Brokerage: UBS | Rating: Neutral | Target: Rs 740
UBS said that the company’s Q2 results missed expectations driven by both standalone India & EU business. Meanwhile, lower blended EBITDA/T was driven by sluggish demand, long products. The company further could make progress on inorganic opportunities in India in the next 2-3 months. One can also expect incremental caution on the stock going forward.
Brokerage: Axis Cap | Rating: Buy | Target: Raised to Rs 795
Axis Cap increased FY18/FY19 EPS estimates To Rs 56/72 from Rs 51/68. It sees domestic steel realisation to be higher in Q3. Meanwhile, Europe business margin could be weak in Q3 & will rebound in Q4.
Brokerage: PhillipCap | Rating: Buy | Target: Cut to Rs 890
The brokerage said that weak performance with miss on both India and Europe. The performance will improve with spreads improving sequentially.
Brokerage: BofAML | Rating: Buy | Target: Rs 890
The research firm said operating performance was below consensus due to lag impact. Further, a positive impact of higher steel spot prices in India should begin reflecting in q3. Any potential stock price weakness should be used as a good opportunity to buy, it added.
Brokerage: Citi | Rating: Buy | Target: Cut to Rs 1,020
Citi highlighted that Q2 missed on topline due to currency and market challenges. It also observed that the company has ability to grow and gain market share during tough times. It lowered FY18/19/20e EPS By 6.5/5.2/4.2% to account for lower revenue growth guidance.
Brokerage: Morgan Stanley | Rating: Overweight | Target: Rs 960
The global research firm observed that the results were in line and the firm should grow profitably ahead of market, despite challenging conditions. A strong domestic volume growth, strong rev growth in US, EU key positives. If the stock weakens post Q2,
one should build positions ahead of seasonally strong Q3.
Brokerage: UBS | Rating: Buy | Target: Rs 985
Q2 is operationally in line despite global headwinds, it said, adding that it will continue to grow faster than global peers.
Brokerage: Credit Suisse | Rating: Underperform | Target: Rs 920
Credit Suisse said that the overall results were disappointing with US sales declining by 14% QoQ. It stays concerned on high price erosion risk in the US. The firm also sees R&D cost to go up in the second half as Tiotropium inhaler trials start.
Brokerage: Credit Suisse | Rating: Neutral | Target: Unchanged at Rs 675
The brokerage observed that Kajaria’s volume growth remains muted. It also cut EPS cut by 8-10% as we lower FY18 sales growth & margin estimates.
Brokerage: Goldman Sachs | Rating: Buy | Target: cut to Rs 825
The global investment bank expects soft base to drive strong second half. Further, the results highlight the company’s ability to retain market share.
Brokerage: Antique | Rating: Hold | Target: Rs 733
Antique observed that volume, margin & earnings were largely in-line. It remains positive on long-term prospects.
Brokerage: Credit Suisse | Rating: Outperform | Target: Raised to Rs 500
The firm said buying out Indus was the biggest takeaway and could also leverage the company’s balance sheet and help the firm become pan-India tower operator.
Brokerage: UBS | Rating: Buy | Target: Rs 500
UBS said that the stock trades at an attractive valuation and the Indus deal would help the firm to optimize capital structure.
Brokerage: Citi | Rating: Buy | Target: Rs 470
The firm is its sole buy & top pick in India. Meanwhile, Rel Jio’s tenancies on Infratel are slated to rapidly increase
Brokerage: Morgan Stanley | Rating: Equal-weight | Target: Rs 494
The company reported strong energy margin and the rental revenue per tenant declined 2 percent QoQ with lower loading.
Brokerage: Quant | Rating: Accumulate | Target: Rs 1,776
The brokerage continue to like the firm despite weak housing demand. It also likes the stock due to low risk attached to the business model. It calls the stock a safe play in the current volatile environment.
Brokerage: Antique | Rating: Buy | Target: Rs 2,089
Proposed IPO of HDFC Life & equity sale in HDFC Ergo leads to higher target, it said, adding that it is the top pick in the large ticket housing space.
Brokerage: B&K | Rating: Outperform | Target: Rs 2,000
The firm continues to expect 15% CAGR in AUM over FY17-19. It also sees traction in non-individual and non-home loan book which could offset individual home loan pressure.
Brokerage: BNP Paribas | Rating: Buy | Target: Rs 1,912
Lower-than-expected tax rate drives profit beat and individual loans continue to drive growth, it observed. Asset quality & margins are largely stable, it added.
Brokerage: Deutsche Bank | Rating: Buy | Target: Rs 1,950
The bank observed that the firm reported a steady performance in highly competitive environment. The spread remains stable and capital situation comfortable.
Brokerage: Jefferies | Rating: Hold | Target: Raised to Rs 1,720
Jefferies said that NIM & fee income trends are weak , while asset quality risks are higher. It also forecasts AUM CAGR of 18 percent and EPS CAGR of 11.2 percent over FY17-20.
Brokerage: Macquarie | Rating: Outperform | Target: Rs 1,890
Listing of HDFC Life will be next catalyst for the stock, it added. The firm also sees favourable base for AUMs in H2.
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