Brokerage: Nomura | Rating: Neutral | Target: Cut to Rs 5,271
The brokerage said that the target price was cut due to slowing rural growth, GST and demonetization. It also cut FY18-19 earnings estimates by 7-8 percent and is building in a revenue growth of 10.3 percent for FY18.
Brokerage: CLSA | Rating: Buy | Target: Rs 1,400
CLSA said that the company is set to win USD 1.8 billion order from harbor link and coastal road order is likely to be next. The brokerage house observed that the company has a credible strategy to improve growth and RoE.
Brokerage: Bank of America Merrill Lynch | Rating: Initiate with underperform | Target: Rs 163
The company expects sales expected to remain weak over FY17-20 as it plans to launch projects only after obtaining occupancy certificate. This, it added, could lead to negative free cash flows of Rs 2,000 crore over FY18-20.
Brokerage: Deutsche Bank Markets Research | Rating: Initiate with buy | Target: Rs 80,000
The global broking firm sees an upside of 25 percent on the stock and said that the stock commands a leadership position across key tyre segments. It also expects EPS to grow at CAGR of 16% over FY17-20, while volumes could grow 10 percent over FY17-20.
Brokerage: Bank of America Merrill Lynch | Rating: Initiate buy | Target: Rs 756
The global research firm sees a potential upside of 26 percent and said that robust sales competition of legacy projects could drive 44 percent EPS CAGR over FY17-20. The firm also saw expansion in the return on equity by 907 basis points to 20 percent in FY20.
Brokerage: Bank of America Merrill Lynch | Rating: Initiate with buy | Target: Rs 334
The global financial services firm expects rental income to double in 4 years given renewal of existing contracts and upcoming lease assets. It also expects EPS to grow at CAGR of 40% over FY17-19, while return on equity could rise to 10% in FY19. Key triggers for the stock include foray into affordable housing space and potential strategic sale of commercial assets.
Brokerage: Bank of America Merrill Lynch | Rating: Initiates coverage with Neutral | Target: Rs 432
The research firm said that revenue recognition of projects launched in FY15-16 to grow EPS at 77% CAGR over FY17-19. For the stock, it said that the triggers include launches of new projects in Mumbai and robust outlook for office and retail space. It also expects rental income from office space to witness 33 percent CAGR over FY17-20.
Brokerage: Deutsche Bank Markets Research | Rating: Initiate with buy | Target: Rs 2,150
The global financial services firm expects expect revenue/EPS to grow at 13%/16% CAGR over FY17-20, while volumes could grow at CAGR of 9% over FY17-20. The key triggers could be strong growth in replacement and market share gains in OEMs.
Brokerage: Deutsche Bank Markets Research | Rating: Buy | Target: Raised to Rs 325
The firm observed that Apollo’s capacity expansion to drive volumes and EPS. These could grow at CAGR of 11%/12% over FY17-20. It said that the earnings could be weak due to negative price/raw material mix and capacity ramp-up costs.
Brokerage: Morgan Stanley | Rating: Overweight | Target: Hiked to Rs 660
Implementation of GST, continuing strong SSSG and private label brands offer good opportunity for margin expansion, the brokerage said. In fact, small-format stores could drive further expansion in valuation multiples
Brokerage: Motilal Oswal | Rating: Upgrade to buy | Target: Hiked to Rs 980
The broking firm observed that the impact of alcohol ban on highway, GST, and alcohol prohibition in a few states not as bad as feared. In fact, the GST impact on margins could be 100 basis points against earlier expectation of 200 bps in FY18. Further, the demand appears to be on the cusp of revival, it added.
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