Brokerage: Goldman Sachs | Rating: Buy | Target: Raised to Rs 505
The global investment bank said that a key driver of the positive surprise on Tech Mahindra’s results was an EBIT margin of 9.4 percent. Further, the margin looks set to improve further in the second quarter, it said in a report. Goldman Sachs also believes that the European Union will be the key growth frontier for the company in the near term.
Brokerage: Goldman Sachs | Rating: Neutral | Target: Cut to Rs 896
Goldman Sachs lowered the earnings per share estimates for FY18-20 by 1-2 percent to reflect lower margin.
Brokerage: IDFC Sec | Rating: Outperform | Target: Rs 1,103
IDFC Securities said that the company underperformed the Street’s expectations across a host of parameters. Further, it expects domestic business to get back on track from the second quarter. The stock could give up some of the recent gains in the near term, the brokerage said in a report. Overall, it remains positive on the longer term penetration and innovation-led growth outlook.
Brokerage: Ambit | Rating: Sell | Target: Increased to Rs 590
Ambit cut the company’s margin estimates by 20 basis points for FY18/19.
Brokerage: Citi | Rating: Neutral | Target: Rs 977.5
Citi said that the company is navigating the volatile market well. Meanwhile, trends in Indonesia remains a key focus area, while any impact of the leadership change needs to be watched. Further, it expects some improvement in the India business in the coming quarters.
Brokerage: Goldman Sachs | Rating: Neutral | Target: Raised to Rs 1,025
The firm adjusted Shriram Transport’s EPS estimates for FY18-20 by -7 percent to 3 percent in the first quarter. Further, it said there was strong growth in assets under management, higher net interest margins are upside risks.
Brokerage: Ambit
The brokerage said that the risks to growth and asset quality continued to remain. The credit costs for current fiscal, it said, is also likely to be high. Meanwhile, the valuations of 2 times trailing P/B and 17 times trailing P/E was relatively cheaper than peers.
Brokerage: Nomura | Rating: Buy | Target: Rs 1,250
Nomura said that the company’s Q1 performance surprised positively, especially on the margin front. Meanwhile, trends in asset quality did not improve, but remained relatively stable, it said. Further, it expects rural cash flow to improve and should drive better collections and asset quality. Nomura also expects return on equity of over 16 percent by FY19 against 12 percent in FY17.
Brokerage: Citi | Rating: Buy | Target: Rs 860
Citi said that Q1 results were marginally below expectations at the operating level. Further, it said that the management commentary is reassuring, while guidance is maintained. The company reiterated its intent to maintain discipline while evaluating inorganic opportunities. Going forward, the company expects stronger numbers in the rest of the year as key markets picked up.
Brokerage: DB | Rating: Buy | Target: Rs 975
Deutsche Bank expects volume growth to recovery, but currency is a near term headwind. Further, it expects 2-3 percent negative impact on FY18 revenue from the strong currency along with comfortably meeting its FY18 guidance of CC revenue growth of 12-15 percent. Furthermore, it sees the company meeting EBITDA margin expansion of 50-75 bps.
Brokerage: IDFC Securities | Rating: Underperform | Target: Rs 230
IDFC Securities said that the revenue growth peaked in the near term and expects slow erosion in the momentum over the next two quarters. Moreover, the margin improvement is unlikely due to stretched margin levers. It believes that 12 percent revenue CAGR would translate in to 10% EPS CAGR.
Brokerage: IDFC Securities | Rating: Outperform | Target: Rs 401
The brokerage observed that a pick-up In LTL growth & reduction in losses is an encouraging way to start FY18.
Brokerage: Nomura | Rating: Buy | Target: Rs 1,396
Nomura said that it expects India growth to revive in the next quarter. Despite no material new launches in the US, it expects margin to remain stable.
Brokerage: IDFC Sec | Rating: Outperform | Target: Rs 1,458
IDFC Securities said that the recent performance was impacted by slower than expected pace of new launches in the US. Further, it anticipates a gradual recovery in the US business with a pick-up in pace of new ANDA. The company remains one of the most scalable midcap pharma models. It recommends adding the stock into weakness.
Brokerage: Citi | Rating: Buy | Target: Rs 199
Citi highlighted that the CAG flagged concerns on missiles delivered by Bharat Electronics. Further, it believes that the missiles being referred to by CAG are the Akash missile system. It also believes that the concerns could lead to delays in signing 7 squadrons of Akash with the Indian Air Force.
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