Brokerage: CLSA | Rating: Upgrade to Outperform | Target: Raised to Rs 350
CLSA expects a gradual recover for the company and is banking on a strong second half. The volumes, it said, may not fully recover even if the second quarter is good. Further price hikes would help in the second half, it added.
Brokerage: Prabhudas Lilladher | Rating: Accumulate | Target: Rs 328
Prabhudas Lilladher highlighted that the management was confident of achieving 5-10 percent volume growth for the full year. GST & CSD channel-led disruption may continue in Q2, it added. Moreover, normal monsoons & low base in H2 should result in growth acceleration, the report stated. It also observed that the company was seeing stabilization like honey after a while.
Brokerage: CLSA | Rating: Buy
The brokerage house said that the company began the fiscal on a good note as P&L and pre-sales have surprised. It noted that pre-sales was up 20% yoy on good performance of core-Bengaluru premium props. Further, it lifted FY18/19 earnings by 3/4% and believes that it is well positioned to benefit from a sustained operational & residential upturn.
Brokerage: CLSA | Rating: Outperform | Target: Raised to Rs 1,585
CLSA expects good monsoons & new launches to boost volume growth. Further, it added that the management is positive on rural demand outlook & upcoming SUV launches. Going forward, the company may see an uptick in volume and earnings growth in balance of this fiscal and next.
Brokerage: Prabhudas Lilladher | Rating: Accumulate | Target: Rs 1,471
The brokerage said that the tractor division is expected to continue delivering good performance, while automotive division outlook remains subdued. Further, it said that better sales pick-up & early mover advantage in e-vehicles provide better longer-term outlook.
Brokerage: CLSA | Rating: Sell | Target: Rs 405
The global research firm said that the core GRM was a big surprise but very high inventory loss was seen. Having said that, it believes that the high GRM could be unsustainable. It raised FY18/19e EPS by 16/14%.
Brokerage: Prabhudas Lilladher | Rating: Accumulate | Target: Rs 335
The brokerage house said that the company’s June quarter results were in line with Estimates, with revenue at Rs 490 crore.
Brokerage: Prabhudas Lilladher | Rating: Buy | Target: Rs 550
The brokerage said that JK Lakshmi’s Q1 was better than estimates on better than expected realisations, but margin may remain under pressure in FY18. Further, it expects profitability to significantly improve in the next fiscal.
Brokerage: Axis Capital | Rating: Upgrade to Buy | Target: Rs 191
Axis Capital said that the profit was impacted with margin impacted due to control on stent pricing. Moreover, higher marketing spends by SRL & demonetisation impacted profit too. The management expects margin trajectory to improve towards the end of the year.
Market Strategy
Brokerage: CLSA India
GST-impacted Q1 results season has been biased towards earnings cuts so far, the brokerage said in a report. Moreover, sectors showing weak trends/misses have been auto, consumer & pharma, while IT & banks have seen mixed trends. It also highlighted that most companies believe that lost sales due to GST should be partly recovered in Q2. An advanced festive season should set up for better earnings growth Q2 onwards.
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