Brokerage: Kotak Sec | Rating: Buy | Target: Rs 140
The brokerage said that delivered 27% yoy earnings growth on the back of 18% operating profit growth. Further, slippages increased to 2% of loans led by weakness in education loans. It expects RoEs to move closer to 12% in the medium-term. Ability to execute growth plans provides comfort. It also sees earnings growth of 25 percent CAGR in FY18-20. It expects gross NPA to trend down to 2 percent by FY20.
Brokerage: Prabhudas Lilladher | Rating: Buy | Target: Rs 134
The brokerage house said that lower treasury & higher slippages dent earnings. Its buy call is intact as a gradual improvement in return ratios is expected.
Brokerage: Morgan Stanley | Rating: Equal-weight | Target: Rs 95
Morgan Stanley observed that slippages increased quarter on quarter, driven by higher NPLs. While NII is broadly in line, lower treasury gains were partially offset by lower opex. It continues to expect RoE below CoE over the next few years.
Brokerage: Emkay | Rating: Buy | Target: Rs 411
Emkay believes that margin slightly off estimate due to high marketing costs. Further, some costs reported in Q3 were one-time which would boost FY19 footfalls. It sees EPS CAGR of 40% over FY18-20. It continues to like the firm as a gaming play in India.
Brokerage: UBS | Rating: Downgrade to neutral | Target: Raised to Rs 1,500
The brokerage house said that bet is priced in for both Naukri and 99acres and valuations are full. It estimates 15-16% revenue CAGR for Naukri & 18-20% for 99Acres. It expects Zomato to raise USD 50-100 m at valuation of $1.5 billion in near term.
Brokerage: Credit Suisse | Rating: Outperform | Target: Raised to Rs 480
The brokerage said that execution has picked up in H1FY18 with strong EPC project execution. Further, toll traffic growth has stabilised in BOT projects, while weighted average traffic growth is at 5 percent in Q3.
Brokerage: Macquarie | Rating: Upgrade to Outperform | Target: Rs 136
Macquarie said that structural cost rationalisation initiatives continue to bear fruit. In fact, Q3 margin of 21.5% highest in the last 7 years. It expects Ad growth to recover starting Q1FY19 & support margin. At 9.6 times FY20 EPS, the valuation looks attractive to the firm.
Brokerage: CLSA | Rating: Buy | Target: Rs 1,565
The brokerage observed inflows were ahead of guidance and fits into 10 out of 11 E&C themes. It likes the strategy of preserving capacity for a pick up in capex cycle. It is forecasting 16.3 percent CAGR in EPS over FY18-20.
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