Brokerage: Morgan Stanley | Rating: Underweight | Target: Rs 870
The global research firm said that it is uncomfortable with the current record-high valuation. Against that, it only expects gradual increases in volume growth.
Brokerage: Axis Capital | Rating: Buy | Target: Rs 1,250
The brokerage house highlighted that the flat volume growth for June quarter was from GST-led destocking in June. Further, it expects margin to increase by 350-400 basis points over FY17-20.
Brokerage: Macquarie | Rating: Outperform | Target: Increased to Rs 1,402
Macquarie has a conviction on the company’s ability to deliver strong earnings growth. Moreover, it said that the volume growth was picking up and will get a boost by GST and rural recovery.
Brokerage: Bank of America Merrill Lynch | Rating: Buy | Target: Increased to Rs 1,310
The global research firm said that improving earnings growth trajectory could keep valuation elevated.
Brokerage: Citi | Rating: Neutral | Target: Increased to Rs 1,200
Citi said that the company’s revenue growth of 5 percent was driven by price hikes taken in the second half of FY17. The home care segment remained a key driver of growth, but on a company basis, it sees better value in Emami and Dabur.
Brokerage: CLSA | Rating: Outperform | Target: Increased to Rs 1,250
CLSA believes that GST disruption would impact channels in the near-term. It termed the flat volume growth in Q1 to be in line, but said that realisations were much better. On valuations, it feels they are punchy but are likely to sustain.
Brokerage: JPMorgan | Rating: Neutral | Target: Increased to Rs 1,175
The research firm forecast FY17-20 EPS CAGR of 18.5%. At the valuations of 49 times and 42 times FY18 and Fy19 PE, the absolute upside is limited.
Brokerage: Nomura | Rating: Neutral | Target: Increased to Rs 1,138
Nomura too sees limited upside to the stock. Further, it expects soft commodity prices to aid margin expansion.
Brokerage: Goldman Sachs | Rating: Neutral | Target: Increased to Rs 840
The global investment bank increased FY18-20 EPS estimates by 3-7% to reflect higher margins.
SBI Life
Brokerage: Macquarie
Speaking on the upcoming SBI Life IPO, Macquarie said that the company may be valued slightly higher than ICICI Prudential due to its superior growth. At Rs 70,000 crore valuation, it will imply P/EV multiple of 5.4 times in FY16 and 4.3 times in FY17. Further, it said that it was surprised by the surge in SBI Life’s EV in FY17. SBI Life’s RoEV In FY17 Was 23% Vs ICICI Pru’s 16.5%, it highlighted. This higher figure is mainly on account of better contribution from new business.
Brokerage: Goldman Sachs | Rating: Buy | Target: Rs 850
Goldman Sachs said that the pharma major was the first to get a generic nod on Renvela from the US FDA. For the uninitiated, Renvela lowers high blood phosphorus levels for dialysis patients. The research firm expects the drug to add between 9 and 33 percent to the company’s FY17 net income.
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