Brokerage: CLSA | Rating: Buy | Target: Raised to Rs 1,050 from Rs 990
The broking firm believes that the sharp cut in interconnect charges has raised FY18-20 consensus EPS forecast by 8 percent. Late on Tuesday, the telecom regulator announced 60 percent cut in IUC from October 1 and a complete removal of such charges from 2020.
Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.
Brokerage: CLSA
The global research observed that nuvaring, suboxone & copaxone will be major contributors over FY19-20. In fact, the EPS for FY20 could see an upside to Rs 210 if these products are introduced. Further, the brokerage also said that for the stock, risk reward was favourable with an improving US growth trajectory.
Brokerage: Citi | Rating: Neutral | Target: Raised to Rs 525
Citi said that re-stocking and onset of festive season helps primary demand improve. The bank also said that integration with Lloyd has been smooth.
Brokerage: Credit Suisse | Rating: Outperform | Target: Raised to Rs 460
The brokerage firm has maintained a positive view on the stock due to a healthy outlook on the container business front. A reasonable valuation, strong balance sheet and healthy cashflows are key triggers, it added.
Brokerage: Credit Suisse | Rating: Outperform | Target: Raised to Rs 1,425
Credit Suisse observed that the company could be a likely winner for the Mumbai Transharbour project. A hike in FY20 EPS estimates by 2 percent has been made by the research firm.
Brokerage: Axis Cap | Rating: Upgrade to buy | Target: Raised to Rs 1,750.
The brokerage house cited improved outlook for raising the target multiple to 50 times from 40 times due to improved outlook. Further, it sees exports and railways to be the next growth drivers. It also said that railway product broadening and GE Alstom tie up will drive exponential growth. A rise in transmission and distribution along with automation capex augurs well for the stock.
IUC Cut
Brokerage: BofAML
The global financial services firm said that net IUC charges contributes 10/15 percent to EBITDA of Bharti and Idea. Moreover, consolidated EBITDA of the companies could be impacted till FY21, while the operating profit could decline by 6-15 percent beyond FY21.
Brokerage: Goldman Sachs
The global investment bank cut Bharti/Idea’s FY18-20 estimates by 2%-4%/6%-10%. It said that the event could have a negative impact on Bharti’s annual cash flow by USD 150 million and USD 250 million in case of Idea Cellular. Having said that, this cut could help Jio generate EBITDA of USD 200-450 million over FY18-20. It has increased the target for Reliance to Rs 905.
Brokerage: CLSA
The research firm said that a cut in IUC will hit Bharti and Idea’s EBITDA by 4/7 percent. In a zero IUC regime, Bharti & Idea would see 8-12% EBITDA hit. It also said that the cut could boost unlimited calling plans and drive consolidation in the sector.
Brokerage: Kotak Sec
The brokering firm said that the implications of the cut go beyond immediate EBITDA hit. It added that the impact of the cut will be the lowest on Bharti and highest on Idea. A direct impact is a 3-5% hit In FY18, 6-10% in FY19 & 7-12% in FY20 EBITDA.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
