Stock Analysis, IPO, Mutual Funds, Bonds & More

Analyst Calls: SBI, Tata Global, L&T, Ipca Lab

Axis Capital has maintained its ‘buy’ rating on SBI and raised their target price to Rs 400 from Rs 375.

ET Bureau|
Nov 27, 2019, 07.31 AM IST
Getty Images
stock market1-getty
Emkay Global has maintained ‘buy’ rating on Ipca Laboratories with a target price of Rs 1,200
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 4 points lower 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.

• Axis Capital has maintained its ‘buy’ rating on SBI and raised their target price to Rs 400 from Rs 375 citing improvement in bank’s RoAs/ RoEs with receding fears of NPL. The brokerage sees few tailwinds emerging for SBI in the medium term such as receded NPL concern, strong traction in subsidiary businesses and valuations, which now account for 40 per cent of SBI’s value and steady core business with better NIM. Shares of SBI ended flat at Rs 335.4 on Tuesday.

• Motilal Oswal has initiated a ‘buy’ on Tata Global Beverages with December 2021 target price of Rs 347. The merger of Tata Chemical’s consumer business increases contribution of the India business to consolidated profitability, which the brokerage believe provides stability to earnings and would be one of the factors for stock re-rating. The company plans to exit loss-making businesses and focus on cost control and scalable business opportunities. Shares declined 1.04 per cent to Rs 299.4.

• Ambit Capital has maintained a ‘sell’ rating on AIA Engineering with a target price of Rs 1334. AIA Engineering would need another round of capacity expansion as current levels would suffice until FY24, said Ambit. Next leg of expansion would happen outside current locations which have maxed out, driving higher capital expenditure, said Ambit. AIA Engineering provides steady volume growth, stable margins and high Average post tax Return on Capital Employed but lower payout ratios, the brokerage said. Shares ended down 2.8 per cent at Rs 1622 on Tuesday.

• Credit Suisse has downgraded Larsen & Toubro to ‘neutral’ from outperform and revised target price down to Rs 1460 from Rs 1750. The brokerage has downgraded the stock as macro continues to remain hostile in terms of gap in government finances from tax shortfall and continuing credit growth deceleration. L&T has meaningfully derated and that may continue based on the upcoming slowdown in EPC momentum, the brokerage said. Shares ended down 1.2 per cent at Rs 1362.9 on Tuesday.

• Emkay Global has maintained ‘buy’ rating on Ipca Laboratories with a target price of Rs 1,200 after the classification of the company’s Silvassa plant as Official Action Indicated (OAI) by the US FDA after inspection. The OAI status is on the expected lines and implies that the resolution process will take longer - unlikely by FY21, said Emkay. It is still unclear if Silvassa observations would cause any delay Shares of Ipca ended up 1.9 per cent at Rs 1122.4.

Also Read

Analyst Calls: Minda Industries, Colgate, Gail, IPCA Lab

Analyst Calls: Petronet, Ipca Lab, Maruti Suzuki, Marico

Stocks in the news: DHFL, IPCA Labs, Jet Airways, HDFC and Alkem Labs

Emkay Securities maintains buy on IPCA Lab, target price Rs 1,200

Add Your Comments
Commenting feature is disabled in your country/region.

Other useful Links

Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service