Brokerage: CLSA | Rating: Buy | Target: Rs 1,080
The research firm highlighted that the company had in line core performance but was a miss on PAT due to high tax rate. It estimates Jio to be profit making from the very first year, while EPS estimates for FY18/19/20 will rise 25/16/12 percent. It expects supply of JioPhone to stablise soon and could be the next big trigger.
Brokerage: Edelweiss | Rating: Buy | Target: Raised to Rs 1,104
Edelweiss highlighted that the company’s strong operative competitiveness and healthy consumer traction enhance its conviction. Further, commissioning of Grandiose USD 20 billion core projects could bolster earnings. Having said that, it believed that the company’s GRM disappointed, while robust petchem, new projects could revive earnings.
Brokerage: IDFC Sec | Rating: Neutral | Target: Rs 850
IDFC Securities said that telecom has made a splash, but there is momentum in the price. It raised FY18/19 EPS by 34/7% to factor the stronger telecom segment earnings. Meanwhile, E&P remains a laggard, it said, adding that net debt remains elevated and GRMs below estimates.
Brokerage: JPMorgan | Rating: Neutral | Target: Raised to Rs 820
The global research firm said that petchem has offset sluggish refining, while average revenue per user (ARPU) pick-up is the key and debt remains high. It increased FY18-20 EPS estimates by 6-13 percent.
Brokerage: Kotak Sec | Rating: Reduce | Target: Raised to Rs 835
The brokerage house raised FY2018-20e consolidated EPS to Rs 54, 60 & Rs 66, respectively. Current enterprise value of Rs 7.6 lakh crore is seen, discounting clean recurring EBITDA of about Rs 1 lakh crore.
Brokerage: Motilal Oswal | Rating: Upgrade to buy | Target: Rs 1,005
The brokerage house believed that the company could clock GRM of USD 11.5 per barrel going forward. Further, it said that Reliance Jio would remain the key to stock performance and raised Jio’s valuation to Rs 245.
Brokerage: Morgan Stanley | Rating: Overweight | Target: Raised to Rs 1,040
The research firm raised earnings forecasts by 11-29% for FY18-FY20. It added that telecom monetisation is treading a year earlier than expected and consolidation in the sector could set the stage for surprises in 2018.
(Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.)
Brokerage: Nomura | Rating: Buy | Target: Rs 1,850
The brokerage said that Bharat Financial merger will not be dilutive for the company. At a swap ratio of 0.639 times, the merger will be book and EPS-neutral on FY19 basis.
Brokerage: Motilal Oswal | Rating: Buy | Target: Rs 2,000
The brokerage house said that the merger is clearly a sweet deal for Bharat Financial shareholders. It added that the bank is set to benefit as the merger will be accretive on margins. It continues to like the bank for its strong earnings and business growth.
Brokerage: Edelweiss Sec | Rating: Buy | Target: Rs 1,920
The brokerage said that financially, the merger will be synergistic, capital accretive & boost return profile. It will be 2-3 percent EPS accretive in FY19, it added, but the book value could be impacted by 2-3 percent. It expects the deal to have rub‐off effect on valuations of other rural players.
Brokerage: Axis Cap | Rating: Buy
The brokerage highlighted that the management expects material impact of launch of options from FY19.
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