Brokerage: Credit Suisse | Rating: Outperform | Target: Rs 675
Credit Suisse believes that the approval from Unit IV is the next key catalyst. Weak US sales and increasing intensity of research and development (R&D) have resulted in the cut in estimates, it said. The brokerage house reduced FY18/19 EPS estimates by 11 and 10 percent to factor in weak Q4.
Brokerage: Citi | Rating: Buy | Target: Rs 1,130
The global financial services firm observed that Q4 results were better than headline numbers. Further, it said that the company was well equipped to ride through pricing and competition-related pressures in the US.
Brokerage: Goldman Sachs | Rating: Neutral | Target: Rs 1,857
The global investment bank termed the company’s Q4 to be above expectations. Further, it highlighted that the company had announced agreements to franchise out popular volumes.
Brokerage: Kotak Securities
The brokerage observed that management’s actions continue to take the business in the right direction. Further, it said that mixed improvement in trends were encouraging and so was the performance of restaged brands. The decision to franchise popular brands should be EBITDA accretive, it added. But, it also sees margin headwinds due to GST structure. Among pain points, it said that the highway ban on liquor sales poses some short term risk to revenues.
Brokerage: JPMorgan | Rating: Overweight | Target: Rs 2,460
Significant earnings beat was led by healthy growth for prestige & above brands, the brokerage observed. It said that the company maintains its ambition of double digit revenue growth despite highway liquor ban.
Brokerage: CLSA | Rating: Buy | Target: Rs 223
CLSA said that Jagran’s financials were in line with its estimates, but the core print ad growth of 5 percent year on year was below expectations. The management expects this to pick up to 8-9 percent. Further, it stated that demonetisation hit offset the boost from elections in Uttar Pradesh and said that the company was a play on UP’s economic resurgence under BJP government. In other segments, it observed that the strong radio revenues of 20 percent YoY supported overall growth.
Brokerage: Macquarie | Rating: Outperform | Target: Rs 212
The brokerage house estimates 9% YoY overall revenue growth in FY18. It said that Music Broadcast should contribute 13% to the company’s revenue and 16 percent to EBITDA in FY18. GST impact likely to be smoothly passed on, it said.
Brokerage: Kotak Securities | Rating: Neutral
Kotak Securities said that Q4 results were a mixed bag, but it continued to like the company’s standalone business and Starbucks joint venture. Having said that, it continues to see most other businesses including Tetley as sustained drags for the firm.
Brokerage: Citi | Rating: Buy | Target: Rs 1,570
The automobile major’s March quarter performance was an operational miss, but outlook is robust, said Citi in its report. It increased the tractor volume estimates by 22 percent over FY18-19. It also said that the weakness in utility vehicles was now baked into expectations.
Brokerage: Nomura | Rating: Buy | Target: Rs 1,586
The brokerage house observed that there was a strong growth outlook for tractors. New UV launches can act as a catalyst, it said. M&M and MVML Q4 EBITDA was 10% ahead of estimates, driven by better realisations.
Brokerage: JPMorgan | Rating: Overweight | Target: Rs 1,600
The brokerage observed that Q4 beat was driven by one offs EBIT in line with the estimates. It observed that the company guided for double-digit tractor growth in FY18. New launches in FY18 revolve around new KUV/gasoline launch of XUV & a new MPV.
Brokerage: Morgan Stanley | Rating: Overweight | Target: Rs 228
Morgan Stanley observed that a key positive was higher-than-expected EBITDA in the copper business. The profit before tax was 8 percent higher than estimates, helped by lower interest costs. It observed that the firm will gain from lower interest expense given debt refinancing and repayment.
Brokerage: JPMorgan | Rating: Overweight | Target: Rs 255
The brokerage is bringing its valuation multiple closer to mid-cycle levels in-line with LME price trend. It sees strong free-cash flow on lower costs, increased funding for Utkal unit. Materially higher re-rating of downstream arm an upside risk to the stock.
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