Brokerage: Edelweiss Securities | Rating: Reduce | Target: Rs 545
The brokerage house highlighted that the company is maintaining FY18 margin guidance of 34 percent and that is a key highlight. Further, it said that the Unit-1’s US FDA inspection runs the risk of regulator invoking exception given to few products. It also said that a resolution of possible import alert will take at least two years going by the past experience.
Brokerage: JPMorgan | Rating: Upgrade to overweight | Target: Increased to Rs 1,100
The global research firm said that the company was well positioned for strong growth in coming quarters. Further, it added that the subsidiaries provided diversified exposure to high growth segments.
Brokerage: CLSA | Rating: Sell | Target: Rs 370
CLSA said that the stock was trading at an expensive valuation of 25 times FY19 and 20 times FY20 earnings. Further, it added that key products were seeing a declining trend.
Brokerage: CLSA | Rating: Buy | Target: Rs 1,920
The global research firm said it sees several positive near term triggers for the stock and a major cut in interconnect usage charge (IUC) could be seen as a huge positive. Further, it said that positives from JioPhone are still underappreciated and a gradual reduction in discounts for the phone is a trigger.
Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.
Brokerage: Kotak Securities | Rating: Sell | Target: Rs 675
Kotak Securities said that the earnings growth from here would be an interplay between taxation and volumes. Further, it said that the risk actually remains and there is scope for continued disappointment that persists.
Brokerage: Kotak Securities | Rating: Sell | Target: Rs 820
Kotak Securities said that FY17 was a sluggish year for the company on revenue dip across domestic & international business. It continues to find valuation at 30x FY2019 EV/EBIT which is fairly rich.
Brokerage: IDFC Securities | Rating: Upgrade to outperform | Target: Rs 1,220
IDFC Securities expects softer gas prices, growing penetration in mumbai to drive higher volume and estimates average growth of over 4.7% in volumes over FY18/19. Further, an expansion into Raigarh likely to provide further support to volumes from second half of this fiscal. Further, it revises EPS estimates for FY18/19 by 5.4/4.5% to factor stronger margin.
Brokerage: CLSA | Rating: Buy
CLSA sees the company creating a niche in adhesives through aggressive launches, expansion. Further, it sees margin improvement levers in the adhesives business. It also expects 22% revenue CAGR over FY17-20 in the adhesives business.
Cement
Brokerage: Morgan Stanley
The global research firm is bullish on the stock on the back of improvement in demand and in line supplies. Further, FY18-19 capacity pipeline has not surprised negatively, it added. Higher capacity utilisation to drive expansion in EBITDA/T, RoE from multi-year low, it said in the report.
Speaking on stocks, he said that all stocks have an abosolute upside, but ratings reflect relative return potential. Shree Cement is its top pick, while Dalmia Bharat is the preferred pick in midcap play. Meanwhile, it is relatively underweight on JK Lakshmi Cement.
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