Articles By Edelweiss

614 Articles

Bajaj Auto: Upgrade to ‘Buy/SO’ with target price of Rs 3,651 – Edelweiss

While low-hanging fruits have been absorbed in domestic and export markets, we believe the management still retains unwavering focus on market share.

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Stock corner: ‘Buy’ Tech Mahindra, revival of telecom biz to drive growth

While margin levers such as automation and off-shoring remain, we believe FY20 margin will be lower than FY19 owing to higher costs incurred due to deal ramp-ups and a slow start to the year (H1FY20 margin down 210bps y-o-y).

Telecom is seeing sustained demand; this, coupled with a stable enterprise business, should help TechM deliver robust revenue growth. News

Retail: Festive, wedding season could lead to steady Q3

Festive and wedding season could lead to steady Q3; Trent, ABFRL, FLF & JFL top picks.

retail, retail sector News

Persistent Systems Rating: Maintain buy with target price of Rs 739

The company is actively chasing projects which have a sizeable offshore component, which should boost profitability.

edelweiss, economy News

Q2FY20 Earnings review: A moderate quarter on operational front

Given the demand scenario, FY20 earnings forecasts clearly at risk; global-oriented firms are better poised for recovery.

pat, pat growth News

Stock corner: ‘Buy’ Sadbhav Engineering, performance in the quarter a mixed bag

The ongoing economic slowdown dragged toll collection in the BOT portfolio by 2% y-o-y. Incremental order-wins, ramp-up in execution, and conclusion of the BOT stake sale process is key to stock performance in our view.

Work has now begun on the Kim Ankleshwar project while two more HAM projects are expected to receive appointed date (AD) in Q3FY20/Q4FY20. News

Edelweiss: ‘Maintain ‘buy’ on NTPC with TP of Rs 150

Taking a cue from NTPC’s superior returns in Koldam, there is ample potential to soup up operational and financial efficiency (e.g. 150bps reduction in Kd).

The project would add 15% to NTPC’s regulated equity base. News

Britannia Industries Rating: Buy; Performance was ahead of the industry

New launches gaining traction; outperformance is likely to be sustained; TP revised to Rs 3,588

New categories fared well, aiding Britannia’s journey towards becoming a total foods company. News

Stock corner: Maintain ‘buy’ on Zee Entertainment with target price of Rs 443

Despite multiple setbacks for the group over the past 12 months (group-level issues, new regulatory framework, ad slowdown), ZEE sustained a strong business performance.

Previously, 96% of the promoters’ stake was pledged in ZEE and the group had ~INR70bn worth of shares pledged. News

Vodafone Idea stock ‘under review’, Q2FY20 operating performance along expected lines

In our view, given the potentially dire repercussions of AGR liabilities, the government may intervene, but the nature of its solution/support has wide-ranging possibilities and, given Idea’s leverage, the impact thereof co

Vodafone Idea, Vodafone Idea stock, Q2FY20, Vodafone Idea news, Vodafone Idea share, Vodafone Idea india, Vodafone Idea share price News

Stock corner: ‘Buy’ Coal India, FSA realisation drove performance in Q2FY20

Going ahead, we expect CIL’s earnings to rise as product mix shift towards non-power customers is likely to keep FSA realisation at the current level and volume is likely to expand at MCL & SECL.

Stock corner, Coal India, FSA, performance, Coal india ltd, coal india share, coal india limited, coal india stock price, coal india news, coal india nse, coal india bse News

Bharti Airtel stock: Maintain ‘buy’, revised target price of Rs 425

The company expects relief from the government and is also considering a review petition. We believe, the AGR order impacts Vodafone Idea the most, impairing its ability to invest in network.

Bharti Airtel stock, Bharti Airtel buy , Bharti Airtel target price, market news, Bharti Airtel news, Bharti Airtel share,Bharti Airtel ltd News

NTPC rating | Buy — Bottomline boosted by surcharge income

During Q2FY20, NTPC’s generation declined by 6.5%, in line with the industry’s decline. Management attributed weaker generation primarily to the tepid economic activity in the country and hence lacklustre demand, apart fr

NTPC,NTPC rating, NTPC surcharge income, NTPC buy, market news, discom, coal News

Stock corner: SpiceJet top pick in aviation space; target price cut 4.9% to Rs 160

SpiceJet’s (SJ) Q2FY20 EBITDAR (adjusted for forex loss) of Rs. 1.4bn came below estimate due to lower yield.

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Stock corner: Maintain ‘buy’ on M&M with target price of Rs 676

Mahindra & Mahindra’s (M&M) Q2FY20 Ebitda at Rs. 1,540 crore (down 16.7%) came 7% ahead of consensus driven by better product mix, price increase and tight leash on cost.

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Stock corner: ‘Buy’ Eicher Motors, Q2FY20 results were in line with estimates

Product upgrade cycle is key; host of positives behind 5% rise in FY20e EPS; TP up to Rs. 25,019; ‘Buy’ retained.

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Stock corner: ‘Hold’ Bharat Electronics, an overall miss for company in the quarter

FY20/21e EPS down 4% each; limited near-term triggers; ‘Hold’ maintained.

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Stock corner: Maintain ‘buy’ on Infosys, target price at Rs 955

Nilekani said Infosys remains committed to practicing the highest level of corporate governance and its response to the recent whistleblower allegations adheres to the company’s policy.

Infosys, Nandan Nilekani, Salil Parekh, Infosys finance team, corporate governance, Infosys shares News

Stock corner: Maintain ‘buy’ on Dabur, target price at Rs 527

Adjusted PAT growth of 17.5% Y-o-Y surpassed our expectations due to a lower effective tax rate (11.6% in Q2FY20 versus 20.3% in Q2FY19).

Stock corner, Dabur India, EBITDA growth, HPC segment, rural distribution, PAT growth News

Stock corner: Maintain ‘buy’ on JSPL with target price of Rs 145

In our view, cost reduction and the ongoing volume ramp-up are a double bonanza for JSPL.

Stock corner, JSPL, JSPL target price, Ebitda, Gare Palma, coal procurement cost News

Stock corner: ‘Hold’ Container Corporation of India, Q2FY20 numbers were weak

Hold and cut TP to Rs 570 (from Rs 600) as we revise down FY20/21e EPS 18%/13% to factor in a weak FY20 and the Ind AS 116 impact.

container corporation of india, cci News

Stock corner: ‘Buy’ on Shoppers Stop, performance in the quarter was subdued

Headed in right direction; FY20e PAT down 18% due to tax change; TP cut to Rs 454

shoppers stop, shoppers stop stocks News

Rallis India rating | Hold — Q2 was weaker than expected

Margins are likely to be under pressure; FY20/21e EPS down 15/9%; TP revised to Rs 154.

rallies, agriculture sector, agriculture industry News

Analyst corner: Respite, if not recovery, in sight for domestic steel prices

On the global front, HRC exports by both Japanese and South Korean producers remain unchanged at $415/t for the third consecutive week.

steel, steel sector, steel prices, ICEX News

Stock corner: ‘Buy’ Asian Paints, high ad spend offset volume growth in Q2

While benign RM costs led to 257bps y-o-y gross margin expansion, initial factory costs and ad spends jumped—staff and other expenses up 16.3% and 20.7% y-o-y, respectively – resulting in Ebitda growing mere 60bps y-o-y.

Painting industry was impacted owing to prolonged monsoon. News

Axis Bank Rating| Buy- Core operating performance was strong in Q2FY20

While asset quality can be volatile ahead, we believe steps taken to de-risk strategy, strengthen liability and operating efficiency can help Axis turn in an RoE of 15–16% (even after recent equity raising).

Capital buffer and weaker competition should allow company to capture opportunities; TP raised to Rs 850 News

Stock corner: Maintain ‘hold’ on Oberoi Realty; target price Rs 582

Thane and Goregaon Phase 3 projects’ launch has been pushed to Q4FY20 and Q1FY21, respectively (earlier expected in Q3FY20); we believe, sales traction in these projects will be key stock drive

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