Tata Motors Brokerage: Goldman Sachs Rating: Buy Target: Rs 348 Rationale: While the India business is a source of cyclical and structural risk, it contributes only 16% to consolidated operating profit. Correspondingly for JLR, the potential upside risk to valuation from an upgrade cycle appears relatively higher on better EBITDA margins and volume growth.
GAIL Brokerage: Nomura Rating: Buy Target: Rs 565 Rationale: For GAIL’s Agartala network, PNGRB’s provisional initial tariff is nearly Rs 6 per unit, which is 50% lower than GAIL’s demand of over Rs 11.
Reliance Brokerage: Macquarie Rating: Neutral Target: Rs 779 Rationale: They feel the stock will struggle to grow earnings as its shale ramp-up, enhanced refinery efficiencies and reduced organized retail losses should just about offset the impact of an economic slowdown, coupled with a continuing fall in KG-D6 gas volumes.
Hero MotoCorp Brokerage: CLSA Rating: Sell Target: Rs 1,950 Rationale: Given expensive valuations and rising risks to earnings due to slowing growth and rising competition. EBITDA was in-line, but net profit came in below estimates due to a higher tax rate. The management has said export margins will be subdued in the initial period.