Brokerage Calls: Here’s why Nomura sees 25% upside in RIL; HDFC Bank target raised

The standalone EBITDA was largely in-line with estimates. The net profit was 4 percent ahead of our estimates. The pace of growth in both retail and Jio continues to surprise on the upside.

Large Jio capex, and rising net debt are two key worries for RIL. The focus is likely to shift on tower biz demerger, said the Nomura note.

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Larsen & Toubro Infotech: Buy| Target: Rs 2,100| Upside: 16 percent

Citigroup maintained its buy rating on Larsen & Toubro Infotech Ltd post Q3 results. It remains to be the top pick in the Midcap IT pack, Citigroup said in a note.

The global investment bank revised company's FY19-21e EPS by 2-3 percent. The company is likely to deliver the highest revenue growth among peers in FY19, added the note.

HDFC Bank: Buy| Target: Rs 2,730| Upside: 28 percent

CLSA maintained its buy rating on HDFC Bank post Q3 results and also raised its 12-month target price to Rs 2,730 from Rs 2,670 earlier, which translates into an upside of 28 percent from current levels.

The Q3 profit rose 20 percent YoY, which was largely in-line with estimates. However, the global investment bank was a tad disappointed by the slower CASA growth of 13 percent YoY that was a multi-year low.

The asset quality slipped a bit but stressed loan ratio still remains among the lowest in the sector. CLSA sees a 21 percent profit CAGR over FY18-21.

Wipro: Rating: Sell | Target: Raised to Rs 325 from Rs 315

Citigroup maintained its sell rating on Wipro post Q3 results but raised its target price to Rs 325 from Rs 315 earlier.

The global research firm said that revenues were slightly below expectations, but margins surprised. It said that the BFSI segment has been the key driver of growth and macro suggests caution.

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