Brokerage - Credit Suisse | Rating - Outperform | Target - Rs 700
While having Outperform rating on the stock with a target price of Rs 700 per share, Credit Suisse said the margin expansion has been playing out and the benefit of key US launches would be visible in Q4.
Cipla continued to increase complexity of US pipeline and that complexity should aid in margin expansion, it believes.
Brokerage - CLSA | Rating - Buy | Target - Rs 750
CLSA said pharma company's EBITDA margin in Q3 was at 10-quarter high and there is room for further improvement.
Operational beat was driven by strong performance in India & South Africa. With recent US approvals, margins can expand further, it feels.
Cipla is a strong play on improving US business & growth from markets like India, focus Emerging Markets, it believes.
CLSA estimates robust 30 percent earnings CAGR for FY18-20, while retaining Buy rating on the stock with a target price of Rs 750 per share.
Brokerage - Morgan Stanley | Rating - Underweight | Target - Rs 325
Morgan Stanley said Hexaware's 2018 revenue guidance was in-line but lower tax & higher forex gains drove EPS upside.
It sees better risk-reward in other midcap peers, given moderating EPS CAGR.
The research house assumed dollar revenue growth of 12 percent & stable margin in 2018, driving EPS growth of 12.6 percent and forecasts an EPS CAGR of 10 percent over next two years.
Morgan Stanley is underweight on the stock, with increased target price at Rs 325 from Rs 290 per share earlier.
Brokerage - CLSA | Rating - Buy | Target - Rs 320
Bidding for hybrid annuity projects will build backlog and award bunch-up is a positive, CLSA said while maintaining Buy rating on the stock with target at Rs 320 per share.
New concession under Bharatmala and credit rating upgrade are key catalysts for the growth.
CLSA raised EPS estimates by 20-47 percent on new concessions, traffic rebound & better EPC execution.
Brokerage - CLSA | Rating - Buy | Target - Rs 11,300
CLSA feels Maruti has potential to further strengthen India franchise with unveiling new compact SUV.
Hence, it has retained Buy call on the stock with target at Rs 11,300 per share.
Brokerage - CLSA | Rating - Buy | Target - Rs 39,300
Eicher Motors reported strong Q3 operational results, with EBITDA rising 23 percent YoY, which was in-line.
Both Royal Enfield & commercial vehicle businesses delivered good performance during the quarter, it added.
"We continue to like Eicher given robust growth outlook & low competitive for Royal Enfield," CLSA said while retaining Buy call with a target price at Rs 39,300 per share.
Brokerage - CLSA | Rating - Buy | Target - Rs 390
Indraprastha Gas reported profit growth of 14.6 percent was a 3 percent miss in Q3, CLSA said while maintaining Buy call on the stock with reduced target price at Rs 390 from Rs 396 per share.
Better volume growth was offset by lower margin. The research house cut EPS estimates by 5-6 percent.
Favourable policy and foray in new markets should continue to drive volume, it believes.
Financials
CLSA said shifting base rate loans to MCLR by RBI can impact margin in first half of FY19, but margin impact can be mitigated by higher spreads and MCLR hikes.
Tightening of priority sector lending norms will be positive for MFIs/Small Finance banks. With credit growth improving banks with stronger CASA franchises will benefit more, it feels.
"ICICI Bank and IndusInd Bank are top picks among banks & HDFC is our key pick among NBFCs," CLSA said.
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!
