Brokerage: Kotak Institutional Equities | Rating: Reduce
The brokerage house highlighted that the benefit of recent capital raising flowed partly into the company’s Q1 numbers, while loan growth looked impressive. The bank’s area of growth continues to remain in SME-led LAP (loan against property) portfolio. Meanwhile, the CASA deposit and ratio were a big positive surprise, it added. Net interest margins at over 4 percent in the current environment is a positive as well, the report added.
Brokerage: CLSA
The brokerage house is foreseeing 3 percent same store sales growth although the stock seems to be building in even better growth. The expectations from the new management, it said, were high and any commentary on innovations and cost savings from them could be an important stock driver.
Brokerage: Deutsche Bank | Rating: Buy | Target: Rs 1,250
The brokerage pins hopes on the fact that the company continues to focus on mass market products.
Brokerage: Citi | Rating: Buy | Target: Rs 1,330
The brokerage house highlighted that the fresh access to Gurgaon market could lead to value accretion of Rs 155 per share. Further, organic volumes are seen to be growing at 9 percent CAGR despite the high FY17 base. Meanwhile, Q1 results should be strong on the back of margin improvement.
Brokerage: Jefferies | Rating: Buy | Target: Rs 1,100
The brokerage sees North America and BFSI growth to pick up in the second half. Having said that, it believes that the company is best placed amid industry headwinds.
Brokerage: Goldman Sachs | Rating: Sell | Target: Rs 799
The global research firm said that it raised Fy18-20 earnings per share (EPS) estimate by 2-4 percent and for the current fiscal the dollar constant currency growth is seen at 6.8 percent.
Brokerage: Bank of America Merrill Lynch | Rating: Neutral | Target: Rs 1,020
The research firm highlighted that the contribution of new offerings was healthy. Further, it said that it continued to like the company for its improving competitive positioning.
Brokerage: Nomura | Rating: Buy | Target: Rs 1,250
Nomura said that there was an unconvincing justification for a merger with IDFC Bank. It believes that minority investors may not support IDFC transaction or may even look for huge premium on SWAP ratio. On a separate note, it sees used commercial vehicles’ asset quality cycle to reverse.
Brokerage: Morgan Stanley | Target: Rs 395
The global financial services firm highlighted that GST lowered the tax incidence on cigarettes in FY18. It expects a re-rating to continue to be led by benign tax policy. In the base case, it forecasts 7 percent cigarette volume growth in FY19 and sees 19 percent EBIT FY17-20 CAGR for cigarette business.
Further, it expects the company to report mid high-teens EBIT growth in cigarette business in FY19. Having said that, it believes a sharp increase in cigarette tax in the next Budget could be a key risk.
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