Macquarie, which maintains most aggressive 12-month target price of Rs 1,100 on CESC sees sharp re-rating in the stock price due to restructuring exercise.
ITC, UPL, Dr. Reddy's, among others are being watched by analysts, while steel and oil and gas too remain on their radar.
From Godrej Industries to VRL Logistics, a look at stocks that are set to reap in benefits from the unified tax regime.
Macquarie Securities’ Sandeep Bhatia feels one large cap stock to benefit from GST and stable taxation could be ITC. Meanwhile, Asian Paints, Voltas and Crompton Greaves Electricals could be looked at.
On Tuesday, the stock of the companies above shot of 6 percent in the intraday trades amid expectations of a big buyout or merger announcement likely as billionaire Uday Kotak, promoter, Vice Chairman and Managing Director of Kotak Mahindra Bank will address the media at 3.30 pm on Wednesday.
The Economic Survey of this year recommended a ‘bad bank’ to kickstart the resolution of non-performing loans in the banking industry. However, this is not a definite solution for the system, believes Suresh Ganpathy of Macquarie Capital Securities India.
CLSA says Mohali plant clearance is a significant positive development for the company and shows progress on regulatory issues. Clearance makes a large oral solid dosage site available to de-risk existing sites.
Macquarie also believes acquisition enhances the return on assets (RoA) profile of the bank and thus is a medium-term positive if executed well. However, this time, given the size of the book and signs of stress in the micro finance institution segment, execution remains key, the brokerage house says.
JPMorgan has overweight rating on L&T, with a target price at Rs 1,670 as the brokerage house is optimistic about a pick-up in execution in the near-term.
With maintaining underperform rating on Bharti Airtel and unchanged target price at Rs 295, Credit Suisse 'tit-for-tat' aggression from Bharti is a departure from its historical passive response to competition.
With maintaining hold rating on Havells with a target price of Rs 374, Deutsche Bank says Lloyd division acquisition can complement AC and consumer durables portfolio.
While analysts are comfortably placed with the deal‘s pricing, they have highlighted some challenges such as hit in EBITDA margins, lack of synergies, among others, for Havells that will emerge from this deal.
Goldman Sachs says Kotak Mahindra Bank may outperform on improving growth prospects & top quartile EPS growth. Lending book is likely to grow at 25 percent hereon, it feels.
CLSA says if Kotak Mahindra Bank and Axis Bank merged then the merged entity would be among the largest private banks and the merger would allow banks to capitalise on individual strengths.
Nomura cut FY17 earnings estimates for Sun Pharma by 9 percent, FY18 by 5 percent & FY19 by 3 percent after Q3 earnings missed analysts' expectations. It sees 11 percent revenue growth & 10 percent earnings growth over next 2 years.
Loan growth would be a disappointment as compared to investors' expectations and return on equity visibility beyond 12-14 percent by FY2019 still poses as a challenge, the brokerage house says. Kotak has increased target price to Rs 170 from Rs 160.
Morgan Stanley is underweight on Bank of Baroda, with reduced target at Rs 125 from Rs 135 as valuation is expensive in the context of weak earnings progression. Share price will fall relative to the industry over the next 30 days, it feels.
CLSA says Power Grid's best is yet to come in terms of capitalisation and estimates 50 percent rise in regulated equity over FY16-19. The brokerage house has reiterated buy call on the stock, with increased target at Rs 238 from Rs 225 as it feels valuations are inexpensive despite a 39 percent rally in one year.
With reiterating outperform rating on Hindalco, with a target price of Rs 250, Macquarie says commodity price support will provide fresh legs for rerating and favourable mix will drive margins.
Morgan Stanley is underweight on the stock, with a target price at Rs 1,372. Key positive surprise was better-than-expected realisation but better realisation was offset by higher per tonne cost, the research firm says.
CLSA says special court verdict on former Telecom Minister Dayanidhi Maran and his brother & head of the company Kalanidhi Maran, in Aircel-Maxis case, ended long-standing legal overhang on the company. The brokerage house has upgraded the stock to buy from sell and raised target price to Rs 661 from Rs 438.
The company reported one of their biggest order wins in its quarterly results. However, challenges related to moderate execution as well as volatility among top clients may be hitting revenues
Bank of America Merrill Lynch ratains buy call with a target of Rs 1373 per share. It estimates FY17/18 net profit growth of over 27 percent.
The decline in gross domestic product (GDP) for the second half of the year is likely to be more stark than government estimates, says Tanvee Gupta Jain, India Economist Research at Macquarie Capital Securities.