Axis Bank, SBI and M&M, among others, being tracked by analysts on Monday
Brokerage: CLSA | Rating: Buy | Target: Rs 650
The brokerage said that capital raising amount is in line with its assessment. Further, it believes that the issuance will cause a dilution of 9 percent and lift its FY19 net worth by 18 percent. Going forward, normalisation of asset quality/credit costs should ease concerns, it added.
Brokerage: Edelweiss Sec | Rating: Hold | Target: Raised to Rs 589
The brokerage said that overall recovery momentum is likely to be arduous and believes that capital will be a boost.
Brokerage: Deutsche Bank | Rating: Buy | Target: Rs 620
Deutsche Bank said that the big capital raise boosts confidence and the near term overhang is fading. It sees FY18 earnings diluting by 4%.
Brokerage: Edelweiss Sec | Rating: Buy | Target: Raised to Rs 399
Edelweiss Securities said that the September quarter’s performance was encouraging on the asset quality front. Further, an elevated credit cost could restrict return on equity to 9-10 percent by FY19. In fact, the capital infusion initiative of the government could provide cushion to asset quality swings.
Brokerage: Credit Suisse | Rating: Outperform | Target: Raised to Rs 381
Credit Suisse expects credit cost to fall to 1.6 percent in FY19 and normalize at 1.2 percent in FY20. Further, a forecast of lower slippages leads to 9% raise in estimates, while operating profit was modest with muted loan growth.
Brokerage: Credit Suisse | Rating: Outperform | Target: Raised to Rs 1,800
Credit Suisse raised FY18 tractor volumes by 2% in FY18 and margin by 40-100 basis points, leading to 3-10 percent rise in EPS. It also highlighted that the firm reported the best margin in the last five years.
Brokerage: HSBC | Rating: Buy | Target: Cut to Rs 815
HSBC said that the US outlook was steady despite challenges on multiple launches and volume growth. Further, improving margin profile of EU could support US traction, it said in its report. It is building in injectable sales for FY17-19 of 31 percent CAGR against 14 percent US sales.
Brokerage: Morgan Stanley | Rating: Underweight | Target: Raised to Rs 6,400
The global research firm increased CY17 & Cy18 EPS estimates by 6% & 2%, respectively. It is factoring in 210 basis points margin expansion for 2016-2018.
Brokerage: Deutsche Bank | Rating: Sell | Target: Raised to Rs 120
The global financial services firm said that lower slippages, but low capital ratio will require huge dilutions. But, it expects muted return on equity at 3-5% over FY18-19.
Brokerage: Deutsche Bank | Rating: Buy | Target: Rs 1,775
The brokerage said that 5% GST without input credit is a minor headwind to tackle. And, any short-term volatility should be used to buy the stock.
Brokerage: DB | Rating: Buy | Target: Rs 625The brokerage said that the firm reported strong operating performance. Further, it values the company’s refining at 6x FY19e EV/EBITDA, marketing business at 8x FY19e EV/EBITDA. It is also adding the value of investments at 15 percent discount to the market price.