Moneycontrol
Nov 14, 2017 06:59 PM IST | Source: CNBC-TV18

Buy, Sell, Hold: 6 stocks and 1 sector on analysts' radar today

While retaining buy call on IndusInd Bank with a target price at Rs 2,060, CLSA said it sees 25 percent earnings CAGR over FY17-20 with return on equity of 18-19 percent.

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Apollo Hospitals

Brokerage - Axis Capital | Rating - Buy | Target Rs 1,410

While having a buy call on Apollo Hospitals with a target price of Rs 1,410 per share, Axis Capital said it was steady second quarter for the company, with EBITDA (earnings before interest, tax, depreciation and amortisation) at Rs 220 crore which Was ahead of estimate of Rs 190 crore.

Hospital margin affected due to regulatory hurdles and losses due to Navi Mumbai unit, it added.

Adani Ports

Brokerage - Kotak Securities | Rating - Add | Target Rs 435

Kotak Securities expects Adani Ports' volume miss to neutralise and margin outperformance to sustain.

Recent long-term contracts and resumption of full port operations bode well for a better second half of FY18, it feels.

The research house has retained EBITDA estimate as 4 percent cut in volume gets compensated by higher port margin.

Higher port development income and lower interest expense drive 7-12 percent higher EPS estimates, it said while assigning add rating to the stock with increased target price at Rs 435 (from Rs 405 per share).

Brokerage - CLSA | Rating - Buy | Target Rs 458

CLSA said traffic disruptions & GST led slowdown in earnings. It expects pick-up from Q3. While ports showed slowdown in Q2, management remains confident of pick up in Q3.

"We have buy call led by strategic asset growth with target at Rs 458 per share," the research house said.

Brokerage - Morgan Stanley | Rating - Overweight | Target Rs 471

Morgan Stanley feels the company has an enviable track record & a strategy of winning market share.

It expects lackluster volume in first half of FY18 to be offset by prospects of trade recovery and strong pricing power.

It has overweight on the stock with target at Rs 471 per share.

NTPC

Brokerage - CLSA | Rating - Buy | Target Rs 200

NTPC has added 1,210 MW capacity in Q2, the highest addition in any quarter.

CLSA sees 54 percent regulated equity growth over FY17-19 on improving commissioning.

It has reiterated its buy call with a target price of Rs 200 per share as company is getting closer to robust renewable energy growth.

Brokerage - Morgan Stanley | Rating – Equal-weight | Target Rs 149

"Q2 EBITDA & net profit numbers were above our estimates, but below the Street’s estimates," Morgan Stanley said while assigning equal-weight rating on the stock with target at Rs 149 per share.

According to the research house, sluggish demand environment and slower capacity additions are key downside risks.

Idea Cellular

Brokerage - CLSA | Rating - Sell | Target Rs 77

While retaining sell rating on Idea Cellular with increased target price at Rs 77 (from Rs 70 per share), CLSA said its merger with Vodafone is a positive but synergy benefits are back-ended.

It further said lower Q2 revenue & EBITDA both surprised negatively.

With a sharp fall in EBITDA, asset sales will be crucial to control gearing, it feels.

The research house has cut FY18-20 revenue & EBITDA estimates 7-23 percent.

Jubilant Foodworks

Brokerage - CLSA | Rating - Buy | Target Rs 2,220

Management intends to employ smart pricing instead of price hikes. Customer satisfaction & cost optimisation remain top on management agenda, CLSA said while retaining buy call on Jubilant Foodworks' focus on profitability & growth. It expects the stock to hit a target of Rs 2,220 per share.

IndusInd Bank

Brokerage - CLSA | Rating - Buy | Target Rs 2,060

While retaining buy call on IndusInd Bank with a target price at Rs 2,060, CLSA said it sees 25 percent earnings CAGR over FY17-20 with return on equity of 18-19 percent.

Normalisation of Bharat Financial's business and smooth integration will be key, it feels.

Consumer Sector

Credit Suisse has upgraded HUL & Havells to outperform from neutral owing to GST rate revisions.

The research house also increased its earnings estimates for Jubilant Foodworks, Crompton Consumer, Nestle and GSK Consumer.

It has raised target price for HUL to Rs 1,500 per share from Rs 1,250 and for Havells to Rs 600 from Rs 550.

Credit Suisse has maintained outperform rating on Nestle, GSK Consumer, Crompton Consumer and Jubilant Foodworks, with increased target price at Rs 8,700 (from Rs 8,200), Rs 7,100 (Rs 6,500), Rs 315 (Rs 290) and Rs 2,140 (Rs 2,000), respectively.
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