Moneycontrol BureauHere are 11 stocks that analysts are watching out todayConsumer stocksNomura believes liquidity crunch due to demonetisation is short-term and expects things to normalise by Q4FY17. It has a buy call on HUL with target price cut to Rs 971 from Rs 983 per share. It has a buy call on Colgate with target price cut to Rs 1075 from Rs 1120 per share. It has a buy call on Godrej Consumer with target price increased to Rs 1792 from Rs 1765 per share. It has a buy call on Britannia with target price cut to Rs 3852 from Rs 3937 per share. It has upgraded ITC to buy from neutral with target price at Rs 271 versus Rs 238 per share. It has also upgraded Nestle India to buy with target price at Rs 7300 per share verus Rs 7187 per share earlier. It has a neutral call on Eveready with target price at Rs 373 versus Rs 396 per share earlier. It has neutral call on Dabur with target price cut to Rs 307 from Rs 333 per share. Godrej ConsumerJP Morgan remain overweight on the stock. It says as 50 percent of company’s revenue & profit are from overseas operations, it is less impacted from the ongoing demonetisation drive in India.
Sun Pharma Credit Suisse has cut FY18 EPS by 5 percent with target price cut to Rs 800 versus Rs 820 per share earlier. It says escalation of current warning letter for Halol unit is unlikely and adds that Halol unit stands at good likelihood of clearance before September 2017. Deutsche Bank has set target price at Rs 900 per share reiterating buy call on the stock. It expects respite in 1-3 quarters. It says observations at Halol procedural pertaining mainly to quality control. HSBC maintains buy call with target unchanged at Rs 797 per share as most observations are procedural in nature. It says lack of stability assessment & inadequate lab controls are key concerns.
CLSA retains buy on strong long-term prospects & reasonable valuation but reduces target to Rs 880 from Rs 980 per share as the stock lacks near-term catalysts. It says Halol resolution is pushed to H2FY18 and hence cut FY18/19 EPS BY 5 percent.
Coal IndiaCredit Suisse has cut target price cut to Rs 370 from Rs 385 per share as it sees little downside to the stock. The company reported very weak Q2 results on account of higher costs across heads. Higher costs pull down FY17-19 EPS by 7-20 percent. Jefferies maintains hold with target to Rs 288 from Rs 328 per share. It has cut FY17/18 EPS by 16 percent/15.5 percent and thinks earnings will remain under pressure. It says stronger volume growth and better e-auction premium could offer some relief in H2.
Axis BankCiti has a buy call as its asset quality stress is defined, with most slippages originating from the watchlist core profitability is strong. It prefers Axis Bank to ICICI Bank given its higher operating profit growth. To reflect asset quality issues it has cut EPS by 12-45 percent and target to Rs 600 from Rs 725 per share.
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