Unitech Brokerage: Nomura Rating: Buy Target: Rs 42 Rationale: The execution pace remains a concern as the company managed to deliver only 0.5 million square feet in Q4. But the stock currently trades at a 60% discount to their real estate NAV, which seems attractive.
BPCL Brokerage: Bank of America Merrill Lynch Rating: Buy Target: Rs 816 Rationale: Post the announcement of the Mozambique discovery yesterday, they have raised the value of BPCL’s 10% interest in the block to Rs 294. However the market value of BPCL’s investments in Indraprastha Gas and Petronet LNG has been reduced by Rs 33 per share.
Ashok Leyland Brokerage: Credit Suisse Rating: Outperform Target: Rs 35 Rationale: While fourth quarter results were slightly below expectations, the stock trades well below its historical average. They also prefer the attractive dividend yield on the stock given Leyland’s consistent 40% payout policy.
Tata Motors Brokerage: Deutsche Bank Rating: Sell Target: Rs 250 Rationale: JLR’s volumes for April were up 29% year on year. However adjusting for Evoque and Freelander, volumes in Land Rovers’ other brands would have actually declined 17%, which is disappointing.