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Analyst Calls: RIL, JSPL, HCL Tech, L&T Finance

HDFC Securities maintained its Neutral rating on Reliance Industries with a target price of Rs 1,562.

ET Bureau|
Last Updated: Jan 21, 2020, 07.27 AM IST
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Emkay Securities has maintained its Sell rating on L&T Finance with a target price of Rs 98.
Good morning!

The domestic stock market on Tuesday showed early signs of a possible breakout from its consolidation range. And Nifty futures on Singapore traded 54.50 points lower this morning, signalling a weak start for Dalal Street.

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

• HDFC Securities maintained its Neutral rating on Reliance Industries with a target price of Rs 1,562. According to the brokerage, RIL posted underwhelming results in third quarter as operating profit reported was 10 per cent lower than HDFC Securities’ estimates. Weak margins across petrochemical products and higher operating expenses have impacted the earnings adversely. Further, the refining and petrochemical segments face demand slack, given the impending capacity additions in 2020. The stock closed at Rs 1,532, down 3.1 per cent on Monday.

• SBI Caps has maintained its Buy rating on Jindal Steel & Power with a target price of Rs 225. SBI Caps said global and domestic steel prices have surged since November 2019 on improving prospects of demand globally and domestically which is expected to help Jindal. The company has also showcased its ability to strengthen its balance sheet by reducing debt and it continues to be on a deleveraging path driven by the volume ramp-up. The stock closed at Rs 179, up 1.9 per cent on Monday.


• Anand Rathi Securities has maintained its buy rating on South Indian Bank with a target price of Rs 16. The brokerage expects the net interest margins of the bank to remain flat in the near term given the bank’s inclination to the secured retail and SME portfolios. However, the brokerage expects the credit costs of the bank to normalize on account of asset quality stablisation and lower slippages. Lumpy delinquencies from the corporate book are however negatives to look out for in the stock. The stocj closed at Rs 11.1, up 1.3 per cent on Monday.

• Centrum has maintained its Add rating on HCL Technologies with a target price of Rs 650. The brokerage said HCL’s third quarter results were in-line with analyst estimates on revenue front but HCL outperformed in terms of margins. Led by steady execution, HCL has also raised its constant currency revenue growth guidance. Steady margin expansion along with improvement in payouts is positives for the stock. The stock closed at Rs 588, down 1.6 per cent on Monday.

• Emkay Securities has maintained its Sell rating on L&T Finance with a target price of Rs 98. The brokerage said it remains skeptical about uncertainty and volatility in the business model of the company. Although the liability franchise is far superior to competitors, such volatility has impacted its cost of funds. It added that L&T Finance with a strong parentage and highquality liability franchise, has the ability to gain market share in an otherwise troubled sector. The stocj closed at Rs 117.7, down 7.5 per cent on Monday.

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