Brokerage: Morgan Stanley | Rating: Underweight | Target: Rs 360
The global research firm said that Q2 revenue didn’t show signs of pick up while margin beat was cost-led. Further, he highlighted that the firm reported first half revenue growth of 7.8 percent year on year against FY18 estimate of 10.7 percent. A stronger-than-expected traction in search plus business is a key upside risk.
Brokerage: Morgan Stanley | Rating: Overweight | Target: Rs 1,143
The global research firm said that the conviction On the firm’s ability to deliver 50% earnings growth over FY17-20 remains high. It expects growth underlying core demand to remain strong and margin could recover as LNG price volatility settles.
Brokerage: Axis Cap | Rating: Upgrade to Buy | Target: Rs 300
Axis Cap sees the firm to benefit from its continued focus on innovation and better customer experience. It sees 17% sales growth over fy17-22e on high-single digit same-store-sales growth. The firm also increased gross margin estimate on better product mix, menu innovation.
Brokerage: CLSA | Rating: Buy | Target: Raised to Rs 320
CLSA pointed out that same-store-sale growth sustains momentum at >8% YoY. Further, higher footfalls & internal measures helping the franchise to deliver ahead-of-industry growth and added that the management is confident of sustaining current growth momentum. The brokerage upgraded operating profit estimate by 10-14 percent.
Brokerage: Emkay | Rating: Upgrade to buy | Target: Raised to Rs 390
The brokerage said that the company had steady performance despite GST transition concerns. It upgraded FY18/19 EPS estimates by 5.8%/9.7% respectively. Going forward, it expects revenue to increase by 17% CAGR over fy17-19 and profit could spike by 35 percent CAGR over FY17-19.
Brokerage: Quant | Rating: Buy | Target: Raised to Rs 405
The broking firm said that operating performance of the firm was healthy, while volatile raw material prices and currency fluctuation were key risks to estimates.
Brokerage: PhillipCap | Rating: Buy | Target: Raised to Rs 450
The brokerage expects 38%/24% earnings growth for FY18/FY19. Further, it said that the bank is sufficiently capitalised to fund its near-term growth. Going forward, it expects FPO worth Rs 1,500-1,700 crore to pare government stake to 75% from 82.1%.
Brokerage: Emkay | Rating: Buy | Target: Rs 674
The brokerage is positive on stock with recurring EPS growth of 28% in CY17 & 36% in CY18. Further, RoCE will improve to 13% in CY18 from 11.2% this year. In fact, new product launches/territories will drive revenue growth. It has maintained earnings forecast with CAGR Of 35% In CY17-19.
Brokerage: CLSA | Rating: Buy | Target: Raised to Rs 665
The brokerage house said that the company reported in-line Q2 results. Post GST-related destocking, India volume growth recovered to 4% YoY. Further, completion of acquisition of some territories improved the near-term outlook, it said, adding that territory acquisition in Odisha & MP will likely contribute 5-6% to India volumes.
Brokerage: BofAML | Rating: Initiate with buy | Target: Rs 330
The research firm said that strong visibility and FCF will support valuations. It expects 36% EPS CAGR in FY18-20. It also sees the company winning orders worth Rs 35,000 crore in FY18-20.
IT
Brokerage: Nomura
Nomura said that further deterioration in growth was seen in Q2; margins surprised positively. Further, no acceleration is visible in BFSI; remain cautious on outlook. It estimates dollar revenue and profit VAGRs of 7/4 percent over Fy17-19 for Tier-1 IT. It remains below consensus Ex-HCL Tech on growth/EPS.
Oil
Brokerage: Morgan Stanley
The research firm said that oil demand continues to grow, while OPEC output stays restrained. It highlighted that reliance on shale is growing, whilst its limits are kicking in. Going forward, to balance the market, oil prices need to stay higher than before. It raised the forecast to USD 63 for crude by mid-2018. Over the last 30 weeks, US crude inventories have drawn at their fastest rate in 35 years.
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