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Stock Analysis, IPO, Mutual Funds, Bonds & More

Analyst Calls: ICICI Securities, TVS Motor, Bharat Forge, Mastek, Kotak Bank

CLSA has maintained buy rating on ICICI Securities with a target price of Rs 310.

ET Bureau|
Jul 24, 2019, 07.35 AM IST
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IIFL recommended buying Kotak Mahindra Bank on further corrections with a target price of Rs 1,470.
Good morning!

The domestic stock market on Wednesday showed early signs of a possible breakout from its consolidation range. And Nifty futures on Singapore traded flat this morning, signalling a tepid start for Dalal Street.

As you head for the day’s trade, here is a compilation of overnight analyst calls on various stocks.

CLSA has maintained buy rating on ICICI Securities with a target price of Rs 310. For the June quarter, ICICI Securities reported a 15 per cent YoY drop in profit to due to weaker topline growth, but it was still ahead of our estimates, said CLSA. ICICI Bank’s 45 million debit card clients can provide a large funnel of clients to I-Sec, which has just 0.9 million active broking clients, said CLSA. Shares of ICICI Securities ended up 0.6 per cent at Rs 226 on Tuesday.
icici sec-graph

Reliance Securities has retained reduce rating on TVS Motor Company with a revised target price of Rs 351. In view of higher-than-expected slowdown in domestic twowheeler market, we reduce TVS Motor's volume and revenue estimates by 5-7 per cent for FY20 and FY21, said Reliance Securities. Considering competitive intensity in domestic and overseas markets, the brokerage has reiterated its recommendation. Shares of TVS Motor ended down 2.5 per cent at Rs 370.10 on Tuesday.

Edelweiss has maintained reduce rating on Bharat Forge and revised target price to Rs 410 from Rs 460. The cyclical impact of the global slowdown will overshadow the anticipated gradual benefits of diversification while most high-margin segments seem to be peaking out, the brokerage said. The domestic automotive segment continues to decelerate, it added. The brokerage has cut FY20 and FY21 EPS by 10 per cent each. Shares of Bharat Forge ended down 1.1 per cent at Rs 433 on Tuesday.

HDFC Securities has maintained its buy rating on Mastek with the target price of Rs 618 citing faster turnaround than expected and encouraging order book growth. Mastek is blessed with low exposure to legacy and can deliver 11.4/8.6 per cent GBP rev/EPS CAGR over FY19-21E, said the brokerage. Its stake in Majesco US and net cash provide additional comfort. Growth in UK public sector is expected to revive led by strong order backlog while wage hike will impact margins in Sep quarter. Shares of Bharat Forge declined 11 per cent at Rs 409 on Tuesday.

IIFL recommended buying Kotak Mahindra Bank on further corrections with a target price of Rs 1,470. Kotak Bank is well positioned versus peers due to higher capitalisation, a strong liability franchise and benign asset quality, which would allow it to gain further market share, said the brokerage. Consolidated profits would be further augmented by strong growth in the life insurance, asset management and investment banking subsidiaries. However, valuations remain expensive, according to IIFL. Shares of Kotak Bank gained 2.7 per cent to Rs 1,494 on Tuesday.
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