Brokerage: Bank of America Merrill Lynch
The global research firm observed that the nod by Competition Commission of India (CCI) to the merger between Idea Cellular and Vodafone is a positive merger and earlier than the expected timeline. Further, it sees limited risks to material loss of market share for both the companies. BofAML also expects the merger to complete by mid-2018 if all approvals come on time and the next key approval will that of Securities and Exchange Board of India (SEBI).
Brokerage: CLSA | Rating: Buy | Target: Rs 325
CLSA observed that exposure to West, North and East India drove strong growth in realisations. Additionally, the volume growth of 5 percent is positive in the current context and it went on to revise the earnings per share (EPS) forecast by 1-8 percent.
Brokerage: CLSA | Rating: Buy | Target: Increased to Rs 1,380
CLSA said that the growth drivers were in place for the company and raised earnings expectations by up to 2 percent. Further, it said that the earnings growth was led by 26 percent rise in topline and operating efficiencies. CLSA also believes that the company is well placed to leverage opportunity in affordable mortgage financing.
Brokerage: CLSA
CLSA said that toll rate hikes on Mumbai-Pune route along with construction drove the Q1. It believes that the fundamentals are intact and the recent fall in Indian G-Sec yields are catalysts ahead. It also felt that the 12 percent decline in stock for the quarter was an overreaction.
Brokerage: CLSA | Rating: Downgrade to Sell | Target: cut to Rs 970
The brokerage said that slowing IT hiring across value chain may pressure growth of Naukri further. Meanwhile, growth for 99acres remained soft encumbered by RERA and GST. A slowing core growth, it said, does not support valuations.
Brokerage: Nomura | Rating: Buy | Target: Rs 1,100
Nomura said that the weakness in Naukri due to slowdown in IT hiring was an incremental negative. It has retained a positive stance on Naukri and Zomato for the long term.
Brokerage: BofAML | Rating: Neutral | Target: Increased to Rs 990
The research firm said that Naukri was still investing in growth, while Zomato is close to breaking even.
Brokerage: CLSA | Rating: Buy | Target: Increased to Rs 490
The research firm said that highest-ever tenancy additions lead to 12 percent year on year EBITDA growth. A potential merger with Indus would be a further catalyst for valuation, it added.
Brokerage: CLSA | Rating: Buy | Target: Rs 660
Zee Entertainment’s ex-sports business EBITDA was up 11 percent year on year and it expects ad growth to jump in the second half. Over FY17-20, the brokerage forecasts the company to deliver 21 percent earnings CAGR.
Brokerage: Citi | Rating: Neutral | Target: Rs 575
Citi said that operating results were in line with expectations. The mid-teens domestic subscription growth can sustain, it added. It is building in 32.5-33 percent margins going forward.
Brokerage: Nomura | Rating: Buy | Target: Raised to Rs 654
Nomura said that the company’s Q1 was in line and growth will pick up in the second half. Meanwhile, the ad growth recovery was a key catalyst. It expects subscription to benefit from Phase-III digitisation.
Brokerage: Jefferies | Rating: Upgrade to Buy | Target: Raised to Rs 2,000
Jefferies observed that the private sector lender’s core earnings trend looked up.
Brokerage: Goldman Sachs | Rating: Buy | Target: Increased to Rs 2,208
The global investment bank said that the lender was on course for a market capitalisation of USD 100 billion.
Brokerage: BofAML | Rating: Buy | Target: Rs 2,100
BofAML said that EPS growth is back to over 20 percent, while market cap could exceed USD 100 billion by FY20. Further, it said that the strong levers were in place to gain market share. It also believes that the bank is on the cusp of an upcycle and remains among the top picks in the sector.
Brokerage: Deutsche Bank | Rating: Buy | Target: Rs 1,700
The bank observed that a rise in non-performing loans is a one-off and should in moderate.
Brokerage: JPMorgan | Rating: Overweight | Target: Rs 1,875
The global research firm said that strong revenue momentum and asset quality has taken a dip. The bank remains its top pick, it added.
Brokerage: CLSA | Rating: Buy | Target: Rs 2,000
CLSA expects 20 percent CAGR in earnings. Further, it observed that it was a tad disappointed by rise in NPLs due to slippages in farm loans. The overall stress loan ratio of 1.3 percent is among the lowest in the sector.
Brokerage: Goldman Sachs
Goldman Sachs said that the overall disbursal growth trends remained healthy at 16 percent. Meanwhile, the loan growth was at 16 percent, with strong growth in pre-owned vehicles/SME.
Brokerage: JPMorgan | Rating: Underweight | Target: Rs 230
The brokerage said that a profit miss was due to the conservative provisioning.
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