The market continues its Diwali bumper run, which took Sensex to a fresh high of 40,676.44. While Nifty is just points away from its record high touched on June 3 on the back inline earnings, the government's new measures for real estate sector and positive global markets.
Out of the last 10 trading sessions, the Nifty50 has given positive returns in eight.
Foreign institutional Investors (FIIs) bought equities worth Rs 1,879.50 crore while Domestic Institutional Investors (DII) sold equities worth Rs 3,347.70 crore in the month of November 2019 so far.
"Technically, the short term uptrend of the Nifty still remains intact. Further upsides are likely once the immediate resistance of 12,003 is taken out. Crucial supports to watch for resumption of weakness are at 11,861-11,921," said Deepak Jasani, Head Retail Research, HDFC securities.
Here are three stocks in which foreign brokerages have upgraded their rating and also increased target price (source - CNBC-TV18):
HDFC | Brokerage: PhillipCapital | Rating: Upgrade to buy from neutral | Target: Raised to Rs 2,410 from Rs 2,300 per share
We may see the company grow its loan book by about 14-15 percent over FY19-21 and strong and stable franchise should help company raise funds at competitive rates, said PhillipCapital.
The research house expects that spreads would remain steady.
The company has registered a 60.5 percent year-on-year (YoY) jump in its standalone Q2 FY20 net profit at Rs 3,961.53 crore on the back of better operating performance. The company reported a profit of Rs 2,467.08 crore in the same quarter in 2018.
The revenue of the company rose 19.9 percent YoY to Rs 13,487.44 crore.
Its tax expense stood at Rs 568.9 crore versus Rs 1,022 crore in the year ago period while dividend income increased to Rs 1,073.8 crore.
The Gross non-performing assets (NPAs) was marginally higher at 1.33 percent while net interest income (NII) rose 16.2 percent YoY to Rs 3,077.7 crore. The net interest margin was unchanged at 3.3 percent QoQ.
Exide Industries | Brokerage: Nomura | Rating: Upgrade to buy from neutral | Target: Raised to Rs 222 from Rs 203 per share
Nomura expects the company's steady growth to continue as attractive valuations make risk-reward favourable.
It expects the company to deliver 8 percent volume CAGR over FY20-22 and, for auto OEM, a 15 percent decline in FY20.
For the industrial segment, Nomura expect company to deliver 7.5 percent volume CAGR over FY20-22.
It has lowered margin estimates over FY20-22 to 13.7 percent/13.3 percent/13.7 percent from 13.8 percent/14 percent/14.1 percent while EPS estimates increase by 8 percent/5 percent/8 percent to factor in a lower corporate tax rate of 25 percent.
The company's Q2FY20 net profit was down 11.6 percent at Rs 237.3 crore against Rs 268.4 crore while the revenue was down 4 percent at Rs 2,611 crore against Rs 2,720.3 crore YoY.
Earnings before interest, tax, depreciation and amortisation (EBITDA) was up 10.4 percent at Rs 367.2 crore, EBITDA margin was up 190 bps at 14.1 percent, YoY.
Godrej Consumer Products | Brokerage: CLSA | Rating: Upgrade to buy from underperform | Target: Raised to Rs 900 from Rs 700 per share
The company's focus on growth & launches, is a step in the right direction, feels CLSA.
CLSA cut EPS estimates by 1-5 percent as it lower its growth forecast for FY20.
Research house believes that the focus on product launches could start a virtuous cycle of growth.
The company has reported a steep 28.4 percent decline YoY in the second quarter consolidated profit at Rs 413.88 crore against profit of Rs 577.73 crore in the corresponding period last fiscal.
The revenue during the quarter fell 1.14 percent to Rs 2,630.2 crore compared to year-ago, with domestic volume growth at 7 percent.
The international business delivered constant currency sales growth of 7 percent.
The operating performance of the company remained strong as EBITDA grew by 17.5 percent YoY to Rs 571.9 crore and margin expanded 340bps to 21.7 percent in quarter ended September 2019.
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