Macquarie has downgraded it to neutral from outperform and reduced target price to Rs 1015 versus Rs 1350 per share. It says Ankleshwar facility receiving under import alert may lead to multiples falling under pressure in the near term. However, it remains bullish on the stock for long term.
The Director General of Anti-Dumping (DGAD) has recommended anti-dumping duty on imports of HRC products from China, Japan, Korea, Russia, Brazil and Indonesia. HR forms 50 percent of steel imports and the six countries form 98 percent of HR exports to India.
With maintaining neutral rating and target price of Rs 265, IDFC Securities said valuations are unexpensive but near-term pressure on asset quality exists
The Finance Ministry will soon move the Cabinet with changes in the GST Constitutional Amendment Bill providing for full compensation to states for the first five years of roll-out of the new indirect tax regime.
In terms of sector ad break up, while FMCG and internet saw some softening, telcos and autos increased spending. However, the company has said that FMCG was below average this quarter, a few more quarters will be needed to ascertain if this is a continuing trend.
Net yen exposure for Maruti at 10 percent of sales with 40 percent of indirect exposure (11 percent of sales) in yen along with royalty (6.5 percent) and direct exposure (5 percent) is offset by Baleno exports (5 percent of sales) billed entirely in yen.
Decline in volume growth, particularly in the US market, loss of business in Venezuela, price erosion and delayed launches due to warning letters impacted its performance in April-June quarter.
The goverment on Tuesday announced it was front-loading a major part of the Rs 25,000 crore capital it was supposed to infuse into public sector banks, which have been saddled by bad loans and weak credit growth.
Most analysts are cautious on the stock post June quarter results and hold a neutral rating but few find its valuations to be reasonable.
HUL management has reaffirmed its guidance of continued improvement in operating margins despite the recent increase in commodity costs.
Though Q1 is a seasonally strong quarter, volume growth of 3.4 percent (QoQ) was the lowest growth in eight years while Q1 revenue growth was weakest in last five years. TCS has retained margin guidance of 26-28 percent, but Q1FY17 margin of 25.1 percent was the lowest since Q1FY10.
JP Morgan is overweight on the stock with a target price of Rs 485 on a recovering economic environment in India and believes JLR will continue to benefit from new model launches in the near term â€“ particularly at Jaguar.
Macquarie that has outperform rating with a target price of Rs 1,140 on the stock, says GBR 1302 data in 2HFY17 will help validate BEAT platform and pave the way for a potential out-licensing deal in next 12 to 18 months.
"With the recently closed establishment inspection report announced on June 7, the entire facility is now US Food & Drug Administration compliant," says the Bangalore-based pharma company in its filing. This facility was inspected earlier in February.
Though 7th pay hike is lower than in 6th Pay Commission and the arrear payouts are likely to be lower, analysts still expect a consumption boost. Citi economists expect consumption growth pick up to 8.4 percent in FY17 from 7.6 percent in FY16 (marginal downside risks from potential delays in implementation of allowances hike).
Viktor Shvets of Macquarie expects coordinated central bank action from the Bank of Japan, European Central Bank and Bank of England, with the Federal Reserve taking away tightening to reduce volatility, weaken Yen & avoid a strong US dollar.
Brokerage houses do not see any major impact of Brexit on pharma companies' earnings. In fact they have not changed their views post Friday's event, saying companies may get impacted only by currency volatility globally. According to them, any EU impact will offset by US large exposure to the US.
Analysts say that pound depreciation is positive for Tata Motors, which owns a British subsidiary Jaguar Land Rover, but the market is actually worried about demand impact.
There is not much clarity for investors. Central banks will have to coordinate with each other to control volatility from spiking up in near-term, says Viktor Shvets of Macquarie.
After interacting with company's CEO Karan Adani recently, the brokerage says the largest private port has taken note of investors' and rating agencies' concerns about related party transactions and the build-up of loans and advances (L&As) over the last three years, and is looking to reverse some of the transactions.
After building in the capital raising, the brokerage increased its target price by 17 percent to Rs 1,325 driven by increase in book value per share due to the capital raise, though it cut FY17-19 earnings per share estimates by 6-10 percent due to fund raising.
Brokerages have maintained their overweight rating on the stock after JLR retail sales data, saying F-Pace will be key driver for overall sales growth in FY17 along with other new launches and China growth is likely to be aided by Discovery Sport & XF.
It says that while both, ICICI and Axis, won't require capital in the near term, the former is in a better position.
After JLR's May sales data, Macquarie, which has target of Rs 535 on the stock, says Tata Motors is its top pick in the India auto sector and is a Macquarie Marquee stock while JP Morgan has price target of Rs 485, which says Tata Motors' India business is benefitting from an improving macro environment.
Morgan Stanley has upgraded the stock to equal weight from neutral. It has a target price of Rs 530 per share as outlook for telecom business is improving, and worst in earnings downgrade cycle appears to have passed.