Motilal Oswal

Articles By Motilal Oswal

394 Articles

Mindtree Rating | Neutral — Despite multiple positives, valuations leave no margin of safety

The recent sharp rally in the stock price and rich multiples (19x one year forward P/E) already factor in the key positives

mindtree, mindtree rating News

Analyst Corner: Downgrade Cyient to ‘neutral’, EPS estimate cut

CYL is creating a new RSU scheme for top-100 leaders in lieu of cash bonus.

cyient, eps News

Wipro Rating: Neutral; Showing largely in line with estimates

Growth in Q3 is not likely to be sustained; current valuations duly capture underperformance; ‘Neutral’ maintained

wipro, wipro rating News

Analyst corner: Reiterate ‘buy’ on client rebound, deal wins in L&T Infotech

In the ongoing consolidation, the management indicated LTI is on the positive side. It is optimistic on continued growth momentum.

l&t, l&t infotech News

Analyst Corner: Maintain ‘neutral’ with target price of Rs 1,549 on IndiGo

IndiGo is expecting a lag in deliveries of new aircraft owing to various issues faced by Airbus with the family cabin layout of A321neo and a delay in engine deliveries from engine manufacturers.

According to the plan submitted by the company to the regulator, IndiGo will replace ~135 unmodified engines by May 31. News

Analyst Corner: Recent rate hikes trigger trend reversal in Telecom sector

This could be a turning point for the industry, wherein incremental capital commitment would decline with players agreeing on better tariffs.

The incremental price hike is a function of support for VIL and the needed profitability boost for RJio and Bharti. News

Avenue Supermarts Rating ‘Sell’: Strong quarter though revenue growth’s slowing

High capex and moderating revenue growth could crimp return ratios and compress the stretched valuation multiples. Retain Sell with unchanged estimates.

DMART’s capex/sqft has increased continuously in the last 4 years and has doubled to ~Rs 12,000/sqft, which along with slowing SSSG could impact its return profile. News

Analyst Corner: On KNR construction, maintain ‘buy’ with higher Target Price of Rs 374

Given the company’s strong order book position (OB/Rev: 3.1x) and superior execution capability, we expect revenue CAGR of 18% over FY19-22.

KNR has already monetised three of its HAM projects. News

Analyst Corner: Equity dilution a major step for cost-saving for Future Retail

In the interim, this could increase net debt to Rs 19.6 bn with net debt/Ebitda of 1.4x/1.3x in FY21/22E; RoCE may decline by ~500bp to ~13%. However, FRL should be able to reduce leverage with adjustment of Rs 6.2 bn advance

Analyst Corner, Equity dilution, major step, cost saving, Future Retail, FCL holding  News

Analyst Corner: Maintain ‘Buy’ on HDFC Bank with a Target Price of  Rs 1,410

The bank’s CASA ratio declined 120bp y-o-y but was up 20bp q-o-q to 39.5%, implying 21.5% y-o-y (+5.1% q-o-q) growth in CASA deposits. Term deposits increased at ~27.8% y-o-y (+4.1% q-o-q), in line with management guidance.

HDFC Bank scheduled maintenance alert News

HCL Tech rating | Buy — Company to gain from public cloud repatriation

As organic growth speeds up and Mode-3 concerns recede, marginal re-rating is expected; upgraded to ‘Buy’ with TP at Rs 700

HCL Tech rating, public cloud repatriation, SOTP, BFSI, DC outsourcing, hybrid cloud, WACC News

Analyst Corner: Maintain ‘buy’ on GAIL, target price Rs 152/share

We expect EBIDTA CAGR of ~14% over FY20-22, with FY22 EV/EBITDA of 5.4x.

GAIL, GAIL board, GAIL debt, Gail fund raise, fund raising News

Telecom industry sees expansion after 10 weak months! Benefit of Jio’s IUC plan for Bharti and VIL to reflect now

In Oct’19, RJio launched its IUC plans, which supported active/MBB subscriber run-rate for both Bharti and VIL.

Telecom industry, Jio, Jio IUC plan, Bharti, MBB subscriber, VIL, MBB subscribers, reliance jio News

Analyst Corner: ‘Buy’ on M&M, disruption likely during BS-VI transition

We estimate UV volumes to decline ~20% in FY20, implying 38% residual decline, due to expectation of disruption during BSVI transition.

Analyst Corner, M&M, BS-VI transition, Domestic passenger UV, FES Sector, BSVI products News

Analyst Corner: Nifty expected to remain in 12,000-12,300 range

The Nifty ended 2019 on a strong note as it gained 12% to close near 12,150 zones, while the Sensex gained 14% to settle above 41,000 levels.

Analyst Corner, Nifty, midcap, smallcap Indices, ARPU, ARPU customers, sensex, RJio, IUC plans News

Analyst Corner: In run-up to BS-VI, demand for PVs is encouraging

Our interactions with leading industry channel partners indicate positive demand trends in PVs but weakness in 2Ws, CVs and tractors.

Markets News

Gateway Distriparks: Maintain ‘buy’, TP at Rs 127

The acquisition has been made for more than 25% of the voting rights; therefore, an open offer for purchase of up to 43.4 m equity shares, representing 26% share capital of Snowman at Rs 44/share has also been made.

GDPL intends to focus on the container logistics business; net proceeds from this sale will be used to reduce debt. News

Ultratech Cement rating | Buy — Greater visibility of growth in the last quarter

Century– rebranding & revamping of assets to improve margins: The company has already started to turn around its recently acquired Century’s (CTIL) assets. While utilisation declined to 48% in Q2FY19 due to weak operation

Ultratech Cement, Ultratech Cement share, Ultratech Cement rating, Ultratech Cement ltd, Ultratech Cement limited, Ultratech Cement price News

HCL Tech Ratings | Buy — Rising capex has been a drag on return ratios

FY15-19 was utilised for capex (Rs 118.7 bn; mainly for acquisitions of IPRs) and business takeovers (Rs 72.5 bn), leading to high intangibles (Rs 85.3 bn, 20.6% of NW) and goodwill (Rs 90.6 bn, 21.9% of NW).

Markets News

ONGC stock: Maintain ‘buy’ with target price of Rs 190

The stock is trading at 5.0x FY21E consolidated EPS of Rs 27.3. We value the company at 8x FY21 standalone EPS of Rs 19.9

Markets News

ABB India Rating ‘Buy’: Earning momentum likely to persist, says Motilal Oswal

Removal of demerger overhang a positive; RoE expected to rise to 16.2% by CY22e; ‘Buy’ retained with TP of Rs 1,460.

Markets News

Analyst corner: AUBANK gains from monthly payouts, higher interest rates

With the bank appearing set to expand market share in chosen business segments, we visited its regional office and one of its largest branches in Pune to understand the progress that it is making.

Banking & Finance News

Stock corner: Reiterate ‘Buy’ on JSPL with target price of Rs 184

The company remains focused on debt reduction. W

jindal, jindal steel News

Stock corner: Maintain ‘buy’ on Tata Chemicals with TP of Rs 811

TTCH currently operates a capacity of 2.5MMT of natural soda ash in North America.

tata, tata chemicals News

BS-VI could pose bigger challenge for bikes and scooters, here’s why!

With the demand environment showing signs of stability and inventory under control, the BS6 transition is likely to be less problematic (unlike BS4). We believe that the BS6 transition would pose a bigger challenge for 2Ws th

Bike News

Stock corner: ‘Buy’ Axis Bank, improvement in return ratios on horizon

Slippages likely to subside from FY21 onwards; RoE/RoA estimated at 14/1.3% by FY21; ‘Buy’ retained with TP at Rs 825

Markets News

Stock corner: ‘Buy’ on Torrent Power, target price at Rs 346

According to our oil & gas sector analyst, the glut in global gas supply is likely to continue, given increasing gas supply from the US and Qatar and plateauing consumption in China along with possible lower imports from Japa

Markets News
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