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Foreign brokerages maintain buy rating on these 5 stocks; do you own any?

ITC, IndusInd Bank among 5 stocks brokerages are betting on:

November 27, 2020 / 11:25 AM IST
On November 26, the Indian market bounced back from the previous session’s sell-off to end near the day’s high with Nifty50 ending the November F&O series near 13,000, supported by metal and financial stocks. Here are 5 stocks on bokerages' radar:
On November 26, the Indian market bounced back from the previous session’s sell-off to end near the day’s high with Nifty50 ending the November F&O series near 13,000, supported by metal and financial stocks. Here are 5 stocks on bokerages' radar:
ITC
CLSA retained buy on ITC with a target of Rs 235 per share. It see 25% upside for the stock, including about 5% dividend yield.
IndusInd Bank Ltd.
Jefferies has maintained a buy rating on IndusInd Bank with a target of Rs 1,000 per share. The provisioning may be elevated in H2 as the company recovers for downgrades & some buffer provisions. The lower concentration on assets & liabilities is the key for the medium-term targets. Warrants which are due for conversion in January at Rs 1,709 per share can add 5% to the capital, reported CNBC-TV18.
CLSA maintained buy call on Bharti Infratel and raised the target to Rs 280 from Rs 265 per share. Towerco gearing post-merger is about 1x EBITDA including lease liabilities and with an improving growth outlook, Towerco could rerate. The stock is at a compelling 5x EV/EBITDA, reported CNBC-TV18.
CLSA maintained buy call on Bharti Infratel and raised the target to Rs 280 from Rs 265 per share. Towerco gearing post-merger is about 1x EBITDA including lease liabilities and with an improving growth outlook, Towerco could rerate. The stock is at a compelling 5x EV/EBITDA, reported CNBC-TV18.
CLSA maintained buy call on Tata Motors with a target at Rs 220 per share. There was a good start to Q3; the JLR volume recovery continues to be driven by China. The improvement in JLR mainly driven by China & US while UK & EU were weak. The volume recovery on QoQ basis coupled with cost cuts should drive deleveraging for company. However, risks include a sudden slowdown in its recovery trajectory & no-deal Brexit, reported CNBC-TV18.
CLSA maintained buy call on Tata Motors with a target of Rs 220 per share. There was a good start to Q3, and the JLR volume recovery continues to be driven by China. The improvement in JLR was mainly driven by China & US while the UK & EU were weak. The volume recovery on QoQ basis coupled with cost cuts should drive deleveraging for company. However, risks include a sudden slowdown in its recovery trajectory & no-deal Brexit, reported CNBC-TV18.
Nomura maintained buy on Dr Reddy’s Laboratories with a target at Rs 6,066 per share. There was a positive second interim results of Sputnik-V COVID-19 vaccine and its efficacy appears to be better than other alternatives for India. RDIF has indicated that the vaccine will be priced at less than USD 20 for two doses, which makes the opportunity size of 200 million doses at less than USD 2 billion. The 200 million doses to contribute EPS of less than Rs 66 assuming 10% EBITDA margin. Company may realise high single-digit to low double-digit EBITDA margin on sales, reported CNBC-TV18.
Nomura maintained buy on Dr Reddy’s Laboratories with a target of Rs 6,066 per share. There was a positive second interim results of Sputnik-V COVID-19 vaccine and its efficacy appears to be better than other alternatives for India. RDIF has indicated that the vaccine will be priced at less than $20 for two doses, which makes the opportunity size of 200 million doses at less than $2 billion. The 200 million doses to contribute EPS of less than Rs 66 assuming 10% EBITDA margin. The company may realise high single-digit to low double-digit EBITDA margin on sales, reported CNBC-TV18.
Rakesh Patil
first published: Nov 27, 2020 11:25 am

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