Monday’s top brokerage calls: Lupin, United Breweries and more
A penalty of Rs 750 crore seems fairly large in the context of the company’s cash or reserves, the brokerage firm said. However, the long-term story of category growth and premiumisation remains solid, Citi added.The company’s focus should now shift to performance of new launches as restaurants and bars reopen, the brokerage firm said. Strong performance from Q3 should shift the focus back to volume growth, Goldman Sachs added.ONGC remains best-placed amid the surge in gas, coal and oil prices, according to the brokerage firm. Coal and gas are in an upward spiral and there is an upside risk to brent prices. Gas realisations would increase by at least $1/mmBtu each in October and April, JPMorgan said.Valuation multiple has a notable room for expansion, says Axis Capital. The brokerage firm believes that strong demand revival and pent-up demand are likely to support the growth rate for the company.CLSA says further earnings downgrade for Lupin are likely if key US products do not deliver as per expectations. Being under US Food and Drug Administration’s scrutiny for a long period has reduced the importance of Goa plant, but clearance of Pithampur Unit II and Somerset are more important from US perspective, according the brokerage firm.Immediate triggers remain elusive for Lupin, said Macquarie while upgrading the stock’s rating to neutral from underperform. Strong Albuterol ramp-up and likely resolution of Goa unit provide incremental comfort, the brokerage firm added.
