Buy, Sell, Hold: 10 stocks are being tracked by analysts today

The brokerage house said that the profit is mainly driven by credits received from the engine manufacturer (P&W). Meanwhile, the management has maintained its guidance for ASK growth in FY18 to 19 percent. It also said that the airline was well placed to capture market share, led by its capacity expansion even as yields have stabilised, which should ease pressure on margin.

Dr Reddy’s

Brokerage: Macquarie | Rating: Neutral | Target: Rs 2,500

Macquarie expects stock to remain rangebound in the near term. Further, it seeks clarity on launch of key molecules and US FDA issue resolution. Any major approvals, it added, are likely to lift sentiment.

Brokerage: UBS | Rating: Neutral | Target: Rs 2,550

UBS said that the company’s US revenue could improve in the second half and the cost containment is a temporary measure. Further, the company has 100 ANDAs and 3 NDAs pending approval. The stock is already pricing in recovery in FY19.

Brokerage: Credit Suisse | Rating: Underperform | Target: Unchanged at Rs 1,950

Credit Suisse cut FY18 EPS estimates by 9% to reflect lower US sales and added that weak sales trend can be seen across regions.

Brokerage: CLSA | Rating: Outperform | Target: Raised to Rs 2,650

The brokerage said that timely monetisation of high-value assets is critical. In fact, the next six months is crucial as 3 limited competition products have target action dates from US FDA.

JSW Steel

Brokerage: UBS | Rating: Sell | Target: Rs 190

UBS said that headline numbers missed estimates despite higher sales volumes, while the company has maintained sales/production guidance of 15.5/16.5 million tonnes for FY18. Further, there could be a positive news in the remainder of this fiscal with respect to forest development tax case.

Brokerage: Macquarie | Rating: Neutral | Target: Raised to Rs 262

Macquarie sees no risk to full year volume guidance. It increased FY18 EBITDA estimates by 7 percent and said that it preferred JSW Steel over Tata Steel to play the current steel upcycle.

Brokerage: Credit Suisse | Rating: Outperform | Target: Raised to Rs 300

Credit Suisse pushed back cost benefits to FY19 From H2FY18. While it is constructive on steel cycle, FY18/19 EPS estimates are revised -5%/+4%, respectively.

Brokerage: CLSA | Rating: Buy | Target: Raised to Rs 315

The brokerage expects steel realisations & margin to rise in H2FY18. Meanwhile, performance of subsidiaries was weaker than our expectations, but steel margin improved sequentially despite lower ASPs. It also expects margin to rise further in H2.

Dabur

Brokerage: UBS | Rating: Buy | Target: Raised to Rs 400

UBS said that robust recovery in domestic business and the worst is over for international. Further, cost rationalisation helps margin improvement and added that increased visibility of volume growth in India could re-rate the stock.

Brokerage: Macquarie | Rating: Outperform | Target: Raised to Rs 369

Macquarie said that the firm has gained market share across the portfolio and aggressive new launch pipeline planned in near to medium-term. Further, H2FY18 to have lower currency depreciation impact in international business, while the margin can remain flat as focus is on higher volume.

Brokerage: Credit Suisse | Rating: Neutral | Target: Raised to Rs 350

Credit Suisse expects improved volume growth in H2 due to lower base and the underlying trends are showing improvement.

Bharti Airtel

Brokerage: UBS | Rating: Buy | Target: Rs 495

UBS said that the company posted solid results in a tough quarter and Africa margin surprised positively. While India mobile revenue down, but KPI’s show strong defence against Jio

Brokerage: Credit Suisse | Rating: Neutral | Target: Raised to Rs 430

EPS estimates increased by 5-6% as better Africa margin is factored, it said, adding that maintaining India mobile margin in weak quarter is commendable.

Brokerage: CLSA | Rating: Upgrade to Buy | Target: Raised to Rs 637

The brokerage said that consolidation & data have revived long-term growth. Further, it sees 16% CAGR in EBITDA Over FY18-21 and the long-term growth is set to revive starting FY19.

IIFL

Brokerage: Credit Suisse | Rating: Outperform | Target: Raised to Rs 740

The brokerage said that the firm reported strong growth across lending & fee-based businesses. In fact, overall results are in-line with expectations.

Info Edge

Brokerage: Credit Suisse | Rating: Outperform | Target: Raised to Rs 1,300

The brokerage said that management outlook for recruitment business has improved, but advertising cost may increase again in 99Acres.

Brokerage: CLSA | Rating: Sell | Target: Rs 970

The research firm said that Q2 print indicated continued growth slowdown in Naukri and growth is likely to remain in low double digits. Continued single-digit growth in Naukri could begin to pressure margin. Meanwhile, 99Acres continues to struggle from weak market conditions.

Strides Shasun

Brokerage: Credit Suisse | Rating: Outperform | Target: Unchanged at Rs 1,000

Credit Suisse is positive on the firm as near-term outlook is strong, while the firm is on track to file 15-20 products in FY18.

Escorts

Brokerage: PhillipCap | Rating: Downgrade to Neutral | Target: Rs 800

The brokerage said that the company had a strong quarter with margin adjusted for GST compensation at 13.5% vs.9.7% estimate. It expects stock to languish in near-term as it enters a phase of slower tractor growth.

Inox Leisure

Brokerage: CLSA | Rating: Buy | Target: Raised to Rs 332

CLSA said that strong ad revenue growth drove margin expansion, while ad revenue growth significantly outperforms that of PVR. Meanwhile, marquee property additions & advertiser portfolio churn should help ad rev growth. It lifted FY18/19 EBITDA estimates 2%/5%.