Analyst: Macquarie | Rating: Neutral | Target: Rs 1,635
The research firm believes that expensive valuations are a key catalyst for the stock going forward. It raised FY19 earnings per share (EPS) estimates by 3 percent to build in slightly higher growth. Macquarie also raised loan growth estimates slightly and built 16 percent FY16-19 CAGR from 15 percent.
Analyst: CLSA | Rating: Buy | Target: Rs 1,900
CLSA says that HDFC is among its top picks in the sector. It observed that the business of HDFC was normalizing and affordable housing initiatives will aid growth. The global research firm saw 16 percent CAGR in profit over FY17-20 with high core return on equity (RoE). On its results, CLSA was a tad disappointed due to 7 percent fall in fees, which was partly due to low rise in disbursements.
Analyst: Wockhardt | Rating: Neutral | Target: Rs 740
Macquarie cautions investors, stating that they should brace for volatility and advise value-hunting only in case of a 12-24 months view. The research firm doesn’t believe that the current margin is reflective of an inherent potential of this business. It has also reduced FY18 earnings before interest, taxes, depreciation and amortisation (EBITDA) over 47 percent and expects US sales to resume starting next fiscal. The FDA timeline for facility clearance remains the key catalyst for the stock.
Analyst: CLSA | Rating: Buy | Target: Rs 639
CLSA termed the company’s Q4 results to be in line with estimates. It observed that pre-sales was impacted by demonetisation and are likely to form a lasting bottom. Meanwhile, new launches in April received good response due to the implementation of RERA. This improvement in pre-sales and new launches are driving 1-9 percent increase to FY18-19 earnings.
Analyst: CLSA | Rating: Underperform | Target: To be revised post mgmt concall
CLSA believes that demonetisation and Middle East, North Africa, Afghanistan, and Pakistan (MENAP) region drove the revenue miss in its March quarter results. Meanwhile, it said that EBITDA margin was maintained due to advertising and promotion (A&P)
spend cuts. Furthermore, it believes that a new unit at Guwahati should help the company keep a fiscal outflow low in the medium term.
Analyst: CLSA | Rating: Buy | Target: Rs 845
CLSA believes that the company’s EBITDA growth of continuing operations in FY17 was dragged by voice business. It forecast 13 percent CAGR in consolidated EBITDA over FY17-19. It also recast forecasts to factor the sale of Neotel and Data Center businesses.
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