Brokerage: Nomura | Rating: Neutral | Target: Rs 1,400
The brokerage house highlighted how CRISIL finally upgrades the firm to AAA rating and said that it was a positive outcome. Further, valuations at 3x Sep-19 book looks reasonable given 15% correction in last 2 months. The stake sale in Oak North Bank with rating upgrade will aid the stock performance, the brokerage house said.
Brokerage: Credit Suisse | Rating: Initiate Coverage with Outperform | Target: Rs 900
The research firm said that Escorts turned around in the last few years by focusing on new products. Further, the company believes that tractor cycle will remain strong for another two years. The firm also expects tractor EBIT margin to improve from 10% to 14% by FY20. A decline in tractor volume, lower activity in construction, railways key downsides to stock.
GDP
Brokerage: Credit Suisse
The brokerage said that April-June GDP growth was in-line with the view that investment growth should accelerate. Weakness in government spending offset by stronger fixed investment & exports, it said, adding that full-year growth to disappoint consensus due to continued disruptions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
