Brokerage: Credit Suisse | Rating: Underperform | Target: Raised to Rs 1,100
The global research firm said that volume growth was much lower than historical trends. It has lowered earnings by 3-4 percent and said that the firm must take a price hike to stem margin decline.
Brokerage: Citi | Rating: Sell | Target: Rs 1,080
The global financial services firm observed that the company’s revenue offtake has been disappointing. Further, it said that the market share appears to be negative amongst organised players. Geographically, South India appears to be a pressure point once
again.
Brokerage: Macquarie | Rating: Upgrade to Outperform | Target: Raised to RS 615
Macquarie said that the core business is showing signs of a demand pick up. Further, the segment related to housing should pick up in FY19, it believes. Having said that Lloyds’ performance is a bit of dampener, it said.
Brokerage: Credit Suisse | Rating: Outperform | Target: Raised to Rs 635
The brokerage house increased earnings estimates by 6-7%. It said that the big surprise came in from cables business. The segment margin was at 15.2%.
Brokerage: Citi | Rating: Neutral | Target: Rs 612
Citi said that 9MFY18 core revenue was up 8% YoY, indicating muted demand environment. Further, the company remains a quality play on growth in electrical and consumer durables space. Valuation is expensive & near-term growth outlook remains muted, the
global financial services firm added.
Brokerage: Nomura | Rating: Buy | Target: Raised to Rs 720
Nomura said that core PPOP was marginally ahead of estimates and there was no negative surprise. Valuations at 1.8x undermining for +15% ROE.
Brokerage: Credit Suisse | Rating: Neutral | Target: Raised to Rs 595
Credit Suisse has cut FY18 EPS estimate on lower NII and other income. While slippages were lower on QoQ basis, but they remain elevated, it said, adding that RoEs may remain at 14% even in FY20.
Brokerage: CLSA | Rating: Buy | Target: Rs 730
CLSA expects earnings to normalise from FY19. For this quarter, the numbers missed estimates on the back of higher provisions. A key positive was the 9% QoQ decline in NPLs. It has now cut earnings estimates due to higher credit costs.
Brokerage: Deutsche Bank | Rating: Buy | Target: Rs 670
Deutsche Bank said that slippages & credit costs may remain elevated for a few quarters. It is expecting a strong turnaround in performance from FY19. It has slightly cut FY18 estimates, but maintain FY19/20 estimates.
Brokerage: Emkay | Rating: Downgrade to Reduce | Target: Rs 591
The brokerage said that while profit beat estimates, there was no operational surprise. Adjusted for divergence, slippages may stay elevated, it said, adding that stressed asset resolution a key upside risk.
Brokerage: IDFC Sec | Rating: Neutral | Target: Rs 605
IDFC Sec has cut earnings for FY18/19. Further, continued increase in BB portfolio is a matter of concern. It expects bad loans to drag over several quarters.
Brokerage: Morgan Stanley | Rating: Equalweight | Target: Rs 407
The brokerage house said that JLR plans to cut production at Halewood plant. Further, one shift cut for one quarter is around 3-4 percent hit to FY19 earnings.
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