Brokerage: CLSA | Rating: Buy | Target: Rs 905
The global research firm said that outlook for exports has improved significantly. It sees demand picking up in key industrial export segments and a strong 34 percent EPS CAGR over FY17-20. The brokerage said that the firm had valuations at 30x one-year forward PE are not cheap but should sustain.
Brokerage: CLSA | Rating: Buy | Target: Raised to Rs 108
CLSA said that Q2 earnings were underlined by slow recovery in ARPU & subscriber additions. It lowered EBITDA estimates by 5-8 percent, but remains positive. It sees significant synergy benefits for the firm from Videocon D2H merger.
Brokerage: IDFC | Rating: Outperform | Target: Rs 92
The brokerage said that the second half of FY18 ARPU is expected to be higher than the first half. Further, the D2H merger may yield revenue and cost synergies. It cut FY18/19 earnings by 51%/35% as we increase D&A expenses.
Brokerage: Morgan Stanley
Morgan Stanley said that the company’s Q2 revenue was in-line with estimates; EBITDA Beat Of 3% was seen. Further, average revenue per user improved marginally in Q2 but net subscriber additions remain soft. The research firm believes that GST will aid margin expansion, benefits to mainly accrue over H2FY18.
Brokerage: Nomura | Rating: Buy | Target: Cut to Rs 620
Nomura said that core PPOP/asset is readjusting downwards to a new normal. It expects a normalised RoEs of 15-15.5 percent for the bank.
Brokerage: Edelweiss | Rating: Buy | Target: Rs 493
Edelweiss said that garments, advanced materials are the ‘wheels for future’, says management. Given the growth plans for brand and retail, future cash flow requirement will be the key. It believes that carved-out textile unit may figure among fastest growing textile firms.
Brokerage: Citi | Rating: Buy | Target: Raised to Rs 1,700
Citi said that farm equipment remains on a solid footing and it forecasts 15%/10% tractor volume growth in FY19/20. Further, weak UV performance has led to the stock treading water for over three years.
Brokerage: Motilal Oswal | Rating: Neutral | Target: Rs 580
The brokerage house said that AC portfolio overhaul is likely post energy rating norm changes. One could watch out for the company’s pricing on inverters. Meanwhile, projects business has also stabilised with margin recovering to 5-6%.