Brokerage: Morgan Stanley | Rating: Underweight | Target: Rs 390
The global research firm said that the management highlighted that it is preparing organization for the next big leap in digital. Further, it added that the margin was faring better than the company’s average but near-term challenges persist.
Going forward, it sees deal decisions to be elongated and portfolio companies may show volatility for 2-3 quarters. It also sees limited levers for the company and assume EBITDA margin decline to 12.4 percent in FY18.
Brokerage: Credit Suisse | Rating: Neutral | Target: Rs 440
Credit Suisse said that the company is looking at consulting-first approach by building skills and making investments. It also believes that the company has been one of the first firms to articulate a clear digital strategy. Further, there were no new takeaways related to near term financial performance.
Brokerage: Motilal Oswal | Rating: Upgrade to Neutral | Target: Rs 450
The brokerage house said that 40 percent revenues from digital makes for a favourable long term positioning despite challenges. Further, it added that the addressable market for salesforce is expected to double by FY21.
Brokerage: IDFC Sec | Rating: Neutral | Target: Rs 490
IDFC Securities sees sustained profitable growth as key for potential upside. It also expects earnings to improve as focus is to improve margin over medium term.
Brokerage: Nomura | Rating: Buy | Target: Rs 700
Nomura highlighted that the ULIP growth for the company remained strong.
Brokerage: Jefferies | Rating: Buy | Target: Rs 261
The brokerage house said that the aluminium price leverage is likely to be limited in the current fiscal, while the outlook for the next fiscal remains intact.
Brokerage: Morgan Stanley | Rating: Overweight | Target: Rs 1,537
The global broking firm sees an increase in the share price over the next 60 days. It said that the valuations looked reasonable at 18.2 P/E. It also said that the correction in the stock recently makes short term valuations compelling.
Brokerage: Citi | Rating: Buy | Target: Rs 186
Citi highlighted that the capacity addition target looks strong.
Brokerage: CLSA | Rating: Buy
Following termination of agreement by McDonald’s with North & East Franchisee Connaught Plaza Restaurants Ltd (CPRL), it has a positive rating on the stock. It said that Domino’s and PepsiCo show merits of franchisee consolidation and this under Westlife makes most sense to it. Having said that, it believes that the global food major should attempt to reach a settlement with CPRL soon.
Utilities
Brokerage: Credit Suisse
The global brokerage firm said that given the weak demand it has reiterated neutral stance on NTPC and underperform on BHEL. Power demand has remained weak with growth of just 5- 5.5 percent in FY17 & Q1FY18 and added that renewables have been taking away about 25-30% of the incremental demand.
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