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
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.
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
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.
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.
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.
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.
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.
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: 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.
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
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.
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.
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: 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: 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.
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.
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
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).
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
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.
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.
Stock corner: Reiterate ‘Buy’ on JSPL with target price of Rs 184
The company remains focused on debt reduction. W
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.
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
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
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
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