Skip to main content

Buy, Sell, Hold: 3 stocks and 2 sectors are being tracked by analysts today

Buy, Sell, Hold: 3 stocks and 2 sectors are being tracked by analysts today

ITC, HDFC Bank and IT sector, among others are on the radar of investors today.

ITC

Brokerage: Nomura | Rating: Buy | Target: Rs 389

Nomura believes that most headwinds for ITC are out of the way and strong earnings revival is likely. It sees earnings CAGR of 17.6 percent over FY17-20 on the back of revenue CAGR of 14 percent. Further, it has raised FY19 earnings by 2 percent to incorporate changes with GST rollout.

HDFC Bank

Brokerage: CLSA | Rating: Buy | Target: Rs 2,000

CLSA highlighted that the bank was investing in artificial intelligence, automation and branch digitisation. Further, it added, that the digitisation investment should aid employee productivity. Moreover, growth in debit cards will be the key to CASA growth going ahead. With agri loans growing, the report highlighted that NPLs could see some pressure from farm loan waivers.

Tata Power

Brokerage: Ambit | Rating: Buy | Target: Rs 112

The brokerage house said that losses from Mundra should reduce, given the company’s focus on reducing plant load factor. The company can also potentially raise Rs 6,200 crore from stake sale in group companies and demerger. It sees better profitability in renewables business, while it sees net debt to equity ratio to reduce to 2.1 times from 3.1 times.

Information Technology

Brokerage: CLSA

CLSA foresees poor large deal wins and ramps to drive an uninspiring Q1. June is likely to miss the seasonal strength of the quarter and may see organic constant currency QoQ growth ranging from -3 to 2 percent. Cross currencies and M&A make headline numbers barely better at -0.7-4 percent. It sees organic growth to be led by TCS, Infosys, and HCL Technologies, while it will be lagged by Tech Mahindra and Wipro. It expect Infosys and HCL Tech to retain guidance & Wipro to guide 1-3% for Q2. The brokerage house has a buy call on HCL Tech and TCs, while it has downgraded Wipro to outperform from buy. Meanwhile, it has an underperform rating on Infosys and sell call on Tech Mahindra.

Brokerage: Deutsche Bank

The global financial services firm sees weakness in financial services and retail verticals to lead to a soft start to the current fiscal. It is incorporating a stronger rupee, while it cut estimates and targets by 0.3-7 percent. Key risks, according to it, include recession in the US and Europe, affecting technology spend. Further, it expects top tier Indian vendors to report -0.8 to 5.3 percent quarter on quarter USD revenue growth.

Meanwhile, it expects Infosys to be at the top end of the range with 3 percent QoQ CC revenue growth and is likely to maintain revenue guidance of 6-5-8.5 percent year on year in CC terms.

Brokerage: Ambit

Ambit expects large IT companies to report revenue growth in the range of 3.6 percent decline to 2.7 percent growth. The dollar revenue performance should be in the range of 1.3 percent decline to 3.6 percent growth. Rise in rupee, wage hike and visa costs will result in upto 130 bps margin compression. Further, it expects mid-sized companies to report revenue growth of 1-4.2 percent, while there could be a margin compression of up to 190 basis points. It expects Infosys and HCL Technologies to retain FY18 guidance, while Infosys and Persistent will outperform peers on growth.

FMCG

Brokerage: Ambit

Ambit believes that FMCG’s downward trend may reverse from the second half of FY18 post the earnings being on a downward spiral for the past five years. It expects EPS CAGR of 17 percent for FY17-20 against 11 percent over FY14-17. Record valuation of 38x FY19e P/E factors in this recovery. Most FMCG companies may grow at an unlikely 15-20 percent CAGR for 20 years. Dabur and United Spirits are its top buys, while for other names, a recovery could coincide with mean reversion in multiples.





Labels:

Comments

Post a Comment

Popular posts from this blog

GST likely to prop operating margins of multiplex players by 250 bps: ICRA

The Goods and Services Tax (GST) is expected to be positive for multiplexes. The Goods and Services Tax (GST) is expected to be positive for multiplexes. This is primarily owing to the input tax credit (ITC) expected on the fixed costs that a multiplex incurs like rental, CAM, electricity, etc., says an ICRA note. GST has been fixed at the rate of 28% for tickets priced over Rs. 100 and 18% for tickets priced less than Rs. 100 for the movie exhibition industry. Though it is higher than the industry’s expectation of a standard rate of 18%, thereby toning down the previously expected positive impact on the industry’s margins, on a net level, the impact still is expected to be positive. According to Mr. Shubham Jain, Vice President and Sector Head, ICRA “The new simplified GST for the multiplex industry will facilitate players to conduct their business. So far, the industry has been operating under differential tax regimes across states. Overall, we expect the impact of GST to be po
Post a Comment
Read more

Investors who wager on Trump boom are bailing, says international funding guru Mark Mobius

As it turns out, I think money is more than likely now chickening out the U.S., taking one of the vital earnings out of the U.S.," the manager chairman of Templeton rising Markets team mentioned on "Squawk on the road. Buyers expecting an economic increase underneath President Donald Trump are now bailing and taking their money in a foreign country, world funding guru Mark Mobius advised CNBC on Tuesday. "As it turns out, I feel money is more than likely now chickening out the U.S., taking one of the vital income out of the U.S.," the chief chairman of Templeton rising Markets crew mentioned on "Squawk on the street." "The U.S. market remains to be doing as well ... however generally speaking, i feel persons are taking some profits and placing it into the in a foreign country markets, including rising markets," said Mobius, as some of Trump's legislative priorities — such as eliminating Obamacare and reforming the U.S. tax code — ha
Post a Comment
Read more

Asian shares tick up as traders search for proof of 'goldilocks'

MSCI's broadest index of Asia-Pacific shares outdoor Japan was up 0.1 %, whereas Tokyo's Nikkei rose 0.4 percent. Asian shares ticked up in early Tuesday alternate as buyers regarded to a barrage of economic information around the globe to substantiate latest indicators the global economy is in tough health with inflation staying smartly contained. MSCI's broadest index of Asia-Pacific shares outdoor Japan used to be up 0.1 % while Tokyo's Nikkei rose 0.4 %. On Wall street, the Dow Jones Industrial moderate rose0.28 % to finish at a record high of 21,891.12 but the Nasdaq Composite pulled back 0.42 % after recent rallies. MSCI ACWI , an index of the world's stock markets, logged its ninth consecutive month of positive aspects in July on the again of expectations of stable international financial increase. On the other hand, softening US inflation in up to date months triggered investors to wager the Federal Reserve will undertake a affected person tech
Post a Comment
Read more