Brokerage: Macquarie | Rating: Outperform | Target: Rs 340
Macquarie said that the Q1 numbers were in line and the cigarette business was strong with volume growth of 2 percent year on year. Moreover, FMCG business revenue was up 9 percent year on year and impacted by GST de-stocking. The brokerage house is not building in a volume decline in FY18 despite the recent price hike. Further, Q1 volume growth should provide a cushion, it added.
Brokerage: Citi | Rating: Buy | Target: Rs 325
Citi observed that cigarette volumes appear to be up a tad ahead of estimates. It continues to see near-term overhang given the recent tax hikes. It also said that the valuation discount is compelling against the peer group.
Brokerage: BofAML | Rating: Buy | Target: Cut to Rs 375
The research firm said that the June quarter was a decent show in challenging circumstances. The long-term benefits from GST will outlast pricing concerns, it added. The recent price correction offers enhanced opportunity, it added.
Brokerage: Nomura | Rating: Buy | Target: Cut to Rs 325
Nomura highlighted that GST-related uncertainty was out of the way. Further, it continued to prefer the stock in consumer space.
Brokerage: CLSA | Rating: Upgrade to Underperform | Target: Rs 285
The brokerage said that the company’s statement points to management concerns on an increase in taxes.
Brokerage: Goldman Sachs | Rating: Neutral | Target: Cut to Rs 315
The global investment bank believes that the company can deliver 5 percent cigarette volume growth in FY19-20. Moreover, the steep pricing taken in FY18 will lead to slower volume growth.
Brokerage: CLSA | Rating: Buy | Target: Rs 380
CLSA said that a moderation in the stress can aid rerating for the stock. Further, it added that the loan growth was dragged by overseas loans, but the situation should improve, it added. On the June quarter performance, it said that the profit was a tad ahead of estimates due to lower provisions and taxes. Having said that, the loan growth weak due to fall in overseas loans, but can improve in the second half.
Brokerage: Deutsche Bank | Rating: Buy | Target: Raised to Rs 345
The global financial services firm believes that the core revenue momentum will likely remain weak in FY18. It remains positive on the stock, given the strong performance of subs as well as an attractive valuation.
Brokerage: JPMorgan | Rating: Neutral | Target: Raised to Rs 280
The global research firm said that the outlook was weak as the front-book is coming in at lower spreads.
Brokerage: Prabhudas Lilladher | Rating: Buy | target: Raised to Rs 388
The brokerage said that the earnings were a slight miss on the back of weak NII growth.
Brokerage: Nomura | Rating: Buy | Target: Raised to Rs 8,993
Nomura maintained its view of 13.5 percent volume CAGR over FY17-19. Further, it expects EBITDA margin to improve to 14.2 percent in FY18 and 14.7 percent in FY19.
Brokerage: BofAML | Rating: Neutral | Target: Rs 7,800
The global research firm expects profitability to improve in the second half as new products scale up. The volume momentum, it said, remains strong, while the pricing wil improve.
Brokerage: Morgan Stanley | Rating: Overweight | Target: Increased to Rs 8,784
Morgan Stanley believes that the margin pressures will be transitory and any weakness post weak Q1 will be a buying opportunity.
Brokerage: CIMB | Rating: Hold | Target: Increased to Rs 7,623
CIMB maintains sales volume and EBITDA for FY18. It is building in 12 percent sales volume growth and 14.6 percent EBITDA margin for this fiscal.
Brokerage: CLSA | Rating: Downgrade to Sell | Target: Cut to Rs 2,390
CLSA said that the company reported its worst-ever quarter in the recent years. The company, it said, has shown recovery after weak June quarter, but it seems to have reversed. The management, it said, has underlined a strategy to bring things back on track. Further, it said that the results of the management’s strategy would only be visible in FY19. Moreover, the timeline for critical US launches will only be clear by FY18-end.
Brokerage: Deutsche Bank | Rating: Hold | Target: Cut to Rs 2,310
The brokerage observed that US headwinds continued to weigh on the margin outlook. Moreover, muted growth in India offsets strong growth in Europe and emerging markets.
Brokerage: JPMorgan | Rating: Overweight | Target: Cut to Rs 3,300
It said that the revenue and gross profit was in line, but higher operating expenditure impacts EBITDA.
Brokerage: Goldman Sachs | Target: Cut to Rs 2,470
Goldman Sachs cut FY18-20 EBITDA by 7-30 percent to factor in lower margin assumptions. Further, it said that the key risks are remediation delays at Duvvuda/Bachupally and gAloxi litigation.
Brokerage: Goldman Sachs | Rating: Sell | Target: Rs 4,160
Goldman Sachs said that it was another weak quarter across all parameters.
Brokerage: CIMB | Rating: Add | Target: Rs 215
CIMB said that the HPCL transaction is an overhang for now. Crude oil remains a key stock driver.
Brokerage: CLSA | Rating: Buy
CLSA expects all key parameters of the company to improve. Further, it sees domestic gas price to rise by 17 percent in October 2017 along with a slow recovery in crude prices. The stock is pricing Brent at USD 47 per barrel and said that the company is one of the cheapest large cap E&Ps in the world.
Brokerage: JPMorgan | Rating: Neutral | Target: Rs 185
JPMorgan said that gas productions growth picked up and should continue.
Brokerage: JPMorgan | Rating: Neutral | Target: Rs 740
The earnings before interest, taxes, depreciation and amortisation (EBITDA) beat was driven by lower operating costs.
Brokerage: JPMorgan | Rating: Underweight | Target: Rs 70
The brokerage said that the data trend continued to be weaker than peers.
Brokerage: Prabhudas Lilladher | Rating: Downgrade to Accumulate | Target: Cut to Rs 63
The brokerage house said that the earnings was led by large treasury gains, but the core performance weak.
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