Tag: top brokerage calls

Adani Ports downgraded to ‘hold’ rating; other top brokerage calls for the day

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

Listen to the Article (6 Minutes)

Nifty and Sensex are likely to be guided by global cues like US-China trade talk ahead of February F&O expiry. The investors will also look forward to macro data including GDP for December quarter on Thursday. According to World Bank, India’s GDP is expected to grow at 7.3 per cent in the fiscal year 2018-19. In the previous quarter (July-September), the GDP growth slowed to three-quarter low of 7.1 per cent.

On Monday, the S&P BSE Sensex rallied 342 points to 36,213 while the Nifty50 gained 88 points at 10,880.

Here are the top brokerage calls for the day:

Jefferies on Reliance Indutries (RIL)

– Rating from the brokerage is ‘Underperform’ with a target of Rs 935 per share

– Company’s revenue market share rose 375 bps (QoQ) to 29.2% in Q3

– Industry revenues were flat on a QoQ basis at $19 billion annualised

– See little incentive for higher tariffs

– Earnings per share at risk from weaker downstream margin even as net liabilities continue to rise

Axis Capital on Adani Ports

– Downgrade to ‘Hold’ from ‘Buy’, target at Rs 356 per share

– The Adani Agri Logistic (AAL) acquisition seems expensive

– Acquisition Of AAL is at premium valuations

– Higher payout to Adani Enterprises and high share pledge raised investor concerns

– Expect company to reduce exposure to group entities

– Near-term upside looks capped

Jefferies On Coal India

– ‘Buy’ rating, target at Rs 309 per share

– Stock price is down 26% in 6 months on volume growth concerns

– Resolution of short-term disruptions, recent EC nod could lift volume growth

– With power plant coal stocks normalising, e-auction mix should improve

– Valuation appears cheap at current levels

Citi On Gas Sector

– India’s January LNG imports were sequentially stable at 1.6 mmt

– Recent softness could be attributable to weaker demand from power and refining

– Most gas companies either beat or met earnings expectations in Q3

– Pecking order is Indraprastha Gas, Petronet LNG, Mahanagar Gas, GSPL, Gujarat Gas, GAIL

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 the day: Morgan Stanley overweight on Dr Reddy’s, L&T

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

Listen to the Article (6 Minutes)

Benchmark indices indicate a mixed opening on Thursday even as Asian shares held near 4-1/2-month highs. The global optimism was maintained after US Federal Reserve minutes affirmed it would be “patient” on interest rate rises and risk assets got a lift from hopes of further progress in US-China trade talks. The SGX Nifty, however, was trading in red in the early morning deals.

On Wednesday, The market closed higher, snapping nine-day losing streak, with the Nifty holding 10,700 levels led by metals, banking, and IT sector.

Here are the top brokerage calls for the day:

Macquarie On IT Services

-NASSCOM’s survey hints at a cautiously optimistic outlook for FY20.

– Macquarie expects growth in most IT companies in India to improve in FY20.

– Revenue growth in Infosys, HCL Tech & Tech Mahindra can be seen in the range of 230-410 basis points in FY20. One basis point is a hundredth of a percentage point.

– FY20 dollar revenue growth is expected to be higher in midcaps than large Caps.

-TCS may have the strongest organic growth rate among peers.

– Top largecap picks are TCS & HCL Tech & for midcap is L&T Info.

Morgan Stanley On Dr. Reddy’s

– Overweight call, target at Rs 3,197/share.

– Suboxone Relaunch: Spotlight moves to the market place.

Morgan Stanley On L&T

– Overweight call, target at Rs 1,786/share.

-Guidance implies inflows of Rs 49,000 crore in Q4.

– Of the reported orders in Q4, domestic orders account for 70 percent.

Morgan Stanley On Indian Hotels

– Overweight call, target at Rs 174/share.

– FY19 was about signing new contracts, FY20 to be about commissioning.

– The company reiterated its FY23 targets of 30 percent growth in the portfolio.

Nomura On Banks

– The final tranche of infusion announced, PCA banks adequately capitalised.

– Pricing power remains strong and the credit cycle is also normalising.

– Positive on corporate banks and prefer corporate private banks.

– Buy call on ICICI, Axis Bank and SBI.

DB On Metals

– Domestic steel prices hiked for the second time in February.

– Indian companies had hiked the price by Rs 750-1000/tonne at the beginning of the month.

– India’s domestic steel demand continues to remain resilient.

HSBC On GSPL

– Higher cost impacted earnings in Q3.

– The decline in gas volumes may lead to reduced profitability next year.

– Target cut to Rs 138 from Rs 152/share.

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