RBS upgrades HCC to buy but cuts target to Rs 47. HCC is under pressure from high debt, slower infrastructure spending and rising interest rates. However, the recent change in environment minister could favour the Lavasa environmental clearance.
Bank of America Merrill Lynch maintains a buy on Motherson Sumi with a target of Rs 260. The acquisition of Peguform could add significant potential upside to the price target. However, the key risk will be in execution.
Nomura maintains a reduce rating on Reliance Communications and has cut its target to Rs 90. The telecom player has been a significant underperformer in the past 18 months. Given disappointments over past failed value-unlocking transactions, continued weak execution as well as closer scrutiny from regulators on various policy, spectrum matters - Nomura remains cautious on the stock.
Citi maintains a sell on Reliance Capital and has cut its target to Rs 555. The company's key business segments are in a consolidation phase. Industry challenges in its capital market related businesses remain high and the near to medium term business outlook remains tough.
And big downgrade for GVK Power . JPMorgan has downgraded the stock to underweight and slashed the price target to Rs 17 from Rs 31. GVK's quest for long-term growth and fuel security, though legitimate from the company's perspective, raises the risk for equity investors substantially over the medium term.
