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Titan Company rating – Buy: Company logged exceptional sales in Q2FY22

Sales jumped by 64% y-y; concerns over valuation are misplaced; estimates revised and TP raised to Rs 2,650; ‘Buy’ retained

Titan’s standalone sales were up 64% y-o-y overall, beating consensus by a wide margin.

Divi’s Laboratories rating – Buy: Covid-19 drug could lead to a windfall

Molnupiravir, if approved, to boost revenues for firm; FY22-24e EPS up 0.4-4%; TP raised to Rs 5,750 from Rs 5,465; ‘Buy’ maintained

If authorised, it will be the first oral COVID-19 drug which can be taken at home (current treatments, e.g. remdesivir, require access to a healthcare facility).

Analyst Corner – Avenue Supermarts: Reiterate ‘buy’ with TP of Rs 5,500

In our view, we are still midway in the evolving high-growth compounding construct; investor should continue to stay positive on Dmart.

In our view, given its long-term appeal, Dmart in the current market context will act like a defensive stock, if the market sees volatility, and will continue to outperform, if the bull phase of the market continues.

Godrej Consumer Products: We stay ‘hold’ with new target price of Rs 942

GCPL stock has run up rapidly post the announcement of the new CEO as the market quickly priced in the growth impetus new leadership could bring in.

Godrej Consumer

NTPC rating – Buy: Further progress on path towards a green image

1.99 GW won in e-auction is on attractive terms; PSU advantage sets firm apart; RE efforts will allow it to re-rate; ‘Buy’ maintained

The last auction that NTPC won was at a tariff of Rs 2.34/kWh without VGF for the RUMSL auction in Jul-21 of 325MW.

Biocon Rating: Hold – Vaccines to complement biosimilar portfolio

Deal with SILS could add NPV of `21/share to TP; better biosimilar execution remains key; ‘Hold’ retained

Escorts: Retain ‘buy’ and target price of Rs 1,580

Strong growth in non-agri (commercial) usage of tractors should further help. Escorts expects to grow better than the industry both during the festivals and FY22 as a whole.

The company targets to soon roll out multiple new products and to leverage the network and experience of Kubota.

Analyst Corner – Glenmark: Maintain ‘hold’ with revised TP of Rs 610

GNP had spent Rs 60.6billion (12.4% of revenues) on R&D during FY17-21 (11.3% in FY21) with ~55-60% spend on innovation R&D and 40-4 5% on generic products.

However, the timeline remains uncertain for these deals.

Analyst Corner: Downgrade Ambuja Cement to ‘hold’, raise TP to Rs 420

Historically, Ambuja has disappointed the street with relatively slow and at times delayed capacity addition, leading to market share losses over the past decade.

Analyst Corner: Downgrade Ambuja Cement to ‘hold’, raise TP to Rs 420

Mahindra & Mahindra rating – Buy: Valuations the least expensive in sector

Tractor volumes may be hit in near term; auto business seems undervalued; ‘Buy’ retained with TP of Rs 1,030

As discussed in a Jan’21 note and also reinforced by the management in the Q1FY21 call, non-core investments are capped at Rs 11-12 bn per year.

Maintain ‘hold’ on Eicher Motors with unchanged TP of Rs 2,600

Strong traction in exports in recent quarters by most companies, including for RE, is a medium-term positive as well. For RE, in particular, the risk of an EV pick-up is low as well.

Eicher’s story is in line with this overarching thesis.

Divi’s Laboratories rating – Buy: Another strong quarter for the company

Visibility on growth drivers supports long-term outlook; FY22-24e EPS up 2-5%; TP up to Rs 5,465; ‘Buy’ retained

Ebitda margin expanded by 278bp y-o-y and 296bp q-o-q, at 43.7%. PAT grew 12.1% y-o-y and 13.1% q-o-q, to Rs 5.5 bn.

Analyst Corner| GAIL: Retain ‘buy’; raise TP to Rs 200 from Rs 195

EBITDA in 1QFY22: Despite the Covid second wave and maintenance shutdown of the petrochemical plant, GAIL reported EBITDA of Rs 24billion (down 6% qoq, but up 287% yoy).


Titan Company Rating: buy: Resilient show in disrupted quarter

Strong recovery boosts prospects for FY22; TP raised to Rs 1,980; ‘Buy’ maintained

HDFC rating – Hold: Good show in a challenging environment

FY22/23/24e PAT raised by 2.5/2.1/3% due to rise in NIMs; core RoEs to stay at c12% over FY21-24; ‘Hold’ retained with TP of Rs 2850

Maruti Suzuki Rating: Buy – A muted first quarter for the company

Demand has seen revival; launches key for the stock in medium term; FY22/23e EPS cut by 8/4%; TP down to Rs 8,200; ‘Buy’ retained

Larsen & Toubro rating – Buy: Earnings miss no cause for concern

Execution impacted by labour issues; H2FY22 expected to see an improved performance; ‘Buy’ retained

It also plans to sell its power projects and road assets which should further reduce debt levels and improve return on equity.

HCL Technologies rating – Buy: Weak start to the fiscal for the company

Mgmt expects growth to be strong in the coming quarters; FY22/23/24 EPS down 2.4/3.2/1.1%; TP cut to Rs 1,220; ‘Buy’ retained.

HCL, HCL rating

Analyst Corner: Downgrade Bajaj Finance to ‘hold’ with TP of Rs 6,390

Bajaj Finance (BAF IN) reported net profit of Rs 10bn (+4% y-o-y/-26% q-o-q.

bajaj finance

Avenue Supermarts rating – Buy: A good performance amidst disruption

Results show resilience of biz model; EPS growth of 54% expected in FY22e; estimates raised; TP up to Rs 4,000; ‘Buy’ maintained

Even though growth looks good, it is from a low base, and revenue is still below that of Q1FY19. However, healthy profits despite the challenges shows how resilient DMART’s business model is .

Azure: Maintain ‘hold’ with revised TP of $27.50

Azure also has unsigned PPAs for 4GW of capacity and recent news reports suggest the potential of downward revisions in tariffs of 10-13% (Mercom India, 6 July 2021).

Azure, Azure news, Azure latest

Tata Consultancy Services Rating: Hold – Revenue growth missed estimates in Q1

Margins were resilient; earnings upgrade cycle largely behind firm; FY22e EPS down 1.3%; ‘Hold’ retained with TP of Rs 3,455

Maruti Suzuki rating – Buy: Margins likely to suffer in first quarter of FY22

Commodity prices, negative operating leverage took toll; FY22e earnings down 7%, yet outlook’s positive for fiscal; ‘Buy’ maintained

Product launches (including upgrades) and continued demand strength is set to help MSIL’s volumes and earnings. Also, with the price hikes likely done, any moderation in commodity prices should flow down to margins.

Analyst Corner – Titan: Retain ‘buy’, raise TP to Rs 1,900 from Rs 1,830

Titan’s Q1 sales were up 117% yoy (ex bullion sales), which is impressive, in our view, given the challenging backdrop of the quarter.

Apollo Hospitals Rating ‘Buy’; Revival of hospital business continued in Q4

Creation of omni-channel platform via AHL to help capital raising; FY22/23e EPS up 6.9/7.6%; TP raised to Rs 3,550; ‘Buy’ retained

ITC rating – Hold: Core business concerns limit prospects

Difficult to build a case for substantial upside without aggressive valuation for cigarette segment; ‘Hold’ retained

A large dividend yield (4.4% FY22e) could still act as a floor to the overall valuation even without structurally being positive.

Analyst Corner — DLF: Maintain ‘hold’, increase TP to Rs 280

We expect this to be a medium-term drag on the stock as new net leasing will likely be slow in the medium term.

“Rental business continued its sustained performance. Office rental grew 12% y-o-y while the retail segment has been impacted again,” the developer said.
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