ICICI Securities

Articles By ICICI Securities

164 Articles

Stock corner: Initiate with ‘Buy’ with target price of Rs 650 for UPL

Considering that farmers use agrochemicals throughout each agri season but pay only after harvest, the working capital of suppliers is elongated leading to lower asset turns.

UPL has emerged a global player post its acquisition of Arysta Lifescience Inc. (Website image) News

Stock corner: ‘Hold’ on HUL, confident on long-term growth potential

E-com to be next growth driver for Indian FMCG: Rising middle class population, lack of strong distribution network in smaller cities/villages and significantly overcrowded condition of cities is resulting in the ever-increas

Stock corner, Hold, HUL, market news, FMCG News

Stock corner: ‘Buy’ on Aurobindo Pharma with revised TP of Rs 682

US revenues grew 4.4% QoQ in constant currency terms with pick-up in injectables portfolio.

Markets News

Stock corner: Upgrade Godrej Consumer to ‘add’, target price Rs 800

We believe that a potential turnaround here will require huge macro tailwinds and improvement in execution (just relaunched Darling brand and plans to introduce affordable products).

Stock corner, Godrej Consumer, Household Insecticides, EBITDA, India household Insecticides business News

Stock corner: ‘Hold’ on Indian Oil Corp; target price at Rs 149

Q2FY20 standalone and consolidated EPS is down 83-93% YoY hit by inventory loss of Rs 11.8 bn compared to a gain of Rs 44.1 bn last year, 50% YoY fall in petrochemical Ebitda and 81% YoY fall in GRM to $1.28/bbl.

Stock corner, Indian Oil Corporation, Indian Oil Corporation target price, Ebitda, GRM outlook News

Stock corner: Maintain ‘buy’ on Coal India with target price of Rs 333

CIL is looking to introduce VRS to reduce manpower expenses, especially in the underground mines which contribute 13% to the total production but employ 50% of the total workforce.

Markets News

ICICI Securities: Upgrade Oberoi Realty to ‘buy’, target price Rs 577

After a lull in launch activity in H1FY20, Oberoi Realty (OBER) has a number of launches lined up to coincide with the festive season in Q3FY20.

OBER has recently launched its Maxima tower at the JVLR, Andheri project (180 units priced between Rs 3.5-4 crore) in the first week of October 2019 and is on track to launch its Goregaon Phase 3 and Thane projects in Q3FY20. News

Visaka Industries rating | Buy — Valuation of stock is at an attractive point

The stock is currently trading at 6.9x FY21e earnings, which we believe, is an attractive valuation considering the improving mix of non-cyclical business, expected increase in cashflow and consequent reduction in debt givin

Markets News

Present rally in stock prices is warranted

Multiplier effect of tax cut likely to be felt in the medium term; Sept’20 NIFTY50 target up 8%.

Markets News

ICICI Securities: ‘Buy’ with TP of Rs 1,700 on Larsen & Toubro Infotech

We expect revenue growth to accelerate sequentially to 1.2% QoQ in USD terms (~1.5% in CC terms) vs 0.8% in Q1FY20 (1% in CC; 0.5% organic) despite these specific client issues.

Headline growth to be modest in Q2FY20 given client specific headwinds; underlying business momentum strong and to be evident in H2. News

ICICI Securities: ‘Buy’ on Shoppers Stop with target price of Rs 480

EBITDA margin may expand led by increasing share of high margin private labels and beauty portfolio and better cost efficiencies.

SHOP is undergoing various structural changes especially on product and customers front post the joining of seven new CXOs in the past 15-18 months. News

ICICI Securities: Reiterate ‘buy’ on BPCL with target price of Rs 494

The tax rate cut announced points at big bang reforms; privatisation of BPCL would help make up for fall in tax revenue in FY21, if not FY20.

However, a risk here is that GoI, instead of privatising BPCL, may sell its stake to IOC to meet the FY20 divestment target. News

Voltas Rating: Sell; Margins and Voltbek losses are drags

Given expensive valuations and margin pressures, ‘Sell’ maintained with TP of Rs 497

The actual impact of customs duty hike on indoor units will be evident during the supply procurement for next summer. News

ICICI Securities: Maintain ‘hold’ on Lupin, revised target price Rs 732

Valuations and risks: We cut our EPS estimates by 3-4% and maintain our ‘hold’ rating on the stock with a revised target price of Rs 732/share based on 20x FY21E EPS (earlier: Rs 758).

ICICI, Lupin, market, market news, USFDA, ProAir, EBITDA, Lupin share, Lupin ltd News

ICICI Securities: Maintain ‘buy’ on Tata Power, target price Rs 87

This divestment will be a step in that direction. We also expect the Zambian subsidiary’s divestment to be closed in FY20 itself at an attractive valuation given that it is also a profitable business.

ICICI Securities, Tata Power, market news, Khopoli Investments, EBITDA, Tata Projects, Amakhala Emoyeni, market news

ICICI Securities: Enough crude inventory to supply if output is restored

Attacks on 14-Sep’19 at Abqaiq and Khurais plants, which have capacity to process 7m b/d of crude, led to temporary suspension of 5.7m b/d (over 50%) of Aramco’s oil output.

 crude oil, inventory, output, market news,  ONGC, GAIL, Aramco, OMC, OPEC, Abqaiq plant, Khurais plant News

Cement stocks: Volumes are trailing estimates, risk-reward is favourable

Dealers across most regions suggest companies are attempting a Rs 10-15/bag hike from mid-Sep’19 (Rs 40-50/bag in AP) mainly to avoid further fall in prices.

Cement, Cement sector, SRCM, UTCEM, TRCL News

Dr Reddy’s Laboratories Rating: Reduce; Stock price overvaluing opportunities

The company has demonstrated very effective cost control with 250bps margin expansion in FY19 and our estimates assume additional benefit of ~100bps base business margin expansion from the ongoing efforts.

Dr Reddy's, Dr Reddy's Laboratories, Dr Reddy's Laboratories rating, Stock price, Srikakkulam API facility News

ICICI Securities: ‘Add’ on Dr Lal Pathlabs with revised TP of Rs 1,370

Management has maintained its guidance of mid-teen revenue growth, which would be largely driven by volumes.

ICICI Securities, Dr Lal Pathlabs, premium valuation, FCF generation, medium term News

ICICI Securities: ‘Buy’ on Grasim Industries; target price at Rs 895

Management expects pricing pressure in core businesses to continue in the near term led especially by capacity overhang.

grasim share, Grasim Industries, grasim industries limited, grasim industries share, grasim news, grasim suit, grasim cement, grasim cement, grasim cement, grasim suit price in india News

ICICI Securities: Maintain ‘buy’ on Indigo with a TP of Rs 1,914

Forex MTM of lease liability has no cash implications; will not impact normalised earnings.

IndiGo rating, IndiGo profit, IndiGo revenue, IndiGo shares, IndiGo stocks, IndiGo loans, indigo market, InterGlobe Aviation, indigo crisis, Forex MTM News

PSU disinvestment: Minority shareholders to gain from privatisation, says BPCL

Privatisation may improve the broader market sentiment while sale to IOC is likely to hit investor sentiment, especially in PSUs.

petrol, diesel, crude, refinery, retail price, VAT, excise duty, dealer commission, dealer price, fuel cost, saudi drone attack News

Thermax rating | Add — Order intake to be under stress in near-term

Given demand challenges, FY20/21e EPS down 1/7%; TP revised to `1,089

Thermax rating, Danstoker, Dangote project, Thermax rating earnings  News

SRF Limited Rating: Hold; Strong order visibility a positive

Company has maintained its guidance for specialty chemical business; ‘Hold’ retained

SRF Limited Rating, revenue growth, PTFE, HFC plants, US agrochemicals market, Dahej News

ICICI Securities: Maintain ‘hold’ on Astral Poly and Supreme Industries

Considering the quantum of amount notified, the ADD would make the Chinese and Korean imports (constituting 30% of India’s overall imports of CPVC resin/ compound) non-competitive vs their major global (particularly US and

ICICI Securities, commerce and industry, Supreme Industries, Astral Poly, CPVC resin, China, CPVC pipe players News

ICICI Securities: ‘Buy’ on Greenply Industries with target price of Rs 206

Further, with the expected growth traction in decorative veneers, PVC sheets and low-end plywood segment (under brands ‘Jan Saathi’ and ‘Bharosa’), the management has guided for 7-9%/8-10% growth in volume/value in it

Markets News

ICICI Securities: Maintain ‘buy’ on aster DM Healthcare, TP Rs 168

Recent mandate by the authorities in GCC for complete insurance coverage has increased healthcare affordability for the low income group.

Markets News
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