Brokerage - Macquarie | Rating - Outperform | Target - Rs 2,200
Macquarie has maintained its Outperform rating on Ceat with a target price of Rs 2,200 per share as it expects volume growth to improve in Q4FY18 & FY19.
It believes company's EBITDA margin should improve going forward. The research house expects an EPS CAGR of 15 percent over FY17-20.
Brokerage - Deutsche Bank | Rating - Buy | Target - Rs 2,100
While having a Buy call on the stock with reduced target price at Rs 2,100 (from Rs 2,250 per share), Deutsche Bank said it cut FY18-20 EPS forecasts by 5-7 percent, though Q3 operating results were robust & in-line with expectations.
"We remain positive on Indian tyre companies as sector is seeing synchronised improvement. Constructive on company's medium-term growth on higher capacity, distribution," it said.
However, its preferred pick in sector is MRF.
Brokerage - Investec | Rating - Hold | Target - Rs 3,900
Investec said Bayer CropScience's misplaced aggression leads to significant miss in Q3FY18.
The research house has Hold rating on the stock with reduced target price at Rs 3,900 from Rs 4,250 per share as valuations of 40.6x FY19 PE seems expensive.
Normal agri cycle, coupled with strong franchise should turn the tide, it believes.
Brokerage - Credit Suisse | Rating - Outperform | Target - Rs 870
With maintaining Outperform rating on the stock with increased target price at Rs 870 (from Rs 640), Credit Suisse said IIFL Holdings' demerger could help reach better valuations.
Home loans, MSME & construction finance are key loan growth drivers, it feels.
Brokerage - Macquarie | Rating - Outperform | Target - Rs 328
Macquarie said Hindalco Industries has reported Q3 standalone EBITDA 3 percent below its estimate due to cost inflation but company is better placed than peers during cost inflation.
Disciplined capital allocation & impressive cost management deserve premium valuation, it added.
Company remains its top pick in the metals coverage, Macquarie said while reiterating Outperform rating on the stock with target at Rs 328 per share.
Brokerage - Morgan Stanley | Rating - Overweight | Target - Rs 292
Morgan Stanley said strong aluminium price outlook & backward integration continued to support momentum.
Aluminium business EBITDA was a slight miss whereas copper business EBITDA was better-than-expected, it added.
Brokerage - Macquarie | Rating - Neutral | Target - Rs 858
Macquarie said key takeaway from Q3 results of Godrej Properties was strong momentum in business development.
The research house has retained its Neutral rating on the stock with increased price target at Rs 858 (from Rs 650) as there is no change to EPS.
Pick-up in sales and debt reduction are key risks to the stock, it said.
Preferred picks in the space are Prestige Estates & Phoenix Mills, it said.
Brokerage - Morgan Stanley | Rating - Overweight | Target - Rs 151
Morgan Stanley has upgraded Ashok Leyland to Overweight from equal-weight and raised target price to Rs 151 from Rs 101.30 per share.
"Volume recovering and we are 13 percent above consensus for FY20e. M&HCV growth has picked up but discounts remain close to all-time highs," it said.
The research house further said the demand recovery and high capacity utilisation will lead to pricing recovery while lower electric vehicle risk for commercial vehicles will provide long-term support for the stock.
Brokerage - Credit Suisse | Rating - Underperform | Target - Rs 103
Credit Suisse said Q3 results were in-line with expectations and volume growth at 42 percent was strong.
While Q3 volumes supported by one-offs, January volume was also appear healthy, it added.
The research house is concerned on rising competitive intensity in space, given Tata’s aggression. It expects company's EBITDA margin to decline over 60/40 bps in FY18/19.
Credit Suisse has maintained Underperform rating on the stock with increased target price at Rs 103 from Rs 98 per share.
Brokerage - Morgan Stanley | Rating - Overweight | Target - Rs 3,785
Morgan Stanley said Bajaj Auto's Q3 results were tad below estimates and leverage gain should drive Q4 margin. Topline growth was 2.5 percent below forecast, it added.
The research house expects domestic motorcycle run-rate to pick up, aided by demand recovery, new launches.
Brokerage - Nomura | Rating - Buy | Target - Rs 851
Nomura said Thyrocare's Q3 revenue/EBITDA/net profit growth at 5.5/14/3 percent was ahead of estimates. Pick-up in diagnostic services at 18 percent YoY is encouraging, it added.
It thinks long-term growth expectation will be key determinant of stock performance and expects over 20 percent revenue growth going forward with higher volume demand.
The research house has maintained Buy rating on the stock with target at Rs 851 per share.
Brokerage - Macquarie | Rating - Underperform | Target - Rs 101
Macquarie said Union Bank of India has reported yet another quarter of high provisions. Guidance on credit cost & slippages remain high while margin has been lowered, it added.
It expects full-year losses for FY18 at Rs 3,200 crore versus earlier estimates of Rs 550 crore loss.
FY19-20 EPS estimates cut of 52/21 percent look high due to small base, it feels.
National Company Law Tribunal case resolution is key catalyst for the stock.
The research house has maintained Underperform rating on the stock with reduced target price at Rs 101 from Rs 112 per share.
Brokerage - Nomura | Rating - Buy | Target - Rs 165
Nomura has upgraded Union Bank of India to Buy from Neutral but cut target price to Rs 165 from Rs 190 per share.
"Valuations get undemanding and the worst on asset quality is behind us," it said. It expects return on equities to normalise to over 9-9.5 percent.
Brokerage - Credit Suisse | Rating - Neutral | Target - Rs 140
Credit Suisse has maintained its Neutral rating on the stock and slashed target price to Rs 140 from Rs 159 per share.
"While overall loan growth was weak, retail growth was strong at 18 percent YoY," it said. Return on equities will remain low even after corporate stress is provided for, it added.
Brokerage - Morgan Stanley | Rating - Overweight | Target - Rs 1,900
While having Overweight rating on the stock with target price at Rs 1,900 per share, Morgan Stanley said the company reported robust revenue in core business and Zomato remained one of company’s key strategic investments.
Overall, the research house tweaked estimates for FY18-20 and expects FY18 growth for 99Acres & Jeevansathi to be 20 percent YoY.
Brokerage - Credit Suisse | Rating - Neutral | Target - Rs 1,310
Credit Suisse has downgraded the stock to Neutral from Outperform but raised target price to Rs 1,310 from Rs 1,300 per share.
Margin was strong but marketing costs should pick-up again in Q4, it feels.
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