Articles By Edelweiss

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Analyst Corner: Maintain ‘buy’ on Nestle India with TP of Rs 21,796

With normalcy fast returning in modern trade (MT) and out-of-home (OOH) consumption, along with consolidation in favour of more trusted brands within home consumption, we believe Nestle is by far the best placed foods company


Analyst corner: Maintain ‘hold’ on Avenue Supermarts with TP of Rs 2,864

In addition to opening fulfilment centres and entering Pune, DMart entered three more cities during the quarter.

Dmart, Avenue Supermarts, EBITDA margin t, Maintain Hold, EBITDA jumping 16%YoY

Adani Ports and SEZ Rating: buy- Momentum in volumes is likely to be sustained

Recovery far sharper than expected; Covid-19 has boosted firm’s dominance; FY21-23e EPS up 10%; TP raised to Rs 600; Buy retained

We believe the volume rebound is less attributable to pent-up demand and is sustainable.

Dabur India Rating: Buy- Multiple positive levers are in place

Focus on market share gains visible; firm likely to clock strong volume growth in CY21; TP revised to Rs 665; ‘Buy’ maintained

We believe Dabur is well placed to capitalise on consumers’ rising preference for herbal & natural products and e-commerce.

Analyst Corner: ‘Buy’ on Indraprastha Gas with TP of Rs 593

The new MD believes recent open access regulation is favourable for CGD incumbents as well, which will sustain profitability.

Indraprastha Gas,CNG

Jindal Stainless rating: Buy; merger of JSHL to help firm attain critical mass

Stronger B/S and simplified capital structure expected to be additional drivers; Buy retained with TP of Rs 85

Coal India: Maintain ‘buy’ with target price of Rs 158

Coal India’s (CIL’s) December 2020 operating performance was subdued with offtake down 2% year on year (YoY) to 52.6mt, while production volume was slightly up at 58.3mt.

Analyst Corner: Maintain ‘buy’ on Ambuja Cement with TP of Rs 293

Roll-over of the fee on existing terms will delight investors given Street’s concern of a potential increase in the same. The development is in line with our expectation.

Ambuja cements, technical and know-how agreement, Holcim Technology, ACEM board, energy optimisation (use of alternate fuels), manufacturing excellence, procurement, commercial excellence, innovation, sustainability and safety

Tata Power Rating: buy Company is primed for sustainable growth

Shedding of past legacy & focus on sunrise biz boost outlook; FY21-23e EPS up 20-30%; TP raised to Rs 95

Retain ‘buy’ on Exide Industries with revised TP of Rs 220

Exides’s sales grew slower than competition over the last three quarters owing to late operationalisation of its plants.

Maintain ‘buy’ on Pidilite with revised TP of Rs 1,860

We would draw parallels here with how HUL scaled up Indulekha -- post acquisition, Indulekha’s sales jumped 4-5x in a few years.

Page Industries a ‘hold’ after WRAP’s re-certification

We believe WRAP’s re-certification and, most importantly, a statement from Jockey, should settle the uncertainty related to the issue. However, we retain our call on the company being unable to retain market share. Hence, m

L&T Infotech: Maintain ‘buy’ with target price of Rs 4,197

The company has decided to create a cloud sales unit and three independent business units for each of the three hyper-scalers — AWS, Azure and GCP (Google cloud platform).

HRRL is a joint venture between Hindustan Petroleum Corporation (HPCL) and the government of Rajasthan with an equity participation of 74% and 26% respectively.

Analyst corner: Maintain ‘buy’ on UPL with target price of Rs 615

Management has highlighted strong progress of cropping season across global markets. Rise in commodity prices along with demand recovery across ATAM and South-East Asia is helping UPL gain market share.

Analyst Corner: Supreme Industries in sweet spot, ‘buy’ with TP of Rs 1,995

Supreme Industries’ (SIL) management’s outlook, during our recent interaction, appeared more positive vis-a-vis previous quarter.

Maintain buy on Tata Motors with revised TP of Rs 215

Potential GBP depreciation and reducing import content (from EU) should be also beneficial. Beyond Brexit, JLR continues to stay on course while India (M&HCVs) is primed for a Super Recovery and a sharp PV turnaround.

We also expect better capex planning so that its Ebitda stays higher than capex, regardless of demand environment.

Gujarat Gas Rating: Buy; volumes at an all-time high in November

Long term margin guidance up to Rs 5/SCM; growth prospects are bright; ‘Buy’ retained with TP of Rs 373

Reiterate ‘buy/SO’ on Reddy’s Lab with TP of Rs 5,730

We hosted DR. Reddy’s at Edelweiss India e-Conference 2020,Asia Pacific.

Maintain ‘buy’ on Wipro with unchanged TP of Rs 467

The CEO explained the five strategic priorities, but also focussed on his strategy of prioritising and deprioritising sectors and markets, bringing in a chief growth officer, creating a large deals team and leveraging strateg

Retain ‘buy’ on Mahanagar Gas with TP of Rs 1,241

Capex guidance for FY21 remains at ~Rs 5 billion, and we expect internal cash flow to be sufficient to fund this despite modest earnings.

Maintain ‘buy’ on Fortis Healthcare with TP of Rs 160

Commissioning of the WIP facility with no major expansion and turning around the lagging facilities, which are low-occupancy and low-Ebitda, would help improve margins.

Analyst Corner: M&M upgraded to ‘buy’ with revised TP of Rs 721

We upgrade Mahindra & Mahindra (M&M) to ‘Buy’ and revise up FY22E core EPS 8% with TP of Rs 721 (earlier Rs 633) led by strong Q2FY21 performance; improving auto segment outlook (lean inventory, Thar launch, recovery in

Crompton Greaves Consumer Rating ‘Buy’; results beat estimates by a wide margin

Strategy of expanding reach, portfolio is delivering; TP raised to Rs 380 from Rs 335

While we agree that some benefits could reverse, we believe CRG’s strategy of expanding product/distribution reach has fared far better.

JSW Steel Rating: Reduce- Great performance at the standalone level

FY21/22e Ebitda up 19/3%; potentially high leverage and valuation are concerns; TP revised to Rs 260 from Rs 250

Taking note of the Q2FY21 performance and earlier-than-expected uptick in spreads, we are raising FY21e/FY22e Ebitda by 19%/3%.

L&T Technology Services Rating: Buy – a weak set of numbers in the quarter

Upgraded guidance shows worst is over, with recovery in works; ‘Buy’ maintained

Britannia Industries Rating: Buy- Performance was in line with estimates

Volumes fell q-o-q given rise in outdoor consumption; outlook is strong; ‘Buy’ retained with TP of Rs 4,345

HCL Technologies Rating ‘Buy’; company fired on all cylinders in Q2FY21

Margin guidance raised; firm on cusp of an upcycle led by cloud and digital change; maintain ‘Buy’

IMS (12% of business) had powered HCLT’s 16% revenue CAGR during the FY09-16 phase, lifting its market cap 14.5x.
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