Brokerage: Macquarie | Rating: Outperform | Target: Rs 340
The global research firm said that its channel checks suggest price hikes undertaken by the company to undertake the higher cess. The weighted average price hike was 7-8 percent and this hike, it said, will help it maintain its realisation per stick. The firm is building in 0/1 percent volume growth for FY18/19.
Brokerage: Nomura | Rating: Neutral | Target: Rs 475
Nomura observed that DHFL’s Q1 results were steady, led by stronger assets under management (AUMs) growth. This growth is driven by 500 bps increase in corporate mix in one year, it added. Further, it said that it will wait to see stronger traction in core mortgage book to turn negative.
Brokerage: Citi | Rating: Buy | Target: Rs 1,750
Citi observed that the upfront deposit for JioPhone is higher than the average feature phone price. It forecast an EBITDA CAGR of 14 percent ex-Jio and 25 percent including Jio over FY17-20.
Brokerage: Morgan Stanley | Rating: Overweight | Target: Increased to Rs 1,823
The brokerage highlighted that the company’s monetisation plans were picking up pace, while energy margins were driving upside surprises. The capex run rate has slowed and free cash flow drag have almost halved in Q1. It projects positive FCF by mid-2018 by mid-2018.
Brokerage: Bank of America Merrill Lynch | Rating: Neutral | Target: Rs 1,585
The global brokerage firm said that much of the value for Jio is now discounted in the stock. Further, the telecom profitability may take some time, it added.
Brokerage: CLSA | Rating: Buy | Target: Rs 1,920
The brokerage said that feature phones drive 1-24% EPS upgrades. It has raised Jio’s EBITDA by well over USD 1 billion for FY18-20. The strong demand for 4G feature phones and start of key projects are potential catalysts.
Brokerage: JPMorgan | Rating: Neutral | Target: Rs 1,460
The global research firm raised EPS estimates by 4-8 percent, driven by higher gross refining margins and petchem spreads. The key downside risks include continued extension of discounting schemes.
Brokerage: Kotak Institutional Equities | Rating: Downgrade to Reduce |: Target: Rs 1,500
Remain wary of high capex run-rate & rising net debt levels and added that debt may take time to reduce.
Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.
Brokerage: Nomura | Rating: Reduce | Target: Rs 83
Nomura expects M&HCV industry growth to structurally remain slower over FY18-19. The outlook for defence, it said, along with exports and LCVs are important support to growth in near term.
Brokerage: Morgan Stanley | Rating: Over-weight
The brokerage said that the Q1 margin dip was sharper than expected. Further, the incremental share gains will be tough.
Brokerage: JPMorgan | Rating: Overweight | Target: Rs 2,640
JPMorgan said that subdued June quarter was weighed down by the impact of highway ban.
Brokerage: Goldman Sachs | Rating: Buy | Target: Increased to Rs 585
The global investment bank believes that the underperformance by the firm will reverse in the next 12 months. It reduced the core earnings per share (EPS) by -3% to -6% for FY18/20 to reflect higher cost.
Brokerage: Morgan Stanley | Rating: Overweight | Target: Rs 3,251
The research firm said that the June quarter volumes affected the overall results. The exports were showing signs of a turnaround, while domestic sales growth will pick up.
Brokerage: BofAML | Rating: Neutral | Target: Rs 3,050
The research firm said that the auto major’s Q1 was weak as new products are slow to scale up. A material recovery in market share seems tough. The margin may be weak on lower export realisations and higher advertising and marketing costs.
Brokerage: Morgan Stanley | Rating: Overweight | Target: Rs 840
A deep dive into the results show that there is operating leverage despite Q1 miss, it said. The Q1 revenue growth was better than most Indian IT peers. Further, it said that one should use any weakness in the stock to build positions. With 18% EPS CAGR over FY17-20, it is a preferred midcap pick.
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