Brokerage: Nomura | Rating: Neutral | Target: Rs 1,150
Nomura said that miss on margin was netted off by better-than-expected profitability of cap market related. It sees growth picking up and that the bank continued to deliver on extracting cost efficiency. The brokerage expects core RoEs to inch up to 16% by FY20. It prefers HDFC Bank given relatively reasonable valuations.
Brokerage: Macquarie | Rating: Neutral | Target: Rs 1,111
The global research firm observed that the bank had a stable quarter; subsidiaries shine as cons net profit beats estimates. Further, its arms Kotak Sec, Kotak Cap saw net profit growth of 80%/400% YoY. Additionally, standalone net profit was 20% ahead of its estimates. Macquarie likes the bank but its valuations leave limited potential for upside. Going forward, loan growth pick-up, superior subsidiary performance key catalysts for the stock.
Brokerage: Deutsche Bank | Rating: Hold | Target: Raised to Rs 1,100
The global investment bank observed that CASA traction remains strong, investment in digital improving efficiency. Further, a delay in economic recovery is a key downside risk for the stock. Fast, profitable growth after merger key upside risks for the stock.
Brokerage: Macquarie | Rating: Outperform | Target: Raised to Rs 2,581
Macquarie said that massive operating leverage the most impressive among otherwise excellent q3 numbers. Even On 2-yr CAGR basis, same-store-sales growth was healthy. Further, it believes that better affordability & product quality will continue to drive SSSG growth. The company was 32-40% ahead of consensus earnings; FY18 EPS is ahead of consensus FY19.
Brokerage: CLSA | Rating: Buy | Target: Raised to Rs 2,800
CLSA said that the multi-quarter high same-store-sales growth & margins, while EPS upgrade cycle continues. Slow expansion for both brands was on expected lines.
Brokerage: CLSA | Rating: Buy | Target: Rs 2,340
The brokerage expects 20% CAGR in earnings over FY17-20. Q3 PAT was In-line; encouraged to see 32% yoy growth in operating profit. CASA growth slowed albeit on a high base. Further, a planned capital raise will aid scope for network expansion.
Brokerage: Macquarie | Rating: Outperform | Target: Raised to Rs 2,676
Macquarie said that the firm is a strong compounding story with no asset quality issues. It has raised earnings estimates by 2-4% for Fy18-20.
Brokerage: Nomura | Rating: Buy | Target: Unchanged at Rs 2,350
Nomura expects the firm to delivery best in class PPOP growth over FY17-20. Current valuations of 18x fy20 EPS are not demanding.
Brokerage: CLSA | Rating: Outperform
CLSA said that impact of higher input prices evident in the company’s Q3, while margin is at multi-quarter low. Further hardening in input prices remains a concern. It also expects the company to offset hardening of input prices with price hikes. CLSA has trimmed forecasts by 2-3 percent.
Brokerage: Jefferies | Rating: Buy | Target: Raised to Rs 320
The brokerage observed that risk-reward for the stocks is favourable. Further, single-digit tax increase in cigarettes in budget will re-rate the stock.
Brokerage: Macquarie | Rating: Neutral | Target: Rs 304
The brokerage said that cigarettes volume remains under pressure and have cut estimates by 2 percent due to lower realisation. There is limited downside for the stock, have valuation support at current levels.
Brokerage: Deutsche Bank | Rating: Buy | Target: Raised to Rs 350
Deutsche Bank said that cigarette volume decline of 4% qoq was in-line with estimates. A high probability of rational tax increase may a potential re-rating event.
Brokerage: Deutsche Bank | Rating: Buy | Target: Rs 1,150
The global investment bank said that strong petchem performance drives EBITDA growth. Further, Jio’s result reflects continued momentum in subscriber additions. It expects EBITDA growth of 41% CAGR over FY17-19.
Brokerage: Credit Suisse | Target: Neutral | Target: Raised to Rs 855
Credit Suisse said that robust EBITDA growth to continue as expansions ramp up. It also raised FY18/19 estimates by 15/9 percent.
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Brokerage: Credit Suisse | Rating: Outperform | Target: Raised to Rs 480
The global research firm said that positive exim sector momentum buoys prospects.
Brokerage: Nomura| Rating: Buy | Target: Raised to Rs 540
The brokerage said that it is the preferred life insurance pick. VNB Margin Surprisingly Expands To 13.7% In 9MFY18 From 10.1% In FY17. It expects FY18 margin at 14.7% & long-term expectation at 16-16.5%.
Brokerage: Nomura | Rating: Buy | Target: Rs 450
Nomura said that it expects steady performance to continue. Further, the firm is a long-term compounder with 20%+ roev. Current valuations should restrict near-term share performance
Brokerage: Macquarie | Rating: Neutral | Target: Cut to Rs 290
Client-specific issues may keep co away from industrial level growth for 2-3 quarters. Management is optimistic on macro outlook for CY18.
Brokerage: Credit Suisse | Target: Neutral | Target: Rs 270
Credit Suisse said that Europe & financial performed well while energy has struggled. Client generating revenue of at least $50 m has increased 41 from 33.
Brokerage: Macquarie | Rating: Outperform | Target: Rs 1,140
Macquarie said that pick up in deal momentum & continued investment in IP partnerships key takeaways. Further, it marginally lower EPS By 1%.
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