue over medium term.

Markets News

Stock corner: ‘Buy’ Cipla, showing likely to normalise from H2 onwards

Given the ~25% discount to five-years’ average PE, current valuations offer an attractive entry point; upgraded to ‘Buy’

Stock corner, Cipla, stock price, Gx business, Gx businesses at Cipla, TEE/TLD tender business, Emerging Markets News

Brigade enterprises rating: Buy; Company is primed for robust growth

Leverage levels, leasing trajectory for annuity assets and sale of stake in hospitality arm to govern showing; ‘Buy’ retained

Brigade enterprises rating, BEL share, Brigade Tech Gardens, RERA, WTC Chennai, Real Estate  News

Edelweiss: ‘Buy’ on M&M with target price of Rs 654 on Ford deal

On the other hand, key concerns are — increase in the already complex structure of the automotive business; no major near-term benefit; and lack of clarity on whether M&M will be able to leverage Ford’s petrol engine expe

Edelweiss, Mahindra & Mahindra, Ford India, BS VI transition, automotive business News

Maintain ‘buy’ on NMDC with target price of Rs 140

Outlook and valuation: A huge positive; maintain ‘buy’. The development removes headwinds to the stock performance.

Markets News

Sterlite Technologies Rating: Buy; IDS buy to boost EPS from first year itself

Sterlite has acquired an 80% stake at an EV of £12 mn, and it would acquire a 20% stake based on an earn-out model over the next few years.

Markets News

Edelweiss: Maintain ‘hold’ on Tata Steel with target price of Rs 400

Our analysis of TATA’s FY19 annual report indicates that while domestic operations continue to improve, UK operations remain a key concern.

Markets News

Consumer durables retail sales show weakness

Despite cost-push and weak retail demand affecting pricing power of brands , FY20 OPMs may not see a drag with companies already resorting to cost control (reduction in ad spends/ other expenses).

Industry News

Edelweiss: Cut in GST rates a definite positive for hotel sector

The GST Council in its recent meeting cut GST rates for the hotel sector across the board. The biggest cut came in the luxury category (>INR7,500/night) — to 18% from 28%.

Economy News

Edelweiss: Maintain ‘reduce’ on SAIL with target price of Rs 33

In our view, the government’s decis-ion brings to the fore the larger issue of potential delays in the scheduled bidding process in the domestic iron ore market. If the bidding process is delayed, we es-timate a shortfall o

SAIL, target price, market news,  SAIL mine, merchant iron ore sale, Donimalai, Steel Authority of India News

ACC Rating: Buy; Company tp benefit from sector tailwinds

The company’s continued drive towards premium products – 19% of total volumes in CY18 and targeted to reach 30% over the next few years – as well as expected savings (3% of PBT) from the master supply agreement (MSA) wi

ACC, ACC Rating, potential cost benefits, ACC fuel cost, global fuel rates, energy cost News

Container Corporation of India: ‘Hold’; TP at Rs 570, says Edelweiss

Despite this near-term pain, the Western DFC has the potential to double India’s container rail ecosystem, in our view.

Container Corporation of India, Edelweiss, Container Corp, rail volume, investors’ concerns News

V-Mart rating | Buy — Company is poised for growth

The V-Mart stock has slipped ~30% over the past four months. This we attribute to the company’s soft performance over the past two quarters amidst the general slowdown in the economy and weak equity markets (low liquidity).

Likely to bounce back in Q4; valuations offer a good entry point; ‘Buy’ retained News

Logistics: Expect margin contraction in FY20

Commentaries of large fleet owners hint at some tonnage growth, which implies gains from smaller fragmented truck owners.

Mahindra Logistics, Rivigo, Blackbuck, VRL Logistics, truckers core rental, freight rate, truckers fuel costs, Core rentals for trucking operations, demonetisation impact News

Coal India Rating: Buy; August output/offtake lowest in 3 years

Uptick is likely from Q3; while FY20 growth target is high, dividend yield and free cash flow are positives; ‘Buy’ retained

Coal India, SECL production, Mahanadi Coalfields Ltd, Bharat Coking Coal Ltd, Western Coalfields Ltd News

Edelweiss: Maintain ‘hold’ on Ambuja Cement, target price Rs 222

Given capacity constraints and weak industry demand, we expect cement volumes to be subdued in CY19.

Edelweiss, Ambuja Cement, Ambuja Cement target price, ACEM, Ambuja Cement sales News

GMR Infrastructure rating: Buy; Performance in quarter was a mixed bag

The government’s new payment security mechanism is expected to address the issue of delayed payments.

Markets News

Jindal Steel rating | Buy — Impressive Q1 result for the company

We believe JSPL is better placed than peers in a challenging price environment owing to its imminent production ramp-up and product mix improvement.

Markets News

Steel Authority of India Rating: Reduce; lower cost aided performance in quarter

SAIL’s relative performance is likely to remain subdued with expected Ebitda/t likely to remain at Rs 5,600 through to FY21e.

Markets News

Analyst Corner: Maintain ‘buy’ on NTPC with target price of Rs 158

Bucking the previous few years’ trend, the management expects a reversal in the CWIP ratio with 5GW capacity commercialisation annually over the next few years.

NTPC, NTPC share, NTPC share price, NTPC share price ntpc, shareholder nod, bonds, industry news, market news

Texmaco Rail: Maintain ‘Buy’ with TP of Rs 69

While we like the company’s diversified segmental presence, we moderate our order inflow and execution assumptions due to the ongoing economic slowdown and slower traction in railway EPC projects.

Texmaco Rail,Texmaco Rail share, Texmaco Rail buy, stock market, share market News

Ultratech Cement rating | Buy — Performance beat estimates once again

Consolidated grey cement volumes rose only 2.6% y-o-y to 18.5mt owing to weak industry demand. Given the weak demand scenario, we have trimmed volumes by 5% for FY20e and 3% for FY21e.

Ultratech Cement, Ultratech Cement rating, Ultratech cement ltd, Ultratech share, Ultratech cement price, Ultratech cement share News