February 08, 2012 / 10:08 IST
Merrill Lycnh retains its underperform call on M&M with a target of Rs 645. Despite an 8% beat in realizations on sales mix, profit, adjusting for the reversal of forex charges, grew just 1%, which was well below street estimates. The disappointment was mainly in gross contributions, the highlight of which was the low profitability of their new launch, XUV 500.
UBS reiterates a sell on Tata Motors with a target of Rs 180. Investors seem to find Tata Motors cheap on a PE basis. However, that is a result of an aggressive R&D capitalisation policy at both the parent level and JLR. Adjusting for this, the stock is trading at a premium to most global auto peers.Goldman Sachs reiterates a conviction buy on JSPL with a target of Rs 745. JSPL will benefit from a pick-up in steel sales volumes in the fourth quarter, and liquidation of stocks at higher prices. Highly profitable pellet business and firm merchant power tariffs are key positives.CLSA maintains an outperform on Cadila, but has cut its target to Rs 730. Acquisitions helped Cadila report strong sales growth though that impacted margins. Notwithstanding Cadila's strong long term prospects, CLSA believes near-term growth faces headwinds from the US FDA warning letter and a high base.Choppy market: Sudarshan Sukhani gives buy and sell calls
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