Tag: top brokerage calls

Top brokerage calls for Tuesday: Credit Suisse selectively overweight on IT, maintains outperform for L&T

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India’s benchmark stock market indices are likely to open positive ahead of the US Fed meeting starting later today.

Sensex and Nifty ended higher for the sixth straight session on Tuesday, boosted by strong global cues and the rupee. The S&P BSE Sensex ended at 38,095, up 70 points, while the broader NSE Nifty50 settled at 11,479, up 52 points.

Among the brokerages, Credit Suisse prefers ICICI Bank, SBI, L&T, and BHEL to consumption stocks like Ultratech Cements, HUL and Maruti Suzuki. It is selectively overweight on the IT sector and has maintained an outperform rating on L&T. Macquarie also maintained outperform rating on Zee Entertainment but has raised the stock’s target price to Rs 540 per share.

Here are the top brokerage calls for the day:

Credit Suisse Market Strategy

– Global equity-only risk appetite has moved to the highest levels seen this decade

– Rally in India over the last month was a catch-up

– Despite strong outperformance India is 43rd among top 50 markets (YTD) in dollar returns

– Small and midcaps have bounced as they do after a period of underperformance

– Economic growth in India continues to decelerate

– Rally in midcap & small caps provide an opportunity to exit

– Discount Of midcaps to Nifty is not large enough

– Prefer ICICI Bank, SBI, L&T and BHEL to consumption stocks like UltraTech, HUL and Maruti

– Selectively overweight on IT sector

Credit Suisse on L&T

– Maintain outperform, target at Rs 1,700 per share

– Doing well with strong order inflow, execution momentum

– Mindtree transaction would be EPC dilutive for L&T by 2-3 percent

– It may not have any synergy with another subsidiary in the same business

– L&T Infotech and merger of the two may happen only after a long drawn process

Macquarie on Zee Ent

– Maintain outperform, target raised to Rs 540 from Rs 434 per share

– Assess the impact of Sony potentially acquiring a stake

– Potential deal with Sony to be beneficial for minority shareholders

– Minority shareholders will benefit provided current management is retained

– Recent rally in company lends comfort on timely conclusion of deal at a fair valuation

Jefferies on ICICI Lombard

– Initiate with a buy call, target at Rs 1,136 per share

– Rare opportunity in financial space

– Well placed for RoEs in excess of 20 percent and earnings growth of 25 percent over FY19-21

– Expect a long growth runway for the sector on strong demand

CLSA on Media

– India media distribution is seeing consolidation

– If a deal between Bharti Group and Dish TV unfolds, merged company to have over 25 percent of pay-TV households

– Possible merger may be a stock deal and would help Bharti Airtel list its DTH business

– Valuation gap between Airtel and Dish TV’s possible merger to be key hurdle

Catch all the live updates from the stock market here, CNBCTV18 Market Live.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Top brokerage calls for Monday: Macquarie maintains underperform on Bandhan Bank, CLSA positive on infra sector

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The benchmark indices are likely to open in green on Monday, following Asian shares that advanced ahead of the US Federal Reserve policy decision on March 20, hoping that US Fed will remain dovish.

On Friday, the S&P BSE Sensex rose 269 points to end at 38,024, while the Nifty50 index settled at 11,427, up 84 points. Both indices rallied 3.5 percent each for the week. HDFC, Lupin, Grasim Industries, MindTree, HUDCO, Lakshmi Vilas Bank, ADAG Group and IDBI Bank will be the top stocks in focus today.

Among brokerages, Macquarie is not positive on Bandhan Bank, maintains underperform on the stock. Meanwhile, Jefferies also has an underperform rating on Lupin. However, Credit Suisse is neutral on Infosys.

Here are the top brokerage calls for the day:

Macquarie on Bandhan Bank

– Underperform call, target at Rs 400 per share
– HDFC must sell 5.06 percent equity in the merged company before the merger can consummate
– HDFC’s 5 percent stake sale can result in supply pressure of Rs 3,000 crore based on the current market price (CMP)
– Concerned by the expensive acquisition of Gruh
– The stock will remain under pressure till promoter stake reduction is done

Credit Suisse on Lupin

– Underperform rating, target at Rs 800 per share
– Negative surprise from ‘Official Action Indicated'(OAI) flag by the USFDA at New Jersey facility
– Chances of escalation increases due to the OAI flag
– In a severe case of potential import alert, the impact could be 20 percent of earnings
– Expect a re-inspection at least at the Indore facility and expect a resolution in the second half of FY20

Jefferies on Lupin

– Underperform call, target at Rs 680 per share
– Somerset is the second plant to receive an OAI in the past five days
– Somerset has pending approvals that will be delayed
– Management expects no supply disruption
– OAI status highlights that the FDA requires more remediations and upgrades

Credit Suisse on Infosys

– Maintain neutral, target at Rs 770 per share
– High likelihood of company reducing FY20 margin band down by 100 bps to 21-23%
– Q4 should be another quarter of 50-60 bps margin decline on a quarter-on-quarter basis
– Localisation initiatives should help ease the H1-B visa problems
– Widening discount versus TCS should provide some downside support

CLSA On Infra Sector

– NDA government’s $14 billion worth infra project nod validates capex cycle turnaround
– Approvals are 64 percent infrastructure and 33 percent Of power projects
– This will support already strong backlog growth of 16 percent (YoY)
– Buy early-cycle plays like L&T, Sadbhav, NCC and IRB Infra
– Positive on urban infrastructure play – JKumar Infra

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Top brokerage calls for Friday: CLSA downgrades TTK Prestige, maintains outperform for HUL

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Benchmark indices ended flat on Thursday, breaking the past 3-day rally in the indices amid rising oil prices and a weak rupee. The BSE Sensex was up 2.72 points to close at 37,754.89 while the Nifty50 rose 1.60 points to 11,343.30.

On Friday, the benchmark indices are set for a muted start as markets turned volatile ahead of general elections and global growth concerns. Asian shares traded marginally higher after UK lawmakers voted to delay Brexit day.

Among brokerages, CLSA downgraded TTK Prestige to sell from buy, however, the brokerage has an outperform call for Hindustan Unilever (HUL).  Jefferies has a buy call for Natco Pharma while Credit Suisse maintains a neutral stance on Bajaj Auto. Citi, on the other hand, was neutral on RBL Bank but raises the stocks target price to Rs 670 from Rs 585 per share.

Here are top brokerage calls for today:

CLSA on TTK Prestige

– Downgrade to sell from buy, target at Rs 9,000 per share
– Valuations are now adequately factoring in growth triggers going ahead
– Downgrading the stock on sharp stock run-up
– According to us, we see a 16 percent revenue CAGR (compound annual growth rate) over FY18-21
– Valuations leave little room for incremental stock upside

CLSA on HUL

– Outperform call, target at Rs 2,010 per share
– The fourth quarter is an important quarter for Indian staples to gauge consumption trends
– Input price trend remains benign
– Medium-term guidance on modest margin expansion stays
– Premium valuations will likely sustain

 Jefferies on Natco Pharma

– Buy call, target at Rs 850 per share
– Emerging markets scale-up; US pipeline underappreciated
– Copaxone drug could remain a steady profit source
– Forecast 19 percent earnings CAGR over three years

Citi on RBL Bank

– Neutral Call, target raised to Rs 670 from Rs 585 per share
– Well placed to scale-up; low visibility of return on assets (RoA) expansion
– Overall asset quality has been strong
– Credit card business can drive RoA upside

Credit Suisse on Bajaj Auto

– Maintain neutral, target at Rs 2,700 per share
– Trading at a premium to its five-year average PE
– Volumes could decline 5 percent in the first half of FY20
– The company has been reluctant to increase its dividend payout
– Investors would prefer the company to return excess cash

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Top brokerage calls for today: HSBC maintains ‘hold’ on Tata Motors, Citi raises target on Maruti

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Indian shares are set for a tepid start on Wednesday, after the benchmark indices rallied in the last two sessions on the back of strong overseas inflows.

On Tuesday, the Sensex was up 481.56 points at 37535.66, while Nifty was up 133.20 points at 11301.20. About 1595 shares have advanced, 1088 shares declined, and 147 shares are unchanged.

Among brokerage calls, Macquarie has an ‘outperform’ rating on ITC, while Citi has raised the target of Maruti Suzuki to Rs 8,300 per share. HSBC, on the other hand, has reiterated ‘hold’ rating for Tata Motors but has raised the target price for the stock.

Here are the top brokerage calls for today:

HSBC on Tata Motors 

– A limited downside to FY20-21 JLR volume estimates, but it is unlikely to see a sharp recovery.

– Margin highly contingent on cost-cutting and Brexit risks have not been factored into estimates.

– The target raised to Rs 190 from Rs 170 per share.

– Profitability will largely be dependent on cost-cutting.

HSBC on CG Power

– Maintain ‘hold’, target at Rs 34 per share.

– Investor concerns on governance-related risks are likely to recede.

– The company needs to do a lot more to improve investor confidence.

Macquarie on ITC

– ‘Outperform’ call, target at Rs 376 per share.

– Channel checks suggest strong volume growth momentum continuing in the last 2-3 months.

– Winning back market share a key reason for strong volume growth.

– Expect earnings growth gap between ITC and other FMCG peers to reduce meaningfully.

– May see a valuation re-rating for the stock going forward.

Citi on Maruti

– ‘Buy’ call, target raised to Rs 8,300 from Rs 7,600 per share.

– Cut earnings per share estimates by 5-7 percent over FY19-21.

– Expect a slight volume pick-up post elections and into the festive season.

– Earnings downgrades could trough over FY20.

Citi on Dilip Buildcon

– ‘Buy’ call, target raised to Rs 761 from Rs 725 per share.

– Incremental awards not expected until the elections conclude.

– Management expects significant order wins in the second half of FY20.

– The company expects further improvement in the balance sheet.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Top brokerage calls for Tuesday: Jefferies underweight on Dr Reddy’s, Axis Capital rates hold on Adani Ports

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Indian benchmark indices are likely to open in green on Tuesday as Asian shares witnessed a good escalation after the European Commission agreed to changes in a Brexit deal ahead of a vote in the British parliament on a divorce agreement.

On Monday, the 30-share BSE Sensex went up 382.67 points to 37,054.10 along with Nifty which was up 132.65 at 11,168.05.

In brokerage calls today, Axis Capital maintained a “hold” rating for Adani Ports with a target price to Rs 356 per share. Jefferies maintains “underperform” for Dr Reddy’s Laboratories at Rs 2,180 per share. Here are the top brokerage calls for today:

Edelweiss On GMDC

-Initiate Coverage With A Buy Call, Target At Rs 105/Sh
-Conviction Is Underpinned By Two Vs: Volume & Valuation
-See Imminent Volume Uptick Post Production Ramp-up At   New Mines, Despite Stagnant Prices
-On Valuation Front, Stock Is Trading At The Lowest End Of Its   8-year EV/EBITDA Band
-Expect Co To Surpass The `5,000 Cr (3% CAGR) EBITDA   Barrier By FY21

Axis Cap On Adani Ports

-Hold Rating, Target At Rs 356/Sh
-Well Placed To Benefit From Healthy Volume Growth
-May See 12% CAGR In Core EBITDA (ex-SEZ) Over FY18-21

Axis Cap On CONCOR

-Hold Rating, Target At Rs 525/Sh
-Expect Volume Growth Of 10/13/15% To Remain Intact Over   FY19-21
-See 4% CAGR In Margin Expansion
-Remain Watchful Of Realisation Pressure On Higher   Contribution From Gujarat ports

Axis Cap On Gateway Distribution

-Buy Rating, Target At Rs 150/Sh
-Strategic Rail Terminals & Addl Rake Capacity To Aid Volume   Revival
-Expect Current Overhang Of Funding For Blackstone Stake   Acquisition To Go Away
-Management Is In Advanced Talks To Close The Deal

Axis Capital On Navkar Corp

-Buy Rating, Target At Rs 53/Sh
-Stock Available At Below Adj Book Value Given Slower-than-   expected Volume Growth
-Expect 6% Volume CAGR Though Margin To Be Stable On   Lower Diesel Costs
-Given Earlier Slippages, Efficient Execution Remains Crucial   For The Stock

Citi On Transportation & Logistics

-Dedicated Freight Corridor Has Achieved 56% Physical   Progress & 54% Financial Progress
-Most Of The Land For DFC Acquired But Last Mile Acquisition Is Proving To Be Difficult
-Surat-JNPT Section On Western DFC Is Proving To Be   Challenging
-Ports In Gujarat To Get Connected To DFC Earlier, Likely By   End CY19
-Freight From Gujarat Ports May Shift To DFC Over Next One   Year
-CONCOR Remains The Best Play On Commissioning Of DFC
Gateway Distri Will Benefit As Well
-Maintain Neutral On Adani Ports Given Concerns On Capital     Allocation

Jefferies On Dr Reddy’s Laboratories

-Maintain Underperform, Target At Rs 2,180/Sh
-Focussing On Improving Profitability Led By Cost Control,     Productivity & Global Product Dvpt
-China & India Are Focus Markets
-India Turnaround Will Take Time Given Underperformance     Over Multiple Years
-Near-term US & Cost Control Remains Key
-Stock Trades At 19x FY20PE, Implying Full Multiples To   Limited Time Earnings

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Top brokerage calls for Monday: Morgan Stanley overweight on SBI; Nomura cuts Dr Reddy’s TP

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Indian benchmark indices are likely to open in red on Monday amid weak global macro cues. Asian shares also pulled back on Monday after US employment data raised doubts about the strength of the global economy.

On Friday, the 30-share BSE Sensex fell 54 points to 36,671 as the Nifty slipped 23 points to 11,035. The indices, however, gained over 1.5 percent during the week despite global growth concerns.

In brokerage calls today, Nomura maintained a “buy” rating for Dr. Reddy’s, and cut the target price to Rs 3,414 per share from Rs 3,478 per share. Morgan Stanley rated SBI as “overweight” and Credit Suisse maintained “underperform” on Wipro. Here are the top brokerage calls for today:

Morgan Stanley on SBI

– Overweight rating, target at Rs 375 per share
– Linking interest rate on savings deposits and short-term loans to repo rate, a big move
– Margin volatility should reduce over time
– Key to monitor will impact on deposit growth and strategy of peer banks

Credit Suisse on Wipro

– Maintain underperform, target at Rs 240 per share
– Margin recovery well priced in
– Focus shifts back to closing growth gap
– Some signs of a pick-up in growth but it is not broad-based

Nomura on Dr Reddy’s

– Buy rating, target cut to Rs 3,414 from Rs 3,478 per share
– Growth prospects largely on track
– High price erosion in gSuboxone is a marginal negative
– Factor in higher-than-estimated competition in gSuboxone in FY20-21
– Reduce eanings per share estimate for FY20 and FY19 by 11 percent and 4 percent, respectively

CLSA on power sector

– FY19-24 regulations were a positive surprise
– Regulations a great balancing act for maintaining a 15.5 percent return on equity
– Key positives are extra allowance for security expenses
– Raised NTPC and PowerGrid target prices by 4 percent and 2 percent respectively and FY20 earnings per share by 4 percent and 6 percent, respectively
– An opportunity to add NTPC and PowerGrid

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Top brokerage calls for Friday: Kotak downgrades Maruti Suzuki, DB positive on UPL, Gujarat Gas

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Indian shares are likely to remain negative following Asian markets, which shuddered lower on Friday after the European Central Bank slashed its growth forecasts, leaving investors fearing the worst for the global economy.

On Wednesday, the Nifty50 closed at 11,058, up 5 points, and the BSE Sensex climbed 89 points to close at 36,725.

Kotak Institutional Equities downgraded Maruti Suzuki and cut its target to Rs 7,500 from Rs 7,600. Meanwhile, Nomura maintained a neutral call for ALkem Labs but cut its target price. Deutsche Bank, however, was positive on UPL and Gujarat Gas.

Here are the top brokerage calls for today:

Kotak Institutional Equities on Maruti Suzuki

– Downgraded to add from buy, target cut to Rs 7,500 From Rs 7,600 per share

– Domestic passenger vehicle industry is likely to grow in low single-digit

– Expect the company to gain market share, but cut its earnings per share (EPS) estimates by 4-9 percent for FY19-21

– Company to gain 290 bps market share over the next four years

Nomura on Alkem Labs

– Remain neutral call, target cut to Rs 1,965 From Rs 2,116 per share

– Factoring in impact Of competition in drug Mycophenolate Mofetil Suspension (MMS)

– MMS will likely contribute 16 percent to company’s US revenues and 29 percent to net earnings in FY19

– Factoring in 52 percent and 20 percent decline in MMS sales for the company in FY20 & FY21, respectively

– MMS’ profitability is substantial, impact on net earnings is higher

Deutsche Bank on UPL

– Buy rating, target at Rs 970 from Rs 850 per share

– Valuation looks reasonable for FY21 estimate price to earnings ratio Of 12.8x

– Factor in 40 percent of the announced cost synergies Of $230 million from FY21 onwards

– Increase in FY21 estimate earnings per share is however only 2 percent

– Factor in likely restructuring costs in near-term to achieve guided synergy benefits

Deutsche Bank on Gujarat Gas

– Buy rating, target at Rs 160 per share

– NGT orders ceramic units in Morbi to shift to natural gas

– Company the primary beneficiary, Petronet LNG to benefit too

– More Action against air pollution favors natural gas consumption

– Every 1 mmscmd additional gas sales volume leads to a 20 percent increase in company’s earnings

Deutsche Bank on ICICI Prudential Life

– Buy Rating, target at Rs 440 per share

– Growth trajectory strengthening, risk-reward favourable

– February was the second successive month of double-digit growth with annual premium equivalent growing at 14.5 percent year-on-year.

– FY20 to benefit from a low base; equity sentiment uptick as also a growth positive

– Margin expansion should continue

Macquarie on ABB

– PowerGrid business is to be vertically demerged into a separate company and subsequently listed

– Weak sector outlook will struggle to get the current lofty valuations

– The demerger would be incrementally negative as discovered valuations are likely to be lower

– Underperform rating, target cut to Rs 812 from Rs 967 per share

– Cut earnings estimates for next two years by 48-52 percent, primarily due to demerger

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

CLSA positive on Indian IT, Infosys top pick: Check top brokerage calls for Thursday

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Benchmark indices are likely to remain range-bound following tepid Asian shares, which rose marginally in early trade on Thursday, with caution prevailing as investors awaited further details on US-China trade negotiations.

On Wednesday, the Nifty50 closed above 11,000 levels for the first time since February 7, 2019. It rallied 65.55 points to end at 11,053 while the S&P BSE Sensex climbed 193 points to close at 36,636.

Infosys and Zee Entertainment are among the top brokerage picks for Thursday. CLSA is positive on Indian IT stocks after the Indian IT hiring grew for the 10th successive month.

Here are the top brokerage calls for the day:

CLSA on Indian IT

– Indian IT hiring grew for the tenth successive month, up 36 percent year-on-year in January
– US unemployment rate stable at 3.8 percent and initial jobless claims declined
– Overall, there is a gradual demand improvement for leading firms
– HCL Tech and Infosys offer the most value, while TCS offers momentum

CLSA on Infosys

– Buy call, target at Rs 930 per share
– Supply pressures, attrition in control
– The company is enjoying a better-than-expected demand environment
– Verticals like banking, financial services, healthcare and communications seem stronger
– Positive on improving growth outlook
– Top Pick in the Indian IT sector

Morgan Stanley on IDFC First Bank

– Forecast return Of equity (RoE) at 9 percent by FY24 from 3 percent in FY20e
– Underweight rating on the stock

CLSA on Zee Entertainment

– Buy rating, target at Rs 670 per share
– Management change is unlikely post stake sale
– Recent rally will reduce the risk of further invocation of pledges by lenders
– Strategic stake sale will likely be at a premium
– Stock trading at 15 percent discount to 10-year average valuation

Credit Suisse on Utilities

-Physical progress of UDAY on key parameters is lacking as compared to its ambitious targets
– States have made limited progress on augmentation of physical infrastructure
– Spike in dues of discoms towards utilities probably driven by bank funding constraints
– Reiterate outperform on Power Grid and NTPC

Tune in to our podcast (link) to prep yourself for today’s trade. Ekta Batra has you covered with the buzzing stocks and news you need to know.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Morgan Stanley positive on ITC, Credit Suisse on HCL Tech: Check top brokerage calls for the day

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Indian benchmark indexes, the BSE Sensex and the NSE Nifty50, are likely to remain in range on Wednesday, tracking mixed Asian sentiments as investors awaited fresh directional cues from US-China trade negotiations. On Tuesday, benchmark Indices ended over 1 percent higher on Tuesday on the back of sustained buying in midcaps, smallcaps, auto and banking stocks despite negative global cues. The S&P BSE Sensex settled at 36,442, up 378 points, while the broader NSE Nifty50 ended at 10,987, adding 124 points. Meanwhile, broader markets outperformed frontline indices with the Nifty MidCap rising 2.3 percent and Nifty Smallcap gaining 4 percent.

Among stocks, ITC, HCL Technologies, and non-banking financial companies are top brokerage picks for the day. ITC is likely to be favoured among investors after the FMCG firm hiked prices of its cigarette brands. Morgan Stanely rates ITC overweight at a target price of Rs 320 per share, while Credit Suisse favours HCL Technologies as a value pick in the IT pack.

Here are top brokerage picks for the day:

Morgan Stanley on ITC

– Overweight call, target at Rs 320 per share.

– Cigarette price hike to drive the stock.

– The company hiked prices of Bristol, Flake Excel, and Capstan Brands, which account for 20 percent Of the company’s cigarette volumes

– The overall price hike is implied at 2.2 percent. Including December hike, the weighted average price hike is at 3 percent.

– Expect the stock to gain from current levels.

Citi on Edelweiss Finance

– Buy rating, target at Rs 205 per share.

– Deal with Canada’s CDPQ is positive for capital adequacy but might not immediately help liquidity.

– Proposed equity infusion is 3 percent of the risk-weighted assets of Rs 58,000 crore.

– CDPQ deal can give support at a time when real estate lending is not in favour.

Citi on Housing Finance Companies

– For HDFC and Aavas Financial, we see limited impact from National Housing Bank’s (NHB) proposed changes.

– Believe NBFCs/HFCs with strong parentage should continue to do well.

Credit Suisse on HCL Tech

-Maintains outperform, target at Rs 1,310 per share

– Earnings upgrades in-line with peers, however, valuations are much lower

– The company is trading at a 40 percent discount to Tata Consultancy Services (TCS) vs long-term average discount of 25 percent.

– Price to earning multiple was corrected by 7 percent in one year Vs 4-12 percent expansion of TCS, Infosys, and Wipro.

– Improving business fundamentals with reasonable valuations offer attractive risk reward.

– The company is our top pick in the sector.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Top brokerage calls: Prefers Infosys to TCS in the IT sector says Nomura

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The indices are likely to open on a cautious note amid rising Indo-Pak tensions and negative global, ahead of February F&O Expiry.

Asian stocks were also trading lower. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.1 percent, while South Korea’s KOSPI shed 0.5 percent and Japan’s Nikkei lost 0.5 percent

On Wednesday, the benchmark indices gave up early gains to fall over 200 points in afternoon trade on widespread selling.

The Sensex shed 465 points from day’s high to slip below 36,000 levels, down 68.28 points to settle at 35,905.43. The Nifty50 erased 133 points from day’s high to close marginally lower amid volatility ahead of expiry of February derivative contracts due on February 28.

Here are the top brokerage calls for the day:

Nomura on Infosys

– Neutral call, target at Rs 680 per share
– Incremental EBIT picture shows growth is coming at a high cost
– Staff cost growth is in fact lower than the headcount growth
– Look for margin to drop to 22.2% in Q4 vs 22.6% in Q3
– Prefer company to TCS on hopes of better growth in FY20 estimates

Credit Suisse on Financials

– Real estate sector NPAs are likely to rise in Q4
– Lack of funding from NBFCs will add To pressure from the weak property sales
– Remain cautious on Indiabulls, Edelweiss and L&T Finance in the NBFC space and Yes Bank in the banking space.

CLSA on Vodafone Idea

– Sell call, target at Rs 27 per share
– Going regional can cut debt by 25%, boost EBITDA by 20% in FY20
– Valuations are highly sensitive to revenue assumptions
– 10% higher revenue estimate results in a 2.5x jump in fair value

Axis Capital on Wipro

– Hold Call, target raised to Rs 340 from Rs 320 per share
– Divestment is aligned to its offering for larger clients
– Expect 4.5% revenue compound annual growth revenue over FY18-21

Also, catch all the action and updates in our Market Live blog

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow