CLSA on Tata Motors: The brokerage retained a ‘sell’ call on the stock with a target price of Rs 392. It lowered its volume estimates for Jaguar Land Rover by 4-7 percent over FY22-FY24, though raised it for Tata Motors’ domestic business by 8-18 percent. CLSA also lowered its earnings estimates to factor in an increase in commodity cost assumptions. CLSA on Kotak Mahindra Bank: The brokerage maintained a ‘buy’ rating on the lender’s stock with a target price of Rs 2,200. CLSA believes Kotak Mahindra Bank can deliver 4-5 percent higher growth compared to its peers. CLSA on ICICI Securities: The brokerage maintained an ‘outperform’ rating on the stock with a target price of Rs 750. It brought down its earnings per share (EPS) estimates for FY23 and FY24 by nine percent on lower growth. Jefferies on HDFC Life: The brokerage continued with its ‘buy’ call on HDFC Life with a target price of Rs 820. Jefferies sees scope for the company to expand its margin from 27 percent over the April-December period to 30 percent over the next 3-5 years. Jefferies on Bandhan Bank: The brokerage retained its ‘buy’ call on the stock with a target price of Rs 380. Recoveries from stressed loans can bring down the non-performing assets for the lender over the next few quarters, according to Jefferies. The brokerage has not factored in the Assam waiver.
JP Morgan on UltraTech Cement | Earnings upgrade cycle for UltraTech Cement has likely come to an end for now, the brokerage believes. JP Morgan expects cement price hikes to offset most of the cost pressure.Jefferies on UltraTech Cement | The brokerage is of the view that the cement company’s stock might remain range-bound until margin visibility improves.CLSA on Jindal Steel & Power Ltd | The brokerage has initiated coverage on the stock with a ‘buy’ rating saying that the scrip is inexpensive compared to peers. Jindal Steel & Power Ltd is set to become India’s fourth-largest steel company on the back of favourable macro-economic conditions, JP Morgan added.Citi on Larsen & Toubro Infotech | The brokerage has raised its estimates for the company by 5 percent for FY22, by 3 percent for FY23 and by 2 percent for FY24. Citi noted that the company’s EBIT margin improved on quarter despite higher attrition and supply-side challenges.
JP Morgan on Tata Consultancy Services | The brokerage has raised revenue estimates by 30-180 basis points over FY22-24 but trimmed margin estimates by 50 basis points in FY22. Demand is strong and broad-based, across verticals, while transformation deals will be more mid-sized, JP Morgan said.Citi on Jubilant FoodWorks | The brokerage has raised its earnings per share estimates for the company by 3-6 percent for FY23/24. The hike in earnings per share estimate factors in higher expansion and minor tweaks to same store sales growth or operating expenses, Citi added.JP Morgan on Coal India | Tightness in coal markets should drive e-auction prices higher, said JP Morgan. This led to the brokerage firm raising its earnings per share estimates by 9 percent, while maintaining its ‘overweight’ rating on the stock.JP Morgan on HCL Technologies | The brokerage believes that the technology company does not see pricing leverage in the near term. JP Morgan has increased its revenue estimates by 30-40 basis points over FY22-24 but cut margin estimates by 40 basis points for FY22.
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.
