Articles By Edelweiss

800 Articles

Tata Power rating – Buy: Policy tweak a positive for Mundra plant

Room for ~50% upside in valuation of solar biz; ‘Buy’ maintained with TP of Rs 170

Tata Motors rating – Buy: TPG deal a positive surprise for company

It will address cash flow needs of EV segment; biz tailwinds should improve B/S; TP raised to Rs 539 from Rs 397; ‘Buy’ retained

Analyst Corner: Retain ‘buy’ on Adani Ports as it expands warehousing operations

APSEZ’s mega play in the WH business is a natural fit for its overall operations and for becoming integrated logistics player.

In our view, the WH business is a natural fit and logical extension of APSEZ’s growing logistics business. Maintain ‘buy’.

Metals & Mining: Q2 Preview — Earnings momentum expected to lose steam

H2 likely to be much better with consensus earnings upgrades; Tata Steel, JSPL and Vedanta are top picks

Operations Inside A Tata Steel Ltd Plant As Thyssenkrupp AG Joint Venture Talks Held

Real Estate: September numbers for Mumbai a positive

Likely revival in city sales will benefit Godrej, Oberoi, Sunteck and Macrotech

Apartments with value of more than Rs 10 mn logged brisk sales. YTD registrations at ~86,000 units are up ~3x y-o-y off a low base.

Godrej Consumer Products rating – Buy: Indonesia outlook bright in medium term

Firm to build on recovery in the country; growth in global business, margin expansion are key; TP up to Rs 1,200; ‘Buy’ retained

GCPL aims to grow Indonesia business revenue in double digits over the medium term while maintaining margins.

Zee Entertainment rating – Buy: Deal likely to address most concerns

Merger with Sony to fill gaps in ZEEL’s portfolio; near-term volatility is expected; TP up to Rs 428; ‘Buy’ maintained

Zee Entertainment rating - Buy: Deal likely to address most concerns

Britannia Industries rating – Buy: Firm to continue growing ahead of peers

Any weakness in stock due to weaker demand in Q2 can be an opportunity; TP raised to Rs 4,670; ‘Buy’ rating maintained

Even so, we argue any weakness in the stock due to likely QoQ weaker demand in Q2FY22 (off a strong base) can be an opportunity to add. We list out the key reasons for our rationale.

Analyst Corner: Maintain ‘buy’ on Sterlite Tech with TP of Rs 386

Maintain ‘BUY’ with Rs 386 target price.

We believe prudent investments have helped Sterlite expand in adjacent areas and the company is in a sweet spot bolstered by its strengthened capabilities and accelerated network investments. (Representative image)

Zee Entertainment rating – Buy: Stock likely to be volatile in near term

Prospects improving; firm likely to regain mkt share as issues get addressed; ‘Buy’ retained with TP of Rs 343

Maintain ‘Buy’ on ZEE as it is an unlock play and likely to recoup market share while board-related concerns get addressed.

PI Industries: Maintain ‘hold’ with a TP of Rs 3,506

Meanwhile, watch out for execution in pharma APIs. Retain ‘hold’ with a TP of Rs3,506 (48x Q3FY23E EPS).

Gujarat Gas rating – Buy: Sharp price hike to aid profitability

Double-digit volume growth likely to be sustained; ‘Buy’ retained with TP of Rs 942

GGL will need to hike CNG prices by

Analyst Corner – SBI Life Insurance: Retain ‘buy’, ULIPs have sustained demand

However, by Q2FY22 expect growth to be back in black. ULIPs have sustained strong demand on the back of capital market outperformance.

Operational challenges such as managing activations across the massive branch network and management continuity given its PSU parentage

Sobha Rating ‘Buy’: A decent performance in the face of odds

Debt reduction continued; buoyancy in sales likely to be sustained; TP raised to `709; ‘Buy’ maintained

Info Edge rating – Hold: Steady set of numbers in the first quarter

FY23e EPS up 13% due to stronger demand; TP raised to Rs 5,981; ‘Hold’ retained

While real estate segment was impacted due to lockdowns, return to normalcy will drive growth.

Voltas rating – Buy: Muted show in the first quarter of FY22

Competitive edge is intact; scale-up in Voltbek JV is key; TP up to Rs 1250; Buy retained

UPL rating – Buy: Agri sector tailwinds lift Q1 numbers

Ebitda growth of above 10% estimated in FY22; TP up to Rs 1,019; ‘Buy’ retained

Upgrade Sun Pharma to ‘buy’ with TP of ₹950

We upgrade SUNP to ‘BUY’ as: i) Ilumya outperformance and Cequa’s strong recovery to help mitigate Absorica loss; b) Winlevi boost to derma portfolio to monetise Absorica salesforce; c) gRevlimid launch in FY23, broad-b

We raise FY23E EPS by 27% due to core business improvement, gRevlimid and Winlevi. Raise multiple to 28x on consolidated EPS to account for near-term specialty losses that yields revised SOTP-based TP of ₹950.

DLF rating – Buy: Resilient show by company in face of odds

Healthy cash flow led to cut in debt; TP up to Rs 403 given sales trajectory; Buy retained

Cash flow improved at Devco; consequently, net debt declined by Rs 1.4 bn QoQ (net D/E at 0.13x).

UltraTech Cement rating – Buy: Yet another stellar performance by firm

Prospects for sector have improved; FY22/23e Ebitda up ~7%; upgraded to ‘Buy’ with TP rising to Rs 8,627

Factoring in firm underlying cement prices, we are raising FY22e and FY23e Ebitda by ~7% each. Our revised Ebitda/t is Rs 1,417 for FY22e and Rs 1,402 for FY23e vis-à-vis Rs 1,338 in FY21.

Hindustan Unilever Rating: Buy – Volumes were strong despite Covid wave

Growth broad-based across segments; margins likely to improve in H2; ‘Buy’ rating retained with TP of Rs 2,900

NMDC rating – BUY: Demerger of steel plant is a sound trigger

Move could be prelude to its divestment; street likely to attribute value to plant; TP up to Rs 215; upgraded to Buy

Mindtree rating – Buy: Strong set of numbers in first quarter of fiscal

Double-digit growth likely in FY22 on back of demand and robust execution; ‘Buy’ retained with TP of Rs 2,850

Metals & Mining: Q1FY22 preview – Another blockbuster quarter in the offing

Ferrous firms likely to fare better; but lower volumes & higher costs to be a drag; Tata Steel is placed the best

Sadbhav Engineering rating – NR: Order inflows, execution are major concerns

Asset monetisation, debt reduction needed to revive business; coverage discontinued

Asset monetisation and deleveraging are urgently needed for operations to recover. We are discontinuing coverage; our last recommendation was ‘BUY’.

Tata Motors rating – Buy: Semiconductor shortage to hit volumes

Problem is expected to persist till Q3; demand outlook’s best ever; FY22e PAT cut by ~65%; TP down to Rs 405; ‘Buy’ retained

Analyst Corner – Crompton Consumer: Retain ‘buy/so’ with TP of Rs 477

Investor perception and ask matters. Even as Crompton lagged many peers on growth (5Y) given majority matured segments, low B2B exposure and low TAM, translation (PAT, cash) has been better.

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