Articles By Edelweiss

674 Articles

Sunteck Realty rating: Buy — Pandemic hurt bookings in first quarter

Attractive outlook; launches and pre-sales to drive stock trajectory; ‘Buy’ maintained

Tech Mahindra rating: Buy — Company performed better than expected

While growth revival may take some time, execution and cost focus are likely to lift earnings; TP up to Rs 902

We believe, while 5G spends have been put off for a year, the enterprise business should recover strongly.

ICICI Bank rating: Maintain with target price of Rs 525

ICICI Bank’s (ICICI) Q1FY21 PAT of Rs 26 billion came broadly in line with estimate.

ICICI Bank rating, Covid-19, bank moratorium book, HDFC, headline asset quality , credit cost, systemic asset quality, latest news on ICICI bank

Bajaj Finserv rating: Hold — A soft performance in the first quarter of fiscal

BFL and BALIC income dip hit results; TP up toRs 7,200 given markedly higher CMP for BFL; upgraded to ‘Hold.’

Axis Bank rating: Hold — Core performance was soft in Q1

While there were lower slippages in quarter, uncertainty persists on asset front; ‘Hold’ retained with TP of Rs 460

Unpredictable future— Axis’s performance has been volatile on the asset front despite significant liability gains.

SBI Life rating: Buy with target price of Rs 1,010

Incrementally competitive protection pricing has the potential to boost margins through product mix. This adds 100 bps on a sustainable basis to our earlier estimated ‘steady-state RoEV’ of 18%.

Cyient Rating: Buy — Quarter showing beat expectations

Cyient’s Q1FY21 revenue fell 12.5% q-o-q owing to >20% q-o-q dip in its A&D, utilities and semi-conductors businesses. While the DLM business grew ~8% q-o-q, its small base could not offset the decline in services.

HCL Tech rating: Maintain ‘buy’ revised target price of Rs 952

The three takeaways are reinstatement of guidance at 1.5–2.5% CQGR for the remaining quarters of FY21E implies 1–2% decline for the year.

Analyst Corner, HCL Technologies, EBTIDA margin, HCLT, covid-19 lockdown, HCLT revenue,market news

Bajaj Consumer Care rating: Hold — Q1 performance was below estimates

The hair oil segment took a severe beating; recovery is likely to be gradual; ‘Hold’ retained with TP of Rs 195

Federal Bank rating: Buy — Performance in first quarter was steady

Spike in slippages expected in H2FY21/H1FY22; ‘Buy’ retained given valuations

With moratorium still high at 24%, of which ~50% have not paid a single EMI in this period, we see them as harbingers of—as we expect—higher slippages/credit cost in H2FY21/H1FY22.

SAIL rating: Reduce — Sharp rise in stock price unjustified

Q4 Ebitda slightly below estimate; earnings likely to be under pressure; Reduce retained

L&T rating: Buy with revised target price of Rs 1,826

The plunge in gross margin is attributable to an almost 800bps q-o-q drop in utilisation, which management attributed to their decision to maintain capacity for future execution.

Indian Energy Exchange rating ‘buy’ – volumes saw healthy growth in Q1 FY21

RTM numbers in first month boost growth prospects; ‘Buy’ maintained with TP of Rs 220

We have realigned our volumes without changing the overall volume growth.

Analyst Corner: Retain ‘hold’ on NBCC; revised target price Rs 27

NBCC posted weak set of numbers in Q4FY20 (partly due to covid-19) with top line falling 17% YoY to Rs 26 bn; while EBITDA margin plunged 300bps YoY to 2%, PAT declined 42% YoY.

Analyst Corner, NBCC, EBITDA, realty monetisation, NBCC revenue growth

Jindal Steel & Power Rating buy: Operating performance a cause for cheer

Volumes grew despite Covid-19 in Q1; JSPL in a sweet spot, likely to outdo peers in the quarter; ‘Buy’ retained with TP of `190

Jindal Steel & Power Rating, COVID-19,JSPL performance, Jindal Shadeed

Analyst Corner: ONGC rating ‘buy’ – Impairment loss hit the bottomline

While outlook for oil production is muted, KG-98/2 will boost gas output; valuations inexpensive; ‘Buy’ retained

Motherson Sumi rating: Maintain ‘buy’ with target price of Rs 117

While the simplified business structure is welcome, our prima facie calculations indicate that management is assuming a sharp turnaround in current hotspots.

Our initial calculations indicate that the drop in MS’ profit share is ~7% for FY19.

Bharat Electronics rating: Buy — A robust performance in the final quarter

Near-term concerns largely addressed; FY21/22e EPS up 14/9%; TP raised to Rs 110 given growth visibility

BEL, despite a high base in Q4FY19, posted 50% sales jump led by execution of LRSAM/IACC, reflecting poor gross margin, but better absorption of fixed costs and overheads.

ITC rating: Hold — Covid-19 hit volumes in core business

FMCG segment showed resilience in quarter; with ESG gaining salience, more is needed for a re-rating; ‘Hold’ maintained

Ebitda margin (up 108bps y-o-y) of the FMCG business expanded for eighth consecutive quarter.

Asian Paints rating: Buy — Covid marred volumes in Q4

Benign RM prices should continue to aid margin; outlook bright given operational capability; ‘Buy’ maintained

Divergence in value and volume growth persisted due to higher sales of lower-end products, leading to 8.4% y-o-y standalone value dip.

India Cements rating: Maintain ‘reduce’ with target price of Rs 75

Due to COVID-19 impact, cement volumes plunged 21% YoY (down 11% for FY20). We estimate volumes to dip another 7% in FY21 before recovering 19% in FY22.

GAIL rating: Maintain ‘buy’ with target price of Rs 133

Overall, FY21E shall be impacted by COVID, but not acutely as volumes have already revived to ~90% of normal after the sharp downturn in April.

Balkrishna Industries rating: Reduce — Good performance in the final quarter

Margin tailwinds ahead but volumes likely to be flat in FY21; FY21/22e EPS cut by 12/10%; ‘Reduce’ retained.

Analyst Corner| Bajaj Consumer: Maintain ‘hold’ with TP of Rs 167

Bajaj Consumer Care’s (Bajaj) Q4FY20 revenue, EBITDA and PAT dip of 28.6%, 69.6% and 59.6% YoY, respectively, came below our estimates.

Bajaj Consumer Care, EBITDA, COVID-19, Bajaj Nomarks brand, bajaj performance, dabur

Analyst Corner: Brigade Enterprises rating ‘buy’ – Strong run continued in Q4FY20

Firm’s capacity to manage cash flows in a challenging FY21 will be vital; ‘Buy’ retained.

Maintain Buy with revised TP of Rs 192 ( Rs 187 earlier) as we roll forward valuations to September 2021e.

Ashoka Buildcon rating: Buy — Covid hit execution in Q4

FY21/22e EPS raised by 124/209% due to higher margins and debt reduction

Incremental order wins and monetisation in Ashoka Concessions (ACL) will be key stock catalysts, in our view.

‘Buy’ on Fortis Healthcare with target price of Rs 160

We estimate cost savings coupled with improvement in occupancy and case mix could help FORH navigate the Covid-19 crisis and emerge strong.

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