Articles By Edelweiss

561 Articles

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.

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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.

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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.

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Analyst corner: Maintain ‘buy’ on CESC with revised TP of Rs 880

CESC‘s Q1FY20 standalone operating performance broadly met ours and consensus estimates.

Overall sales inched up 8% YoY to 3.0BU with higher proportion of power purchase units. (Representational image) News

HCL Technologies rating: Buy; a brisk start to the new fiscal

Management has maintained FY20 revenue growth guidance of 14–16% (cc), out of which 6% is expected to be inorganic.

Aggressive amortisation of intangible assets remains an overhang, but the stock is attractively priced at 13.4x FY20e EPS in our view. News

Analyst corner: Manitain’Reduce’ on Bharat Forge with TP of Rs 370

Management is now pinning hopes on pick up in aerospace, oil & gas, PV and new capacities over ensuing quarters for QoQ growth in revenue and EBITDA.

This was led by sharp dip in industrial ex-ports, apart from generally slowing do-mestic automotive segment. News

Tata Steel Rating: Hold; Europe pulled down Q1 performance

Factoring in currently low steel prices and demand outlook, we are lowering FY20/21e HRC price by 5%/2%, which knocks down Ebitda by 13%/2%. Maintain ‘HOLD/SP’ with a revised target price of Rs 430 (earlier Rs 520) on an

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Titan company rating: buy; Volumes took a hit due to gold prices

Tanishq is targeting addition of 70 stores in FY20. Losses in Carat Lane are continuously coming down, and it is moving towards profitability in the near future.

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Bharti Airtel ratings | Buy — Q1 numbers were reassuring

Despite 3.4% q-o-q increase in India revenue, Bharti’s India opex was flat, demonstrating operating leverage of the business model.

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Analyst corner | Maintain ‘buy’ on M&M, target price at Rs 637

M&M is currently battling multiple headwinds, simultaneous weakness in automotive and FES segment; and perception challenge on its ability to ensure a smooth transition to BS VI given its higher share of diesel portfolio.

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Analyst corner | Maintain ‘hold’ on Cipla, target price at Rs 500

The tender business which accounts for ~30% of exports revenue declined 27% YoY, on continuing headwinds from lack of funding by global funds in malaria & ARV, accompanied by pricing pressure amid rising competition.

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Retain ‘hold’ on JSW Energy with target price at Rs 72

Current proportion of capacity under long-term (LT) PPA contracts stands at 81.4%. On capex, management indicated that the committed amount for FY20 currently is at `1.5 billion, which is likely to boost FCF beyond `10 billio

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Exide Industries: Maintain ‘buy’ with TP of Rs 237

Gross margin jumped 200 bps YoY (up 50 bps QoQ) on soft lead price and better product mix.

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Analyst Corner: Maintain ‘buy’ on ITC, target price at Rs 336

Compared to global peers, where staples trade at a premium of 35% to cigarette companies, the premium in India is 65%, which should narrow. Hence, we maintain ‘BUY/SP’ with target price of `336.

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Hero Motocorp rating: Hold; Q1 was in line with expectations

Demand outlook remains subdued; success in two segments is key to stock’s re-rating; TP cut to `2,498

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PNB rating | Reduce — Q1 better than expected but trouble persist

Continued weakness in business momentum: This was evident from 8% q-o-q contraction in loan growth, mainly stemming from a 7.7% q-o-q drop in domestic advances.

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Trent: Maintain ‘Buy’ with TP of Rs 488

Trent reported Q1FY20 standalone revenue growth of 29.9% y-o-y, well ahead of our estimate, while Westside’s revenue shot up 21% y-o-y – the gap implies strong revenue traction at Zudio continues (likely >2.5x y-o-y reve

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Vodafone Idea Rating ‘hold’: Company is losing SIM consolidation battle

Due to weak Q1 and slower 4G numbers, FY20/21e adjusted Ebitda down 34.3/30.8%; TP cut to Rs 7.

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Welspun: Maintain ‘buy’ with a target price of Rs 72

Welspun India (WLSI) posted good Q1FY20 numbers with Ebitda and PAT surpassing estimates at 10%/13%, respectively.

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Supreme Industries: Maintain ‘reduce’ with TP of Rs 923

Supreme Industries (SIL) continued to report disappointing numbers with volatile raw material price triggered inventory loss denting Q1FY20 profitability.

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Havells: Maintain ‘buy/SO’ with lower TP of Rs 785

Havells missed Q1FY20 growth estimates with languid infrastructure activity and weak room AC sales cooling off Lloyd’s top line and high employee cost driving the deeper bottom-line underperformance.

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Vedanta: Maintain ‘hold/SP’ with TP unchanged at Rs 175

Vedanta (VEDL) reported Q1FY20 Ebitda of Rs 52 billion (down 17% year-on-year), missing consensus.

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Tata Motors Rating: Hold; Subdued performance across the business

Company faces multiple headwinds; demand outlook is challenging, making cost control critical; TP down to Rs 156.

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ICICI Lombard rating | Q1 results in keeping with expectations

Company poised to build on its leadership position; ‘Buy’ retained with TP of `1,300

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Analyst Corner: Maintain ‘hold’ on Tata Steel with target price of Rs 520

Despite demand headwinds from auto sector weakness, TS-BSL reported better-than-expected Ebitda of Rs 9,100/t.

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Hindustan Zinc rating: Hold; Performance in quarter met estimates

While HZL’s volumes are expected to rise and cost of production decline, Zn prices are likely to offset gains; ‘Hold’ maintained

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Just Dial: ‘Hold’ with target price of Rs 740

JD’s engagement matrices remain healthy marked by strong growth of 12.2% QoQ/24.7% YoY in unique visitors and mobile traffic growth of 13.3% QoQ/35.5% YoY.

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