Buy, Sell, Hold: 8 stocks are being tracked by analysts today

CLSA said that Q2 earnings growth of 88% YoY was above estimates. Further, it added that BKC office space sale drove the revenue surprise. Further, strong pre-sales momentum should continue and it increased the earnings to reflect a likely record year.

Titan

Brokerage: Macquarie | Rating: Outperform | Target: Raised to Rs 907

The brokerage raised FY17-20 earnings estimate by 17-18% owing to higher jewellery sales. It also believes higher valuation will sustain on potential market share gains.

Brokerage: Credit Suisse | Rating: Outperform | Target: Raised to Rs 760

Credit Suisse said that the results were a massive beat on margin and the momentum on market share gain continues. There was a big surprise on jewellery segment margin which are up 260 basis points.

Brokerage: Morgan Stanley | Rating: Overweight | Target: Rs 920

The brokerage house said that Q2 margin expansion is likely to be sustained. It sees 40% upside from current levels.

Hindalco

Brokerage: Credit Suisse | Rating: Outperform | Target: Raised to Rs 310

Credit Suisse observed that the company’s Q2 standalone earnings were in-line with estimates. Further, it increased Novelis FY18 EBITDA & slightly increased volume for domestic operations. It also raised EPS estimates due to cash settlement in Q2 Novelis-Kobe JV.

Torrent Pharma

Brokerage: Credit Suisse | Rating: Outperform | Target: Raised to Rs 1,600

The global research firm said that synergy guidance from Unichem’s acquisition is 2x expectations. Further, it also said that the deal catapults company to rank 2 in the cardiac segment. It cut FY18/19 EPS to 14%/28% as it build in deal with Unichem.

Brokerage: Nomura | Rating: Buy | Target: Rs 1,396

The brokerage said that Unichem acquisition is a good deal, but said that it could be earnings-dilutive initially. But it could be value-accretive as well, it added. Margin of the acquired business can expand to 30-40% from 20%.

Brokerage: CLSA | Rating: Buy | Target: Cut to Rs 1,640

The brokerage said that Unichem acquisition to be EPS accretive by FY21 and said that it also strengthens its position in existing therapies. For the second quarter, India growth was strong but US & Brazil were weak.

Union Bank

Brokerage: Credit Suisse | Rating: Neutral | Target: Rs 159

Credit Suisse said that non-impaired asset formation elevated in Q2, while credit cost will remain high. Given the low CET-1 of 7 percent and potential FY18 losses, the cap needs of bank are large.

Brokerage: CLSA | Rating: Buy | Target: Raised to Rs 210

CLSA said that the company reported loss due to upfront provisioning towards top-12 NPLs. It added that it was encouraging to see moderation in slippages, while stress loan ratio still stays elevated at 15%. It also cut earnings estimates for provisioning of stress loans.

PNB

Brokerage: CLSA | Rating: Buy | Target: Raised to Rs 250

CLSA said that stable NPLs & strong CASA are key. It observed that profit was ahead of estimates due to lower staff costs & provisions. A key positive was the moderation in slippages to 4.6% of past-year loans.

Tata Power

Brokerage: CLSA | Rating: Buy | Target: Rs 100

CLSA said that the company’s Q2 performance was uneventful and await strategic divestiture in H2. Further, the management is serious in monetising non-core assets to deleverage its balance sheet. The best is yet to come for the company’s coal operating profit, it added.

APL Apollo Tubes

Brokerage: Emkay | Rating: Initiate coverage with a buy | Target: Rs 2,812

Emkay said that the company would double its profits & improve its RoCE to 30.5% from 20.6% by FY20. It also highlighted that the firm is No. 1 steel pipe maker with 13% domestic market share and it expects this to rise to 17% by FY20. Further, it added that the stock should be looked as a bet on India’s Construction/ Infrastructure/ Agri Push.