Articles By Nomura

454 Articles

Reliance Industries Rating: Buy – Relatively subdued quarter for company

Weak retail was offset by better energy biz and Jio; all key segments expected to improve; ‘Buy’ retained with TP of Rs 2,400

ACC rating – Neutral: Another solid set of numbers for company

CY21/22e EPS up 14/9%; ‘Neutral’ retained as margins have peaked; TP up to Rs 2,215

We expect ACC’s Ebitda/t to decline significantly in H2CY21F, for CY21F Ebitda of Rs 1,021/t .

Adani Ports & SEZ Rating ‘Buy’; Firm largely insulated from Group entities

Other entities financially sustainable at present; FY22/23e PAT revised by -13/10%; TP up to Rs 890 from Rs 860; ‘Buy’ retained

Sun TV Network rating – Neutral: Results were largely in line with estimates

Dividend figure was a key negative; re-rating will depend on growth visibility; ‘Neutral’ rating retained

VA Tech Wabag rating – Buy: Net cash status eases investor concerns

FY22/23e EPS up 4/8%; TP raised to Rs 546; prospects are bright; ‘Buy’ retained

FY21 results, in our view, demonstrate that past concerns on execution and rising debt levels are largely behind.

Bank of Baroda rating – Reduce: Performance in Q4 was better than expected

Stress in small-ticket retail and MSMEs is cause for caution; ‘Reduce’ retained with TP raised to Rs 75

Separately, the stress in the book is mainly in the lower ticket retail and MSME segment, which makes us a bit cautious. We, therefore, maintain Reduce with our TP revised up to Rs 75.

State Bank of India rating – Buy: Asset quality came as a surprise in Q4

Second Covid wave could raise NPLs; loan growth likely to be weak in next two quarters; Buy retained with unchanged TP of Rs 550

Analyst Corner: Downgrade Ujjivan to ‘neutral’ with TP of Rs 240

Ujjivan managed to remain barely profitable for FY21, with no provisions in Q4 (Rs 250 million reversal) despite a Covid-19 wave-2 impact as well as relatively large wave-1 residual stress, and through cost cuts (partly unsus

Further, collections in April indicate 300-600 bps declines across portfolios, with MFI declining to 88% from 94% in Mar-21, and May will possibly see a further decline.

Analyst Corner — AU SFB: Downgrade to ‘neutral’, raise TP to Rs 1,075

We are less worried about the long-term story and expect the bank to deliver well relative to new-age banking peers. That said, valuations at 3.8x/25x FY23F BV/EPS warrant caution in the near term as room for error is low.

Britannia Industries rating – Neutral: Q4 numbers were below expectations

Demand outlook is weak; FY22-23e EPS down c.6%; TP cut to Rs 4,000; rating downgraded to ‘Neutral’

Maruti Suzuki Rating: neutral: Q4FY21’s performance missed estimates

Margin pressure likely to continue; near-term risks to demand; FY22/23e EPS down 14/6%; TP cut to Rs 7,362; ‘Neutral’ retained

Insurance: Life volumes were strong in March

March/Q4FY21 growth was 7%/9% for pvt insurers on 2-yr CAGR basis; momentum revival for SBI Life and IPRU

We continue to monitor the impact of a second COVID-19 wave on growth.

Analyst Corner: ACC- Volumes in line; blended realisations slightly lower sales

Standalone revenue of 42.9bn (+23% y-y, +4% q-q) came in 1-2% below Bloomberg consensus estimate and our forecast, driven by 1% lower blended realisations, while cement volume was in line with our estimate.

ACC, standalone revenue of 42.9bn, higher EBITDA and lower depreciation., ACC cement sales, per unit fright cost

Downgrade Dr Lal PathLabs to ‘reduce’ with TP at Rs 2,333

DLPL stock has significantly outperformed its peers and the broader market since the start of the pandemic. Since mid-Feb 2020 (when fear pandemic started), the stock is up 106% against a Nifty return of 18%.

dr lal path labs

PNC Infratech Rating: Buy; Nomura says GAEPL deal will unlock value for firm

Stock is the top pick in the mid-cap EPC space; ‘Buy’ retained with TP of Rs 364

We believe the re-opening of the economy and subsequent improvement in toll collections have revived the interest in the deal from Cube Highways.

Initiate coverage on GCPL with ‘neutral’; TP at Rs 770

While Godrej Consumer (GCPL) has underperformed Nifty by c.26%/11%/ 14% over the past 1/2/3 years, we remain cautious, as we believe two of its three core growth drivers (India household insecticides, Indonesia) are still not


AIA Engineering Rating: buy- Correction in stock price is overdone

Logistics costs starting to moderate; upgrade to ‘Buy; with unchanged TP of Rs 2230

With this, we expect Ebitda margins to gradually normalise in H2FY22F, further driven by the pass-through of raw material costs.

Gland Pharma: Initiate coverage with ‘neutral’, set 12-month price target at Rs 2,637

Given solid track record thus far, the stock is adequately factoring in strength of the business model.

We believe that demand for such consolidated high-volume lower-cost manufacturing will remain as long as competitive pressures in generics remain high.

Analyst Corner: Maintain ‘buy’ on BPCL with target price of ₹550

Divestment, delays and lukewarm interest, still looks likely to complete in FY22F; BPCL’s divestment, initially planned for FY20, has been delayed. Investor interest has also been lukewarm. We believe the current environmen

Still, the government appears to be keen, and we expect divestment in FY22F.

Indian Oil Rating: Buy – Retail hikes allay concerns for company

Refining outlook remains weak; FY21e EPS up 56% on inventory gain, petchem prospects; upgraded to Buy with TP going up to Rs 130

Analyst Corner: Maintain ‘buy’ on Dilip Buildcon with TP of Rs 810

Diversification into coal MDO and rail appears synergistic; significantly de-risking future sales mix; new Rs 810 TP DBL’s diversification into related sectors leads to semi-annuity type revenue stream over the next five ye

dilip buildcon

Voltas Rating: Buy; results were well ahead of estimates

Growth visibility high for ACs; FY21-23 EPS up 9-10%; TP up to Rs 1274; ‘Buy’ retained

Overall, we raise revenue estimates by +4%/9%/13% and EPS by ~9-10% for FY21-23F.

Happiest Minds Technologies: Initiate with ‘buy’; TP Rs 480

Presence in fast-growing digital space plus partnerships with AWS/Azure and backed by credible management. Action.

Happiest Minds Technologies

Motherson Sumi Systems: Maintain ‘buy’; raise TP to Rs 252

Margins to enter a new orbit with cost reduction and premiumization. Action, maintain ‘buy’; raise target price to Rs 252, implying close to 28% upside.

MSS management has utilised the lockdown well to structurally reduce costs, which should also benefit medium-term margins.

Analyst Corner| Adani Ports: Downgrade to ‘neutral’; TP higher at Rs 630

Volume outlook robust into FY22F and the COVID-19 linked impact now behind us; stock fairly valued Raise our EBITDA forecasts by 8%/9% for FY22/23F factoring in higher volume estimates

Adani Group, adani port

Cadila Healthcare: Give ‘buy’ rating with TP of Rs 481

The q-q decline was owing to inventory correction for some of the products, according to the management

US recorded revenues at $217million, a decline of 13 million q-q and $16million below our estimate. (Representative image)

Apollo Tyres Rating ‘Buy’; A robust showing in the third quarter

Firm to be key beneficiary of CV recovery; FY21/22/23 EPS up 59/48/44%; TP up to `307; upgraded to ‘Buy’

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